NETHERLANDS – Ingka Group, Ikea’s largest retailer, is investing EUR 1.5 billion to accelerate its shift away from fossil fuels, aiming to reduce its climate footprint by 85% by 2030 (from a 2016 baseline).

The funds will retrofit existing stores with renewable heating and cooling systems, with all new units incorporating these technologies. This adds to the EUR 7.5 billion already committed to offsite renewable energy projects.

Heating and cooling are the biggest sources of emissions in Ingka’s operations. This investment will help retrofit 150 existing properties and support Ikea’s ongoing efforts to decarbonize its operations.

Ingka Group is also urging governments to scale up renewable energy, invest in grid infrastructure, enforce stronger energy efficiency regulations, and simplify permitting processes for renewable energy projects.

CEO Jesper Brodin emphasized that this investment supports the Paris Agreement, aiming to cut emissions and boost efficiency, while lowering long-term costs.

“As businesses, we play a crucial role in phasing out fossil fuels, but we cannot do it alone. We welcome the COP28 pledges on renewable energy and energy efficiency, as well as the consensus on moving away from fossil fuels. However, to turn these pledges into real impact, governments and businesses must work together to overcome barriers, such as complex and inefficient policies, permitting processes, and reporting frameworks. We have just five years left to meet the Paris Agreement targets – with the right commitment and leadership, we can achieve it,” added Jesper Brodin.