Wikipedia

User:AMfromIKEA/IKEA Foundation draft

< User:AMfromIKEA
Not to be confused with Stichting INGKA Foundation.
IKEA Foundation
Established1982; 42 years ago (1982)
FounderIngvar Kamprad
TypeNot-for-profit
Legal statusStichting
Focus
Location
  • The Netherlands
Jessica Anderen
Budget (2022)
€282.7 million
Disbursements€268.2 million
Expenses (2022)€14.5 million
FundingStichting INGKA Foundation
Websiteikeafoundation.org
Financials as of 2022[1]


IKEA ownership chart
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Flowchart showing the structure and ownership of IKEA companies. Parent companies are at the top of the chart.
Provides services to | Is the parent of | Provides funding to
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The IKEA Foundation is a Dutch not-for-profit organization founded in 1982 by Ingvar Kamprad as a means to support advancement in interior design and architecture. In 2009, the Foundation's charter was expanded to benefit vulnerable children. In 2018, the Foundation shifted its focus to supporting the development of sustainable livelihoods and combatting climate change. The Foundation is led by chief executive officer Jessica Anderen.[2] In 2022, it provided €268.2 million in grants.

History

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The Foundation was created by Ingvar Kamprad in 1982 to advance "innovation in the field of architectural and interior design."[3] In 2006, The Economist reported that the Stichting INGKA Foundation funded the IKEA Foundation, which did not publish its giving numbers. The Economist calculated the value of the INGKA Foundation at €28.67 billion at the time and reported the IKEA Foundation had given a comparatively small amount and concentrated its donations on the Lund Institute, providing €1.35 million to the Institute annually. It also reported that the arrangement allowed the INGKA Foundation to make minimal disclosures, made IKEA immune to takeover, and allowed the Kamprad family to make a large profit.[4] In 2009, Kamprad changed the legal mission of the IKEA Foundation to support "poor children in the developing world".[3] The organization's focus shifted to combatting climate change and supporting the development of sustainable livelihoods in 2018.[5]

Philanthropy

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The Foundation is organized as a not-for-profit Public Benefit Organization with the Tax and Customs Administration.[1][6] Between 2009 and 2021, the Foundation provided more than €1.5 billion in grants.[7] In 2022, it received €281.8 million from the Stichting INGKA Foundation, of which it provided €268.2 million in grants. The INGKA Foundation is the sole funder of the IKEA Foundation.[1] Its grants are primarily related to global economic development and climate change. Inside Philanthropy described the Foundation as transparent but difficult to reach, noting that it does not accept unsolicited proposals and prefers to provide grants to established organizations over recently created initiatives.[8]

Climate change and environment

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In 2021, the IKEA and Rockefeller foundations partnered to create a fund to expand access to renewable energy generation in India, Nigeria, Ethiopia, and other countries. Each foundation pledged €422.76 million to the effort. The Financial Times reported the foundations set targets to reduce annual CO2 emissions by one billion tonnes and eliminate energy poverty for one billion people by the end of 2029.[9] The Bezos Earth Fund later also pledged €422.76 million. The fund received an additional €6.76 billion in pledges from multilateral banks and the World Bank, Asian Development Bank, and U.S. International Development Finance Corporation. At COP26, this fund was launched as the Global Energy Alliance for People and Planet, a group with the goal to provide renewable energy to people in Africa, Asia, and Latin America.[10] The same year, the IKEA Foundation partnered with Enviu and the Circular Apparel Innovation Factory to reduce textile waste in India.[11] Also in 2021, the Foundation cofounded the Global Methane Hub, which garnered more than €253.66 million that year in commitments to reduce agricultural methane production.[12]

In May 2022, the Foundation committed €4.9 million to the Sustainable Energy for All's Universal Energy Facility, a results-based financing initiative.[13] In November of the same year, the Foundation and Acumen partnered on a €21.14 million energy investment initiative to provide renewable power generation and efficient appliances to people living in extreme poverty.[14]

The Foundation pledged €33.82 million in funding to the Clean Air Fund in 2023.[15] The same year, the Foundation partnered with the Selco Foundation and the Ministry of Health and Family Welfare to provide renewable energy and energy efficient equipment to 25,000 healthcare facilities in India. The IKEA Foundation provided initial funding of €48 million for the project.[16] It also partnered with the ClimateWorks Foundation to support a just energy transition in Indonesia, South Africa, and Vietnam. It committed €16.91 million over four years to the effort.[17][18]

In 2024, the Foundation pledged €15.22 million to the Science Based Targets initiative.[19]

The Foundation is a funder of the We Mean Business Coalition,[20] Science Based Targets initiative,[21] Instituto Clima e Sociedade,[8] InfluenceMap,[22] and Climate Breakthrough.[23]

