IKEA has announced that they will be introducing a program in India, Poland and China this year, to help suppliers with their transit to 100 percent renewable electricity.
Under this initiative, the company would invest and support nearly 1,600 direct suppliers, IKEA said.
“The program will be introduced in 2021 for suppliers in Poland, China and India, who represent three of IKEA’s largest purchasing countries, followed by a stepwise global rollout,” it said.
IKEA has around 50 suppliers in India and is one of the largest purchasing countries. “India is one of IKEA’s largest purchasing countries, and we are excited to adopt this program in this market,” said Henrik Elm, Global Supply Manager, Inter IKEA group.
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. “We have a long-term perspective and the financial strength to invest in activities and support our suppliers to have a positive impact on people and the planet. By working together, we can make renewable electricity both more affordable and accessible,” he added.
IKEA South Asia Purchasing Manager Marius Martinaitis said with this initiative in collaboration with the valuable partners, IKEA will save precious resources and reduce the climate footprint. “We have 50 direct suppliers with more than 4,00,000 co-workers in the Indian supply chain,” he said.
Presently, IKEA has implemented 51 percent renewable energy consumption in its stores, offices, warehouses, factories, and other operations. “The goal is to reach 100 percent renewable electricity in 2025 and by 2030 secure that all remaining energy, such as heating and cooling, is renewable as well,” it said.
IKEA is striving for 100 percent 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 percent of the total climate footprint of the IKEA value chain, it added.
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.