Skip to main content
//empty //empty

People walk towards IKEA in Warrington as it re-opens, following the outbreak of COVID-19, Warrington, Britain, June 1, 2020.

PHIL NOBLE/Reuters

Ingka Group, the owner of most IKEA stores, plans 600 million euros (532.98 million pounds) in sustainability-related investments over the next 12 months as the world’s biggest furniture brand aims to be climate positive throughout its value chain by 2030.

The plan is to spend a third on renewable energy, a third on stakes in innovative start-ups, and a third on making its stores and warehouses more sustainable, Chief Financial Officer Juvencio Maeztu told Reuters.

Renewable energy in China and Russia is on the cards, as are companies that could be of help in increasing the reuse, resale and recycling of IKEA products. IKEA buildings that do not yet have renewable energy-powered heating and cooling would be retrofitted to that end, he added.

Story continues below advertisement

IKEA is made up of several companies. Ingka, a franchisee to Inter IKEA, besides its retail operations also invests in start-ups, renewable energy, forests and real estate.

IKEA’s target to reduce more greenhouse gas emissions than it emits by 2030 covers the entire value chain from the production of raw materials and products to stores through to customers’ use and disposal.

Over the past decade Ingka has spent 3.2 billion euros, or on average around 300 million a year, sustainability related investments, a spokeswoman said.

“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 UN Sustainable Development Goals,” Ingka said in a statement.

In the fiscal year through Aug. 2019, emissions shrank for the first time, by 4% to 25 million tonnes CO2 equivalents.

To reach the 2030 target, emissions need to come down to around 21 million tonnes.

Maeztu said in an interview that IKEA would be able to tell in a couple of months whether emissions shrank in the fiscal year which ended earlier this week.

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies