Climate Change Data

Environmental Metrics

ESG Focus Areas

• climate change
• unsustainable consumption
• inequality

Environmental Achievements

• 18,240 solar panels installed on IKEA Industry production unit in Paços de Ferreira, Portugal – enough to power 2,700 homes
• 60% of the IKEA range is based on renewable materials and 10% contains recycled materials
• 100% of cotton and 85% of wood from more sustainable sources
• 94% of fish and seafood certified to MSC or ASC standards
• 1 million veggie hot dogs sold in Europe within first two months of launch (climate footprint seven times less than classic meat hot dog)
• More than 1,400 tonnes of food saved since the start of Food is Precious initiative
• Phasing out all single-use plastic products by January 1, 2020
• 24% of polyester used came from recycled PET (rPET), compared with 10% in FY17

Social Achievements

• Launch of the LUSTIGT collection and Real Play Coalition to encourage children and adults to play more
• Launch of three collections in partnership with social enterprises, creating jobs for more than 15,600 people
• Empowering young workers to develop skills with suppliers in Southeast Asia
• Ensuring drivers in the IKEA supply chain have good and fair working conditions
• Safer Homes pilot project launched
• IKEA Job portal launched
• One-month paid paternity leave introduced by Ikano Group

Governance Achievements

• Introduction of Iconduct for franchisees
• 34 concerns relating to breaches of the Inter IKEA Group Code of Conduct were reported to the Inter IKEA Group Raising Concern Line

Climate Goals & Targets

Environmental Challenges

• Addressing unsustainable consumption
• Improving working conditions
• Remaining affordable, including vulnerable groups
• Tackling climate change (climate footprint of the IKEA value chain increased by 2.8% between FY16 and FY18)
• Sourcing recycled materials (shortage of clean, recycled materials)
• Reporting on our value chain (developing a performance framework for transparent and consistent future reporting)

Mitigation Strategies

• Increased efforts throughout extended supply chains
• Working with partners who employ women and marginalized groups
• Working to increase global availability of recycled materials (e.g., partnering with WWF in India to source recycled paper)
• Developing a performance framework for transparent and consistent future reporting

Supply Chain Management

Supplier Audits: More than 50 audits performed in cotton supply chains in FY18; 212 IWAY Forestry Section audits in FY18

Responsible Procurement

• IWAY (IKEA supplier code of conduct)
• IKEA Guidelines on Responsible Recruitment
• Requirements for sustainable sourcing of materials (e.g., cotton, wood, palm oil)
• Focus on animal welfare, environmental impact, and human rights

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Renewable energy generation

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 15

The report details how various IKEA initiatives contribute to these goals.

Sustainable Products & Innovation

• MISTELN mist nozzle
• GUNRID air purifying curtains
• IKEA 365+ food storage platform
• TOFTLUND rugs (recycled PET bottles)
• JOFRID curtains (dyes made from agricultural waste)
• KNIXHULT lamp (recycled bamboo)
• SMÅTORP sofa frame (lightweight construction)

Awards & Recognition

• World Economic Forum’s Circular Economy Award
• Green Freight Asia (GFA) Ambassador Award
• Green Freight Asia Label Achievement Award

Environmental Metrics

ESG Focus Areas

• Healthy & sustainable living
• Circular & climate positive
• Fair & equal

Environmental Achievements

• The climate footprint of the IKEA value chain decreased by 4.3% and is now equal to the level of baseline FY16, while the IKEA business continued to grow.
• 91% (84% FY18) of wood used for IKEA products is now from more sustainable sources.
• The share of recycled polyester in textile products has reached 59% (compared to 24% in FY18) – on our way to the goal of 100% by the end of 2020.
• 57% renewable energy in retail and 46% in the production of IKEA products.
• First ocean container using biofuel.

Social Achievements

• Updating the IKEA supplier code of conduct (IWAY), ensuring that it’s relevant and up-to-date for our suppliers to meet or even go beyond our requirements.
• Launch of the first programmes not directly linked to the IKEA business to support even more marginalised people around the world – for example the accelerator programme in partnership with Ashoka.
• Stores in nine IKEA retail markets ran initiatives to support refugees’ skills development and help them to find work.
• Fewer co-worker injuries at work at IKEA Industry than in any previous year.

