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Ingka Group Annual Summary and Sustainability Report FY24

Better company

We structure our business to ensure financial resilience and we reinvest profit to help us keep growing and improving. We run our business honestly and with integrity, meeting high ethical standards. Our governance is designed to ensure that Ingka Group remains a well-managed, successful, purpose-led company.

A yellow IKEA sign on a blue store exterior from an IKEA store in Nice.

What we are proud of

  • Generated a positive net income despite investing EUR 2.1 billion in lowering prices for customers and market challenges, and upheld a healthy liquidity position.
  • 85% of net income was reinvested in the company and the other 15% was paid as dividend to our sole owner, Stichting INGKA Foundation to support the charitable activities of the IKEA Foundation.
  • Our total tax bill including property and other taxes was EUR 1.2 billion (FY23: EUR 1.2 billion).
  • Ingka Investments has invested or committed EUR 4.2 billion in renewable energy since 2009, towards a goal of 7.5 billion by 2030.
  • Our AI literacy initiative is upskilling co-workers on the responsible use of AI. Over 4,000 co-workers have participated in AI training and our AI literacy awareness resources have been viewed over 54,000 times.
  • Verified our first cohort of strategic suppliers against our IWAY Advanced & Excellent requirements for equality, diversity and inclusion.

Read the Ingka Group Annual Financial Report FY24.

Go to Reports
A man sits outside on a ledge looking at his phone smiling with an IKEA paper bag next to him.

Challenges we are addressing

  • Our business was impacted by continued disruption of supply chains and cost inflation, as well as slow economic growth, high interest rates, and a 3.8% decrease in the home furnishing sector in the markets in which we operate.
  • A lot of supplier engagement is required to implement IWAY, our supplier code of conduct. Rates of non-compliance are higher among some categories of suppliers and in some regions. To address this we are focusing on engaging suppliers in these categories in preventative actions as well as carrying out more frequent follow-ups after audits.
  • The rapid pace of technological change creates challenges for applying our Digital Ethics Policy.
  • We need to ensure that generative AI is used according to our policies and that company and co-worker data is protected. This involves upskilling our co-workers as well as developing our compliance processes.

Progress against targets

Our vision is to create a better everyday life for the many people. We set targets and monitor our performance, aiming become better in four ways: Better homes, Better lives, Better planet and Better company. Below you will find our targets and latest performance data in relation to a better company.

Financial resilience*

Financial resilience is essential to ensure we can achieve our vision in the long term. We achieve financial resilience in four ways: keeping costs low so we can offer low prices to customers and maintain a competitive business model; being a responsible taxpayer; maintaining conservative levels of net liquidity that support our independence; and investing to make IKEA more affordable, more sustainable and more accessible to the many people. Due to our ownership structure, no dividends are paid to any private shareholder. Our profit can only be used in two ways: 85% of our net income is reinvested in the company; 15% is paid as dividend to our sole owner, Stichting INGKA Foundation, which has a charitable purpose to provide funding to the IKEA Foundation.

1.
Accelerate investments by Ingka Investments into renewable energy to EUR 7.5 billion by 2030.
On track

Performance summary

We have invested EUR 4.2 billion in wind and solar farms and wider renewable investments since 2009. This includes both investments made, and the amount committed to projects by the end of FY24. We have a commitment to invest EUR 7.5 billion by 2030.

Last updated 2025-01-28

Ethical business conduct**

At Ingka Group we act based on our IKEA culture and values, guided by our vision to create a better everyday life for the many people. We want to run our business honestly and with integrity, meeting high ethical standards in our interactions with each other, customers, visitors, suppliers and the world around us. We promote a culture where all co- workers feel they can raise concerns without fear of retaliation.

1.
All co-workers in sensitive positions complete Anti-bribery & Corruption training.
Not on track

Performance summary

We aim for all co-workers in sensitive roles (such as procurement or real estate) to complete training on our ABC framework. In FY24, this included an Introduction to ABC online course followed by annual ABC refresher training. We have improved our data collection process to enable us to start tracking completion rates for co-workers in sensitive roles. In FY24, 58.2% of co-workers in relevant roles completed ABC training and we expect this to increase in FY25.

Last updated 2025-01-24

Digital trust

Digital technology plays an important role in our organisation, helping us to enhance co-worker capabilities and serve our customers in new and better ways. We are committed to using technology responsibly in line with our values, safeguarding customers and co-workers against any potential risks and building digital trust.

1.
Co-workers trained in digital ethics and responsible AI literacy during FY24.
On track

Performance summary

Our AI literacy initiative is upskilling co-workers on the responsible use of AI. Over 4,000 co-workers participated in AI training and our AI literacy awareness resources have been viewed over 54,000 times.

Last updated 2025-01-24

Responsible sourcing

We buy goods and services to run our business from thousands of suppliers – from companies providing construction, security and cleaning services, to home delivery providers and product assembly businesses. We choose to work with suppliers and service providers who share our values and uphold our standards. We monitor this through our IWAY process.

1.
We require all suppliers to continuously fulfil our IWAY expectations.
On track

Performance summary

We updated our IWAY target in FY24 which sets different expectations and requirements for suppliers based on their risk level. (Previous target: We aim for 100% of contracted suppliers to achieve IWAY compliance each year.) In FY24, 34.7% of IWAY reviews found major non-compliances (suppliers did not comply with IWAY musts) compared with 36.0% in FY23. When non-compliances are identified, suppliers must take corrective action to address these or we will apply business consequences, up to and including phase out of the supplier. We are extending the data we collect to enable fuller reporting against this target from FY25.

Last updated 2025-01-28

*We no longer include our commitment that Ingka Investments does not make or hold direct investments in fossil fuel or nuclear power businesses in our targets list. However, this remains our policy, see page 106.

**We no longer report progress on our target for all new co-workers to complete training on our Code of Conduct within a month of joining and for all existing co-workers to complete refresher training once every two years. We are developing a new target and metric to enable us to monitor progress in this area.

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Learn more about how we make life better

Better homes
​Read more about our passion for a better life at home that makes us IKEA. Learn how city stores and expanded services help make healthy and sustainable living available for more people.
Better lives
​Read about how we strive to build a fairer and more equal society and improve the lives of those impacted by IKEA. Learn more about co-worker engagement within Ingka Group.
Better planet
​Read about our commitment to becoming a sustainable business by 2030. Learn how we reduce our climate footprint and make it easier for our customers to act too.