Sustainable Development

IKEA thinks it'll produce more energy than it consumes by next year

A rooftop panel system is shown on the roof of a new IKEA store in Burbank, California, U.S., June 19, 2017.  Photo taken June 19, 2017.  REUTERS/Nichola Groom - RC1B1D980280

It announced this week the acquisition of a 49% stake in two U.S. solar parks. Image: REUTERS/Nichola Groom

Anna Ringstrom
Journalist, Reuters
Share:
Our Impact
What's the World Economic Forum doing to accelerate action on Sustainable Development?
The Big Picture
Explore and monitor how Sustainable Development is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
Stay up to date:

Sustainable Development

Ingka Group, which owns most IKEA stores, will by year’s end exceed its 2020 target to produce as much renewable energy as the energy it consumes, Ingka Chief Executive Jesper Brodin has announced.

Ingka Group has spent 2.5 billion euros ($2.8 bln) over the past decade on wind farms, rooftop solar panels on its stores and warehouses and, most recently, on its first-ever off-site solar parks, the company said.

It announced last week the acquisition of a 49% stake in two U.S. solar parks due to come into operation in coming months. Ikea is the world’s biggest furniture group; Ingka Group owns most of its retail operations.

Have you read?

Brodin told Reuters that Ingka plans to go on investing in wind farms and solar parks. He said it was good business.

“Being climate smart is not an added cost. It’s actually smart business and what the business model of the future will look like ... Everything around fossil fuels and daft use of resources will be expensive,” he said.

Brodin urged companies and government leaders at Monday’s United Nations-hosted Climate Action Summit in New York to commit to limiting global warming to 1.5 degrees Celsius (2.7 Fahrenheit), as called for by scientists.

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.

Ingka said its renewable energy power now equals more than 1.7 gigawatts (GW)of power - spread over 920,000 solar modules on its sites, 534 wind turbines in 14 countries and the 700,000 solar panels under construction in the United States.

Its two single-biggest investments to date are the 2014 acquisition of a U.S. wind farm for $300 million, and that in 2019 of a stake in a wind farm offshore Germany for more than 200 million euros, an Ingka spokeswoman said.

Ingka, formerly IKEA Group, owns 367 IKEA stores, 23 smaller-format showrooms and 44 shopping centres in 30 markets. It said on Thursday it would roll out its residential solar panel offering in stores to all its markets by 2025, from seven markets currently.

Franchisor Inter IKEA, which is also in charge of product development and supply, aims for IKEA as a whole to be climate positive - to reduce more greenhouse gas emissions than the IKEA value chain emits - by 2030.

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Related topics:
Sustainable DevelopmentClimate Change
Share:
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

'It's now cheaper to save the world than destroy it': author Akshat Rathi on Climate Capitalism 

Robin Pomeroy and Sophia Akram

April 10, 2024

About Us

Events

Media

Partners & Members

  • Join Us

Language Editions

Privacy Policy & Terms of Service

© 2024 World Economic Forum