Fiskars Group will replace the Iittala factory’s existing, natural gas-powered furnaces with electricity-powered furnaces.
The investment will reduce the factory’s CO2 emissions by approximately 10,000 tonnes a year (74%) and decrease nitrogen oxide and fine particle emissions.
The project will start next year and be completed in 2026.
Nathalie Ahlström, President and CEO of Fiskars Group, said: "Sustainability is a key enabler of Fiskars Group's Growth Strategy.
"The Iittala glass factory has been a pioneer in the Finnish glass industry since 1881, and we are proud to continue investing in its future and in our local operations by reducing emissions."
Approximately 30% of the total investment will be covered by the European Union's NextGenerationEU funding granted by the Ministry of Economic Affairs and Employment of Finland on 4 October 2022.
This energy investment aid to the Iittala glass factory is €2.871 million.
The new furnaces will also replace 51,900 megawatt-hours of energy consumption based on natural gas with renewable electricity.
This will decrease the energy consumption of the glass melting furnaces by 67%.
Fiskars Group has set a target to reduce greenhouse gas (GHG) emissions from its own operations (Scopes 1 and 2) by 60% from a 2017 base year by 2030.
In addition, the company is committed to reducing GHG emissions from transportation and distribution (Scope 3) by 30% from a 2018 base year.