Ikea Foundation to spend €1bn on climate programs within five years
Retail giant Ikea's charitable arm has outlined plans to spend an additional €1bn on initiatives supporting the low-carbon transition within five years.
The funding, announced to mark Earth Day, will be used to support renewable energy programs, with a focus on communities that are currently highly dependent on fossil fuels. It will be allocated to generation, distribution and energy access.
Ikea Foundation had already committed €500m to climate mitigation and adaptation by 2025. This was an increase on the €368m spent between 2014 and 2020. However, the organisation said in a statement that “now more than ever, governments, other funders and businesses need to increase their efforts to reduce greenhouse gas emissions”.
“Our renewed climate commitment aims to inspire others to step up in their ambition to safeguard our environment while improving livelihoods at the same time,” Ikea Foundation chief executive Per Heggenes said.
“We need everyone to play their part if we are to change course towards bright futures on a liveable planet.”
The announcement from Ikea Foundation comes shortly after Ikea’s corporate owner, Ingka Group, announced a decision to increase renewable energy investment from €2.5bn to €6.5bn.
As of 2020, Ingka Group achieved its vision to source and generate more renewable energy than it consumed.
Ikea’s global estate of warehouses and stores now plays host to more than 920,000 solar panels as of January 2021. The business also has stakes in – or full ownership of – a total of 547 wind turbines and two large-scale, offsite solar farms.
The renewable electricity target forms part of Ikea’s wider “People and Planet Positive” strategy. First published in 2018, the strategy also includes commitments to remove single-use plastic packaging and to switch to only renewable and recycled materials by 2030. Ingka Group is also understood to be placing increased focus on decarbonising heating in stores and warehouses, and assessing staff pensions to ensure providers share the company’s climate ambitions.
Overall, Ingka Group put aside €600m for sustainability-related activities between September 2020 and September 2021.
To find out more about which businesses have set which new climate targets to mark Earth Day 2021, you can read edie’s roundup here.