Netherlands-based Ingka Group announced its plans to invest €600 million (~$710 million) over the coming year to help IKEA, its subsidiary, keep its commitment to become climate positive by 2030.

IKEA is a Swedish multinational company that designs and sells ready-to-assemble furniture, kitchen appliances, and home accessories.

According to the announcement, the company would invest in innovative companies, solutions, and operations to facilitate the shift towards a net-zero carbon economy.

“Despite the significant challenges we are facing in the world, we still have it in our hands to change the direction of the climate crisis. We will continue to focus our future investments to ensure a cleaner, greener, and more inclusive recovery,” said Juvencio Maeztu, Deputy Chief Executive Officer and Chief Finacial Officer of Ingka Group.

The company said that the zero fossil fuel approach is being implemented to line up with the new environmental, social, and corporate governance (ESG) standards. Its global and local pension funds across 31 countries would be reviewed to make sure that they match the ESG standards. It added that its overall investments towards its sustainability effort now stands at €3.8 billion (~$4.50 billion) with this investment.

Ingka Group plans to reduce more greenhouse gas emissions than the IKEA value chain emits by 2030. Earlier this year, IKEA declared that it had reduced its carbon footprint by 4.3%, while its business increased by 6.5%.

According to the company, it has several renewable energy projects, including 546 wind turbines in 15 countries, two solar projects with 1.5 million solar panels, and over 920,000 solar panels on the roof of its IKEA stores and warehouses. These projects help Ingka Group reach its objective to produce as much clean energy as the company consumes.

Online retail giant Amazon has also taken several strategic steps towards sustainability. Read Mercom’s interview with a company spokesperson who explained Amazon’s multi-pronged approach to sustainability.

Similarly, one of the leading hypermarket chains in Thailand, Tesco Lotus, entered into a partnership with Singapore-based Cleantech Solar to install and operate solar rooftop systems across 19 stores in the country.