Rethinking Green Finance: A Case Study of Ingka Group’s Sustainability Strategy

Abstract

This case study focuses on Ingka Group, the holding company behind IKEA’s global retail operations, as the main subject in examining how large corporations finance sustainability. The key decisions-makers in the company along with its finance and sustainability teams, allocated funds towards ESG initiatives throughout its operations world-wide. The company has not opted for external financing for its sustainability investments till the end of the year 2025. There is a strong need for continuous Investments for sustainability projects such as renewable energy investments, circular economy efforts. In this regard, the scalability and effectiveness of the Ingka Group’s self-funded investments are to be studied. The case analysis period is between 2019 and 2025, during which the company significantly expanded its sustainability investments. The case also highlights the opportunities and challenges of sustainable financing as a long-term environmental goal.