IKEA Group has revealed plans to invest a further €1bn in securing long term supplies of sustainable materials by backing projects in forestry, recycling, renewable energy, and biomaterial development.
The retail giant today published its annual sustainability report for 2016, including plans for what IKEA refers to as a €1bn ‘financial frame’ focused on delivering more sustainable supplies of materials.
The company said the new investment takes total investments earmarked for sustainability programs in recent years to €3bn, including €1.5bn invested in wind and solar projects since 2009 and a further €600m allocated for future renewable energy projects.
The report also confirms IKEA Group brought new wind farms in Poland and US online in the past year, meaning it generated renewable energy equivalent to 71 per cent of its energy use in the past fiscal year. The company said the latest projects meant it had made “strong progress” towards its goal of producing as much energy as it consumes in its operations by 2020.
Peter Agnefjäll, president and CEO at IKEA Group, said there were “many opportunities ahead for forward-thinking businesses to contribute to, and benefit from, the development of the low-carbon economy”.
The report confirms that IKEA completed the switch of its entire lighting range to LEDs during 2016, while also launching home solar offers in three markets and sourcing all cotton and 61 per cent of wood used for IKEA products from more sustainable sources.
Steve Howard, chief sustainability officer at IKEA Group, said the company had made “significant progress” towards its People & Planet targets, but added that “there is still more to do”.
“We want to lead with passion and purpose towards a more sustainable and equal world,” he said.