Ikea pledges €200 million to cleaning up supply chain and production

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Source: Ikea

Ikea’s parent company has pledged €200 million (US$220 million) towards reforestation and reaching an aim of 100% renewable operations and supply chains by 2030.

Half of the investment package will go towards efforts to ensure production operations are powered entirely by renewable energy.

Inter IKEA Group spokesperson Josefin Thorrell told PV Tech that the money will support suppliers and their factories as they transition to renewables. The firm will prioritise textiles, ceramics, glass and metal treatment operations, “areas where we have the greatest impact and where it is difficult to convert to renewable energy.”

She added that promoting on-site renewable energy generation and new installations is central to the furniture giant reaching its 2030 renewable target.

“How large a share of the renewable energy will be generated on-site is too early to tell and depends on local pre-requisites, both country and industry. For example, all suppliers have the potential to install PV panels on-site, but it will on average only cover 15% of their electricity consumption,” Thorrell wrote in an email. “The remaining part either needs to be solved by another solution – for example, bioenergy boilers – or procured by power purchase agreements (PPAs), where available.”

The latter €100 million (US$110 million) will go towards removing and storing carbon through reforestation and responsible forest management. More than half of the flat-pack furniture behemoth's climate footprint is embedded in materials used for products and production, according to a company statement. Wood is one of the “main materials” that IKEA uses.

In September, Ikea's outlet owner Ingka Group bought a 49% stake in 403MW of utility-scale solar in Texas and Utah.

Founded in Sweden in 1943 by 17-year-old Ingvar Kamprad, Ikea has been the world's largest furniture retailer since 2008.

Read Next

June 21, 2021
Retail giant IKEA and the Rockefeller Foundation have today announced the creation of a US$1 billion initiative to catalyse investments in distributed renewable energy (DRE).
April 21, 2021
Ingka Group, a retailer that runs the majority of IKEA stores, has allocated an additional €4 billion (US$4.8 billion) to invest in solar and wind plants.
April 20, 2021
Amazon has announced plans for nine new utility-scale solar and wind projects in the US, Canada, Spain, Sweden and the UK, putting it on track to powering all its activities with renewables by 2025.
July 22, 2020
Microsoft has unveiled its single largest renewable energy portfolio investment through a new deal with US energy firm Sol Systems.
March 31, 2020
UK-headquartered solar developer Solarcentury has sold its residential solar arm to Svea Solar, allowing the firm to refocus its efforts entirely on utility-scale developments.
January 17, 2020
Technology giant eyes full renewable electricity supply by 2025, while food group sets same goal for US operations and financial services firm claims to have already reached it globally.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021