IKEA is trying to help its suppliers switch to clean energy. In 2021, the firm launched a program to support its suppliers in China, India and Poland in accessing more clean energy.
The arrangement has made it easier for suppliers to buy renewable power from. It also set up a mechanism to provide finance for suppliers keen to invest in onsite projects.
Many of IKEA’s suppliers struggle to purchase 100 percent renewable electricity. According to the concern the program has shown that it’s possible to make renewable electricity both accessible and more affordable.
The initiative has already contributed to reducing IKEA’s climate footprint by a further 5 percent and doubled the share of renewable electricity being used in China from 32 percent in 2021, to 64 percent in 2022.
Now, IKEA has announced plans to expand the arrangement further during 2023, with suppliers in 10 more countries including Vietnam.
The combined electricity consumption for production in the 10 nations accounts for around 13 percent of the climate footprint associated with IKEA’s production.
“We’re aiming for 100 percent renewable energy throughout our value chain,” says Peder Weibull Hartman, the company’s Project Manager for Renewable Electricity for Supply Partners.
Source: sustainablebrands.com
