Our climate agenda
The IKEA vision is to create a better everyday life for the many people. Climate change threatens this, for people today and for generations to come. Becoming climate positive means reducing more greenhouse gas emissions than the full IKEA value chain emits, while growing the IKEA business.
Our main priority is drastically reducing greenhouse gas emissions across the IKEA value chain. We will reduce the greenhouse gas (GHG) emissions from the value chain in absolute terms by at least 50% by FY30 compared to baseline FY16 and at least 90% latest FY50.
Any remaining emissions will be neutralised – reaching net-zero emissions latest FY50 – by removing and storing carbon from the atmosphere through better forest and agricultural management practices within the IKEA value chain. This will be achieved without relying on carbon offsets.
To become climate positive, we will go beyond net zero and go beyond IKEA by contributing to additional reductions in society.
The revised goals are aligned with the Paris Agreement and the Net-Zero Standard by Science Based Target initiative (SBTi).* In this way we contribute to limiting global warming to 1.5°C at the end of the century, while securing a just transition so that no one is left behind.
Becoming climate positive means reducing the greenhouse gas emissions from the IKEA value chain in absolute terms in line with the 1.5°C target while contributing to additional reductions in society. To reduce more than we emit, we will go beyond the IKEA business and contribute to additional reductions in society by taking an extended responsibility for emissions generated by our customers and suppliers, and in our sourcing areas – not just the part for IKEA.
* As of November 2023 the goals have been submitted to SBTi for approval.
Drastically reduce greenhouse gas emissions
The main priority is to reduce our absolute greenhouse gas emissions in line with the 1.5°C target. This will be achieved in the following ways:
- Using more materials and food ingredients with a low climate footprint
- Striving towards electrification, 100% renewable energy and continually improving efficiency
- Promoting sustainable choices and transforming into a circular business
Materials make up the largest part of our climate footprint
IKEA uses many types of materials in its products. Materials represent the largest part of of the total IKEA value chain climate footprint. Reducing the material climate footprint is a long-term development agenda. That's why we have an ambition to halve emissions from materials by FY30 compared to our FY16 baseline.
Product use at home
Almost all the footprint is due to the electricity consumption needed to power products such as lighting and home appliances. A smaller portion also comes from gas-driven hobs, refrigerants used for refrigerators and freezers, and the burning of candles at home. IKEA has a goal to reduce emissions from product use at home by 70% compared to baseline FY16. In FY23, the climate footprint decreased by 13% compared to FY22 and 52% compared to baseline FY16. This was mainly driven by the significant improvement in the energy efficiency of lighting.
* Baseline
Climate footprint (Million tonnes CO₂ equivalent).
Enabling our suppliers to reach 100% renewable energy
It’s critical to switch to 100% renewable energy and phase out fossil fuels – the root cause of climate change. While we’re committed to reaching the goal of 100% renewable energy for all IKEA operations by FY30, we want to enable our supply partners to achieve this goal as well. We’re providing two ways for them to convert to 100% renewable energy: by financing on-site investments and enabling the purchasing of renewable electricity – especially in countries where access is difficult. In FY23, we saw an increase in the overall renewable electricity share in production from 63% in FY22 to 71% in FY23. On the other hand, the share of coal and fossil oil-based fuels increased from 7% in FY22 to 9% in FY23 due to improved data collection from a large textile supplier.
Towards 100% renewable energy for IKEA retail
In FY23, we saw a modest increase in both the share of renewable electricity, moving 75% to 77% between FY22 and FY23, and the overall renewable energy share which progressed from 63% to 69% between FY22 and FY23. Renewable energy includes renewable electricity in addition to renewable sources heating, cooling, and fuels for transport.
More plant-based food
In FY23, we launched a plant-based version of the hot dog, expanding the range of "hot dogs" and as a complement to the veggie hot dog launched in FY19.
Read about more actions we are taking
Removing and storing carbon through forestry, agriculture and products
Trees and agricultural crops – which are used for materials, food and fuels – absorb and store carbon as they grow, in the plant itself and in the soil. Through better forest and agriculture management within the IKEA value chain and the circular economy, we will additionally remove and store carbon within the IKEA value chain. We’ll also invest in reforestation and regeneration projects to restore ecosystems and plant more trees.
- Improving sustainable management practices within forestry and agriculture
- Prolonging the life of products and the carbon storage in renewable materials
100M EUR
investment in removing and storing carbon
98%
of the wood used by IKEA in FY23 was FSC®-certified or recycled
Our Forest Positive Agenda for FY30
The Forest Positive Agenda for FY30 lays out the roadmap to further enhance biodiversity, support the livelihoods of people who depend on forests, and mitigate climate change. In FY20, we reached our goal to only use wood from more sustainable sources and will maintain this level every year going forward.
Going beyond IKEA
To become climate positive and reduce more greenhouse gas emissions than the IKEA value chain emits, we will take an extended responsibility for the climate footprint of our customers, suppliers and sourcing, and contribute with additional reductions in society. We will achieve this by enabling customers to generate renewable energy at home, as well as by transforming our suppliers’ entire factories or operations to renewable energy – not just the part used for IKEA production.
IKEA Home Solar means democratising clean energy
In FY23, SOLSTRÅLE – the IKEA home solar offer – was available in 11 markets. By FY25, the goal is to have solar panels available in 31 IKEA markets.
Our reductions in GHG emissions to date are the result of a lot of hard work by co-workers, suppliers and partners across the IKEA business who are committed to addressing every part of the IKEA footprint. Together, we will take the remaining actions needed to contribute to limiting global warming to 1.5°C.