IKEA, the global leader in furniture retail, has shared how its shift to renewable energy has not only benefited the environment but also led to significant cost savings. The company has managed to cut nearly ₹100 million off its electricity bills by making the switch.
As part of its broader growth strategy, IKEA is focusing on expanding its presence in India. Juvencio Maeztu, Deputy Global CEO, stated that the company plans to diversify its supply chain, foster local manufacturing partnerships, and increase value addition in its portfolio from one-third to almost half.
In a recent interview with ET’s Sruthijith KK at the World Economic Forum in Davos, Maeztu discussed how balancing investments in technology and sustainability can be challenging. He acknowledged that while pursuing sustainability goals may seem at odds with short-term profits, IKEA has found that prioritizing sustainability has consistently paid off in the long run.
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IKEA is also making strides in India with its eco-friendly initiatives, including home deliveries using electric vehicles (EVs). Currently, EV trucks are used for 90% of deliveries across the country, and 100% of deliveries are made with EVs in cities like Hyderabad, Bangalore, and Pune. Maeztu emphasized that this approach proves it’s possible to lower environmental impact while cutting costs.
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In addition to these green efforts, IKEA has reduced its climate footprint by 30%, while seeing a 23.7% increase in growth. The company has also saved ₹97 million globally through energy efficiency and renewable energy investments. Looking ahead, IKEA plans to source 100% of its operational energy in India from renewables in the coming fiscal year.
Maeztu also highlighted that IKEA is proud of its diverse workforce in India, with women now making up half of its employees across all levels, reinforcing the company’s commitment to inclusivity and diversity.
