Ikea’s parent company Ingka Group has extended its commitments for eco stores, setting aside £171 million in green energy and sustainable practices.
The furniture retailer will be spending half of that fund on renewable energy projects to support heating and cooling, as well as power.
Ingka said it would do this in partnerships with its suppliers and areas of its supply chain that are traditionally difficult to bring in sustainable measures, such as textile and glass production.
The other half of its £171 million investment will be spent on reforestation to help increase carbon sequestration through trees.
Ingka plans for its reforestation projects to take place in tropical and subtropical areas.
Back in September Ingka Group bought a majority stake in seven windfarms in a deal worth €136 million (£120.5 million) as part of its “climate positive ambition”.
Ingka will own an 80 per cent stake in seven Romanian windfarms if the deal receives regulatory approval, including a total of 64 wind turbines creating 171 megawatts of power.
According to Ikea, this is enough to power 65 Ikea stores or 150,000 Romanian households, and exceeds the electricity consumption of Ikea’s supple chain in the region.
Ingka now believes it will generate more renewable energy than it consumes by the end of next year, thanks to €2.5 billion (£2.2 billion) in investments over the last decade.
Renewable energy investments will enable the retailer to become “climate positive”, ensuring its business is run on 100 per cent renewable electricity across its retail operations in 30 countries by 2025, and entirely phase out fossil fuel heating and cooling by 2030.