Refugees, agriculture, and emergency response

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Between 2012 and 2019, the Foundation invested approximately €89.33 million in United Nations High Commissioner for Refugees operations in Dollo Ado refugee camps. According to a 2020 report by the University of Oxford Refugee Studies Centre, it was the largest private sector investment made in a specific refugee setting. The funds were grouped into two phases. From 2012 through 2014, a €46.29 million grant was distributed to address infrastructure and emergency aid needs, including investments in education, shelter, nutrition, water, sanitation, and hygiene. From 2015 to 2019, a €33.5 million grant supported refugee livelihoods and establishment of self-reliance. This phase emphasized investments in agriculture, livestock, environment, energy, and microfinance loan initiatives. At the end of 2018, the livelihood program had 2,050 members earning income, and had disbursed 525 loans.[24]

In 2014, the Foundation raised €7.98 million to provide lighting in the Al Azraq refugee camp. It ran a similar campaign that year to provide additional lighting to refugee camps in Bangladesh, Chad, Ethiopia, and Sudan.[25] The following year, the Foundation began funding the Better Shelter organisation, which produces a flat-packed shelter consisting of a steel frame, stab-proof polypropylene panels, and rooftop solar panels. In 2016, the Design Museum awarded its Design of the Year award to the Better Shelter. Between June 2015 and January 2017, the shelters were sent to Nepal, Djibouti, Greece, and Iraq. The City of Zürich ordered 62 shelters, but could not use them as they did not meet Swiss fire regulations. A spokesperson for Better Shelters noted that they were not intended to meet Swiss fire regulations or be used indoors as the city planned.[6] In April 2017, 10,000 of the shelters were retired due to fire concerns. Better Shelter announced that month the shelters would be redesigned to address the concerns as well as have better ventilation, lighting, and stronger frames and wall panels.[26] As of December 2023, more than 90,000 shelters had been delivered globally.[27]

The Foundation donated €6.88 million in 2019 to a fund helping Syrian refugees find employment.[28] It partnered with the Swiss Agency for Development and Cooperation and the United States Agency for International Development in 2020 to make a €26.27 million investment in Aceli Africa, an American nonprofit that assists with securing agricultural loans for small and medium businesses in Africa.[29]

In 2022, the Foundation donated €18.6 million to help refugees of the Russian invasion of Ukraine.[30] It also provided €10 million in funding to Renewable Energy for Refugees, a project that The Guardian reported had installed 183 streetlights, 4,000 solar home systems and 5,600 stoves across three refugee camps and nearby villages in Rwanda, as of April 2022.[31] Following the 2023 Turkey–Syria earthquakes, the Foundation donated €9.05 million to Doctors Without Borders, which had already been established in the region due to ongoing conflict.[32]

The IKEA Foundation is also a funder of the Save the Children Fund,[20] the Global Alliance for the Future of Food,[33] SNV,[34] Global Alliance for Mass Entrepreneurship, and The BOMA Project.[8] As of December 2023, the Foundation was providing 38 agriculture-related grants totaling €165 million.[33]

