The seller is Skogsfond Baltikum AB (publ). The acquisition is expected to be closed in December 2024.
"With this investment, we further strengthen our commitment to responsible forest management and securing responsibly managed raw material sources for our supply chain. By managing our forestland, we are committed to ensuring that our operations foster a positive contribution to the environment and local economies, in close collaboration with local businesses and communities," says Bruno Mariani Piana, Global Forest Investments Manager at Inter IKEA Group.
The land, approximately 8,080 hectares in size, is situated in various parts of Latvia. The acquisition will enable regional suppliers and sub-suppliers to have long-term access to responsibly sourced wood materials, which will provide better opportunities for future growth. Additionally, the acquisition provides an opportunity to explore how innovative forest management practices can enhance climate resilience and biodiversity.
Partnering with local communities, businesses, academia, authorities, and NGOs to make responsible forest management the global norm is a crucial part of the IKEA Forest Agenda. IKEA is collaborating with researchers and NGOs to establish a pilot project involving our own forestland.
"Owning forestland gives us great opportunities to drive projects promoting responsible forest management such as climate- and biodiversity-smart forestry. This is a part of our commitment to invest in further development of responsible forest management. It will enable us to explore and demonstrate innovative forest management practices in the coming years," says Mikhail Tarasov, Global Head of Forestry at Inter IKEA Group.
For all wood used in the IKEA supply chain, Inter IKEA Group will apply strict requirements to secure responsible forest management practices on the acquired land, ensuring that the forest management is FSC-certified and complies with IWAY standards, the IKEA supplier code of conduct. FSC certification ensures that forest management practises will not contribute to deforestation or forest degradation and will be based on a balance of economic, social, and environmental interests, including the identification of areas of high conservation value where forest management should be limited or restricted.
"With this investment, we further strengthen our commitment to responsible forest management and securing responsibly managed raw material sources for our supply chain. By managing our forestland, we are committed to ensuring that our operations foster a positive contribution to the environment and local economies, in close collaboration with local businesses and communities," says Bruno Mariani Piana, Global Forest Investments Manager at Inter IKEA Group.
The land, approximately 8,080 hectares in size, is situated in various parts of Latvia. The acquisition will enable regional suppliers and sub-suppliers to have long-term access to responsibly sourced wood materials, which will provide better opportunities for future growth. Additionally, the acquisition provides an opportunity to explore how innovative forest management practices can enhance climate resilience and biodiversity.
Partnering with local communities, businesses, academia, authorities, and NGOs to make responsible forest management the global norm is a crucial part of the IKEA Forest Agenda. IKEA is collaborating with researchers and NGOs to establish a pilot project involving our own forestland.
"Owning forestland gives us great opportunities to drive projects promoting responsible forest management such as climate- and biodiversity-smart forestry. This is a part of our commitment to invest in further development of responsible forest management. It will enable us to explore and demonstrate innovative forest management practices in the coming years," says Mikhail Tarasov, Global Head of Forestry at Inter IKEA Group.
For all wood used in the IKEA supply chain, Inter IKEA Group will apply strict requirements to secure responsible forest management practices on the acquired land, ensuring that the forest management is FSC-certified and complies with IWAY standards, the IKEA supplier code of conduct. FSC certification ensures that forest management practises will not contribute to deforestation or forest degradation and will be based on a balance of economic, social, and environmental interests, including the identification of areas of high conservation value where forest management should be limited or restricted.
