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Ingka Group increases its sustainability investments by 600M EUR over next 12 months

Image of a wind turbine with more turbines behind it in a green field with a blue sky in the background.

Ingka Group[1] (Ingka Holding B.V. and its controlled entities) will accelerate its sustainability investments in order to meet the IKEA overall commitment to becoming climate positive by 2030*. Over the coming year, the company has committed to invest an additional 600M EUR (more than $700M) into companies, solutions and its own operations to transition to a net-zero carbon economy. This increases its overall investments into sustainability to 3.8B EUR (more than $4.5B).

Since 2009, Ingka Group, through its investment arm Ingka Investments[2], has continued to invest in innovative companies that support its sustainability goals, including achieving its 100% renewable energy generation target. As the company takes the next step, it will focus on investing in companies and solutions that have a direct impact towards The Paris Agreement and the United Nations (UN) Sustainable Development Goals.

The company is implementing a zero fossil fuel approach to align with new updated environmental, social and governance (ESG) standards. In addition, a review of global and local pension funds across 31 countries will also be conducted, to ensure they align with ESG standards.

“We believe it’s good business to be a good business. Despite the significant challenges we’re facing in the world, we still have it in our own hands to change the direction of the climate crisis. We want to be part of the solution, which is why we will continue to focus our future investments to ensure a cleaner, greener and more inclusive recovery,” says Juvencio Maeztu, Deputy CEO and CFO Ingka Group.

Ingka Group is committed to taking climate action and further enabling the IKEA transition to becoming climate positive by 2030*. Earlier this year, IKEA announced that it had reduced the climate footprint by 4.3% while growing the IKEA business by 6.5%. The company currently owns 546 wind turbines in 14 countries, two solar farms with 1.5 million solar panels, and more than 920,000 solar panels on the roofs of IKEA stores and warehouses. These investments have contributed towards Ingka Group reaching its goal to produce as much renewable energy as it consumes.

“This highlights the role business can play in addressing the challenges of climate change. We must direct investments towards green technologies and solutions that are clean. Companies big and small have an important role to play and an opportunity to turn the challenges we face into solutions, as we build back better,” says Christiana Figueres, former Executive Secretary of the United Nations Framework Convention on Climate Change and speaker at the Ingka sustainability event, One Home, One Planet (OHOP).

IKEA is fully supportive of global climate commitments, including the EU Green Deal, urging the EU to build its recovery package to support and accelerate the transition towards a climate neutral and circular economy, and the Exponential Climate Action Roadmap** to halve greenhouse gas emissions in absolute terms by 2030.

Over the past few years, Ingka Group has also invested in and is collaborating with companies such as:

  • RetourMatras, a company that makes it possible to recycle more than 90% of the materials in a mattress,
  • Morssinkhof Rymoplast, a leading player in the European plastic recycling industry,
  • Winnow, a company that has developed an AI-enabled food waste tracking solution to help reduce food waste in commercial kitchens,
  • Aerofarms an indoor urban farming company,
  • Terramera working with bio-pesticides, and
  • Optoro, a provider of a software platform for reverse logistics for retailers.

This announcement was made at the Ingka Group virtual sustainability event, ONE HOME, ONE PLANET, a two day co-creation event with over 300 sustainable leaders, NGOs and business partners from many different parts of society working together to help develop, shape and find solutions to help to make a positive impact for customers, communities, co-workers and the planet.

Read more about Ingka Group’s sustainability performance and commitments in the new Annual & Sustainability Summary report: https://www.ingka.com/about-us/annual-and-sustainability-summary-reports/

Read more about the significant sustainable commitments IKEA U.S. is making to create a healthier planet: https://www.ikea.com/us/en/this-is-ikea/newsroom/ikea-retail-u-s-releases-the-2019-better-life-report-pubec899e89

For more information on the announcement, contact: Ingka Group Media Relations, press.office@ingka.com, +46 (0) 709 936376

*Becoming climate positive is about reducing more greenhouse gas emissions than what the IKEA value chain emits. IKEA will eliminate GHG emissions in line with The Paris Agreement, store carbon in land, plants and products, go beyond IKEA – by addressing a footprint larger than the IKEA value chain, take action together - engage with others to realize a 1.5°C world. Read more about the IKEA commitment here.

**The Exponential Climate Action Roadmap outlines the global economic transformation required by 2030 to meet The Paris Agreement on climate.

About Ingka Group
Ingka Group (Ingka Holding B.V. and its controlled entities) is one of 12 different groups of companies that own and operate IKEA retail under franchise agreements with Inter IKEA Systems B.V. Ingka Group has three business areas: IKEA Retail, Ingka Investments and Ingka Centers. Ingka Group is a strategic partner in the IKEA franchise system, operating 380 IKEA stores in 31 countries. These IKEA stores had 839 million visits during FY19 and 2.6 billion visits to www.IKEA.com. Ingka Group operates business under the IKEA vision - to create a better everyday life for the many people by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford it.

[1]Ingka Group is a strategic partner in the IKEA franchise system, operating 380 IKEA stores in 31 countries. Ingka Group has three business areas: IKEA Retail, Ingka Investments and Ingka Centres.
[2] Ingka Investments make strategic investments and acquisitions that secure our long-term financial strength and support the growth, business transformation and sustainability goals of Ingka Group.