By Jonathan Davies

IKEA says it will commit to spending €1 billion on climate change and renewable energy for poorer nations.

Chief Executive Peter Agnefjall said it would "absolutely not" see the world's biggest furniture retailer raise its prices.

Speaking to Reuters, Mr Agnefjall said the investment is “good for customers, good for the climate and good for Ikea too".

IKEA last year conducted an internal review in which 41% of its customers said the company “takes social and environmental responsibility“ seriously, below its 70% target.

As part of the plan, IKEA plans all energy used in its stores to be genereated via clean sources by 2020.

€600m will be invest in wind and solar panel installations, taking its total to €1.5bn since 2009. It has signed up to own and operate 314 win turbines and will install 700,000 solar panels on its store roofs.