Ingka Investments, the investment arm of Ingka Group which represents the largest IKEA retailer, today announced it has acquired 23,883 hectares (19,276 hectares of forestland) in Finland, Estonia and Latvia as part of its long-term commitment to responsible forest management.
'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,' says Andriy Hrytsyuk, Forestland Investments Manager at Ingka Group.
The properties in Finland comprise a total of about 8,600 hectares (8,000 hectares of forestland), and are located in North Savo and the North Karelia regions. The Estonian (total of 9,500 hectares, out of which 6,300 hectares is forestland) and Latvian (5,800 hectares, out of which 4,900 hectares is forestland) properties are spread across the two countries. The forests have a mix of species – mainly pine, birch and spruce – with an average age ranging from about 35 to 50 years.
Ingka Investments is guided by the overall IKEA Forest Positive Agenda for 2030 which will further strengthen the efforts towards improving forest management and enhancing biodiversity globally and locally. The agenda focuses on three key areas to protect and support forest resources for generations to come, including making responsible forest management the norm across the world: halting deforestation, reforesting non-arable landscapes, and driving innovation to use wood in smarter ways.
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.
Responsible Forestry Management includes monitoring the growth of forests, and never harvesting more than the forest grows. 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.
As Ingka Investments expands its forestland investments into new territories, its commitment extends to include the local communities that surround these areas. A dedication to fostering meaningful relationships with neighbours and stakeholders is managed through consistent and open dialogue.
More information:
Ingka Group
www.Ingka.com