"Sustainability, together with affordability and accessibility, is an integral part of our business and of our long-term commitment to inspire and enable people to live a more sustainable life at home. That is why we are continuously making improvements in the areas of energy, water, waste and extending the lifespan of our products, in order to enable a more resource-efficient way of living. The transition to a circular economy involves not only design innovation and the use of recycled, renewable materials, but also the creation of new opportunities that make it easy for consumers to care for products, take them apart and reassemble them, repair and refurbish them, thereby extending their service life," says Pēteris Grīnbergs, head of IKEA Latvia.

Reducing climate impact in the Baltics

IKEA's climate impact in the 2024 financial year is estimated at 21.3 million tonnes of CO₂ equivalent. That is 5% less than in the 2023 financial year. The reduction is linked to greater use of renewable energy sources, improved energy efficiency, progress towards electrifying transport, and a decrease in production volumes.

The IKEA representative adds: "We are taking steps to monitor and reduce our environmental impact in all three Baltic states as well. This includes saving energy, optimising operations and focusing on the responsible use of resources. In Latvia, for example, almost all the electricity used is renewable, the premises have LED lighting on a timed schedule, and the ventilation systems also run to a schedule in order to save energy. Solar collectors for heating water have been installed on the roof of the IKEA store in Riga, while rainwater is used to irrigate the plantings. For the convenience of customers and colleagues, free electric vehicle charging points have been installed in the car park. We are constantly working to find new and innovative ways to use fewer resources."

IKEA's commitment – to cut emissions by 50% by the 2030 financial year

Compared with the 2016 baseline, relative, volume-based emissions fell by 9% in the upstream part of the value chain (for example, raw material extraction and production) and by 34% in the downstream part (for example, transport, delivery and product use). This shows progress in reducing emissions relative to volumes, which is a positive step towards decoupling growth from emissions. Since materials account for almost half of IKEA's climate footprint, efforts continue to increase the share of secondary raw materials, use materials more efficiently and develop products with a lower climate impact.

This year's climate report includes the Inter IKEA Group's climate plan for the 2030 financial year. It gives an overview of the key measures needed to halve total emissions across the entire value chain by the 2030 financial year compared with the baseline, and is the first step towards a more comprehensive transition plan. The climate roadmap sets out a wide range of measures – from design in line with circular economy principles and responsible material sourcing through to innovative production processes. It includes developing products in such a way that they can be reused, refurbished and recycled, and tackling the root causes of climate change by phasing out fossil fuels and working towards 100% renewable energy use across the whole value chain.

The IKEA Sustainability Strategy sets out the ambitions and commitments that form a shared agenda through to 2030. More examples of progress can be found in the IKEA sustainability report for the 2024 financial year and the IKEA climate report for the 2024 financial year, across the IKEA Group, 12 franchisees and supplier companies. Each part of the IKEA business sets targets and lays down guidelines to deliver the strategy and to allow for locally adapted and appropriate measures.

IKEA's global progress towards its sustainability goals

The most significant activities in 2024:

·        Increasing the share of renewable energy across IKEA retail businesses overall (including stores, warehouses, offices and so on belonging to Inter IKEA Group, as well as the retail businesses of IKEA franchisees, but excluding the IKEA-owned factories belonging to IKEA Industry and the IKEA Components packaging manufacturers and distributors, since their figures are counted under production) to 71% in the 2024 financial year (67% in the 2023 financial year), with the share of renewable electricity rising from 77% to 81%.

·        A 100% share of renewable electricity was achieved at a further 93 factories or supplier companies, bringing the total with a full renewable electricity share to 491 factories or suppliers (44% of direct suppliers).

·        Greenhouse gas emissions were reduced in absolute terms across the entire IKEA value chain, including materials, production, food ingredients and the use of products at home.

·        Total foam material consumption in mattresses was reduced by 20% by using alternative comfort and design solutions.

·        A switch to paper bags for furniture fittings packaging, cutting plastic consumption by around 1400 tonnes a year.

·        The new PAX frame, designed for easy dismantling and reassembly, reached the market.

·        Ahead of COP16, IKEA endorsed the "Business for Nature" statement calling for renewed political targets in nature conservation, thereby affirming its support for swift implementation of the Global Biodiversity Framework (GBF).

·        IKEA Social Entrepreneurship worked with 11 social businesses in the 2024 financial year, employing 10,000 people who make handcrafted products.

* Includes IKEA stores and other customer meeting points in IKEA retail businesses, as well as IKEA brand distribution centres, offices and so on. Emissions arising from customers travelling to stores are excluded from the Net Zero inventory in line with the SBTI assessment of the Inter IKEA Group Net Zero targets.