IKEA Launches Program to Support Direct Suppliers’ Access to 100% Renewable Electricity

IKEA, the renowned furniture retailer, is taking significant steps to reduce its carbon footprint by launching a program to enable its direct suppliers to access 100% renewable electricity. With its supplier base accounting for almost two-thirds of its carbon emissions, IKEA aims to achieve renewable energy throughout its value chain and contribute to limiting climate change to 1.5 degrees Celsius. The program will initially be implemented in Poland, China, and India, with a global roll-out planned thereafter.

Supporting Direct Supplier Access to Renewable Electricity:

IKEA’s program focuses on providing support and resources to nearly 1,600 direct suppliers, particularly in markets where accessing renewable energy is challenging. By facilitating renewable electricity procurement at supplier sites, IKEA aims to drive the transition to clean energy. The program will involve implementing local solutions such as bundled framework agreements and Power Purchase Agreements to ensure reliable and sustainable energy sources.

Emissions Reduction and Global Impact:

Through the program’s initial implementation in Poland, China, and India, IKEA estimates that it can achieve a significant emissions reduction of approximately 670 kilotons of CO2. This reduction corresponds to approximately 3% of IKEA’s total carbon footprint. The program aligns with the company’s broader sustainability goals, including an aim to reduce its own production greenhouse gas emissions by 80% by 2030 compared to 2016 levels.

Combining Initiatives for Comprehensive Impact:

IKEA’s program to support renewable electricity access for suppliers can be combined with its previously launched €100 million renewable energy financing package. This financing package was designed to address 100% of heating and 15% of electricity needs at supplier sites. By integrating these initiatives, IKEA is taking a comprehensive approach to driving sustainability across its value chain.

IKEA’s Renewable Energy Goals:

Currently, 51% of IKEA’s energy comes from renewable sources. The company aims to reach 100% renewable electricity by 2025 and achieve an absolute renewable energy supply by 2030. As a member of the 1.5°C Supply Chain Leaders, IKEA is committed to leading the way in reducing greenhouse gas emissions and inspiring positive change within the industry.

IKEA’s program to support its direct suppliers’ access to 100% renewable electricity represents a significant commitment to sustainability and emissions reduction. By leveraging its global influence and providing resources and solutions, IKEA is driving the transition to clean energy in markets where renewable access is limited. The program aligns with IKEA’s broader goals of reducing its carbon footprint and promoting renewable energy throughout its value chain. Through these initiatives, IKEA is demonstrating its commitment to addressing climate change and becoming a leader in sustainable practices within the furniture industry.

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