Ingka Group Publishes Annual Summary & Sustainability Report

February 19, 2023  by HFBusiness Staff in Business Strategy, Industry   

It shows that the company is making progress in reducing its total climate footprint (scope 1,2 and 3), achieving a decrease of 13.6% from baseline year FY16 and a decrease of 6.0% from FY21. The reduction contributes to the overall IKEA climate footprint which saw a 12% reduction in absolute terms compared to FY16. 

The annual report integrates sustainability and climate reporting throughout the business. It provides a transparent account of performance and areas where the business is making progress, as well as the challenges it is addressing. It covers all parts of the Ingka Group business while focusing on four big movements, Better homes, Better lives, Better planet and Better company.

Despite global economic and political challenges around the world, Ingka Group continued to keep in sight the needs and dreams of people in life at home and show that healthy and sustainable living can be affordable, attractive, and accessible. This included investments in new and existing stores, digital tools and services, renewable energy, and customer fulfilment.

“We managed to achieve solid performance in a challenging time, all thanks to the efforts of our 170 000+ IKEA colleagues. Our sense of purpose, creating a better everyday life for the many people, is stronger than ever and I’m very proud of what we have achieved across IKEA Retail, Ingka Centres and Ingka Investments,” says Jesper Brodin, CEO, Ingka Group.

“We have invested in creating a better IKEA by becoming more affordable, accessible and sustainable – the latter showing important progress when it comes to reducing our total climate footprint, while growing the business,” 

Ingka Group is taking steps across the business to help achieve the IKEA commitment to become climate positive by 2030***. As the largest IKEA franchisee, it has an important part to play in achieving these commitments, for example, switching to renewable energy, transitioning to zero emission home deliveries, introducing a more plant-based food offer, and offering circular services like buy back and take back.

The company works together in partnership with other businesses, industries, society and NGO’s to drive a positive impact on people and the planet, including supporting a world where human rights are a reality for all.

“Throughout the year, we continued to act for a better planet and are pleased to have reduced our climate footprint in our operations and across the IKEA value chain. We have been focused on sustainability for many years, and in that time our co-workers have done great work to improve our performance and develop innovative new approaches to social and environmental issues,” says Karen Pflug, chief sustainability officer, Ingka Group.

“This year alone we have sold 32.5 million products in our As-Is areas to help customers embrace circularity and rolled out Sustainable Living Shops within the store across 30 markets. We were also proud to reach a 57.8% reduction in production food waste from our IKEA stores since FY17, going beyond our target by the end of 2021.”

The Ingka Group reporting website (on ingka.com) provides a summary of FY22 performance, with progress and challenges and an update against our targets. On the site you can download the full Ingka Group Annual Summary and Sustainability Report FY22 – an overview of highlights, progress, and challenges towards our commitments with detailed data, policies, and frameworks.

Ingka Group Reporting FY22 highlights include:

Better Homes:

Extended our clean energy services by introducing a solar offer in California, US and heat pumps in Sweden and introduced our Sustainable Living Shop across 30 markets, to highlight sustainable products and solutions to more customers.

We also connected with over 37,000 people in 37 countries to conduct our ninth annual Life at Home Report.

More than 680 million customers to our IKEA locations and IKEA.com saw more than 3.8 billion visits and the IKEA app was downloaded 20.3 million times. 

Better Planet: 

74.2% of the electricity we used was from renewable sources, an increase from 69.1% in FY21.

Continued to explore how to be more circular by testing a range of solutions, including repurposing our As-Is areas into circular hubs in 306 stores, enabling customers to buy second-hand and nearly new furniture. 32.5 million products sold in our As-Is areas to help our customers embrace circularity with 1.8 million customers used our spare parts service to repair and extend the life of their IKEA products.  

Reduced operational waste by 9.5% compared to FY21, our recycling rate has remained stable at 75.7% 

Better Lives:

Responded to the impacts of the war in Ukraine. In total, Ingka Group donated EUR 15.2 million in cash and in-kind donations. This included establishing an emergency community support fund that enabled our countries to respond with speed to the needs of local partners working on the ground to assist people fleeing the war in Ukraine.

We supported a total of 1765 refugees in 22 countries through our Skills for Employment refugee integration initiative by the end of FY22, the goal is to support 2,500 refugees in 30 countries during FY23.

Better Company: 

In FY22 Ingka Group progressed towards its investment goal of EUR 6.5 billion in renewable energy by 2030, by investing and committing a record EUR 0,9 billion in renewable energy projects.