The IKEA climate footprint in FY23 is estimated to be 24.1 million tonnes CO2 equivalent, a decrease of 12% compared to the previous year, and 22% compared to the baseline year FY16.

The reduction in FY23 is attributed to the continued increase in renewable electricity at both, retail and production units, energy efficiency improvements in the company’s lighting range, in addition to lower production volumes.

“Sustainability is an integral part of our business and our commitment to make sustainable living affordable and accessible to the many. We maintain a long-term perspective and are actively contributing to limiting our impact on climate change, reversing nature loss and securing equitable growth,” said Jon Abrahamsson Ring, CEO, Inter IKEA Group.

“In FY23, we introduced bio-based glue in the IKEA Industry board factory in Lithuania and explored a new technology for recycling fibreboard. This will support the IKEA climate transition plans and the work to reduce emissions from materials, the largest contributor to the IKEA climate footprint,” Jon added.

A significant achievement this year was the development of rigorous action plans that allowed IKEA to strengthen its climate goals in line with the 1.5°C target and the science-based targets initiative (SBTi) Net-Zero standard.

The new goals include at least halving green-house gas emissions from the IKEA value chain in absolute terms by FY30 compared to FY16 and reaching net-zero latest FY50. As of November 2023, the goals have been submitted to SBTi for approval.

“To further support change, the IKEA business advocates for a complete phase-out of fossil fuels and its subsidies, halting deforestation and addressing the root causes of air pollution,” says Pär Stenmark, Chief Sustainability Officer, Inter IKEA Group.

Other highlights from the financial year 2023 include:

•        Progress towards 100% renewable electricity for IKEA stores;

•        25 IKEA retail markets now consuming 100% renewable electricity;

•        100% renewable electricity at 142 additional factories and suppliers;

•        Climate footprint from product use at home decreased by 13%;

•        Reduction in the amount of plastic packaging of consumer goods by approximately 47%;

•        First-time use of ceramic production waste to make Silversida tableware range;

•        Piloting the return and reuse of down and feathers in Belgium, Germany and the Netherlands;

•        97.8% of wood either FSC-certified or recycled.

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