IKEA Expands Renewable Electricity Program to 14 New Countries, Including the U.S.

IKEA has announced a significant expansion of its renewable electricity program, adding 14 new countries, including the United States, to its initiative aimed at reducing supply chain emissions and achieving 100% renewable energy across its value chain.

Addressing greenhouse gas (GHG) emissions from production is a key element of IKEA’s commitment to becoming climate positive—reducing more emissions than the value chain generates—by 2030. Electricity consumption accounts for approximately 36% of IKEA’s production emissions, which in turn represent around 7% of the company’s total climate footprint. To meet its climate objectives, IKEA has set targets to secure 100% renewable energy, including electricity, heating, cooling, and fuels, by 2030, and to achieve 100% renewable electricity consumption across its own operations by 2025.

Sriram Rajagopal, Head of Climate and Air Quality at Inter IKEA Group, stated, “We are striving towards 100% renewable energy across the IKEA value chain. Electricity generation from fossil fuels is one of the largest sources of greenhouse gas (GHG) emissions globally. By collaborating with suppliers, we can make the shift towards using more renewable electricity easy, accessible, and affordable. This collaborative effort not only helps reduce our environmental impact but also empowers our suppliers to decarbonise their operations.”

IKEA launched the renewable energy program in 2021 in China, India, and Poland. The program provides direct suppliers with local solutions, including bundled framework agreements and Power Purchase Agreements (PPAs) to purchase renewable electricity from the grid at pre-negotiated prices, covering electricity demand that cannot be generated onsite.

Following the successful initial rollout, which led to significant increases in renewable electricity share in the targeted regions, IKEA expanded the program last year to ten additional markets, including the Czech Republic, Germany, Italy, Lithuania, Portugal, Romania, Slovakia, Sweden, Türkiye, and Vietnam. In the latest announcement, IKEA reported that the share of renewable electricity in the production of its products increased to 75%, up from 71% the previous year, with the expanded program continuing to deliver strong results.

Susanne Waidzunas, Global Supply Manager at Inter IKEA Group, said, “We have received great response from our partners since the launch of the programme and are excited to expand it further. The share of renewable electricity used by our suppliers in Vietnam increased by 40 percentage points between FY23 and 24, reaching 84%.”

The newest expansion includes Bangladesh, Brazil, Bulgaria, Egypt, Hungary, Indonesia, Japan, Mexico, Netherlands, Pakistan, Slovenia, Spain, Thailand, and the United States.

Waidzunas added, “By assisting our suppliers in 14 additional markets to access renewable electricity, we are taking an important next step towards ensuring that IKEA products are produced with less impact on the planet.”