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IKEA Unpacks Net-Zero Transition Plan

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Stockholm (NordSIP) – The INGKA Group, which operates the main retail network of the IKEA brand in 31 countries, published its net-zero transition plan on 17 February 2025. This sets out the group’s pathway towards reducing its greenhouse gas (GHG) emissions by 50% by 2030 from a 2016 base, and onwards towards net-zero by 2050.

The company has demonstrated its ability to deliver concrete results to back up its climate goals, with GHG emissions already down by just over 30% from the 2016 baseline. Moreover, the reduction plan has been designed in compliance with the Science-based Targets Initiative (SBTi) corporate net-zero standards. This involves reducing emissions across Scopes 1, 2, and 3 by at least 90% by 2050 at the latest. Any remaining carbon emissions will be addressed via forest and agriculture improvements in the IKEA value chain, and by extending the life of products and materials.

The INGKA Group’s action points include the refurbishment, repurposing, and renovation of its network of buildings with more sustainable and efficient materials. It is also phasing out fossil fuel use wherever possible, with the aim of achieving 100% renewable energy use throughout the IKEA value chain. 90% of IKEA home deliveries should be carried out by zero emissions vehicles by 2028, and the group is also increasing the amount of plant-based food served in its restaurants in a further attempt to reduce the overall carbon footprint.

IKEA’s external suppliers are also being steered onto the net-zero pathway and required to set emissions reduction targets accordingly. The group is also working on achieving greater product circularity by introducing return schemes and providing greater scope for repair and reuse. Finally, the group’s investment arm will target lower carbon asset classes.
The group’s value chain carbon footprint was 21.5 million tonnes of carbon dioxide equivalent (CO2e), including customer travel emissions of 1.8 million tonnes of CO 2e. Significant reductions of roughly 60% have been achieved in production, operations, and product use by clients compared to the 2016 base year.

Walking the climate talk

The INGKA Group’s net-zero plan represents a positive benchmark in a corporate world sensitive to the political backlash against sustainability in some jurisdictions, with some companies rowing back on previously set climate targets. Many corporations also limit their GHG reduction targets to Scope 1 and 2. INGKA Group’s plan inclusion of the full scope of its value chain emissions sets a good standard, and it is keen for policymakers to follow suit.

Simon Henzell-Thomas, the group’s Climate & Nature Manager said: “Climate change has no borders and together – across the public and private sector – we must collaborate across industries and with governments and customers to drive real change. 2025 is a critical milestone for governments to deliver their own ambitious national climate plans ahead of COP30, so we invite policymakers, industry peers, and customers to collaborate in accelerating the transition to a sustainable future. We can only get there by working together.”

Image courtesy of mastrminda from Pixabay

Stockholm (NordSIP) – The INGKA Group, which operates the main retail network of the IKEA brand in 31 countries, published its net-zero transition plan on 17 February 2025. This sets out the group’s pathway towards reducing its greenhouse gas (GHG) emissions by 50% by 2030 from a 2016 base, and onwards towards net-zero by 2050.

The company has demonstrated its ability to deliver concrete results to back up its climate goals, with GHG emissions already down by just over 30% from the 2016 baseline. Moreover, the reduction plan has been designed in compliance with the Science-based Targets Initiative (SBTi) corporate net-zero standards. This involves reducing emissions across Scopes 1, 2, and 3 by at least 90% by 2050 at the latest. Any remaining carbon emissions will be addressed via forest and agriculture improvements in the IKEA value chain, and by extending the life of products and materials.

The INGKA Group’s action points include the refurbishment, repurposing, and renovation of its network of buildings with more sustainable and efficient materials. It is also phasing out fossil fuel use wherever possible, with the aim of achieving 100% renewable energy use throughout the IKEA value chain. 90% of IKEA home deliveries should be carried out by zero emissions vehicles by 2028, and the group is also increasing the amount of plant-based food served in its restaurants in a further attempt to reduce the overall carbon footprint.

IKEA’s external suppliers are also being steered onto the net-zero pathway and required to set emissions reduction targets accordingly. The group is also working on achieving greater product circularity by introducing return schemes and providing greater scope for repair and reuse. Finally, the group’s investment arm will target lower carbon asset classes.
The group’s value chain carbon footprint was 21.5 million tonnes of carbon dioxide equivalent (CO2e), including customer travel emissions of 1.8 million tonnes of CO 2e. Significant reductions of roughly 60% have been achieved in production, operations, and product use by clients compared to the 2016 base year.

Walking the climate talk

The INGKA Group’s net-zero plan represents a positive benchmark in a corporate world sensitive to the political backlash against sustainability in some jurisdictions, with some companies rowing back on previously set climate targets. Many corporations also limit their GHG reduction targets to Scope 1 and 2. INGKA Group’s plan inclusion of the full scope of its value chain emissions sets a good standard, and it is keen for policymakers to follow suit.

Simon Henzell-Thomas, the group’s Climate & Nature Manager said: “Climate change has no borders and together – across the public and private sector – we must collaborate across industries and with governments and customers to drive real change. 2025 is a critical milestone for governments to deliver their own ambitious national climate plans ahead of COP30, so we invite policymakers, industry peers, and customers to collaborate in accelerating the transition to a sustainable future. We can only get there by working together.”

Image courtesy of mastrminda from Pixabay

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