This essay summarizes an environmental article titled “Ikea to double its spending on Renewable Energy to $4 Billion” that was published in the Los Angeles Times on January 23, 2013. The article discusses how Ikea Group Limited have laid down investment plans that would see the company double its spending on renewable energy to nearly four billion U.S. dollars. As stipulated by the article, Ikea Group is intending to increase its spending on renewable energy in order to reduce the costs of operations, thus resulting into production of affordable products. This is due to increased sensitivity to prices of goods and services by customers as a result of hard economic times. The article further elaborates that Ikea Group intends to spend more on wind farms and solar parks. In addition, doubling expenditures on renewable energy is an initiative that would enable the company to keep its pace of growth and expansion. According to Mikael Ohlsson, the Chief Executive Officer of Ikea Group, this move would also help Ikea Group to explore new business opportunities.
In my view, the article is important and relevant because it discusses how various companies have become socially responsible and concerned about environmental conservation. According to Pimentel (2008), use of renewable energy by companies is likely to reduce environmental pollution by nearly thirty-five percent, hence help in preservation and conservation of the environment. Moreover, use of renewable energy also poses lesser risk to living organisms. According to Bloomberg (2013), use of renewable energy by Ikea Group would also enable the company to produce a wide range of goods, hence enabling consumers to live more sustainable lives. The article also discusses how Ikea Group currently focuses on waste handling and reducing usage of natural resources such as water. The article also shows various ways in which companies respond to changes in the market. For example, due to increased sensitivity to price by consumers, Ikea Group opted to use renewable energy to enable it produce goods at lower costs. This would help in seducing customers to purchase more products of the company leading to an increase in sales volume.
The major stories or issues that the article talks about are use of renewable energy as a way of conserving the environment, corporate social responsibility and response by companies to changes in demand of products due to price-sensitivity by customers.