Better planet

We have achieved a 30.1% reduction in absolute emissions (vs FY16) against our SBTi target of 50% by FY30 and a 4.3% reduction in FY23. The reduction since FY16 reflects a range of factors including a significant increase in our sourcing of renewable electricity and use of renewable electricity in our value chain, improvements to energy efficiency in our business and in the IKEA range, lower product volumes and the closure of our retail business in Russia. This target excludes emissions from customer travel which are not covered by the SBTi methodology.

We have reduced emissions from our operations by 62.5% since FY16 by switching to renewable electricity in all but two of our markets, improving energy efficiency in our buildings and installing renewable heating and cooling systems. The closure of our retail business in Russia also contributed to emissions reductions since this accounted for 12.6% of our non-renewable energy consumption in FY16.

Our operational emissions category includes scope 1 and 2 emissions as well as scope 3 emissions closely connected to our operations such as operational waste and the emissions associated with producing and distributing the energy we buy (scope 3 categories 3, 5, 8 and 13). We also have an SBTi approved target for scope 1 and 2 emissions.

In FY24, 96.6% of electricity was from renewable sources compared to 96.0% in FY23. This includes on-site renewable generation (e.g PV panels on our stores) which accounts for 7.9% of consumption, off-site generation (purchasing renewable electricity from solar and wind farms owned by Ingka Investments) and, where on-site and off-site approaches aren’t possible, we purchase renewable electricity from a supplier that can guarantee the renewable source with energy attribute certificates.

Emissions from mobility have reduced by 12.7% since FY16. The most significant reductions have been in customer travel (an 18.8% reduction) and co-worker travel (including business travel) which has reduced by 12.9%. This reflects increased use of electric vehicles by customers, co-workers and our home delivery partners as well as more customers shopping online. The closure of our retail business in Russia has also had an impact. Relative emissions from customer and co-worker travel to our stores has reduced by 9.1% since FY16. Absolute emissions from home delivery have increased by 48.2% due to a significant rise in the number of home deliveries since our baseline year.

41.1% of home deliveries were made by zero-emissions vehicles in FY24, a significant increase from 24.6% in FY23*.

We updated and extended our target in FY24 as we were not on track to reach our previous goal of 100% zero emissions home deliveries by 2025. Despite a rapid increase from 12.3% in FY22, achieving our target is taking longer than originally anticipated due to challenges such as lack of availability of suitable zero emissions vehicles and charging infrastructure in some of our countries.

Zero emissions vehicles accounted for 48.4% of owned or leased vehicles used in our own operations (including passenger and goods vehicles) in FY24 (FY23: 39.2%). We updated and extended our target in FY24 as we were not on track to reach our previous goal of 100% of company-owned, leased and shared vehicles to be zero emissions vehicles by 2025. Despite significant progress, achieving this target is taking longer than expected due to challenges such as lack of availability of suitable zero- emissions vehicles and charging infrastructure in some of our countries.

In FY24, we recycled 77.7% of waste (FY23: 76.9%). Our total waste increased by 3.9% compared with FY23 but has decreased by 4.6% since FY16. It has been challenging to increase our recycling rate, which can be impacted by lack of recycling infrastructure in some locations.