Furnishing and homewares giant IKEA recently announced a further AUD $1.46 billion investment in renewable energy and assisting communities most impacted by climate change.
Of that figure, EUR 600 million (approximately AUD $874 million) will go towards renewables.
“Climate change is one of the world’s biggest challenges and we need bold commitments and action to find a solution,” said Peter Agnefjäll, President and CEO, IKEA Group.
“That’s why we are going all in to transform our business, to ensure that it is fit for the future and we can have a positive impact. This includes going 100% for renewable energy, by investing in wind and solar, and converting all our lighting products to affordable LED bulbs, helping many millions of households to live a more sustainable life at home.”
Approximately EUR500 million will spent on wind energy and around EUR 100 million will be invested in solar power systems.
Last year, the company generated renewable energy equivalent to 42% of its total consumption and says it is on track to be running on 100% renewables by 2020.
IKEA has installed over 700,000 solar panels to date, including REC Peak Energy solar modules, at some of its stores. IKEA has also started dabbling in wind power. Last year, the company purchased a 98-MW wind farm in Illinois and a 165-MW Texas wind facility.
Not including this latest commitment, IKEA Group has invested EUR 1.5 billion (approximately AUD $2.18 billion) in wind energy and solar power since 2009 and the company has already committed to own and operate 314 offsite wind turbines.
In addition to its own efforts internally, IKEA has also been pushing its suppliers to green up through its Suppliers Go Renewable project. The company says last year it achieved a 19% increase in energy efficiency and an 11% reduction in carbon emissions associated with its tier 1 home furnishing suppliers compared with FY12.
“We made great progress in FY14, but we’ve got a lot more to do,” said Steve Howard, Chief Sustainability Officer, IKEA Group in the company’s 2014 Sustainability Report. “We have a huge opportunity to make a positive difference for people and the planet, and when we all work together, there is no limit to what we can achieve.”
