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Climate, Circular & Nature

The world is facing a climate crisis that will affect the lives of many millions of people today and for generations to come. The world exceeded 1.5°C for the first time in 2024. With just five years left to achieve the Paris Agreement, it’s no surprise that 68% of people now report being worried about climate change. With 1 million species at risk of extinction, we’re on course for irrevocable damage to nature and ecosystems.

Creating a better future

We know we have a huge responsibility –and many opportunities – to make a positive difference on climate change. As stubborn optimists, we believe that we can create a better future.

There are many existing solutions to tackle the climate crisis, but we urgently need to accelerate action. This can offer new opportunities for job creation, innovation, economic growth and reduced energy costs. And we’re proving that it’s possible to reduce our climate footprint while increasing our revenue. Since our baseline year 2016 we have reduced our climate footprint in absolute terms by -30.1% across scope 1, 2 and 3, while growing our business by 23.7%. This reduction is coming primarily from implementing carbon saving measures, such renewable electricity and energy efficiency; however, changes in our business operations and sales have also contributed.

By 2050 our ambition is to become net zero

At IKEA, we are committed to the Paris Agreement and to contribute to limiting the global temperature rise to 1.5°C above pre-industrial levels. For many years the IKEA business has been working towards drastically reducing greenhouse gas (GHG) emissions and removing and storing carbon through forestry, agriculture and products. We’ve also been actively driving several initiatives beyond our value chain to create broader societal impact. And as the world continues to evolve, with advancements in science and aligned industry standards, IKEA continues to take action. In line with external movements and our own ambitions, we have reframed the IKEA climate approach from “Climate Positive” to “Net Zero and Beyond.”

Wind power plants on a rapeseed field during a sunny spring day.

The journey continues

The strengthened climate ambition ‘Net Zero and Beyond’ focuses on three areas:

Drastically reducing greenhouse gas (GHG) emissions: by halving absolute GHG across the entire Ingka Group value chain (scopes 1, 2 and 3) by FY30 (vs FY16) and reaching net zero emissions by FY50*, without relying on carbon offsets to meet these absolute reduction targets. Approved and validated by SBTi.

In addition: Removing and storing carbon through forestry, agriculture, and products: by permanently removing and storing carbon in the atmosphere through nature-based solutions in the value chain, addressing the root causes of the climate footprint, improving resilience toward impacts of climate change and bringing benefits to nature and people.

Going beyond the value chain: by contributing to additional reductions of GHG emissions in society and advocating for climate policies in line with science.

Key Ingka Group actions to transition the business to Net Zero and Beyond include:

  • Striving 100% renewable energy across its operations, and electrification of customer home deliveries and co-worker travel and continually improving energy efficiency.
  • Increased use of materials and offering food ingredients and a more plant-based food offer, with a lower climate footprint.
  • Transitioning towards a circular business for example by offering buy back and take back services, online platforms for second-hand products.
  • Promoting sustainable choices for our customers, for example by providing energy services, so many more people can use or generate their own renewable energy.

*The Science Based Target initiative validated this target in April 2024 for Ingka Group and for Inter IKEA Group in June 2024. In accordance with the Net-Zero Standard, by FY50 we will reduce the absolute GHG emissions from the IKEA value chain by at least 90% compared to FY16, with residual emissions neutralized by removing and storing carbon within our own value chain.

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