IKEA cuts transport climate footprint by 9% year-on-year

The IKEA climate footprint linked to product transportation continues to shrink. Between FY23 and FY24, relative greenhouse gas emissions (GHG) decreased by 9%. Since the baseline year FY17, transport-related emissions have decreased by 26%. The Decarb Catalogue for FY24 is now available, summarising the projects and highlights achieved with partners and service providers to reach these results during the last fiscal year.

With 1.7 million shipments annually, IKEA is one of the biggest shippers globally. Transporting IKEA products, excluding last-mile deliveries, represents 5% of the total climate footprint. To summarise all the decarbonisation efforts throughout the global transport and logistics supply chain, IKEA Supply Chain Operations* is publishing a new edition of the Decarb Catalogue.

“At IKEA, sustainability is part of every aspect of our operations. It holds the same relevance as availability and affordability in planning the end-to-end goods flow for IKEA products. This approach continues to generate good results, and we are determined to reduce our climate footprint further to reach our 2030 and 2040 goals,” says Doris Martetschläger, Supply Chain Operations Manager at Inter IKEA Group.

IKEA has set strict goals of reducing relative GHG emissions from transport by 70% by 2030 and using only zero-emission transportation by 2040. By the end of FY24, emissions were down by almost 30% compared to the baseline year of FY17. Furthermore, the goal of only using renewable electricity in IKEA-owned logistics and warehouse operations culminates during the current fiscal year**. This share was 95% at the end of FY24.

"Even in times of increasing complexities in the world, we have remained committed to our decarbonisation agenda, and our persistence is showing positive results. For us, it's not only about reducing climate impact, it's about reimagining the future of global transport systems. We're focused on building a better, more resilient global transport system that enables zero-emission goods flows, cleaner air, supports the creation of new jobs, and enhances cost-efficiency across the entire supply chain," says Elisabeth Munck af Rösenschöld, Sustainability Manager at IKEA Supply Chain Operations.

Close partnerships with service providers and carriers are essential for achieving a long-term transition to greener transportation while implementing alternative short-term solutions. The 9% reduction in relative GHG emissions from transport year-on-year was partly achieved through increased use of intermodal transportation, the deployment of heavy-duty electric trucks, and the adoption of renewable and alternative fuels in land and ocean transportation. In addition to decarbonising transportation, several projects and partnerships have been initiated to ensure fair and safe working conditions for seafarers and truck drivers transporting IKEA products.

Here are some highlights from the Decarb Catalogue for FY24:

• Almost 80% of trucks used for domestic transport in Austria, Belgium, Germany, and the Netherlands ran on renewable fuel in the form of HVO*** and bio-LNG**** as well as electric trucks.
• In FY24, we increased the number of land transport tenders in the U.S. that are exclusively for low- and zero-emission solutions. Furthermore, IKEA is one of six shippers participating in a pilot to create the first-ever long-distance EV charging corridor in the U.S. along the US I-10 corridor between Los Angeles, California and El Paso, Texas.
• We avoided close to 50,000 tonnes of emissions from ocean transport by doubling our use of biofuels. 
• 10% of our transport volume in China ran on electric and hydrogen fuel cell trucks by the end of FY24. We also deployed smart-driving autonomous trucks transporting goods between distribution centres and stores. 
• In India, IKEA was the first company ever to deploy a heavy-duty electric truck driving on the public road network.
• In FY24, the share of renewable electricity used in our warehouse units increased from 91% to 95% globally. In addition, all our units in China are now powered by 100% renewable electricity. 

Facts and Figures:

*IKEA Supply Chain Operations is the business unit in IKEA Supply AG responsible for logistics operations and transporting the IKEA range, excluding last-mile deliveries. Approximately 1.7 million shipments are made annually, making it one of the biggest shippers globally.

**The current fiscal year is FY25. IKEA’s fiscal year starts on 1 September and ends on 31 August.

***Hydrotreated Vegetable Oil

****Bio-LNG is a biofuel made by processing organic waste flows