A reduction in IKEA’s total climate footprint, the introduction of a new bio-based glue, increased use of renewable electricity in retail and production, and more than halving the climate footprint caused by the use of products at home are just some of the key achievements of the past year, according to the latest IKEA Sustainability and Climate reports.

“Among the latest initiatives implemented is the use of bio-based glue at the IKEA Industry particleboard factory in Lithuania and research into new technologies for recycling fibreboard. The initiatives introduced help to implement IKEA’s climate change plans and efforts to reduce emissions from materials, which is the biggest contributor to the IKEA climate footprint. Sustainability is an integral part of our business and our commitment is to ensure that a sustainable lifestyle is accessible to the many,” says Inter IKEA Group CEO Jon Abrahamsson Ring.

IKEA manager in Latvia Pēteris Grīnbergs: “Sustainability is part of our daily life and our long-term commitment to inspire people to live a healthier and more sustainable life at home. We are taking steps to monitor and reduce our environmental impact – this includes initiatives such as energy-saving measures, optimising operations, reducing our climate impact, reducing food waste, and expanding our food offering by providing more plant-based alternatives. Another important direction is to educate and provide the necessary resources to employees to promote awareness of the importance of sustainability and encourage them to identify and implement potential initiatives that would improve daily work – everyone’s involvement has a crucial role in driving change.”

The 2023 financial year – from 1 September 2022 to 31 August 2023 – was another year of global challenges, but also of progress. Key changes include a 22% reduction in IKEA’s total climate footprint in absolute terms* compared to the baseline, the 2016 financial year, and the strengthening of climate goals. It is estimated that the IKEA climate footprint in the 2023 financial year is 12% smaller than in the previous year and 22% smaller than in the baseline, the 2016 financial year. The reduction in the 2023 financial year is linked to an increase in renewable electricity consumption in both retail and production facilities, energy efficiency improvements in the lighting product range, and lower production volumes.

Other 2023 financial year highlights

·        Reduction in consumer plastic packaging volume by approximately 47% and a reduction in total plastic packaging volume (including consumer packaging, complex packaging, pallet and handling materials) by approximately 44%, compared to the baseline, the 2021 financial year.

·        Progress made towards using 100% renewable electricity in IKEA stores – 100% renewable electricity is currently used in 25 IKEA retail markets, which is one more than the previous year.

·        100% renewable electricity is used by a further 142 factories or suppliers, bringing their total to 408.

·        The climate footprint caused by the use of products at home has been reduced by 13% compared to the 2022 financial year and by 52% compared to the baseline, the 2016 financial year.

·        A 80% reduction in the climate footprint of Inter IKEA Group direct operations compared to the baseline, the 2016 financial year.**

·        97.8% of wood used in products was sourced from more sustainable sources, and 17% of wood is recycled.

·        Provided 23.2 million spare parts so that customers could extend the life of their products.

·        For the first time, ceramic production waste was used to create a new range of tableware – SILVERSIDA.

·        Launched the VINDSTYRKA sensor, which allows monitoring of air quality at home and promotes awareness of indoor air quality.

·        Implemented a pilot project providing for the return and reuse of down and feathers for the production of GULKAVLE pillows and FJÄLLBRÄCKA duvets, in cooperation with a small-scale start-up operating in Belgium, Germany, and the Netherlands.

·        Created a new global collection developed together with seven social enterprises, thereby providing jobs for people from vulnerable and socially excluded groups in Asia.

IKEA continues to innovate and develop technologies to reach its climate goals. The company plans to use only renewable or recycled materials by the 2030 financial year.

A significant achievement this year was the development of detailed action plans that allowed for support of climate goals in line with the 1.5 °C target and the net-zero emission standard set by the Science Based Targets initiative (SBTi). The new goals foresee at least halving greenhouse gas emissions in the IKEA value chain in absolute terms by the 2030 financial year compared to the 2016 financial year and reaching net-zero emissions by the 2050 financial year. In November 2023, these goals were submitted to SBTi for approval.

The IKEA sustainability strategy People & Planet Positive outlines the ambitions and commitments to be implemented by 2030. More examples of progress can be found in the IKEA Sustainability Report for the 2023 financial year and the IKEA Climate Report for the 2023 financial year, published by Inter IKEA Group, which cover joint efforts made by participants across the IKEA franchise system and value chain.

* Includes IKEA stores and other customer meeting points within IKEA retail, as well as IKEA brand logistics centres, offices, etc.

** This includes Inter IKEA Group Scope 1 and 2 emissions, including those arising from manufacturing operations carried out by Inter IKEA at IKEA Industry and IKEA Components. However, it does not include greenhouse gas emissions generated by franchisees and external direct suppliers, which constitute Scope 3 emissions in our operations.