In connection with the upcoming 2019 United Nations Climate Change Conference (COP25) in Madrid, Spain, Inter IKEA Group has announced that it will invest EUR 200 million to "speed up" the transformation to become a climate-positive business. The investment will focus on two portfolios – one to transform the IKEA supply chain into using renewable energy, and one to remove carbon from the atmosphere through reforestation, restoration of degraded forests and better forest management practices.
According to the company, more than half of the IKEA climate footprint comes from materials in the products and production.
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. 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, said Torbjörn Lööf, CEO at Inter IKEA Group.
The first portfolio will support the ambition to use 100 percent renewable energy – electricity, heating, cooling, and other fuels – in production by 2030. It will be built on collaboration with direct suppliers.
The second portfolio will invest in projects aimed at removing and storing carbon through reforestation and responsible forest management. Wood is one of the main materials that IKEA uses and for many years IKEA has worked to promote responsible forest management around the world.
Responsibly managed forests play a vital role in protecting ecosystems, supporting biodiversity and climate change mitigation.
The projects in the second portfolio will be built on collaboration with partners to achieve scale and maximum impact. The projects will consider the wider aspect of land use and include activities to combat deforestation and support the restoration of degraded land.
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, said Lena Pripp-Kovac, Chief Sustainability Officer, Inter IKEA Group.
According to the IPCC, global GHG emissions would be heavily reduced if deforestation was stopped.
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, ended Torbjörn Lööf.