As the Swedish furniture company IKEA starts constructing its first store in New Zealand, its parent company continues to expand its forestry portfolio in the country.
According to data from New Zealand’s Overseas Investment Office, Ingka Investments, the investment arm of IKEA’s parent company, Ingka Group, has received approval for 25 land acquisitions in New Zealand totaling 23,495 hectares. The company also has one pending application awaiting a decision.
Since August 2021, Ingka Investments has been acquiring forestland and existing forestry blocks in New Zealand as part of its commitment to responsible forest management and sustainability.
As of the current date, existing forestry blocks span across 4,290 hectares of land. Moreover, 19,205 hectares of farmland have been purchased to convert them into rotational pine forests in the future.
“Wood is an essential part of the IKEA identity. We invest in forestland because we believe we can play an important role in supplying wood from more sustainable sources for our everyday lives.
“We invest in forestland for the long term to ensure this vital resource is managed responsibly so that forests remain forests forever. Responsible wood sourcing is crucial for a healthier planet, a more sustainable future, and more balanced ecosystems for generations to come,” Ingka Investments stated on its website.
Aside from New Zealand, Ingka Investments has also bought land in the United States, Romania, and Baltic countries as part of its long-term commitment to responsible forest management.
A spokesperson for Ingka Investments stated that although the company does not have a specific target for land acquisition, it does plan to continue making further investments.
“We are committed to being in Aotearoa, New Zealand, for many years and are taking a long-term approach to our planning.
“Our goal is to protect and support forest resources for generations to come; we want to create long-term employment opportunities, support local biodiversity through the protected parts of our forests, and help to sequester GHGs through the growth of our trees and through the soil of the protected parts of our forests.”
Ingka Investments has a small team based in Tauranga that manages all of its properties in the country. The company also collaborates with several forestry management firms, including Forest 360, Logic Forest Solutions, IFS Growth, and Southern Forests, to oversee its investments.
“Our general approach is to invest in areas of resilience and sustainability that also offer returns. These are long-term investments spanning across decades in a material that is a significant part of the IKEA identity. In Aotearoa New Zealand, we have invested in both afforestation projects and existing forestland.”
Ingka Investments also emphasised that the company does not engage in carbon farming, has no plans to sell carbon credits, and is not involved in carbon offsetting.
“We are proud that our forests can be part of the solution to climate change, but using them as a source for other companies to offset their carbon emissions is not why we have forests,” Ingka Investments said.
Ingka Group’s IKEA is the world’s largest furniture retailer. In 2021, IKEA generated NZ$69 billion and welcomed more than 680 million customers to its 482 stores across 31 countries every year.
Its first New Zealand store is set to open at Auckland’s Sylvia Park in 2025.