In the run up to Earth Day, the largest IKEA retailer, Ingka Group, announced that it will accelerate its investments in renewable energy by an additional € 4 billion ($4.82 billion) to support the transition towards a renewable energy future. The investment will be used towards supporting the company's climate footprint and its transition to a net-zero society.
Investing in renewable energy is not something new to Ingka. In the past decade, the Group has invested € 2.5 billion ($3.02 billion) into renewable energy in onsite and offsite wind and solar power. This had enabled the company to generate more renewable energy globally than it consumes.
Speaking about the investment, Jesper Brodin, CEO of Ingka Group, said, "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 actions and 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."
Adding to this, Pia Heidenmark Cook, Chief Sustainability Officer at Ingka Group, said, "Using renewable energy across our operations and value chain is a significant part of delivering on our science-based targets and commitment to the Paris Agreement. We have already come a long way, and in this critical decade we need to come together to accelerate a just transition to a society powered by renewable energy."
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.
Last year, Ingka Group acquired a 49% stake each in two Solar PV Projects Of Copenhagen Infrastructure Partners in Utah & Texas, US. This acquisition was important because it would allow the group to produce more energy than it consumes (see IKEA Owner to Produce More RE Than Needed). More recently, the Group acquired a 49% stake in eight solar PV parks representing a combined capacity of 160 MW in Russia (see Russian IKEA Shops Powered by Own Solar Systems).