Making progress and strengthening our climate goals and actions
2023 was the warmest year on record. Now, more than ever, it's important to act with urgency and stay committed to the Paris Agreement and align with the 1.5°C limit. A significant achievement this year was the development of solid action plans that allowed us to strengthen our climate goals in line with the 1.5°C target and the SBTi Net-Zero standard.
From net-zero emission goals for FY50 to enabling customers to generate renewable energy at home, IKEA is going beyond the home and our value chain with new ambitious goals to keep us on track for the future.
The IKEA Climate Report FY23, issued by the Inter IKEA Group, summarises our performance during FY23 compared to the IKEA climate commitments leading to 2030. The climate commitment is a key element of the IKEA Sustainability Strategy. This report covers the entire value chain and franchise system and provides an update on activities and the ongoing work to measure progress.
In FY23, the absolute reduction of greenhouse gas emissions from the IKEA value chain was 12% compared to FY22, and 22% compared to baseline year FY16. The reduction was a result of a continued increase in renewable electricity use at both retail and production units, energy efficiency improvements in our lighting range, and lower production volumes. With Türkiye reaching 100% renewable electricity during the year, there are now 25 IKEA retail markets that only use renewable electricity.
The reporting period follows the financial year 2023 (FY23), which runs from 1 September 2022 to 31 August 2023. Percentages in this report may not total 100% due to rounding differences.