What Does Ingka Annual Report Say About IKEA Sustainability?

Ingka Group CEO Jesper Brodin says its annual report proves that the “business case for investing in climate action works”.
Ingka, the largest IKEA retailer, revealed in its joint summary and sustainability report that it has reduced its climate footprint by 30.1% while growing the business, compared to the 2016 baseline.
The report says the company “prioritised investing across the business as part of its ongoing transformation to make IKEA even more accessible, affordable and sustainable”.
Jesper added: “In challenging times, we decided to invest EUR 2.1 billion into lowering the prices on thousands of products to support many more people to fulfil their dreams and needs in life at home, no matter the size of the wallet.
“At the same time, we took important steps in strengthening our science-based climate targets, remaining deeply committed to the Paris Agreement.
“This is the most important decade and by additionally reducing our climate footprint while growing the business, we prove that the business case for investing in climate action works.”
Radical collaboration is required
Karen Pflug, Chief Sustainability Officer, Ingka Group, reacted to the report with determination and confidence, saying: “By radically collaborating across industries and communities, I am confident we will reach our goals.”
She said she is pleased to have made good progress towards the company’s updated SBTi targets, adding: “But challenges remain, as we continue to integrate sustainability across our business and take action on the complex challenges facing the world – from climate to rising inequality.”
She mentioned Ingka’s support for refugees and asylum seekers via its Skills for Employment programme, with a commitment to support an additional 3,000 by the end of 2027.
Karen said: “We firmly believe sustainability and affordability must go hand-in-hand, so during this year we launched our Sustainable Living Shops online and continued to scale up our circular services by piloting IKEA Preowned, our new peer-to-peer second-hand marketplace, to enable customers to buy and sell used IKEA furniture at even lower prices.”
She concluded with a promise: “We will continue to innovate and lead by example on our journey, and we don’t under-estimate the challenges the world is facing, but we are determined to use our size and reach to play a leading role.”
Highlights package
Company revenues have increased by 23.7% against the 2016 baseline, while 96.6% of electricity in 28 countries is now sourced from renewable energy.
At the same time, 41.1% of customer home deliveries are being made by zero emission vehicles.
As a part of the company’s commitment to invest EUR 7.5 billion by 2030, an additional EUR 0.7 billion was invested and committed in renewable energy generation.
The report says Ingka Group continued to invest across its business by lowering prices on thousands of products and opening new stores in Japan, Norway and Switzerland, 40 Plan and Order Points, and three new Ingka Centres meeting places.
It said it also strengthened its use of AI, with new features added to the IKEA app, integrating digital technology into every element of customers’ shopping journey.
Climate pledges
Ingka Group is committed to taking action on climate change in line with the Paris Agreement.
During 2023 it 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’ and were validated in April 2024 by the Science Based Targets initiative.
The Ingka Group report is structured around four areas – Better Homes, Better Lives, Better Planet and Better Company.
It gives financial and non-financial performance reports over the past year across IKEA Retail, Ingka Centres and Ingka Investments.
The edited highlights include:
Better Homes:
- Lowered the prices of thousands of products across its home furnishing range by an average across all countries of 9%
- Opened 43 new IKEA locations including 3 new stores and 40 plan and order points
- Scaled up its circular services including buying back over 495,000 used products from customers through the Buyback service
- Provided over 8 million free assembly parts to 2.2 million customers
- Piloted IKEA Preowned, a peer-to-peer second-hand marketplace, in Oslo and Madrid to enable customers to buy and sell used IKEA furniture
- Served food to 665 million people last year
- Enhanced the omnichannel retail experience with new features in the IKEA app that integrate in store and online shopping. They include a 3D product visualiser, back-in-stock notifications, a scan and pack tool to save time at the checkouts and wish lists to organise favourite products
- Refreshed Sustainable Living Shops design and showcased locally relevant tips, ideas and products.
Better Lives:
- Supported 81,080 people through its social impact and emergency response programmes
- Maintained a 50/50 gender balance in management positions
- Provided over 3,700 refugees in 26 countries with training via Ingka’s Skills for Employment programme since 2019.
Better Planet:
- The Ingka total climate footprint (scope 1, 2 and 3 emissions) has decreased by 30.1% from the 2016 baseline and 4.3% compared with FY23
- 41.1% of retail home deliveries (over 6.3 million deliveries) were made by zero emission vehicles, up from 24.6% the previous year
- New net zero climate targets to halve absolute emissions across the value chain by 2030, contribute to emissions reductions in society and reach net zero by 2050 at the latest
- 96% of the electricity Ingka Group used in its operations was from renewable sources and 100% renewable electricity consumption across IKEA stores and Ingka Centres meeting places
- 77.7% of operational waste was recycled compared to 75.9% the previous year.
Better Company:
- Revenue of EUR 41.8 billion with a positive net income of EUR 0.8 billion despite investing EUR 2.1 billion in lowering prices for customers and a 3.8% decrease in the home furnishing sector market
- Ingka Investments has invested or committed to invest EUR 4.2 billion in wind and solar farms and the wider renewable transition since 2009.
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