Ikea reports 30% emissions reduction since 2016
Swedish furniture giant says shrinking footprint coincides with 24% increase in revenue
Ikea has slashed its GHG emissions by 30% compared with 2016, according to its latest sustainability report.
The furniture giant’s parent, Ingka, noted in the report that the reductions coincided with a 23.7% increase in revenues.
Ikea has pledged to halve its absolute Scope 1,2 and 3 emissions by 2030, and has had the commitment validated by the Science Based Targets initiative.
Its latest assessment includes its Scope 3 upstream and downstream value chain emissions.
The company reported a dramatic 24.3% reduction in emissions in 2023, almost doubling the previous financial year’s 12.7%.
It attributed its continued progress in 2024 to factors including a significant increase in the use of renewable energy, which now accounts for 96.6% of its energy consumption across 28 of its markets.
Ikea sold its Russian portfolio, including 14 shopping centres, last year. It saw a 93% reduction in its Scope 1 emissions as a result, but re-baselined accordingly, meaning the divestment isn’t captured in the latest figures.
While the company’s emissions have fallen overall since 2016, its Scope 1 increased 5% year-on-year – a rise it attributed primarily to one of its German biogas providers going out of business.
Emission linked to Ikea’s purchased electricity and heating (Scope 2) fell 87.5% in 2024 compared with 2016, and 20.8% year-on-year.
Its Scope 3 emissions were 28.7% lower than its baseline, and 3.9% lower than 2023. The company said this was down to a combination of energy efficiency measures and a recent dip in sales.