The Netherlands-based furniture manufacturer Inter IKEA Group will be investing €200 million to fast-track the transformation of its business into a climate-positive operation, as part of its COP25 commitment.
“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… 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,” CEO at Inter IKEA Group, Torbjörn Lööf, explained.
With more than half of IKEA’s climate footprint coming from materials in its products and production, the chief executive said the group will continue to identify areas in which it can invest to reduce impact on the environment.
“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.”— Inter IKEA Group CEO Torbjörn Lööf
The investment will focus on two key areas, the first of which will be geared toward using 100 per cent renewable energy — electricity, heating, cooling, etc — in IKEA’s production supply chain. The company said it aims to achieve this goal by partnering with its direct suppliers.
Secondly, IKEA will invest in projects aimed at removing and storing carbon through reforestation, restoration of degraded forests and better forest management practices. This will aid the company’s efforts to protect the ecosystem, support biodiversity and enhance the mitigation of rapid climate change, while take into account land use.
“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,” Lena Pripp-Kovac, Chief Sustainability Officer, Inter IKEA Group, remarked.
In addition, to complete these projects, IKEA will be depending upon collaboration with its partners “to achieve scale and maximum impact”.
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,” Lööf commented.