Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Healthy and sustainable living
• Fair and inclusive
• Equality
• Human rights

Environmental Achievements

• Exceeded 2020 goal to generate more renewable energy than consumed in operations.
• Reduced energy-related greenhouse gas emissions from own operations by 4.6% against FY16 baseline.
• Reduced relative emissions from customer and co-worker travel by 0.3% compared to FY19 and by 9% compared with FY16.
• Phased out 28 single-use plastic items from restaurants, bistros and cafes.
• Saved 39 million products from waste through As-Is sales and repackaging.
• Reduced operational waste by 12% compared with FY19, recycled 72% of waste.

Social Achievements

• Provided income stability for co-workers during the pandemic.
• Launched online resilience training program.
• Offered additional parental leave and flexible work arrangements.
• Donated EUR 26 million in emergency relief and products to support communities affected by the pandemic.
• Partnered with 39 social entrepreneurs in 18 countries.
• Supported 45 refugees through skills for development programs.

Governance Achievements

• Launched Ingka Group Equality Plan.
• Achieved 50/50 gender balance in management positions.
• Updated Code of Conduct and Anti-Bribery and Corruption Framework.
• Completed 196 IWAY reviews of suppliers.
• Developed new standards to protect gig economy workers.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting operations and supply chain.
• Achieving ambitious food waste reduction goal.
• Slower-than-hoped-for progress in electric vehicle rollout and furniture leasing.
• Social and environmental risks in the supply chain.
• Climate change disrupting supply chain and business operations.

Mitigation Strategies

• Repurposed stores into fulfilment units and accelerated digital capabilities.
• Implemented various safe pick-up and delivery services.
• Launched online competence development offer and resilience training.
• Offered additional parental leave and flexible work arrangements.
• Provided financial support to those most affected by the pandemic.
• Developed new standards to protect gig economy workers.
• Increased focus on IWAY compliance and risk management.

Supply Chain Management

Supplier Audits: 196 IWAY reviews in FY20

Responsible Procurement

• IWAY (IKEA supplier code of conduct)
• New standards for gig economy workers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Renewable energy investments, energy efficiency improvements

Reporting Standards

Frameworks Used: UN Global Compact, TCFD, GRI, CDP

Certifications: FSC®

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Ingka Group's initiatives contribute to all 17 SDGs, with a particular focus on six.

Sustainable Products & Innovation

• HUVUDROLL plant balls
• KNIXHULT bamboo lamps
• Energy-efficient LED bulbs and appliances

Environmental Metrics

ESG Focus Areas

• Better homes
• Better lives
• Better planet
• Better company

Environmental Achievements

• Reduced total climate footprint (scope 1, 2, and 3) by 24.3% since FY16
• Reduced greenhouse gas emissions from own operations (scope 1 and 2) by 53.2% against FY16 baseline
• 79.2% of electricity used was from renewable sources
• Recycled 75.9% of waste

Social Achievements

• Maintained 50/50 gender balance in management positions
• 84% of co-workers feel they can be themselves at work
• Reduced voluntary co-worker turnover rate
• Supported 2,935 refugees through skills for employment programmes

Governance Achievements

• Reinvesting 85% of net income into the company
• Updated IWAY process with a risk-based approach
• Rolled out updated Digital Ethics Policy

Climate Goals & Targets

Environmental Challenges

• Inflation, currency fluctuations, and economic disruption impacting affordability and price levels
• Finding scalable circular solutions
• Rolling out IKEA Energy Services slower than desired due to various factors
• Maintaining high safety standards consistently across locations
• Increasing ethnic, racial, and national diversity at all management levels
• Addressing pay gaps
• Strengthening governance around human rights and risk assessment processes
• High inflation and energy costs impacting business and supply chain
• Evaluating social and environmental impacts of investments
• Rapid pace of technological change creating challenges for applying Digital Ethics Policy
• Cybersecurity threats
• Improving data to fully report progress against IWAY target
• Failures to comply with IWAY Must criteria during 36% of supplier IWAY reviews

Mitigation Strategies

• Investing in decreasing prices, prioritizing this in FY24
• Testing various circular approaches and scaling up successful ones
• Developing action plans to speed up progress on renewable heating and cooling and transport
• Continuously reinforcing focus on safety through training and communications
• Piloting Equal UP! to remove barriers for underrepresented groups in leadership
• Implementing concrete actions to address pay gaps
• Developing action plan to address gaps identified in human rights baseline assessment
• Cost management programmes and reprioritizing initiatives
• Developing appropriate metrics and KPIs for evaluating investments
• Meeting with Ingka Group leaders to improve understanding of Digital Ethics Policy
• Expanding awareness campaigns and investing in cybersecurity systems
• Updating IWAY process and standard operating procedure to focus on high-risk suppliers
• Implementing initiatives to improve supplier compliance

Supply Chain Management

Supplier Audits: 200 IWAY reviews (FY23)

Responsible Procurement

• IWAY supplier code of conduct
• IWAY Must criteria
• IWAY Advanced & Excellent requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UNGC

Certifications: FSC®

Third-party Assurance: KPMG Accountants N.V.

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)
• Goal 1 (No poverty)
• Goal 2 (Zero hunger)
• Goal 4 (Quality education)
• Goal 6 (Clean water and sanitation)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 14 (Life below water)
• Goal 15 (Life on land)
• Goal 17 (Partnerships for the goals)

The report details how Ingka Group's initiatives contribute to each of these goals.

Sustainable Products & Innovation

• Energy-saving products
• Plant-based food options
• Products designed for reuse and recycling

Awards & Recognition

• NCSC - Nordic Commercial Spaces & Communities Award for Commercial Concept of the Year (Circuit)
• NCSC Sweden Innovation Concept Award (Circuit)
• Svensk Handel Sustainability Initiative Award (Circuit)
• World Resources Institute recognition for halving pre-consumer food waste