‘The cost of inaction is just too high’: IKEA to ramp up €4bn clean tech push

'The cost of inaction is just too high': IKEA to ramp up €4bn clean tech push

Ingka Group, which owns most IKEA supermarkets worldwide, intensifies efforts to power entire value chain with its own renewables capacity

IKEA’s largest global dealership owned has announced plans to inject an additional EUR4bn into scaling up the deployment of renewable power campaigns by the end of the decade, with its focus on expanding its wind and solar power capacity into new countries in order to power its sales outlet and significance chain.

Ingka Group, which operates 389 IKEA places across 32 countries, has already invested EUR2. 5bn in onsite renewables over the past decade. It this week announced it is to ramp up its light-green investment programme, blaming an additional EUR4bn to the programme through to 2030 in a move that would edge it closer towards powering its entire value chain with 100 per cent renewable power.

In total, the company now owns almost 550 breeze turbines, 10 solar ballparks, and 935,000 solar battery, amounting to a total 1.7 GW of renewable power capacity, having earlier this month announced the acquisition of a 48 per cent stake in eight solar ballparks totalling 160 MW in Russia.

As well as wind and solar power, the added EUR4bn announced on Wednesday is to be invested in energy storage projects, energy efficiency acts, electrical vehicle billing points, and hydrogen powered delivery vans, according to Ingka Group.

The holding company’s CEO Jesper Brodin said the need to tackle climate change procreated the 2020 s “the most important decade in the history of mankind”, and that the “costs of inaction is just too high and raises substantial gambles to our business and humanity”.

“We know that with the right activities and investments we can be part of the solution and reduce the impact on the dwelling we share – our planet – while future proofing our business, ” he said. “For us, it is good business to be a good business.”

The announcement forms part of IKEA’s broader goal to become a ‘climate positive’ business by reducing more greenhouse gas radiations rather than to ejected across the furniture retail giant’s entire value chain by 2030, while delivering science-based CO2 reductions and investing in natural carbon storage projects.

“Using renewable energy across our operations and value chain is a significant part of delivering on our science-based targets and commitment to the Paris Agreement, ” said Pia Heidenmark Cook, Ingka Group’s chief sustainability officer. “We have already come a long way, and in this critical decade we need to come together to accelerate a only transition to a society powered by renewable energy.”

Meanwhile, the IKEA Foundation – which is funded by the Ingka Foundation that in turn owns the Ingka Group – has the coming week separately pledged to invest an additional EUR1bn on climate programmes over the next five years in an attempt to drive down greenhouse gas emissions.

The funding is being funnelled towards renewable energy initiatives, such as replacing polluting sources of energy with clean alternatives and providing access to energy for communities, as one of the purposes of an approaching IKEA Foundation said would open further funding to help accelerate the exertion transition.

The new commitment comes in addition to the EUR5 00 m the IKEA Foundation had already guaranteed to spend on environment mitigation and adaptation programmes over the next five years, following its EUR3 68 m funding for climate programmes between 2014 and 2020.

Per Heggenes, CEO of the IKEA Foundation, said the aim was to support programmes that could deliver decarbonisation fast and efficiently, and that he hoped the renewed commitment would “inspire others to step up their ambition to safeguard our environment, while improving supports at the same time”.

“We need everyone to play their part if we are to change course towards bright futures on a liveable planet, ” he added.

Read more: businessgreen.com

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