IKEA Group's corporate climate action in India

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8 August 2018

As IKEA Group opens its first store in India, it brings with it electric vehicle and renewable power solutions. 

A member of The Climate Group’s RE100 and EV100 initiatives, the retail giant has committed to source 100% renewable energy by 2020 and to transition to electric vehicles across its entire global fleet by 2030.

Within the first year of opening its store in Hyderabad, India, IKEA Group will transition 20% of its local delivery fleet to electric vehicles whilst also installing on-site solar rooftop panels on the store to power its operations.

“It is exciting to see that IKEA's first store has already installed 4,000 solar panels, while the company plans to make one fifth of its delivery fleet electric” said Jarnail Singh, India Director, The Climate Group.

“This is a significant addition to their long-term efforts on a sustainable supply chain, and it’s fantastic for customers to know that their merchandise is produced and delivered without much harm to the planet. We look forward to seeing them achieve their RE100 and EV100 goals in India, sooner than stated.”

Expanding leadership in new regions

IKEA’s expansion into India comes at a crucial time as the Telangana state government pushes for scaling up renewable power alongside a comprehensive policy on electric vehicles. By opening a store in Hyderabad, the company is supporting the wider shift to clean, accessible and connected energy and mobility taking off in India.

The company plans to build new stores in other Indian cities, starting with the Navi Mumbai store which is expected to open in 2019. So far, IKEA Group has purchased four land sites in the states of Telangana, Maharashtra, Karnataka and Delhi/NCR. This expansion will not only accelerate the transition to clean energy technologies and the transport systems of the future, but also contribute to lowering pollution levels in Indian cities.

Corporate leadership for the future

IKEA Group was one of the first companies to join EV100, an initiative by The Climate Group to make electric transport the new normal by 2030. Under this commitment, the company has already installed EV charging stations at half of its global stores.

The furniture giant is also a founding member of RE100, led by The Climate Group in partnership with CDP, which brings together companies to accelerate the demand for – and delivery of – renewable energy. Under RE100, IKEA Group has installed around 750.000 solar panels on its buildings.

The company is also working with its supply chain to accelerate renewable energy uptake even further. Close collaboration with partners is key to transitioning IKEA Group’s fleet to electric vehicles as well, and whilst building its store in Hyderabad, the company engaged closely with local manufacturers, charging developers and policy makers. The outcome will be a practical and scalable model for electric vehicles which can be integrated with renewable power, ensuring the electric vehicles fleet can also run on clean power.

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