Ingka Group Updates Targets for Climate ‘Net Zero and Beyond’

June 13, 2024  by HFBusiness Staff in Business Strategy, Industry   

As the world continues to evolve, with advancements in science and aligned industry standards, Ingka Group strengthened its climate targets in November 2023 in alignment with the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard. These targets were approved by SBTi in April 2024.

The revised targets means that Ingka Group is committed to reduce absolute greenhouse gas emissions from the value chain by at least 50% by FY30 (compared to FY16 baseline) and reach net zero emissions by 2050***, without relying on carbon offsets to meet these absolute reduction targets.

“The climate crisis is one of the biggest challenges facing humanity and as a business we are driving action in our business and beyond to contribute to limit global temperature rise to 1.5°C. Even if we have come far on our journey, we all need to do more, and the latest climate science is telling that we need to move with impact and speed. Now. Together we can create a positive change in society by accelerating climate action and working together with partners, governments, the private sector, and our customers,” says Jesper Brodin, CEO, Ingka Group.

In line with the latest industry developments, the IKEA climate ambition is reframed from “Climate Positive” to “Net Zero and Beyond,” and reconfirms the shared IKEA commitment to the Paris Agreement and the science of limiting average global temperature rise to 1.5°C.

“Since we first set science-based climate targets in 2018, the global climate landscape has undergone drastic changes, as the urgency for action has accelerated as the science evolved. As a business, we support the ongoing development of credible external climate standards, grounded in the latest science. The validation of our updated net zero targets with prioritized actions will support and guide us in our own operations and beyond”, says Karen Pflug, chief sustainability officer, Ingka Group.

“The climate crisis is happening now and impacting each and every one of us, our families, wider society, and the businesses we lead, affecting the most vulnerable, in disproportionate ways. So as a multinational business present in 31 countries, we will focus our actions on driving impact in our value chain and continue to engage with our millions of customers in living a more sustainable life at home,” she says.

The strengthened climate ambition ‘Net Zero and Beyond’ focuses on three areas:

1. Drastically reducing greenhouse gas (GHG) emissions: by halving absolute GHG across the entire Ingka Group value chain (scopes 1, 2 and 3) by FY30 (vs FY16) and reaching net zero emissions by FY50, without relying on carbon offsets to meet these absolute reduction targets. Approved and validated by SBTi ****

In addition:

2. Removing and storing carbon through forestry, agriculture, and products: by permanently removing and storing carbon in the atmosphere through nature-based solutions in the value chain, addressing the root causes of the climate footprint, improving resilience toward impacts of climate change and bringing benefits to nature and people.
3. Going beyond the value chain: by contributing to additional reductions of GHG emissions in society and advocating for climate policies in line with science.

Key Ingka Group actions to transition the business to Net Zero and Beyond include:

• Striving towards 100% renewable electricity across its operations, and electrification of customer home deliveries and co-worker travel and continually improving energy efficiency
• Increased use of materials and offering food ingredients and a more plant-based food offer, with a lower climate footprint.
• Transitioning towards a circular business for example by offering buy back and take back services, in-store circular hubs, online platforms for second-hand products.
• Promoting sustainable choices for our customers, for example by providing energy services, so many more people can use or generate their own renewable energy.

The updated climate targets were set in FY24. Ingka Group will report progress and challenges against the revised Net Zero targets in the Annual Summary and Sustainability Report (ASSR) for FY24, published in early 2025.