IKEA to Accelerate Indian Suppliers' Transition to 100 pc Renewable Power
IKEA to Accelerate Indian Suppliers' Transition to 100 pc Renewable Power

IKEA, the world’s leading omnichannel Swedish home furnishings retailer, announced a new program in India, Poland, and China that supports nearly 1,600 direct suppliers to switch to 100 percent renewable electricity. The company is striving towards 100 percent renewable energy throughout the entire value chain.

The program will be introduced in 2021 for suppliers in Poland, China, and India, who represent three of IKEA’s largest purchasing countries, followed by a stepwise global roll-out. Achieving 100 percent renewable electricity with these suppliers will save 670.000 tonnes of CO2 emissions per year, equivalent to approximately 3 percent of the total climate footprint of the IKEA value chain.

Henrik Elm, Global Supply Manager, Inter IKEA Group, said, “India is one of IKEA’s largest purchasing countries, and we are excited to adopt this program in this market. The program is a critical contribution to reach our science-based targets that are aligned with the 1.5°C ambition and supports the IKEA long-term commitment to become climate positive by 2030 by reducing more greenhouse gas emissions than the value chain emits, while growing the IKEA business. We have a long-term perspective and the financial strength to invest in activities and support our suppliers to have a positive impact on people and the planet. By working together, we can make renewable electricity both more affordable and accessible.” 

Henrik Elm, Global Supply Manager, Inter IKEA Group, stated, “Together with our direct suppliers we will take the necessary steps and contribute to limit climate change to 1.5°C. We have a long-term perspective and the financial strength to invest in activities and support our suppliers to have a positive impact on people and the planet. By working together, we can make renewable electricity both more affordable and accessible.” 

Marius Martinaitis, Purchasing Manager, IKEA South Asia, added, “At IKEA, becoming people and planet positive is an integral part of how we do business at every step. With this initiative in collaboration with our valuable partners, we will save precious resources and reduce the climate footprint. We have 50 direct suppliers with more than 400.000 co-workers in the Indian supply chain.” 

IKEA suppliers cannot generate all their renewable electricity on-site, a majority still needs to be bought from the grid. Through this program, IKEA will have a complete offer to both support suppliers to generate renewable energy on-site and enable them to purchase the remaining part from the grid. 

In addition, IKEA will continue to lead by example through its own operations. Already today, 51 percent of renewable energy consumption in IKEA stores, offices, warehouses, factories, and other operations is implemented. The goal is to reach 100 percent renewable electricity in 2025 and by 2030 secure that all remaining energy, such as heating and cooling, is renewable as well.

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