See also

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References

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  1. ^ a b c "2022 Disclosure ANBI details for Stichting IKEA Foundation" (pdf). IKEA Foundation. p. 7. Retrieved 8 January 2024.
  2. ^ "Meet our team". IKEA Foundation. Retrieved 10 January 2024.
  3. ^ a b Orange, Richard (18 September 2011). "IKEA founder pledges £1bn to charity following Nazi past revelations". The Daily Telegraph. Archived from the original on 10 April 2017. Retrieved 3 January 2024. Cite error: The named reference "Telegraph1" was defined multiple times with different content (see the help page).
  4. ^ Features, Rex (11 May 2006). "Flat-pack accounting". The Economist. Archived from the original on 4 August 2023. Retrieved 3 January 2024.
  5. ^ "Our history". IKEA Foundation. Retrieved 8 January 2024.
  6. ^ a b Wainwright, Oliver (27 January 2017). "Why Ikea's flatpack refugee shelter won design of the year". The Guardian. Retrieved 3 January 2024.
  7. ^ "Development Co-OPeration Profiles:IKEA Foundation". OECD. Retrieved 9 January 2024.
  8. ^ a b c "IKEA Foundation". Inside Philanthropy. Retrieved January 9, 2024.
  9. ^ Milne, Richard (20 June 2021). "Ikea and Rockefeller foundations in $10bn clean energy push". Financial Times. Retrieved 3 January 2024.
  10. ^ Milne, Richard (1 November 2021). "Bezos fund commits $500m to join Ikea and Rockefeller in renewable energy push". Financial Times. Retrieved 3 January 2024.
  11. ^ Bora, Gamira (15 October 2021). "IKEA Foundation, Enviu and CAIF to build textile waste model, provide jobs to waste workers". The Economic Times. Retrieved 9 January 2024.
  12. ^ Beasley, Stephanie (1 December 2023). "Global food systems need over $200B funding boost, foundations say". Devex. Retrieved 13 March 2024.
  13. ^ Aina, Dolapo (31 May 2022). "Notes on Sustainable Energy For All Forum 2022 in Kigali". The Guardian (Nigeria). Retrieved 3 January 2024.
  14. ^ Banerjee, Biwarup; Bieber, Sarah (11 November 2022). "Tackling poverty and climate change: IKEA and Acumen's $25m energy investment initative". Alliance Magazine. Retrieved 9 January 2024.
  15. ^ Hungin, Simon (1 April 2023). "IKEA, CIFF give $67m to Clean Air Fund to tackle global air pollution". Alliance Magazine. Retrieved 9 January 2024.
  16. ^ Panda, Susmita (7 April 2023). "IKEA and SELCO Foundations launch new initiative to make 25,000 PHCs energy efficient with solar power by 2026". Financial Express. Retrieved 9 January 2024.
  17. ^ Taylor, Michael; Tripathi, Bhasker; Harrisberg, Kim (5 October 2023). "Philanthropists back justice for workers in green energy deals". Reuters. Retrieved 11 January 2024.
  18. ^ Musaddique, Shafi (19 September 2023). "IKEA Foundation grants $20 million in Global South energy transition initiative". Alliance Magazine. Retrieved 9 January 2024.
  19. ^ Balch, Oliver (6 February 2024). "Analysis: Will shakeup at net-zero targets arbiter be enough to quiet its critics?". Reuters. Retrieved 14 March 2024.
  20. ^ a b "Brighter Futures: Annual Review 2017" (PDF). IKEA Foundation. 2017. Archived from the original (pdf) on 25 February 2019. Retrieved 11 January 2024.
  21. ^ Wilkes, Tommy; Kerber, Ross (13 September 2023). "Group judging corporate climate claims overhauls itself after criticism". Reuters. Retrieved 9 January 2024.
  22. ^ Morgan, Elysse (23 September 2020). "Climate change action stymied by Australian business lobby, UK think tank finds". ABC News (Australia). Retrieved 9 January 2024.
  23. ^ "Nebraska Pipeline Opponent, Indonesian Environmentalist Receive Climate Breakthrough Awards". U.S. News & World Report. Associated Press. 2 November 2023. Retrieved 9 January 2023.
  24. ^ Betts, Alexander; Marden, Andonis; Bradenbrink, Raphael; Kaufmann, Jonas (12 May 2020). Building Refugee Economies: An evaluation of the IKEA Foundation’s programmes in Dollo Ado (pdf) (Report). Oxford University Department of International Development. Retrieved 3 January 2024.
  25. ^ Mallonee, Laura C. (18 February 2015). "Light in dark times: Ikea kicks off campaign to bring lights to refugees". The Guardian. Retrieved 3 January 2024.
  26. ^ Fairs, Marcus (27 April 2017). "IKEA refugee shelter to be redesigned following safety fears and design flaws". Dezeen. Retrieved 3 January 2024.
  27. ^ Wollingham, Marion (8 December 2023). "How to give it... to disaster-relief design initiatives". Financial Times. Retrieved 13 March 2024.
  28. ^ Edwards, Sophie (25 January 2019). "Humanitarian investing gathers speed at Davos". Devex. Retrieved 3 January 2024.
  29. ^ Pandey, Romil (December 4, 2020). "Microcapital Brief: IKEA Foundation, Swiss Agency for Development and Cooperation, USAID Invest $30m in Aceli Africa, Guarantor of Loans to Agricultural SMEs". Micro Capital. Retrieved January 9, 2024.
  30. ^ Zara, Christopher (3 March 2022). "Ikea Foundation delivers millions in 'immediate' aid as refugees pour out of Ukraine". Fast Company. Retrieved 8 January 2024.
  31. ^ Carrington, Damien (2 April 2022). "'We feel safer': how green energy is brightening refugee lives in Rwanda". The Guardian. Retrieved 3 January 2024.
  32. ^ Beaty, Thalia (11 February 2023). "Fundraisers for Syria, Turkey earthquake try to deliver aid". Associated Press. Retrieved 3 January 2024.
  33. ^ a b Kavate, Michael (7 December 2023). "With Food Systems in the Spotlight at COP28, Philanthropy Tries to Build Momentum". Inside Philanthropy. Retrieved 9 January 2024.
  34. ^ Lehmann, Isabella; Ruf, Anda (2 September 2022). "Contributing to SDG7 and learning from each other: IKEA Foundation and Energising Development". Alliance Magazine. Retrieved 9 January 2024.
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