IKEA has announced a significant expansion of its renewable electricity programme, adding 14 new countries, including the United States, to its initiative aimed at reducing supply chain emissions and achieving 100% renewable energy across its value chain. This move is part of IKEA’s larger commitment to become climate positive by 2030, which entails reducing more greenhouse gas (GHG) emissions than its value chain generates.
Electricity consumption constitutes approximately 36% of IKEA’s emissions from production, which accounts for about 7% of the company’s total climate footprint. To meet its ambitious climate targets, IKEA aims to secure 100% renewable energy—including electricity, heating, cooling, and fuels—by 2030, with a goal of achieving 100% renewable electricity consumption across its operations by 2025.
Sriram Rajagopal, Head of Climate and Air Quality at Inter IKEA Group, emphasized the importance of collaboration with suppliers in this transition: “We can make the shift towards using more renewable electricity easy, accessible, and affordable. This collaborative effort not only helps reduce our environmental impact but also empowers our suppliers to decarbonise their operations.”
Originally launched in 2021 in markets like China, India, and Poland, the renewable energy programme provides direct suppliers with local solutions, including bundled framework agreements and Power Purchase Agreements (PPAs) for purchasing renewable electricity from the grid at pre-negotiated prices. Following the success of the programme, which saw renewable electricity shares increase significantly, IKEA expanded its reach last year to include ten more markets, and now, with the latest expansion, includes countries such as Bangladesh, Brazil, Egypt, and more.
The results have been promising: the share of renewable electricity used in IKEA’s products has risen to 75%, up from 71% the year before. Susanne Waidzunas, Global Supply Manager at Inter IKEA Group, stated, “We have received great response from our partners since the launch of the programme and are excited to expand it further.”
This initiative marks a crucial step for IKEA towards producing its products with a lesser impact on the environment, reinforcing its commitment to sustainability.
Source: https://www.esgtoday.com/ikea-expands-program-to-support-suppliers-switch-to-100-renewable-energy/