The REP Wrap: Ingka Group switches sustainability targets

Your weekly summary of corporate sustainability news.

Ingka Group has ditched a handful of its sustainability targets after aligning its disclosures with the European Sustainability Reporting Standards (ESRS). The IKEA owner revealed it no longer had official targets for helping customer extend the life of IKEA products, investing into renewable energy, or training employees on digital ethics and responsible artificial intelligence. It has also swapped its commitment to equal pay between men and women with a commitment to having a 5% cap on its gender pay gap. It has stopped publishing its survey on worker inclusivity and fulfilment, meaning it doesn’t disclose progress against related targets anymore. Instead, Ingka Group plans to release a water target in its next report, and is developing a target for biodiversity.

Starbucks has removed sustainability factors from its executive pay packages. The coffee giant’s proxy statement, which came out on Monday, revealed it will no longer base any of its annual and long-term incentives on the promotion of “belonging, joy and sustainability”. It follows shareholder pushback on its overall remuneration proposal at last year’s annual meeting. According to Gregory Elders from Canbury Insights, Starbucks had already axed a 10% ‘talent and sustainability modifier’ from its long-term incentive offering.  

The European Commission published a review of the Zero Pollution Action Plan. The report noted that “challenges persist, particularly in waste management, microplastics, noise and nutrient pollution”, but that “the transition to a zero-pollution economy is both feasible over the long term and economically beneficial – if guided by inclusive and forward-looking policies and supported by sufficient funding from a range of sources”.

It comes as European Parliament published a briefing on the upcoming Circular Economy Act, which is slated for the third quarter of 2026.

Baoshan Iron & Steel has become the first Chinese company targeted by shareholders through the Climate Action 100+ initiative to publish a strategy for achieving its medium- and long-term decarbonisation targets. This was one of the highlights of the past year of engagement with more than 170 companies, according to CA100+’s latest report.  

The UK government published the outcome of a consultation on sustainability assurance on Friday. The Financial Reporting Council has now been tasked with establishing a voluntary registration regime for those wishing to assure disclosures in line with the UK Sustainability Reporting Standards, the Taskforce on Climate-related Financial Disclosures, the ESRS and other similar regimes. The registry will be operational in time for the 2027 financial year.

Danish insurer Tryg has stopped including positive impacts in its disclosures under the Corporate Sustainability Reporting Directive, following a review of its double materiality assessment. In its inaugural report, published last year, the insurer said it could have a positive impact on climate change “by including prevention measures in product offerings”. But its senior ESG manager, Louise Rosenmeier, told REP that the EU has since made it clear that “most of the previously identified positive impacts were more in the nature of being mitigation actions rather than contributing with additionality”. In October, French supervisor AMF highlighted the tendency for companies to conflate positive impacts with the mitigation of negative ones in CSRD reports. 

Fairtrade America has warned the confectionary industry that it has a social responsibility not to abandon pricey cocoa in favour of cocoa alternatives. The organisation said “companies that invest in cocoa alternatives instead of the people who grow cocoa are running away from the problems they created”, adding: “Pouring money into alternatives instead of into the hands of the six million people worldwide who depend on cocoa farming for their livelihood lays bare big chocolate’s greed for all to see”.