Governance Achievements

• After the end of FY19, Inter IKEA Group announced the decision to invest EUR 200 million to accelerate the transformation to become a climate positive business by 2030.

Climate Goals & Targets

Environmental Challenges

• Addressing unsustainable consumption: Enable more people to live better everyday lives within the limits of the planet.
• Remaining affordable: IKEA products are for the many people, so we need to continue to ensure that the IKEA offer remains accessible to those with thin wallets.
• Limiting climate change to 1.5°C: Decoupling our climate footprint from growth takes time. Even if we see a positive break in the trend this year, we need to reduce the IKEA climate footprint, in absolute terms, the coming years before we can say that we are heading in the right direction.
• Sourcing recycled materials: There is a shortage of clean, recycled materials, such as plastics and textiles, and we are working to increase global availability. This is an important element of minimising environmental impact and moving towards a circular economy.
• Improving working conditions: As decent working conditions are fundamental to doing good business, we are continuously strengthening our efforts to improve the conditions throughout our supply chains.
• Including vulnerable groups in society: To create better possibilities for inclusion in areas of the world that need it the most, we are working with partners who employ marginalised groups.

Mitigation Strategies

• Investing in renewable energy and improving energy efficiency
• Developing new models of product ownership, which offer furniture as a service
• Testing new models of product ownership, which offer furniture as a service in Switzerland, Netherlands, Poland and Sweden.
• Developing a circular product range: 80% of the IKEA home furnishing range is now assessed according to the IKEA circular product design principles.
• Offering more plant-based food
• Updating the IWAY supplier code of conduct
• Collaboration with social entrepreneurs
• Investing EUR 200 million to speed up action to transform direct suppliers into using renewable energy, and to remove CO2 from the atmosphere through reforestation, restoration of degraded forests and better forest management practices.

Supply Chain Management

Responsible Procurement

• IWAY

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 15
• 17

The report details how various initiatives contribute to each of these goals.

Sustainable Products & Innovation

• MUSSELBLOMMA
• FÖRÄNDRING
• BODARP kitchen
• KNIXHULT
• MISTERHULT
• TALRIKA dinnerware
• HEROISK children’s eating products
• KORVMOJ veggie hot dog
• plant ball
• FRUKTSTUND smoothies
• GUNRID air purifying curtain
• TILLVERKA collection

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Inclusion
• Economic Development

Environmental Achievements

• Reduced GHG emissions by 95% compared to 2010s editions.
• 90% of Games' material resources with a contractually guaranteed second life.
• 100% renewable energy to power the Games via the grid.
• Halved single-use plastic for food and beverages.

Social Achievements

• Gender-equal Games with an equal number of female and male athletes.
• Mobilized over 500 social and solidarity economy structures.
• 75% of Paris 2024’s suppliers are SMEs.
• 93% score on the Professional Equality and Gender Balance Index.

Governance Achievements

• ISO 20121 certified.
• AFAQ Focus CSR Responsible Purchasing label with an “Exemplary” level.
• Social Charter signed with trade unions.

Climate Goals & Targets

Environmental Challenges

• Transporting nearly 200,000 accredited individuals and millions of spectators while reducing the carbon footprint.
• Delivering 13 million meals and snacks sustainably.
• Setting up 44 temporary and permanent competition infrastructures with eco-design criteria.
• Achieving 80% of total food supply sourced with a sustainability label due to international and inflationary context.

Mitigation Strategies

• Using existing infrastructure and public transport, with innovative solutions for biofuels, batteries or hydrogen.
• Implementing alternatives to single-use plastics, increasing plant-based food, and using reusable bottles and cups.
• Applying circular economy principles to infrastructure, prioritizing reused, recycled, and recyclable materials.
• Reaffirming commitments to French and local sourcing with partner support.

Supply Chain Management

Responsible Procurement

• Circular economy principles
• Environmental and social criteria in 100% of tenders
• Social inclusion clause in contracts for priority categories
• AFAQ 20400 labeled suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 20121, ISO 20400

Certifications: ISO 20121, AFAQ Focus CSR Responsible Purchasing (Exemplary level)

Third-party Assurance: AFNOR

Sustainable Products & Innovation

• Recycled medals
• Plant-based food options
• Reusable bottles and cups

Awards & Recognition

• ISO 20121 certification
• AFAQ Focus CSR Responsible Purchasing label (Exemplary level)