In connection with COP25, Inter IKEA Group announces the decision to invest 200 million euros to speed up the transformation to become a climate positive business. The investment will focus on two portfolios – one to transform the IKEA supply chain into using renewable energy, and one to remove carbon from the atmosphere through reforestation, restoration of degraded forests and better forest management practices.
More than half of the IKEA climate footprint comes from materials in the products and production.
“Our ambition is to reduce more greenhouse gas emissions in absolute terms by 2030 than the entire IKEA value chain emits, while growing the IKEA business. To reach this goal, we will continue to invest in areas that create impact. This investment will speed up the transition to using renewable energy across our supply chain and remove carbon from the atmosphere through reforestation and better forest management practices”, says Torbjörn Lööf, CEO at Inter IKEA Group.
The first portfolio will support the ambition to use 100% renewable energy (electricity, heating, cooling and other fuels) in production by 2030. It will be built on collaboration with direct suppliers.
The second portfolio will invest in projects aimed at removing and storing carbon through reforestation and responsible forest management. Wood is one of the main materials that IKEA uses and for many years IKEA has worked to promote responsible forest management around the world. Responsibly managed forests play a vital role in protecting ecosystems, supporting biodiversity and climate change mitigation.
The projects in the second portfolio will be built on collaboration with partners to achieve scale and maximum impact. The projects will consider the wider aspect of land use and include activities to combat deforestation and support restoration of degraded land. According to the IPCC, global greenhouse gas emissions would be heavily reduced if deforestation was stopped.
“We believe that the best way to minimise our climate impact and to contribute to limiting climate change to 1.5°C is mainly by reducing our greenhouse gas emissions – but we also need to remove existing carbon from the atmosphere. We can make a positive difference through our integrated supply chain, our global presence and our forest and climate expertise,” says Lena Pripp-Kovac, Chief Sustainability Officer, Inter IKEA Group.
“By taking responsibility and working together we can make a true change. We have a long-term perspective and the financial strength to invest in activities that will benefit both the planet and our own business future,” says Torbjörn Lööf.