IKEA owner Ingka Group has unveiled plans to invest an additional €600 million (£534m) into sustainability projects over the next 12 months.
The firm says funds will be allocated to companies, solutions and its own operations that have a direct impact towards the Paris Agreement and the UN Sustainable Development Goals and enable the transition to a net zero carbon economy.
The new finance is estimated to bring the group’s total investments into sustainability to €3.8 billion (£3.3bn).
In addition, Ingka Group has confirmed it will implement a zero fossil fuel approach to spending and procurement and will review local pension alignment across 31 countries to make sure they align with the new environmental, social and corporate governance (ESG) standards.
Juvencio Maeztu, Deputy CEO and CFO at Ingka Group, said: “Despite the significant challenges we’re facing in the world, we still have it in our own hands to change the direction of the climate crisis.
“We want to be part of the solution, which is why we will continue to focus our future investments to ensure a cleaner, greener and more inclusive recovery.”
Earlier this year, IKEA, which had committed to becoming climate positive by 2030, announced that it had reduced its climate footprint by 4.3% while growing its business by 6.5%.
The company currently owns 546 wind turbines in 14 countries, two solar farms with 1.5 million solar panels and more than 920,000 solar panels on the roofs of IKEA stores and warehouses.