IKEA: Why Ingka Group is a Sustainability Leader

Ingka Group, IKEA’s largest retailer, aims to halve its emissions by 2030 and reach net zero by 2050.

Alongside these overarching goals, Ingka is investing in renewable energy, innovating for circularity, decarbonising logistics and even expanding its lower-impact food. 

“Not knowing where to start is often the biggest barrier to action,” says Ingka Group Chief Sustainability Officer Karen Pflug on LinkedIn.

“The doom, the gloom, the planet-sized problems, can feel overwhelming, even paralysing. 

“That’s why we believe that with the size and reach of the IKEA brand, we have both a responsibility and an opportunity to communicate sustainability in a way that inspires and enables people to take action.”

Ingka Group was ranked 15th in Sustainability Magazine’s Top 250 World’s Most Sustainable Companies 2025 list. 

Ingka Group’s sustainability strategy

Against its 2016 baseline, Ingka Group has already reduced its total climate footprint by 30%.

Its 2050 net zero goal involves an absolute reduction in emissions of at least 90% with any residual emissions neutralised through carbon removals.

Ingka’s targets are validated by the Science Based Targets initiative and aligned with its 1.5°C pathway. 

Its transition plan includes phasing out fossil fuels and striving for 100% renewable energy use across electricity, heating, cooling and fuels by 2030. 

By 2028, the company aims to achieve more than 90% of home deliveries with zero emission vehicles. 

It also aims to reduce its operational waste and strive to recycle 100% of waste generated in its own operations by 2030. 

As of FY24, Ingka reports that it is on track to achieve all of its published targets.  

Renewable energy initiatives

Alongside its goals to phase out fossil fuels and transition to renewable energy, Ingka owns a large portfolio of wind and solar assets through Ingka Investments. 

By 2030, it says it will have invested or committed to invest €7.5bn (US$8.8bn) into the renewable energy sector. 

As of January 2025, Ingka has invested in 49 wind farms in 17 countries and 26 solar parks in nine countries.

It also has one battery storage project in operation.

Recycling and circularity

Ingka Group is treating circularity as a system-wide shift across the company. 

Second-hand areas are in 365 stores and items can be bought online in 338 stores. 

In FY24, the company repurchased more than 495,000 used items from around 260,400 customers.

Ingka Investments has a dedicated circular investments platform focussed on plastics, textiles, wood, mattresses and food and an ambition to invest around €1bn (US$1.17bn) to grow recycling infrastructure. 

This is alongside its transition goal of reducing its operational waste and strive to recycle 100% of waste generated in its own operations by 2030.

Ingka Group’s advocacy

In its Net Zero Transition Plan published in February 2025, Ingka called for climate plans and NDCs to be aligned with 1.5°C, a phase out of fossil fuels alongside increasing energy efficiency and for short and long-term policies to be set to accelerate sustainable transitions. 

At COP28, it advocated for urgent climate action and to end fossil fuel dependency alongside calling for a meaningful price on carbon that reflects the costs of climate change. 

“What we do now will shape what lies ahead of us and we can’t leave this to the next generation to fix,” said CSO Karen ahead of COP28. 

“We know that climate action is good for business now and in the future.”