Navigating change, staying focused

The way we measure and talk about sustainability is changing. The work behind it continues.

Op-ed by Lena Julle, Chief Sustainability Officer, Inter IKEA Group

For many years, corporate sustainability was largely shaped around commitments. Companies set targets, outlining the changes they wanted to create.

We needed that focus because it helped move sustainability from the sidelines of business to the centre of strategy, informing business decisions that drove meaningful progress. It also helped create demand for the technologies and industrial capacities needed to deliver change.

Now, we are entering a different phase. Evolving frameworks and regulations, including the EU's Corporate Sustainability Reporting Directive (CSRD) and Empowering Consumers Directive, are creating stricter requirements for sustainability reporting, environmental claims and consumer information. Companies are increasingly expected to show the progress they are making against goals and provide clear evidence to support it. Consumers want information they can trust.

As leaders from business, government and civil society converged for Climate Week NYC this week, it is a timely moment to consider how businesses can meet these changing expectations.

We welcome these developments. Greater transparency and more consistent ways of measuring and substantiating progress can help build trust, create a more level playing field for businesses and support more comparable sustainability outcomes across sectors. The path ahead will not always be straightforward. Meaningful progress will require businesses, policymakers and other stakeholders to work together towards shared goals. Greater alignment and harmonised policies across markets can help companies respond.

So, what does this mean for companies in practice? For us, evolving expectations may change the way we report and communicate, but our work continues. We continue to engage with suppliers to increase the use of renewable electricity, secure high-quality, affordable recycled materials for our products, and integrate sustainability considerations into everyday business decisions across the IKEA value chain.

In a changing reporting environment, companies may need to recalibrate targets and dig deeper to ensure that communications continue to be backed up by strong substantiation. They may also choose to say less until they can demonstrate more. That should not automatically be interpreted as a retreat from their sustainability ambitions.

Because the challenges we are collectively working to address have not changed. Climate impacts are intensifying, pressures on nature and natural resources are growing, and significant social challenges persist around the world.

Sustainability continues to be an important part of the IKEA vision, business idea and values. We never lose sight of why we exist: to create a better everyday life for the many people. That is why we continue to invest in making our products more affordable and accessible, while considering people and the environment in the choices we make across our business. And our customers need information they can trust, so they can consider sustainability alongside affordability, quality and convenience when making decisions.

Trust and clarity matter to businesses as well. When expectations are clearer and more consistent, businesses can plan and invest with greater confidence. We believe that long-term focus in areas such as innovation, renewable energy, new materials and resilient value chains can help us adapt, remain competitive and be better prepared for the future.

Our focus remains on the areas where we can make a difference. Frameworks, methodologies and even targets may evolve over time, but our values stay the same.