Becoming climate positive
The IKEA vision is to create a better everyday life for the many people. Climate change threatens this, for people today and for generations to come. Becoming climate positive means reducing more greenhouse gas emissions than the full IKEA value chain emits, while growing the IKEA business. This will be achieved without relying on carbon offsetting. In this way we contribute to limiting global warming to 1.5°C at the end of the century, while securing a just transition so that no one is left behind.
Climate footprint at each stage of the IKEA value chain
25.8 million tonnes CO₂ eq (FY22)
Becoming climate positive means reducing the greenhouse gas emissions from the IKEA value chain in absolute terms in line with the 1.5°C target while contributing to additional reductions in society. To reduce more than we emit, we will go beyond the IKEA business and contribute to additional reductions in society by taking an extended responsibility for emissions generated by our customers and suppliers, and in our sourcing areas – not just the part for IKEA.
Drastically reduce greenhouse gas emissions
To become climate positive, the main priority is to reduce our absolute greenhouse gas emissions in line with the 1.5°C target. This will be achieved in the following ways:
- Using more materials and food ingredients with a low climate footprint
- Striving towards electrification, 100% renewable energy and continually improving efficiency
- Promoting sustainable choices and transforming into a circular business
Materials make up the largest part of our climate footprint
There are many types of materials used in IKEA products. Materials represent 52.2% of the total IKEA value chain climate footprint. That’s why, to reduce our climate footprint, it’s important to focus on the largest areas in terms of volume and climate footprint: wood, metals, paper, textile furnishings and plastics. Together they represent about 90% of our materials needs and climate footprint, with wood-based materials representing the largest (60% in volume).
Product use at home
Almost all the footprint is due to the electricity consumption needed to power products such as lighting and home appliances. A smaller portion also comes from gas-driven hobs, refrigerants used for refrigerators and freezers, and the burning of candles at home. Since FY21, the climate footprint from product use at home has decreased by 20%. The development is mainly driven by the significant improvement in the energy efficiency of lighting – primarily through the introduction of the LED bulb range SOLHETTA in October 2021.
* Baseline
Climate footprint (Million tonnes CO₂ equivalent).
Enabling our suppliers to reach 100% renewable energy
It’s critical to switch to 100% renewable energy and phase out fossil fuels – the root cause of climate change. While we’re committed to reaching the goal of 100% renewable energy for all IKEA operations by FY30, we want to enable our supply partners to achieve this goal as well. We’re providing two ways for them to convert to 100% renewable energy: by financing on-site investments and enabling the purchasing of renewable electricity – especially in countries where access is difficult. In FY22, we saw a significant movement in renewable electricity in production – from 52% in FY21 to 64% in FY22. The share of coal and fossil oil-based fuels decreased from 7% in FY21 to 5% in FY22.
Towards 100% renewable energy for IKEA retail
During FY22, the renewable electricity share for IKEA retail & other operations increased to 76% compared to 71% in FY21. We achieved 100% renewable electricity in three additional markets (Austria, Spain – Mainland and Switzerland), and made significant progress in markets such as China (from 8% in FY21 to 98% in FY22) and Cyprus (from 3% in FY21 to 34% in FY22).
More plant-based food
In August 2020, we launched the HUVUDROLL plant ball that has only 4% of the climate footprint compared to the ingredients of the iconic meatball. With ingredients like pea protein, oats, apples and potatoes, we have worked hard to recreate this classic IKEA product to be a more sustainable option without compromising on taste or price. Our goal is that by FY25, 50% of main meals offered in the IKEA restaurants will be plant-based.
Read about more actions we are taking
Removing and storing carbon through forestry, agriculture and products
The second step in halving our climate footprint is removing CO₂ from the atmosphere through natural processes. This will be done by storing CO₂ through better forest and agriculture management within the IKEA value chain. Through a circular economy, we will also ensure that carbon remains stored in our products and materials for longer. We’ll also invest in reforestation and regeneration projects to restore ecosystems and plant more trees.
- Improving sustainable management practices within forestry and agriculture
- Prolonging the life of products and the carbon storage in renewable materials
100M EUR
investment in removing and storing carbon
99.9%
of the wood used by IKEA in FY22 was FSC®-certified or recycled
Our Forest Positive Agenda for FY30
The Forest Positive Agenda for FY30 lays out the roadmap to further enhance biodiversity, support the livelihoods of people who depend on forests, and mitigate climate change. In FY20, we reached our goal to only use wood from more sustainable sources and will maintain this level every year going forward. During FY22, to meet the ambitions set in the IKEA Forest Positive Agenda FY30, we completed our sixth revision of the IWAY Forest Materials Section. We’ve extended its scope to include more forest materials than just wood, for example cork. It is now applicable for forest materials used across all operations and home furnishing products.
Going beyond IKEA
To become climate positive and reduce more greenhouse gas emissions than the IKEA value chain emits, we will take an extended responsibility for the climate footprint of our customers, suppliers and sourcing, and contribute with additional reductions in society. We will achieve this by enabling customers to generate renewable energy at home, as well as by transforming our suppliers’ entire factories or operations to renewable energy – not just the part used for IKEA production.
IKEA Home Solar means democratising clean energy
In FY22, SOLSTRÅLE – the IKEA home solar offer – was available in 11 markets. By FY25, the goal is to have solar panels available in 31 IKEA markets.
Our reductions in GHG emissions to date are the result of a lot of hard work by co-workers, suppliers and partners across the IKEA business who are committed to addressing every part of the IKEA footprint. Together, we will take the remaining actions needed to contribute to limiting global warming to 1.5°C.