IKEA sells more than €1 billion sustainable products

Author:
Ilario D'Amato
Reading time: 4 minutes
6 February 2015

LONDON: IKEA group has passed the milestone of €1 billion (US$1.13 billion) in the sales of its sustainable products.

The important achievement comes as part of the company’s strategy ‘People & Planet Positive’, which aims to promote a more sustainable life, and is documented in its new report on the last financial year.

In IKEA’s last financial year, the sales for sustainable products totaled €1,015 million (US$1,150 million) – an increase of 58% compared with the €641 million (US$726 million) achieved in the previous year.

In particular, 75% of all lighting products sold by IKEA were LED or compatible with LED bulbs. Lightning accounts for almost a fifth of global electricity consumption, and LED technology (which stands for light-emitting diode) saves up to 80% the energy of conventional lights and lasts 20 times longer. This is why The Climate Group’s LED lighting project has called for all streetlights to be LED by 2020. Many of our LED pilots around the world are showing how the smarter, more efficient cities of the future can benefit from this technology.

Good business sense

IKEA group is also at the forefront of renewable energy generation. To date, it accounted for the equivalent of 42% of the company’s total consumption, and by the end of 2015 the company aims to hit the 70% target.

“IKEA was one of the first major companies to recognize that tackling climate change makes good business sense,” remarked Mark KenberCEOThe Climate Group. “It has set commendable renewable energy targets for its own company, and its actions are positively influencing business practices and the energy market. IKEA has played an instrumental role in setting up RE100, The Climate Group’s global initiative to support businesses in switching to 100% renewable power.”

The company is also on track to achieve 100% renewables by 2020 thanks to the purchase of a 165-megawatt wind farm in Texas, US – the group’s largest investment in renewable energy to date – which will produce 130% of the energy IKEA US consumes. In total, the company has already committed to own and operate 224 wind turbines in nine countries (87 last year) and have installed 700,000 solar panels (150,000 in 2014 only).

Living sustainability

The home-furnishing giant is also a member of We Mean Business, a coalition launched at Climate Week NYC last September to create a unified business voice in support of decisive action to tackle climate change and transition to a low carbon future. IKEA has also pledged to invest €1.5 billion (US$1.9 billion) in solar and wind energy power by the end of this year.

“Our customers tell us they care about climate change and want to live more sustainably,” added Peter Agnefjäll, President and CEO, IKEA Group. “Through the amount of visitors in our stores and online, we have unique possibilities to inspire and enable millions of people to live a more sustainable life at home by offering sustainable and energy-saving solutions, affordable to all.”

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