Ikea Allocates €3B for Sustainability Investments

(3BL Media/Justmeans) – Some of the world’s leading companies are embracing the transition to a low-carbon economy, and are ready to back up their commitments with large investments in sustainability. Their efforts need to be matched by governments with well-designed policies to create enabling and long-lasting frameworks to drive change.

Ikea recently released its Sustainability Report for 2016, which showcased the company’s efforts to promote sustainable living to its customers through its People & Planet sustainability program. Alongside the release of the report, the company also announced a new €1 billion support fund, taking total funding for sustainability initiatives to more than €3 billion.

Ikea’s chief sustainability officer Steve Howard said that the company has made significant progress towards its People & Planet targets, and wants to lead with passion and purpose towards a more sustainable and equal world.

The sustainability funding has seen €1.5 billion invested in wind and solar projects since 2009. The company has also allocated €600 million for further investments into renewable energy. The company’s flagship goal to produce renewable energy corresponding to the amount of energy it uses by 2020 currently sits at 71 percent.

Ikea’s People & Planet Positive strategy also places an emphasis on making consumer lives more sustainable. Alongside offering the 'sustainable life at home' products, Ikea now offers residential solar arrays to consumers in three countries, and transformed its entire lighting range to LEDs in 2016, selling almost 80 million bulbs in the process.

Ikea currently sources 61 percent of all cotton and wood used in its products from the Better Cotton Standard and FSC certified suppliers. The company is also striving to phase-out oil-based expanded polystyrene (EPS) in IKEA flat packs, replacing it with fiber-based, fully recyclable materials.

By 2020, the company hopes that 100 percent of the material in its plastic products will be renewable or recyclable. Furthermore, 98 percent of all its home furnishing materials, including packaging, are already renewable, or recyclable, or made from recycled material.

Currently, 96 percent of all palm oil used by Ikea can be traced back to certified suppliers. All of Ikea’s seafood is also certified, although there is no certified crayfish available globally.

Source and Image: Edie