Energy Efficiency, GHG Emissions, Commercial, Sourcing Renewables - December 2, 2019
IKEA invests 200 million euros into supply chain sustainability
Inter IKEA Group will be investing 200 million euros into integrating renewable energy into its supply chain and into forest management practices in pursuit of its goal to become a climate-positive business.
IKEA has previously announced its intention to use 100% renewable energy in its production, which accounts for more than half of its climate footprint, by 2030. The company intends to collaborate directly with suppliers to accomplish this goal.
“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,” Torbjörn Lööf, CEO at Inter IKEA Group said in a statement. “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.”
The second part of IKEA’s 200 million investment includes supporting projects such as reforestation and responsible forest management, as wood is one of the main materials used in IKEA’s production cycle. A major part of the effort will be combatting deforestation and support the restoration of degraded land.
“We believe that the best way to minimize 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,” Lena Pripp-Kovac, Chief Sustainability Officer, said. “We can make a positive difference through our integrated supply chain, our global presence and our forest and climate expertise.”