IKEA Group demonstrates business benefits of climate action

India has pledged to source 40% of its electricity from renewable and other low-carbon sources by 2030. In an attempt to tackle global warming, India became the last major economy, following 140 other countries including China, the US and the EU, to submit a climate change plan to the UN before international talks in Paris.

Speaking at the COP21 climate summit today, Peter Agnefjäll, President and CEO, IKEA Group, made the case for companies to take action:

“Urgent action is needed to tackle climate change – communities across the world and the success of business depend on it. That’s why IKEA Group is going all-in to be part of the solution. We see action on climate change as a driver of innovation, investment and renewal,” said Peter Agnefjäll, President and CEO, IKEA Group.

In June, IKEA Group and IKEA Foundation announced new commitments totalling EUR 1 billion to accelerate the transition to a low-carbon economy and to support the communities most impacted by climate change. IKEA Group aims to produce as much renewable energy as it consumes in its buildings by 2020 and has invested EUR 1.5 billion in wind and solar since 2009.

“We are investing in renewable energy because we want to have a positive impact and to accelerate the transition to a low-carbon economy. It also makes good business sense, giving us greater control over energy costs, and supports our vision to create a better everyday life for the many people,” said Peter Agnefjäll.

In September, IKEA completed the conversion of its entire lighting range to LED which uses up to 85% less energy than incandescent bulbs and last for up to 20 years. Speaking at an event at COP21 to launch the Global Lighting Challenge, Steve Howard, Chief Sustainability Officer, IKEA Group, highlighted the opportunity for companies that enable people to live more sustainably:

“Our customers are concerned about climate change and we know they will always choose more sustainable products if they are affordable and offer clear benefits. LED lighting is a great example – bringing significant energy savings compared to incandescent and lasting much longer. We’ve converted our whole lighting range to the technology and over the next 5 years until the end of 2020, our ambition is to have sold over 500 million LED bulbs to IKEA customers,” said Steve Howard.