Measuring success the IKEA way

Around the world, we are delivering strong business results while continuing to invest in affordability, sustainability, and social impact.

Globally:

• Since FY16, we’ve cut emissions from our own operations by over 70%, with a reduction last year alone of 22%.
• Zero-emission home deliveries increased to 60% by the end of the year
• Pre-consumer food waste is down 60% since FY17 – the equivalent of 47.5 million meals
• Our Buyback service gave nearly 686,500 IKEA products a second chance, up from 495,000 last year

This progress shows how far we’ve come and how committed we are to making an even bigger impact for people and the planet.

In Australia

For 50 years, IKEA has been part of everyday life in Australian homes, bringing Swedish design and clever, affordable solutions to help people create a better life at home. Since opening our first store in St Leonards in 1975, we’ve grown to offer Australians the accessibility and convenience to shop however, whenever and wherever they choose – in‑store, online or over the phone.

As we celebrate this important milestone and look to what’s next, we reflect on some of the achievements we’ve made here locally over the past 12 months – success only made possible by the hard work and dedication of over 3,800 co-workers, the collaboration of our partners and service providers, and the support of our customers who visit us instore, online or over the phone every day.

Positive change

Unlike businesses that must be focused on their shareholders, our profits only have two possible destinations: either it goes back into improving our stores, products and business – or it helps create change through IKEA Foundation. As an Ingka Group retailer, 85% of net income was reinvested into the company and 15% was paid as a dividend to the Stichting INGKA Foundation, to achieve its charitable purpose by providing funding to the IKEA Foundation.

Increasing the affordability of IKEA products

To help more people enjoy a better everyday life at home, we committed more than $25 million in FY25 to lower prices—part of a $150 million investment over the past three years to improve the affordability of IKEA products for the long-term.

A place where we can all bring our whole selves to work.

At IKEA, we want to create a workplace that is diverse as the world is, and as inclusive as the world should be. In FY25 we achieved our gender balance goal of 50/50 in management positions and reduced our gender pay gap to 3.5%. We remain committed to creating a workplace and customer experience free from homophobia, biphobia, intersexism and transphobia, improving our ranking to Silver Tier status on the Australian Workplace Equality Index (AWEI) as the definitive national benchmark on LGBTQ+ workplace inclusion.

We are committed to creating spaces where all co‑workers can perform at their best and feel valued. Listening is central to this journey. In FY25 we launched the Disability Inclusion Network - a safe space for co-workers with disability and allies - to help shape and inform the IKEA accessibility and inclusion approach.

5 years of changing the narrative: Refugee Workforce Inclusion

Five years ago, we welcomed the first participants in our pilot program, created to help overcome barriers to employment for people with refugee backgrounds. 43 permanent hires were made through our Refugee Workforce Inclusion program in FY25, with over 270 participants since 2020. Participants from 23 cultural backgrounds, speaking 43 languages, aged from 18 to 64 yrs, have enriched IKEA Australia in countless ways. As we celebrate this milestone, we also reaffirm our belief that employers have a vital role in welcoming refugees and people seeking asylum. We’ll continue to advocate alongside our partner Community Corporate, share our learnings and inspire others to open doors, because when we do, we unlock potential that benefits us all.

Find out more about our program here.

Amplifying the voices of children

In FY25 we helped create safer places for women and children to call home including financial and product donations, and in-kind support to Save the Children Australia, directly supporting 840 women and children.

Sparked by the real-life work IKEA and Save The Children Australia are doing to redesign and renovate spaces across emergency refuges in Queensland, IKEA brought children’s voices to the fore with ‘Safe Space’ in stores nationwide. This immersive installation was inspired by the needs and dreams of children who’ve lived in unsafe homes, brought to life by our designers.

Capturing the attention of over 1 million visitors during the campaign, we engaged our co-workers, customers and communities on an issue that matters to us all: the safety and well-being of children. IKEA also became the first corporate supporter of Act for Children, an alliance of advocates, organisations and experts urging the Australian government to make children’s rights and their safety and wellbeing a national priority.

Find out more here.

Reducing waste, saving water, improving our energy efficiency – all while growing the business.

In Australia, we have reduced our operational climate footprint by 88% (since FY16 baseline), while growing revenue by 73%, highlighting the strong opportunity for businesses to achieve commercial success while significantly reducing emissions.

Doing less with more is an important part of our sustainability agenda.

We have a Product Recovery & Quality department within all IKEA stores dedicated to preventing product waste, which also generates cost-savings. Over 1.3 million products were diverted from landfill through our dedicated product recovery and quality teams – a 28 % increase on FY24 -  including over 40, 000 pre-loved IKEA products from our Buy Back offer.

We offer free spare parts – online, with free delivery, and in all our stores – so customers can keep the IKEA items they love in use for as long as possible, whether a part may be missing, broken or needed to renew a product – such as when moving house. Over 38,000 customers used our free spare parts offer in FY25.

In FY25 we improved the energy efficiency of our buildings by 3% and captured over 9 million litres of rainwater for use on our sites.

Zero emissions, zero barriers

By the end of FY25, 78.4% of customer truck orders were delivered with zero-emission vehicles – the majority of metro area orders. Our next step is to go further to reach more Australians living outside our cities. So, IKEA teamed up to address key challenges in the road freight sector through a significant investment in four Volvo FL long-range electric trucks and an innovative new leasing model with CarBon Leasing, working to overcome the high upfront costs and limited access to suitable electric vehicles for contractors.

For more detailed information on our global performance and progress you can find the Ingka Group Annual Summary and Sustainability report here.