IKEA has expanded its renewable electricity programme to ten new markets: The Czech Republic, Germany, Italy, Lithuania, Portugal, Romania, Slovakia, Sweden, Türkiye, and Vietnam. The combined electricity consumption for production in these markets stands for 0.27 million tonnes CO2, or 13 per cent of the climate footprint from production.

The increased share of renewable electricity in production is one of the key contributors to why the total IKEA climate footprint decreased by 5 per cent in absolute terms in FY22, compared to FY21, and the addition of the new ten countries will accelerate this further.

Almost two-thirds of the IKEA climate footprint is directly connected to the supply chain, including production at suppliers.

“Striving towards 100 per cent renewable energy is critical to limit climate change to 1.5C. We know that many of our supply partners struggle to purchase 100 per cent renewable electricity and that only a part can be generated on-site. By working together, we have shown that it’s possible to make renewable electricity both accessible and more affordable. We hope this also inspires other businesses to support their suppliers in the same way,” said Andreas Rangel Ahrens, head of climate, Inter IKEA Group.

IKEA will provide local solutions, such as bundled framework agreements and Power Purchase Agreements to purchase renewable electricity from the grid, thus enabling its direct suppliers to consume 100 per cent renewable electricity in their production. This can cover the electricity demands of the supplier, which cannot be generated on-site.

IKEA joined the ‘1.5C Supply Chain Leaders’ initiative in 2021, where leading companies share their commitment and learnings from engaging their supply chains to limit climate change to 1.5C. The initiative is hosted by Exponential Roadmap Initiative, an official partner of the UNFCCC Race to Zero campaign that is rallying non-state actors to take rigorous and immediate action to halve global emissions by 2030.

Share Story: