Inside IKEA & Ingka Group’s Net Zero Transition Plan
Ingka Group has set out a detailed Net Zero Transition Plan aimed at halving greenhouse gas emissions by 2030 and reaching net zero by 2050.
With this roadmap, the retailer (which accounts for approximately 90% of IKEA’s total sales) is positioning itself as a leader in corporate climate action with science-based targets validated by the Science Based Targets initiative (SBTi).
So, what are the details of this new plan? The main headlines are the reduction targets.
Ingka is committing to reducing absolute Scope 1, 2 and 3 emissions by 50% by 2030, measuring from a 2016 baseline.
It is also aiming to cut operational emissions by 85% in the same period and to source 100% renewable electricity by 2025.
Its long-term target is a 90% reduction in total emissions by 2050, with the remaining 10% offset through carbon removal and storage.
What are the challenges Ingka must overcome?
Ingka’s transition plan is transparent in how it communicates with readers.
The report acknowledges the complexity of achieving net zero, especially for a large company like Ingka.
The words of Peter Bakker, President of the World Business Council for Sustainable Development, are spotlighted in the plan and speak to the amorphous challenge that net zero presents.
“We recognise that the plan is not static and will evolve to reflect the continually changing regulatory environment, emerging climate science, and the lessons learned from implementation,” he says.
“Future iterations of Ingka Group’s transition plan should focus on presenting progress against clear performance indicators and clarity on the financial commitments.”
The view from the leadership team
While Ingka has already reduced its footprint by over 30% since 2016, there are still a lot of challenges that will need a great deal of innovation and investment to overcome.
According to Jesper Brodin, Ingka Group’s President and CEO, integrating climate action into business strategy is essential for long-term success.
“Being climate smart is also resource smart, cost smart and business smart,” he says.
Likewise, Ingka’s CSO, Karen Pflug, acknowledges the timeliness of this plan, amidst the urgency of net zero.
“We are in the most important decade of humankind for acting on climate,” she explains.
Stakeholder engagement and just transition
How exactly does Ingka plan to drive this huge decarbonisation?
One of the most important parts of its plan is to increase engagement across the board.
In the plan, the company details how hard it is working to engage with its employees, collaborators, suppliers and customers to drive climate action beyond its direct operations.
This kind of engagement is set to take a few different shapes.
Ingka is developing carbon reduction roadmaps for its suppliers and is expanding some of its sustainable initiatives, like EV deliveries and plant-based food offerings.
These programmes, the company hopes, will lead to a boost in sustainable consumer behaviour.
Another key aspect of the plan is ensuring that its transition to net zero is a just transition, where the economic and social benefits of net zero are fairly distributed.
The Ingka Young Leaders Forum (a group of climate-focused professionals under 30) has commended the plan’s transparency but called for accelerated action.
“Timelines for achieving net zero must be advanced significantly, complemented by robust interim targets set at no more than five-year intervals,” the forum stated.
Financial planning and carbon budgeting
Ingka Group is embedding sustainability into financial decision-making through carbon budgets, climate return assessments and investment prioritisation.
The plan notes that all business units will have emissions budgets, ensuring that carbon reduction is integrated into operational planning.
The company has chosen not to implement an internal carbon price, citing concerns over complexity and effectiveness.
Instead, it supports external carbon pricing by governments to create a level playing field for businesses investing in climate action.
What are the next steps for Ingka?
This is the first iteration of Ingka Group’s transition plan, with updates expected annually from 2027 to align with regulatory developments.
The company acknowledges that uncertainties remain, particularly around emerging technologies and evolving customer behaviour, but insists that continual progress is crucial.
“Most things remain to be done. Glorious future, as our Founder Ingvar Kamprad used to say,” the plan concludes.
Jesper echoes this sentiment in his messages too.
“The time for action is now. Together, we can create meaningful impact and systemic change for a better future.”
Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE.
Discover all our upcoming events and secure your tickets today.
Sustainability Magazine is a BizClik brand
