Ingka Group’s Investment Arm Acquires 23,883 Hectares of Forestland Across the Baltics for Responsible Forest Management

Ingka Group’s Investment Arm Acquires 23,883 Hectares of Forestland Across the Baltics for Responsible Forest Management

(IN BRIEF) Ingka Investments, the investment arm of Ingka Group, has acquired 23,883 hectares of land, including 19,276 hectares of forestland, across Finland, Estonia, and Latvia. This acquisition aligns with their commitment to responsible forest management. The properties contain a mix of species, primarily pine, birch, and spruce, with an average age ranging from 35 to 50 years. Andriy Hrytsyuk, Forestland Investments Manager, emphasized the company’s dedication to environmental impact and industry advancement. Ingka Investments follows the IKEA Forest Positive Agenda for 2030, focusing on halting deforestation, reforesting non-arable landscapes, and promoting innovation in wood utilization. Their Responsible Forestry Management approach ensures sustainable practices, including monitoring forest growth and conserving high-value areas. Ingka Group’s expansion into new territories also emphasizes community engagement and dialogue with local stakeholders.

(PRESS RELEASE) LEIDEN, Netherlands, 21-Feb-2024 — /EuropaWire/ — Ingka Group, the largest IKEA retailer responsible for about 90% of IKEA retail sales, announces that its investment arm Ingka Investments, has acquired 23,883 hectares (19,276 hectares of forestland) across Finland, Estonia, and Latvia, reaffirming its commitment to sustainable forest management. This strategic move aims to bolster existing operations in the Baltics while venturing into a new country in the region, fostering positive environmental impacts.

Andriy Hrytsyuk, Forestland Investments Manager at Ingka Group, expressed enthusiasm for the expansion, highlighting the potential for environmental stewardship and industry advancement. “We look forward to strengthening our existing forestland operations in the Baltics with this acquisition, but also to expand our responsible forest management approach to a new country in the region. We are convinced that we can have a positive impact on the environment and the wider industry.”

Aligned with the IKEA Forest Positive Agenda for 2030, Ingka Investments prioritizes halting deforestation, reforesting non-arable landscapes, and driving innovation in wood utilization. With an existing portfolio spanning various countries, including the Baltic states, the US, Romania, and New Zealand, Ingka Investments remains committed to sustainable forest management practices globally.

Ingka Investments currently owns around 293,000 hectares (ha) of land where it is managing existing forests and growing new forests: 143,000 ha in the Baltic states; 76,000 ha in the US; 51,000 ha in Romania; and 23,000 ha in Aotearoa New Zealand. Ingka Investments is committed to a long-term presence in all countries where it operates and plans its forest management accordingly.

“We firmly believe that responsible forest management can be both an environmental and commercial success, as we aim to show through our day-to-day work. Ultimately, it is in our interest to manage our forests for the long-term and to preserve and enhance the health and integrity of those forests. Our goal is to ensure this vital resource is managed responsibly, so that they remain forests forever,” adds Hrytsyuk.

Central to its approach is the principle of Responsible Forestry Management, ensuring forests’ long-term health and integrity through meticulous monitoring and conservation efforts. The forests Ingka Group owns have a net growth estimate of 0.4 million cubic metres per year, and in FY23 Ingka Group planted 11 million seedlings across the entire portfolio, around the world. In addition, the detailed mapping and monitoring that takes place ensures areas of high conservation value are identified and preserved. Large sections of forests are exempt from any harvesting and specifically earmarked to protect rare, threatened, or endangered habitats and to foster biodiversity.

Ingka Group’s dedication extends beyond environmental stewardship to fostering community relationships, emphasizing transparency and dialogue with local stakeholders.