Sweden’s mega design retailer IKEA is pledging 1 billion euros ($1.13 billion) to fight climate change. Chief Executive Peter Agnefjall announced the company’s plans to invest in renewable energy for developing nations with the aim of improving people’s lives and easing environmental pressures and inspiring the private sector to follow suit. Agnefjall also notes despite their generous pledge, IKEA prices will not be affected.
The impressive pledge is part of IKEA’s plan to portray themselves as a company taking social and environmental responsibility. The 1 billion euros will include measures to power their worldwide showrooms entirely with sustainable energy, devoting 600 million euros to new wind and solar installations. This new investment will include 700,000 solar panels and 314 wind turbines, adding to their 1.5 billion euro investments just since 2009.
The remaining 400 million euros will be invested by the company’s charity organization, the IKEA Foundation. Over the next five years, the foundation will support developing communities and help to safeguard them against climate change-related issues like flooding, drought and desertification. The company also plans to plant one tree for every one used to make their furniture, as well as source wood and cotton from sustainable sources.
IKEA’s private pledge to battle the effects of climate change sends an incredible message to the global private and public sector. Do you think the move will inspire policy makers to take similar measures?