Climate footprint at each stage of the IKEA value chain
26.2 Million tonnes CO₂ eq (FY21)
- Materials: 52.2%
- Food ingredients: 2.7%
- Production: 7.9%
- Product transport: 4.3%
- IKEA retail and other operations: 2.3%
- Co-worker commuting and business travel: 0.6%
- Customer travel and home deliveries: 5.7%
- Product use at home: 17.1%
- Product end-of-life: 6.7%
- Other: 0.8%
Drastically reduce greenhouse gas emissions
To become climate positive, we first need to take responsibility to halve the climate footprint of the total IKEA value chain by 2030, in line with the 1.5°C target. We will mainly do this by drastically reducing greenhouse gas emissions. 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. 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
The main contributor to the climate footprint of product use at home comes from the electricity consumption of our lighting range. Although the IKEA lighting range has only included energy-efficient LED bulbs since 2015, we see room for improvement, making an already good product even better. In FY21, we launched the new SOLHETTA LED bulbs, which is significantly more affordable and energy-efficient than previous LED bulbs.
Climate footprint from product use at home (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. When achieving purchase of 100% renewable electricity for the first three countries of Poland, China and India, it will reduce the IKEA climate footprint by 2%, or 451,000 tonnes CO₂ eq.
Achieving 100% renewable electricity in 10 additional IKEA markets
During FY21, we reached 100% renewable electricity in 10 additional IKEA markets. The most significant movement was securing 100% renewable electricity for IKEA operations in Russia (stores, offices and factories). Achieving this has previously been a challenge due to the limited availability and policies and regulations. We also took the final step to secure that all IKEA owned factories only consume renewable electricity – globally.
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 iconic classic IKEA product to be a more sustainable option without compromising on taste or price. Our goal is that by 2025, 50% of main meals offered in the IKEA restaurants will be plant-based and 80% will be non-red meat. Meanwhile, 80% of all packaged food will be plant-based. In FY21, VÄRLDSKLOK, a plant-based mince, was launched. Like HUVUDROLL, VÄRLDSKLOK is based on pea-protein and will provide a similarly small climate footprint.
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
of the wood and paper used for IKEA products in FY21 was either FSC®-certified or recycled
New Forest Positive Agenda for 2030
In FY20, we reached our goal to only use wood from more sustainable sources and will maintain this level every year going forward. In FY21, 99.5% of the wood used for IKEA products was either FSC®-certified or recycled. The Forest Positive Agenda for 2030 lays out the roadmap to further enhance biodiversity, support the livelihoods of people who depend on forests, and mitigate climate change.
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
At the end of FY21, the IKEA Home Solar offer (including installation) was available in 11 markets. By 2025, the goal is to have solar panels available in 32 IKEA markets.