Ingka Group Publishes Net Zero Plan for 50% by FY30

February 17, 2025  by Karen Parrish in Business Strategy, Industry   

The company has shown consistent progress in reducing its emissions, and has reduced its climate footprint by 30.1%, compared to the FY16 baseline¹. Ingka Group first set science-based climate targets in 2018 and during 2023 strengthened its climate targets to halve absolute emissions across the value chain by 2030 and reach net zero by 2050 at the latest. The updated targets are part of the IKEA strengthened climate ambition ‘Net Zero and Beyond’.

Karen Pflug, Chief Sustainability Officer, Ingka Group says, “As part of the IKEA vision of creating a better everyday life for the many people, sustainability has been an important part of the business for many years, with the first IKEA environmental policy introduced in 1991. We have strong climate commitments, and the publication of our net zero transition plan means we have an even clearer roadmap for how to get there."

"Thanks to the dedication and work of many colleagues across the business, this plan has taken in many learnings and goes deeper than ever before into each of our climate emission categories for our business. We hope that by being transparent about our challenges, dependencies and innovation gaps we can inspire others and lead conversations that will support us in achieving the transition in our own business and broader society”

To build on progress, the new climate transition plan presents a roadmap for decarbonization across all aspects of the value chain, based on a deep dive analysis of emission categories including store operations, construction materials, mobility and investments. For each emission category the plan presents key sources of emissions, decarbonization levers, case studies, external dependencies, and identified actions.

Key insights from the climate transition plan include:

— Actions with impact – detailed breakdown of emission categories where Ingka can uniquely have the most impact and can continue to significantly reduce its own emissions while empowering consumers to make more sustainable choices. Key actions include continuing to scale zero emission deliveries and renewable energy investment and adoption.

— Innovation and efficiency gaps – mapping of where Ingka has the potential to scale up existing solutions and ensuring consistent adoption across Ingka’s markets, embedding the transition plan into business and innovation planning. Key actions include scaling renewable heating and cooling and the uptake of lower emission materials and technology.

— Governance on the integration of sustainability – with high competence and decision-making involvement of senior management in relation to sustainability topics.

— Updated assessment of climate risks and opportunities – giving a current overview of how climate risks, including extreme weather events, could impact the business and the value at stake if no action is taken. This is Ingka Group’s third assessment following the Taskforce on Climate related Financial Disclosures (TCFD) framework.

Key Ingka Group actions towards net zero:

Ingka Group’s key climate policy asks include:

Businesses big and small, governments, organizations, activists, and citizens – we all have a role to play and need radical collaboration to be part of the solution. Together as a society we must:

— Set ambitious climate plans and NDCs aligned with 1.5°C. The science is clear, we must set goals and plans that deliver to net-zero.

— Phase out fossil fuels, while increasing energy efficiency. We know we must accelerate the renewable energy transition, let’s invest in the necessary infrastructure and processes to move with speed.

— Set short and long-term policies in line with the 1.5°C target to finance and accelerate the transition to renewable energy, circularity, as well as sustainable transport, food systems, reducing food waste, agriculture, and responsible forestry.

Simon Henzell-Thomas, Climate & Nature Manager, Ingka Group says, “Climate change is highly complex, and we don’t pretend to have all the answers, but as a multinational business we have a responsibility to be part of driving the transition to net zero in society. But we can’t do it alone."

"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.”

The Ingka Group Climate Transition Plan is available and published on Ingka.com here: https://www.ingka.com/sustainability/net-zero-transition-plan

*The targets are set according to Ingka Group financial years 2030 (FY30) and 2050 (FY50), which spans from 1 September – 31 August.

¹Our total climate footprint (scope 1, 2 and 3) The climate footprint covers greenhouse gas emissions across Ingka Group operations (scope 1 and 2) and our upstream and downstream value chain (scope 3). Since FY16 we have reduced our climate footprint in absolute terms by -30.1% across scope 1, 2 and 3, while growing our business by 23.7%. The reduction since FY16 reflects a range of factors including a significant increase in our sourcing and use of renewable electricity in our value chain, improvements to energy efficiency in our business and in the IKEA range, lower product volumes and the sale of our retail business in Russia.