The Ingka Group will invest €600m over the next 12 months in companies that have a direct impact towards the Paris Agreement and the UN SDGs.

In addition, the Ingka Group has confirmed it will implement a “zero-fossil fuel approach” to spending and procurement, as part of a revamped approach to environmental, social and corporate governance (ESG) standards. The group will also review local pension alignment across 31 countries, to ensure they are aligned with the new ESG standards.

“We believe it’s good business to be a good business. 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,” Ingka Group’s deputy chief executive Jevencio Maeztu said.

The €600m commitment brings total spending into sustainability solutions from the group to €3.8bn.

Ingka Group revealed last year that it has invested a total of almost €2.5bn in onsite and offsite wind and solar power. The Group, which has operations in more than 30 countries, is now generating more renewable energy than it consumes.

It builds towards Ikea’s overarching 2030 goal of becoming ‘climate positive’. Ikea is striving to become “climate-positive” by 2030 – an aim the firm has defined as fulfilling its contribution to the Paris Agreement through an emissions reduction across the value chain that is aligned to climate science.

The multinational is targeting an 80% climate footprint reduction from stores and operations in absolute terms by 2030 – against a 2016 baseline – which aligns to a 2C target and aims towards the 1.5C trajectory towards the end of the century. Ikea claims that reducing emissions by 15% from the value chain by 2030 translates to a 70% reduction in climate footprint on average per product, and is therefore working to decarbonise key materials, food ingredients and transport, while setting more ambitious reduction targets for direct suppliers.

Ikea has reduced its overall climate footprint by 4.3%, despite the business growing by 6.5%.