In a landmark move for sustainable business practices, Ingka Group, the parent company of global furniture giant IKEA, has announced a massive €720 million investment in forest lands across Estonia and Latvia. This strategic acquisition represents one of the largest sustainable forestry investments in recent European history.
Securing Sustainable Supply Chains
The investment covers approximately 85,000 hectares of forest land, positioning Ingka Group as a major player in sustainable forest management. This move is part of IKEA's broader strategy to ensure long-term access to renewable raw materials while maintaining environmental responsibility.
Krister Mattsson, Managing Director of Ingka Investments, emphasized the strategic importance: "This acquisition allows us to secure sustainable wood supplies for future generations while practicing responsible forest management that benefits biodiversity and climate."
Environmental Commitment Beyond Business
The Baltic region forests will be managed according to the highest sustainability standards, focusing on:
- Protecting biodiversity and natural habitats
- Maintaining forest health and resilience
- Ensuring sustainable harvesting practices
- Supporting local communities and economies
Ingka Group already manages approximately 245,000 hectares of forest land across the United States and Europe, making them one of the largest private forest owners with a commitment to certified sustainable management.
Strategic Expansion in European Markets
This investment significantly strengthens IKEA's position in the European furniture market by:
- Securing raw material supplies closer to manufacturing facilities
- Reducing transportation costs and carbon footprint
- Ensuring price stability for wood-based products
- Supporting local employment in forestry sectors
The Baltic states offer ideal conditions for sustainable forestry, with well-established timber industries and strong environmental regulations.
Long-term Vision for Sustainable Business
This acquisition aligns with Ingka Group's commitment to becoming climate positive by 2030. The company has been actively investing in renewable energy and sustainable materials as part of its broader environmental strategy.
"We believe sustainable forest management is crucial for combating climate change while meeting the growing global demand for wood products," Mattsson added, highlighting the dual benefit of environmental protection and business continuity.
The investment comes at a time when global furniture companies are increasingly focusing on supply chain sustainability and responsible sourcing practices.
