INGKA Holding B.V. and its controlled entities
Climate Impact & Sustainability Data (2013, 2014)
Reporting Period: 2013
Environmental Metrics
Total Carbon Emissions:28,273,000 tCO2e
Scope 1 Emissions:132,200 tCO2e
Scope 2 Emissions:637,200 tCO2e
Scope 3 Emissions:27,503,600 tCO2e
Renewable Energy Share:37%
Water Consumption:770,000,000 m3
Waste Generated:428,026 tons
Carbon Intensity:27.6 kg CO2 per m3 of products sold
ESG Focus Areas
- A more sustainable life at home
- Resource and energy independence
- A better life for people and communities
Environmental Achievements
- Increased the proportion of wood from more sustainable sources to 32.4% compared with 22.6% in FY12.
- Sourced 72% of cotton from more sustainable sources, up from 34% in FY12.
- Produced renewable energy equivalent to 37% of total energy consumption (34% in FY12).
- Reduced carbon emissions (relative to sales) by 19.3% compared with FY10 baseline.
- Recycled 87% of waste from operations.
Social Achievements
- Launched a new global IKEA diversity and Inclusion Approach.
- Launched the IKEA women’s open network (IWON).
- Trained 120,000 out of 135,000 co-workers on the code of conduct.
- IKEA Foundation donated €101 million in 2013.
Governance Achievements
- Launched a new chemical strategy.
- Updated and strengthened IWAY standard (IWAY 5.1).
Climate Goals & Targets
Long-term Goals:
- By FY20, achieve more than a fourfold increase in sales from sustainable products.
- By FY20, 90% of total sales value from more sustainable products.
- By FY20, produce as much renewable energy as all energy consumed.
- By FY20, home furnishing suppliers 30% more water efficient than in FY12.
- By FY20, achieve a VOICE result of 725.
Medium-term Goals:
- By FY17, 50% of total projected wood volume from more sustainable sources.
- By FY17, all cotton from more sustainable sources.
- By FY17, all leather fully traceable and produced to sustainable standards.
- By FY17, 20% improvement in supplier energy efficiency from FY12 levels.
- By FY17, offer the most energy-efficient home appliances at the lowest price.
Short-term Goals:
- By FY15, 95% of co-workers agree sustainability is part of everyday work.
- By FY15, all IKEA suppliers (within IWAY scope) will comply with IWAY.
- By FY15, produce renewable energy equivalent to at least 70% of energy consumption.
- By FY15, reduce carbon emissions from own operations by 50% compared to FY10.
- By FY15, 90% of waste from stores and operations sorted for recycling.
Environmental Challenges
- Meeting goals in People & Planet strategy.
- Supply chain disruptions due to water scarcity and unsustainable forestry practices.
- Increasing carbon emissions due to business expansion.
- Ensuring IWAY compliance across all supplier categories.
- Improving data collection and quality.
Mitigation Strategies
- Investing in renewable energy projects (€1.5 billion by 2015).
- Working with WWF and other partners to improve forest management and cotton production.
- Implementing energy efficiency measures in stores and distribution centers.
- Strengthening IWAY standard and auditing processes.
- Developing new models for calculating carbon and water footprints.
Supply Chain Management
Supplier Audits: 917 IWAY audits in FY13
Responsible Procurement
- IWAY supplier code of conduct
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products and renewable energy solutions.
Reporting Standards
Frameworks Used: GRI G4
Sustainable Products & Innovation
- LED lighting
- Energy-efficient appliances
- Water-saving taps
- Recycled materials
Reporting Period: 2014
Environmental Metrics
Total Carbon Emissions:33.2 million tonnes of CO2e (estimated)
Scope 1 Emissions:143,837 tCO2e
Scope 2 Emissions:614,004 tCO2e
Scope 3 Emissions:32,442,593 tCO2e
Renewable Energy Share:42% (of total energy consumption)
Total Energy Consumption:4,333 GWh
Water Consumption:6,524,640 m3
Waste Generated:477,714 tonnes
Carbon Intensity:26.2 kg CO2/m3 (FY14)
ESG Focus Areas
- Climate Change
- Resource and Energy Independence
- People and Communities
Environmental Achievements
- Reduced carbon emissions from own operations by 24% compared to FY10 baseline.
- Increased renewable energy produced to 42% of total energy consumption.
- 41% of wood used sourced from more sustainable sources.
- 76% of cotton used sourced from more sustainable sources.
- Saved €66 million through energy efficiency efforts since FY10.
Social Achievements
- Launched global More Sustainable Life at Home Co-worker Engagement Project.
- 79% of co-workers agreed that sustainability is a natural part of their daily work.
- Increased sales of products contributing to a more sustainable life at home by 58% compared to FY13.
- Donated €104 million by the IKEA Foundation to projects supporting millions of children and refugees.
- Implemented IWAY 5.1, updated supplier Code of Conduct, across all suppliers.
Governance Achievements
- Updated People & Planet Positive strategy based on stakeholder feedback.
- Launched new global One IKEA Bonus and Tack! loyalty programs for co-workers.
- Implemented IKEA Chemical Strategy to improve chemical risk assessments.
Climate Goals & Targets
Long-term Goals:
- 100% of wood, paper, and cardboard from more sustainable sources by FY20.
- Produce as much renewable energy as consumed by FY20.
- 90% of waste recycled or energy recovered by FY20 (80% stores/distribution centers, 90% IKEA Industry).
Medium-term Goals:
- 50% of wood from more sustainable sources by FY17.
- 100% of cotton from more sustainable sources by FY15.
- 100% of palm oil from certified segregated sustainable sources or replaced by FY15.
- 20% more energy efficient in own operations by FY15, 30% by FY20.
Short-term Goals:
- Reduce water consumption by 50% at Pisa store, Italy.
- Achieve 70% renewable energy by FY15, 100% by FY20.
- 100% IWAY approval for all suppliers by FY15.
- Reduce carbon emissions from own operations by 50% by FY15.
Environmental Challenges
- Supply chain disruptions due to extreme weather events (e.g., Hurricane Sandy).
- Limited availability of certified seafood and free-range eggs in certain markets.
- Challenges in accessing renewable energy at some IKEA Industry sites.
- Difficulties in achieving 100% IWAY approval for all local food suppliers.
- Complexity of ensuring compliance with working hour limits in the supply chain, particularly in Asia.
Mitigation Strategies
- Investing in renewable energy and energy efficiency to become energy independent.
- Working with suppliers to improve energy and water efficiency and reduce carbon emissions.
- Developing alternative sourcing strategies for raw materials.
- Implementing stricter requirements for suppliers on issues such as traceability, deforestation, and forced labor.
- Providing training and support to suppliers to help them meet IWAY requirements.
Supply Chain Management
Supplier Audits: 1,155 IWAY audits in FY14
Responsible Procurement
- IWAY Code of Conduct
- IWAY Forestry Standard
- Supplier Sustainability Index
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Investment in renewable energy
Reporting Standards
Frameworks Used: GRI G4
Certifications: ISO 14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
- Goal 8 (Decent Work and Economic Growth)
- Goal 5 (Gender Equality)
IKEA's initiatives contribute to these goals through renewable energy investments, sustainable product development, ethical supply chain management, and community engagement.
Sustainable Products & Innovation
- LED lighting
- Energy-efficient appliances
- Products made from recycled materials
- Home solar panels
Awards & Recognition
- Sustainability Leadership Prize at the TOP/COM Consumer Awards 2014 (IKEA France)