IKEA is committed to using 100% renewable energy throughout the entire value chain.
By switching to renewable electricity, these suppliers will save 670,000 tonnes of emissions per year, equivalent to about 3 percent of the total climate impact of the IKEA value chain, he added.
“The program will be presented in 2021 for suppliers from Poland, China and India, who represent the three largest IKEA purchasing countries, followed by a phased global rollout,” the report said.
IKEA has about 50 suppliers in India and is one of the largest buying countries.
“India is one of the largest IKEA buying countries and we are delighted to host this program in this market,” said Henrik Elm, Global Sourcing Manager, Inter IKEA Group.
The program supports IKEA’s long-term commitment to improve the climate by 2030 by reducing greenhouse gas emissions beyond the value chain, while growing the business.
“We have the long-term vision and financial ability to invest in operations and support our suppliers to make a positive impact on people and the planet. Working together, we can make renewable electricity more affordable and affordable, ”he added.
IKEA South Asia Purchasing Manager Marius Martinaitis said that through this initiative, in collaboration with valuable partners, IKEA will save valuable resources and reduce climate impact.
“We have 50 direct suppliers with over 4,000,000 employees in the Indian supply chain,” he said.
IKEA suppliers are currently unable to generate all of their renewable electricity locally – most still need to be purchased online.
Under this program, IKEA will receive a full offer to support suppliers in the field of renewable energy generation on site and allow them to buy the remainder of the network.
Currently, IKEA has sold 51% of its renewable energy consumption in its stores, offices, warehouses, factories and other businesses.
“The goal is to reach 100% renewable electricity by 2025, and by 2030 to ensure that all remaining energy, such as heating and cooling, is also used in renewable sources,” it said.
IKEA India, part of the Ingka Group, opened its first retail store in Hyderabad in August 2018 and its second store in Navi Mumbai, Maharashtra in December 2020.