IKEA Introduces Net Zero & Beyond Climate Agenda

June 16, 2024  by HFBusiness Staff in Business Strategy, Industry   

The IKEA business is committed to contributing to limiting temperature rise to 1.5°C by drastically reducing greenhouse gas (GHG) emissions across the entire IKEA value chain. After thorough analysis and action planning, the IKEA climate goals were strengthened in FY23 in line with the 1.5°C target and the SBTi Net-Zero Standard.

The new goals, which were validated by SBTi earlier this month, include halving GHG emissions from the entire value chain in absolute terms by FY30 compared to FY16, and reaching net-zero emissions by FY50 at the latest.

The net-zero targets set by Inter IKEA Group cover sourcing and extraction of raw materials, food ingredients, manufacturing, product transport, retail operations, customer travel to stores, product use in customers’ homes and product end-of-life.

“We have been making progress and our emissions have been reduced by 22% since FY16, but science demonstrates that we have to do more. It's important to lead with facts, be able to substantiate our goals and understand what it takes to reach them.

This safeguards credibility and accountability. I am proud of the work we have done and I’m confident that we can back our words with action,” says Jon Abrahamsson Ring, Chief Executive Officer, Inter IKEA Group.

Since IKEA first set science-based targets in 2018, science has clearly established the need for accelerated climate action to limit average global temperature rise to 1.5°C by the end of the century. As climate science advances and industry standards become more harmonised, IKEA continues to take action. Reflecting both external developments and our own ambitions, we have updated the IKEA climate approach from “Climate Positive” to “Net Zero and Beyond."

The IKEA Net Zero and Beyond climate agenda includes: 

1: Drastically reducing GHG emissions: Inter IKEA Group is committed to halving absolute GHG across the entire IKEA value chain (scopes 1, 2 and 3) by FY30 (vs FY16) and reaching net-zero emissions by FY50.*

In accordance with the Net-Zero Standard, Inter IKEA Group will reduce the absolute GHG emissions from the IKEA value chain by at least 90% by FY50 compared to FY16. IKEA will neutralise the residual emissions by removing and storing carbon in forestry, agriculture and products within its value chain. IKEA has committed to meet this absolute reduction target without relying on carbon offsets to address the root causes of emissions in its value chain.

2: Removing and storing carbon through forestry, agriculture and products: In contrast to carbon offsets, the removals and storage occur within the IKEA value chain and are part of how we responsibly source materials for the IKEA range.

3: Going beyond IKEA: In addition to the above goals, it will go beyond the IKEA value chain by contributing to additional reductions of greenhouse gas emissions in society and advocating for climate policies in line with the science.

"The external validation of our targets reconfirms the science driven approach IKEA has for climate action. Achieving a net-zero emissions society is not only an environmental imperative, but also a social and economic one.

We have an opportunity and responsibility to work together with others to contribute to a just transition, halt nature loss and build resilient societies in which everyone’s rights are respected, basic needs are met, and equal opportunities are available for all,” said Pär Stenmark, Chief Sustainability Officer, Inter IKEA Group.

Read more about our climate approach.