IKEA to Shift to Renewable Energy by 2020
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The world’s largest home-furniture retailer, IKEA, has announced plans to more than double its investment in renewable energy, with the aim of producing as much renewable energy as it consumes by 2020.
As part of its sustainability plan, IKEA will invest 1.5 billion euros ($1.95 billion) to meet its 2009 – 2015 renewable energy goal, up from an earlier commitment of 590 million euros.
The world’s largest home-furniture retailer, IKEA, has announced plans to more than double its investment in renewable energy, with the aim of producing as much renewable energy as it consumes by 2020.
As part of its sustainability plan, IKEA will invest 1.5 billion euros ($1.95 billion) to meet its 2009 – 2015 renewable energy goal, up from an earlier commitment of 590 million euros.
The Swedish-based group’s new sustainability strategy will include additional installations of rooftop solar panels as well as replacing 1.2 million incandescent light bulbs with 85 percent more efficient LED (light-emitting diodes) bulbs.
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IKEA already owns wind farms in six European countries and has 342,000 solar panels on its stores, warehouses and factories that currently generate 27 percent of the group’s electricity.
According to Steve Howard, IKEA’s chief sustainability officer, the investment will help the company get 70 percent of its energy consumption from renewable sources by 2015.
The company also aims to halve its greenhouse gas emissions from its operations by 2015, from 2010 levels.
“To secure our long-term energy supply is a fantastic use of the money we’ve put aside for a rainy day,” Howard said.
By 2020 IKEA would grow at least as many trees as it uses to make products such as beds or cupboards. Already, IKEA says it does not take wood from natural tropical forests, such as in the Amazon or the Congo basins.
Explaining that sustainability is becoming “more relevant” in today’s business environment, IKEA chief executive officer Mikael Ohlsson said:
[quote] By producing as much renewable energy as we use through the system, we contribute to development in society and make ourselves even more competitive. [/quote]
Environmental groups backed IKEA’s policy shift, with John Sauven, head of Greenpeace UK saying the announcement “puts IKEA at the forefront of leading companies” trying to transform their businesses in the face of environmental threats.
Howard said:
[quote] Efficiency makes sense and it makes more sense now than ever before. We’ve got rising costs of raw materials and rising costs of energy and a really strong need to decarbonizes … Over the next few decades, this is the era of the sustainable business. [/quote]
IKEA also set stricter targets for palm oil, leather and cotton supplies and pledged to reduce waste and promote recycling, while tightening bans on child labour and strengthening workers’ rights.
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