Energy Efficiency, GHG Emissions, Industrial, Solar  -  November 15, 2024

Ingka Group Invests EUR 1.5B for Energy Efficiency

Ingka Group, the largest IKEA retailer, is investing EUR 1.5 billion as part of its renewable energy transformation to phase out the direct use of fossil fuels. 

The company will invest in energy efficiency improvements and renewable heating and cooling technology as part of its goal to lower its climate footprint from its own operations by 85% by 2030 from a 2016 baseline. This is in addition to the company's already committed EUR 7.5 billion investment in off-site renewable energy production and technologies.

The additional investment is part of the company’s commitment to decarbonize its operations and value chain and will be used to accelerate ongoing efforts to retrofit IKEA units with energy efficiency upgrades and renewable heating and cooling. All new units will be built with renewable heating and cooling, and work is already underway to retrofit 150 existing properties.

“Ending our reliance on fossil fuels is essential to tackling the climate crisis and halving global emissions by 2030. At IKEA, we started our journey in 2009 and have invested heavily in both on- and offsite renewable energy production to enable the transition. We have already reduced emissions across our IKEA stores by 60.4% since 2016 and 96% of our retail sites now use renewable electricity. The future of energy must be renewable, and this additional investment will enable us to reduce our carbon emissions, increase efficiency and lower costs in the long term. It’s also good for business — a win-win,” said Jesper Brodin, CEO, Ingka Group, in a statement.

The Ingka Group has already lowered its overall emissions by 24.3% against a 30.9% increase in revenue with a FY16 baseline.  Heating and cooling are currently the largest drivers of emissions within Ingka’s own operations category.

To date, Ingka Group's investment arm, Ingka Investments, has already invested and committed to over EUR 4 billion in off-site renewable energy, making it a mid-sized renewable energy production company.

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