Swedish home furnishing retailing major IKEA plans to launch a programin India, Poland and China this year, to help suppliers there transit to 100 per cent renewable electricity. Under this initiative, the company plans to invest and support nearly 1,600 direct suppliers
IKEA is striving for 100 per cent renewable energy throughout the entire value chain. By switching to renewable electricity, these suppliers will save 670,000 tonne of emissions per year, which is equivalent to approximately 3 per cent of the total climate footprint of the IKEA value chain, it added.
IKEA has around 50 suppliers in India and is one of the largest purchasing countries. The program supports IKEA's long-term commitment to become climate positive by 2030 by reducing more greenhouse gas emissions than the value chain emits, while growing the business.
Marius Martinatis, Purchasing Manager-South Asia, IKEA said, this initiative will help IKEA save precious resources and reduce the climate footprint.
IKEA suppliers presently 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 support suppliers to generate renewable energy on-site and enable them to purchase the remaining part from the grid.
Presently, IKEA has implemented 51 per cent renewable energy consumption in its stores, offices, warehouses, factories, and other operations. Its goal is to reach 100 per cent renewable electricity in 2025 and by 2030 secure that all remaining energy, such as heating and cooling, in renewable as well.