The additional investment on projects such as wind farms and solar parks will be needed to keep expenses down as the company maintains its pace of expansion, said CEO Mikael Ohlsson. “We’ll continue to increase our investments in renewable energy,” he said. “Looking at how quickly we’re expanding and our value chain, we will most likely have to double the investments once more after 2015.”
IKEA plans to increase same-store sales by 5% a year, while generating similar growth from new warehouses by doubling the rate of expansion after 2015.
The retailer is expanding its product range for customers to live more sustainable lives themselves, focusing on waste handling and cutting energy and water use. It has also committed to converting all lighting IKEA sells to energy efficient LED.
“Through products that use less energy and water and reduce waste, we are enabling millions of people to save time and money at home,” said IKEA’s chief sustainability officer, Steve Howard. “In our own operations, we’re continuing to invest in renewable energy and to source more materials from preferred sources”.
30 Jan. — written by Lucinda Broad , 2degrees
