Ingka Groups Releases Annual Summary & Sustainability Report

January 29, 2026  by Karen Parrish in Business Strategy, Industry   

Juvencio Maeztu, CEO of Ingka Group says, “Our vision is to create a better everyday life for the many people, and we firmly believe that it’s good business to be a good business. This principle guides every decision we make. As a foundation owned company, we can stay true to that purpose by investing for the long-term – to drive both financial strength and have a positive impact on people and the planet.“ 

Total Ingka Group revenue for financial year 2025, a year with a commercial focus on “Complete Sleep” solutions, amounted to EUR 41.5 billion. The company served more customers, with growing store and online visitation and quantities, yet with a continued focus on keeping prices low, revenue decreased by 0.9% compared to last year. Despite the pressure on top-line growth, the company delivered a solid operating income of EUR 1.5 billion, representing 3.5% of sales, an improvement from 3.0% in 2024.

“In FY25, we achieved a 70.6% reduction in absolute emissions from our own operations (Scope 1 and 2) against our FY16 baseline, and a 22.3% reduction since FY24. Closing the remaining 5.2% gap for renewable electricity is an immediate focus, and we will continue to advance our efforts to drive emission reductions across the value chain by scaling zero emission home deliveries, energy efficiency, circular service offer, and maintaining our food waste recovery goals,” says Karen Pflug, Chief Sustainability Officer, Ingka Group.

In addition, zero-emission home deliveries increased to 60.1% (up from 41.1% last year) as well as a 60% cut in production food waste since FY17, avoiding waste equivalent to 9.6 million meals in FY25 (and 47.5 million since FY17).

Meanwhile, Buyback service sourced almost 686,500 used IKEA products (FY24: 495,000), making the IKEA furniture range live longer and offering a unique, affordable and more sustainable solution to many consumers. Currently, 424 stores operate “As-is” areas, where customers can buy second-hand and discontinued items. The company also launched the IKEA second-hand marketplace, a peer-to-peer platform for IKEA furniture in Norway, Portugal and Spain, with plans to scale it up across Europe in the coming year.

Just as IKEA extended the life of its products, it deepened its commitment to people. The company continued creating a fair, diverse and inclusive workplace where all co-workers can work safely, access fair working conditions, and thrive – no matter their background or identity. For example, its gender pay gap decreased to 3.4%, compared to 4.0% in FY24. Importantly, less than 0.6% of co-workers required monetary adjustment to close pay gaps.

Karen Pflug, chief sustainability officer, Ingka Group says, “This report highlights both the significant progress we’ve made and the complex challenges that still lie ahead. I am genuinely proud of our advancements in scaling circular services, continued investments in renewable energy, and expanding programs that foster equality and inclusion. For us, affordability and sustainability must always go hand-in-hand, as true sustainability will only be possible when everyone can afford it. However, our journey continues. We face urgent challenges that demand accelerated action to align with the 1.5°C pathway of the Paris Agreement. This includes intensifying our efforts in areas like reducing operational waste and achieving 100% renewable electricity sourcing for all our operations. We know that addressing climate change, nature loss, and human rights issues requires collective action. We invite collaboration – across businesses, policymakers, and communities – to remove barriers, accelerate action, and create shared value that benefits society, our business, and the planet we call home.”

The Ingka Group FY25 Annual Summary & Sustainability Report (ASSR) is the first to be structured around Environmental, Social, and Governance (ESG) pillars, as part of preparations to move towards reporting aligned more closely with the EU Corporate Sustainability Reporting Directive (CSRD)and the European Sustainability Reporting Standards (ESRS). The company’s Sustainability Statements provide a comprehensive account of the company’s performance, challenges, and achievements across all its business areas – IKEA Retail, Ingka Investments, and Ingka Centres. Its ESG disclosures are a good reflection of how Ingka Group internally manages performance through its Value Creation Goals in 4 dimensions: Better Homes for customers, Better Lives for the many people and co-workers, a Better Planet for all, and a Better Company now and for future generations. 

The majority of the company’s climate footprint (Scope 3) is associated with the sourcing, production and transportation of the IKEA Range. Inter IKEA Group, Ingka Group’s franchisor and wholesale supplier, leads the work to reduce emissions in these categories and is on a journey to strengthen its data and methodology. This will support the company to more accurately measure progress, strengthen accountability, and drive meaningful change. FY25 Data covering our total carbon footprint was therefore not available at the time of publication and will be included in the Inter IKEA Group and the Ingka Group FY26 reports.  

Ingka Group has a three-year collaboration with its Young Leaders Forum, whose annual letter in the Annual Summary and Sustainability Report provides an independent perspective on the company’s progress and areas for improvement in sustainability. Throughout the year, the forum meets regularly with the business and provides input on developments and innovation.  

The Ingka Group Reporting FY25 highlights in here.