The Ikea Group has said that it will invest €1 billion to buy forests as well as more energy panels and wind turbines.
The investment comes after a rise in sales and profits and after netting €5.2 billion from the sale of its product development and supply chain business. Last year, Ikea pledged to invest €600 million in renewable energy.
By the close of 2016, Ikea is expected to own and operate 317 wind turbines and to have installed 730,000 solar panels on its buildings. Having produced the equivalent of 71% of its energy use, the company is on its way to becoming energy independent by its goal of 2020.
The world’s largest furniture retailer already owns 74,700 hectares of forest in Romania and the Baltic countries. It has been abandoning the use of polystyrene packaging in all products save kitchen appliances and is introducing recyclable materials.
Sales rocketed by 7.4% in the year to €35 billion. The increase sent profits soaring by 20% to €4.2 billion.
Ikea has 340 outlets and 41 shopping malls dotted around the globe. It said it had experienced growth in all but one of its 28 markets, particularly in China, Canada, Poland and Australia. Europe, however, remains its largest market, responsible for nearly 70% of sales, predominately from Germany, France, Britain and Sweden.
It plans to open its first store in India next year and is working on plans to open in Serbia.
The company plans to pay a dividend of €840 million next year to the trust which owns Ikea and €443 million in bonus and loyalty payments to its 183,000 employees.
The company said: “Our strong financial position enables us to continue investments in co-workers, our stores, digital technology, the distribution network, as well as shopping centres and renewable energy.”
