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The Road Ahead: IKEA Australia and the zero emissions journey

Corporate news5 February 2025
In 2018 Ingka Group, the largest IKEA retailer, made a global ambition for all home deliveries to be made by zero emission vehicles by 2025. We decided early on to take a leadership position on this topic to show that transitioning to zero-emission is not only possible but a top priority, even if we don't yet have all the answers.

For Australia, we expect that in 2025, we can achieve approximately 90% of truck deliveries via a zero emissions vehicle, which is all of our metro customer orders. The remaining 10% is our regional volume - we aim to achieve this as soon as technology allows.   

In 2022, just 5% of truck orders were being made via a zero-emissions vehicle, and in January 2025, we reached a new peak of 65% for zero-emissions truck deliveries.

Guided by our big ambition, through investment, innovation and collaboration, such as our $4.5 million investment in a national charging infrastructure network for our partners, we have been working hard to address accessibility challenges and other barriers for our delivery partners.

Like many other companies, we are facing challenges on the journey, and the 100% zero emissions delivery isn’t yet achievable with the current infrastructure and vehicle technology in Australia. We also need targeted policy from state and federal governments to help overcome the unique challenges of the delivery ecosystem and support the electrification of delivery vehicles including vans and trucks.  

This transition is full of unknowns and there are many variables as new challenges are identified and overcome. There are mistakes and setbacks but we are continually moving forward.

Reflecting on the complexities uncovered on the zero emissions journey, globally, Ingka Group has revised this goal to now achieve more than 90% of home deliveries made by zero-emissions vehicles by 2028.  

This new goal builds on the ambition and momentum of the first target whilst being achievable and realistic, given that some uncertainty for vehicle type will remain when delivering to customers.

We stay committed to driving change in our own operations and to continue to advocate for change to overcome barriers to transitioning to zero-emission transport, alongside our transport partners ANC Delivers, Kings Transport and All Purpose Transport who are working tirelessly to make this happen.