IKEA to invest 200 million euros in race to turn 'climate positive'

IKEA to invest 200 million euros in race to turn 'climate positive'

IKEA, the world's biggest furniture group, said on Wednesday it would spend around 100 million euros (US$110 million) on supporting its direct suppliers in moving over to renewable energy.

FILE PHOTO: Customers walk by a placard reading "Act Now" as they leave the IKEA store in
FILE PHOTO: Customers walk by a placard reading "Act Now" as they leave the IKEA store in Kaarst near Duesseldorf, Germany, April 3, 2019. REUTERS/Wolfgang Rattay/File Photo

STOCKHOLM: IKEA, the world's biggest furniture group, said on Wednesday it would spend around 100 million euros (US$110 million) on supporting its direct suppliers in moving over to renewable energy.

Brand owner Inter IKEA, which is in charge of supply, said it also planned to invest around 100 million euros in projects to remove carbon from the atmosphere through reforestation and forest protection.

It said the new investments would be part of its work towards IKEA becoming climate positive - to cut more greenhouse gas emissions than the IKEA value chain emits - by 2030.

The target includes its around 1,000 direct suppliers. IKEA produces around 10per cent of its range itself and sources the rest from suppliers.

In September Ingka Group, which owns most IKEA stores, pledged to exceed its 2020 target to produce as much renewable energy as the energy it consumes by the year's end.

More than 400 firms including IKEA, H&M, Coca-Cola and Sony have committed to a U.N.-backed initiative to help limit global warming to below 2 degrees Celsius.

(Reporting by Anna Ringstrom, editing by Louise Heavens)

Source: Reuters

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