Ingka Group, IKEA’s largest retailer, is committing Euro 1.5 billion to phase out fossil fuels in its operations, aiming for an 85% reduction in its climate footprint by 2030 from a 2016 baseline. This investment, targeting renewable heating and cooling technology, complements IKEA’s prior Euro 7.5 billion allocated to offsite renewable energy projects and related innovations.

With this new funding, IKEA will accelerate energy efficiency and renewable retrofitting across its sites, currently achieving a 60.4% emission reduction across stores since 2016 and operating 96% of retail locations on renewable electricity. CEO Jesper Brodin emphasized that the investment aligns with the Paris Agreement, aiming to further decarbonize IKEA’s footprint while increasing operational efficiency and lowering long-term costs.

Currently, heating and cooling are IKEA’s primary sources of emissions. Ingka Group’s new investment includes retrofitting 150 existing properties and incorporating renewable heating and cooling in all new units. In addition, the retailer supports global calls for stronger policies to enable widespread energy transformation, aligning with COP28 pledges and urging governmental actions for renewable grid development and energy efficiency.