MUMBAI: Ingka Group, the largest IKEA retailer, announces in the run up to Earth Day that it will accelerate its investments in renewable energy by an additional 4 billion euro to support the transition towards a renewable energy future. The investment will support reducing the company’s climate footprint and a broader transition to a net-zero society.
In the past decade Ingka Group invested 2.5 billion euro into renewable energy in onsite and offsite wind and solar power enabling the company to generate more renewable energy globally than it consumes. Entering a critical decade for climate action this acceleration, by Ingka Investments, to 6.5 billion euro marks the next step towards 100% renewable energy across the value chain.
“We are in the most important decade in the history of humankind – climate change is no longer a distant threat, and we must all do our part to limit global warming to 1.5°C. The cost of inaction is just too high and brings substantial risks to our business and humanity. We know that with the right investments we can be part of the solution and reduce the impact on the home we share – our planet – while future proofing our business. For us, it is good business to be a good business,” says Jesper Brodin, CEO of Ingka Group.
Peter Betzel, CEO and CSO, IKEA India said, “India has tremendous renewable energy potential and IKEA aims to have all its stores, warehouses and shopping centres run entirely by renewable energy by 2025. Today, 85% of our energy requirement in India is supplied from external sources. We would like to secure current and future energy requirements from renewable energy sources. Ingka investments is considering India favourably for investments in renewable energy plants. A more stable policy environment will encourage more companies to shift to renewable energy and attract even more investments in the sector enabling a reduction in carbon footprint.”
IKEA is committed to the Paris Agreement and to contribute to limiting the global temperature rise to 1.5°C above pre-industrial levels through the IKEA climate positive ambition*. Switching to renewable energy while increasing energy efficiency, transitioning to circular business model, and enabling people to live within the boundaries of the planet, are key enablers for reducing emissions. The investments will focus on adding wind and solar projects in new countries, and the company will also consider new types of investments in areas such as energy storage, hydrogen fuel development and charging infrastructure. Ingka Group recently announced the acquisition of a 49% stake in 8 solar PV parks in Russia. The energy capacity of the parks equals 160 megawatts, which will provide enough electricity to power all 17 IKEA Stores in Russia plus part of the MEGA shopping centres based around the country.
Today, Ingka Group owns and manages 547 wind turbines, 10 solar parks in 15 countries and 935,000 solar panels on the roofs of IKEA stores and warehouses, bringing its total installed renewable energy power to more than 1.7 Gigawatt.
In addition, IKEA Foundation steps up its ambition in alignment with the Paris Agreement and commits an additional 1 billion euro over the next five years to reduce greenhouse gas emissions. This includes replacing polluting sources of energy with renewable ones and providing access to energy to communities.
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