Swedish home furnishings giant Ikea says it demonstrated significant progress in environmental sustainability, detailed in its FY23 Sustainability Report FY23 and the Ikea Climate Report FY23.
In its new climate report, Ikea says it achieved a 22 percent reduction in its total climate footprint compared to the baseline year of FY16. This achievement is credited to the enhanced use of renewable electricity in both its retail and production segments, improved energy efficiency in lighting products, and a decrease in production volumes. The Ikea climate footprint for FY23 is estimated at 24.1 million tonnes of CO2 equivalent, marking a 12 percent decrease from the previous year and underscoring the company’s dedication to environmental stewardship.
Jon Abrahamsson Ring, CEO of Inter Ikea Group, emphasized the centrality of sustainability in the company’s vision: “Sustainability is an integral part of our business and our commitment to make sustainable living affordable and accessible to the many. We maintain a long-term perspective and are actively contributing to limiting our impact on climate change, reversing nature loss, and securing equitable growth,” he said.
The company says FY23 saw innovations are advancing its sustainability efforts, particularly with the introduction of bio-based glue in a board factory in Lithuania and the exploration of new recycling technologies for fiberboard. These advancements are pivotal to Ikea’s climate transition plans and efforts to reduce emissions from materials, which constitute a significant portion of the company’s climate footprint.
In addition to these innovations, FY23 saw the home goods giant reinforce its climate goals in line with the 1.5°C target set by the Science Based Targets initiative (SBTi) Net-Zero standard. The updated goals include halving greenhouse gas emissions from the Ikea value chain by FY30, relative to FY16, and reaching net-zero emissions by FY50.
Pär Stenmark, Chief Sustainability Officer at Inter Ikea Group, underscored the critical need for urgent climate action. “Even though there are many signs and evidence that society is off track with regards to global warming, it is more important than ever to act with urgency and stay committed to the Paris Agreement and to limit any overshoot as much as possible. To further support change, the Ikea business advocates for a complete phase out of fossil fuels and its subsidies, halting deforestation and addressing the root causes of air pollution.”
FY23 also brought several other notable achievements. The company has made significant progress towards using 100 percent renewable electricity in its stores, with 25 retail markets achieving this milestone. This achievement extends to 408 of its factories or suppliers. Additionally, there has been a 13 percent reduction in the climate footprint from product use at home compared to FY22, and a 52 percent reduction compared to FY16. Inter Ikea Group’s direct operations have seen an 80 percent reduction in climate footprint compared to the FY16 baseline. Efforts to minimize environmental impact include reducing plastic packaging for consumer goods by approximately 47 percent and total plastic packaging by about 44 percent compared to FY21.
Other sustainable initiatives include utilizing ceramic production waste for the new Silversida tableware range, providing 23.2 million assembly parts to enhance product longevity, and piloting the recycling of down and feathers in Belgium, Germany, and the Netherlands. The launch of the Vindstyrka sensor to monitor home air quality and the certification of 97.8 percent of wood in Ikea products as either Forest Stewardship Council certified or recycled are further testament to the company’s commitment to environmental responsibility. The chain has also taken steps toward ensuring living wages by sharing its Responsible Wage Practices framework across its business and examining wage gaps among business partners. Additionally, Ikea launched a new global collection created in collaboration with seven social businesses, providing employment opportunities for vulnerable and marginalized groups in Asia.
Ikea has been at the forefront of driving a shift toward sustainable practices and products, showcasing a commitment to environmental responsibility that extends beyond traditional retail boundaries. The company aims to use only renewable or recycled materials by 2030, significantly reducing its ecological footprint. This commitment is evident in products like furniture made from recycled wood and plastic, and the use of bio-based materials such as the bio-based glue introduced in their board factory.
The sustainability commitment also extends to Ikea’s cafe food options. The company has introduced a range of vegan food offerings in its stores, including plant-based versions of its iconic Swedish meatballs. This move not only caters to the evolving dietary preferences of its customers but also aligns with Ikea’s broader goal of reducing its climate impact, as plant-based foods generally have a lower carbon footprint compared to meat products.
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