IKEA's 2024 Sustainability Strategy
IKEA's 2024 Sustainability Strategy
2024
IKEA Sustainability Strategy
Contents
1
In total, there are 12 IKEA franchisee groups in more than 62 markets. Inter IKEA Group consists of Inter IKEA Holding B.V. and all its subsidiaries.
The IKEA sustainability agenda is set and governed by the Strategic Sustainability Council with the Inter IKEA Group CEO as chair.
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Being optimistic
in a rapidly-
changing world
To ensure the success of IKEA into the future, From our own history, we
we must work together with speed and know that what at first
urgency to take on the challenges we face.
seem like challenges can
We are optimistic yet realistic about the
become opportunities and
future, even in difficult times.
that limitations can lead to
We have identified major challenges that innovations.
are highly relevant for our business: climate
change and nature loss, unsustainable
consumption, and rising inequality. These
are further intensified by geopolitical
tensions, and polarisation. All these
challenges are interconnected and their
impacts vary in different parts of the world.
Challenge
1
WMO “Climate change indicators reached record levels in 2023”, 2024
2
NASA “Global Climate Change: Vital Signs”, 2023
3
Climate Action Tracker, 2024
4
IPCC “AR6 Synthesis Report: Climate Change”, 2023
5
The Science Based Targets initiative (SBTi) “The Corporate Net-Zero Standard”
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Challenge
Unsustainable consumption
By 2030, the global population While many people are escaping poverty,
is expected to reach nearly 8.6 many still lack access to healthy food, water,
clean air and energy. The fulfilment of basic
billion.1 This means that more
human needs is connected to consumption.
and more people will look for a
The global population must move away from
chance for a better life. under- or over-consumption to a consumption
where equity, the wellbeing of current and
The world is already using resources future generations and the planet are all
requiring more than one planet, with considered.
material consumption expected to continue
to increase.2 In many parts of the world,
consumption is growing at an unsustainable
and unequal rate.2 Resource scarcity is due,
in part, to unsustainable production and
consumption and unnecessary waste.
1
UN “World Population Prospects”, 2022
2
UNEP “Global Resources Outlook”, 2024
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Challenge
Rising inequality
The world economy has grown Many people have seen their jobs become Climate change alone could push 130 million
exponentially over the past unstable, with wages not sufficient to cover people into extreme poverty by 2030.2 At
basic needs, and rapid technological shifts that the same time, the transition to a net-zero
hundred years, contributing to
are difficult to adapt to. Gender equality is still economy brings additional challenges for
the largest reduction of poverty
far from a reality and people continue to be livelihoods and human rights, as industries
in the history of mankind. At discriminated against based on their ethnicity, make the needed changes.
the same time, there is an ever- ability, gender identity and sexual orientation.
increasing level of inequality 1
and social instability. Inequality Global challenges such as climate change
has become a systemic risk and nature loss, and geopolitical conflicts
threatening individuals, continue to accelerate inequality, hitting the
communities, companies and most vulnerable the hardest. Inflation and an
increased cost of living are also amplifying
entire economies.
inequality.
1
Inequality is the uneven distribution of income, wealth, and wellbeing. It matters because it undermines human dignity – breeding discontent, fuelling division,
and leaving our societies incapable of tackling the collective challenges we face. WBCSD, 2022
2
World Bank Group “Revised Estimates of the Impact of Climate Change on Extreme Poverty by 2030”, 2020
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The UN Sustainable
Development Goals (SDGs)
Many of the global sustainability challenges
and calls for action are described in the UN
Sustainable Development Goals (SDGs).
Launched in 2015, the SDGs provide a
framework for collective action to tackle
global issues such as poverty, gender
equality and climate change. The SDGs
were used as one of the key inputs in the
IKEA Sustainability Strategy and ambitions
for 2030. In the yearly IKEA Sustainability
Report, we summarise how the IKEA
business contributes to the SDGs where we
can have an impact.
1
UN “The Sustainable Development Goals Report”, 2023
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Healthy &
sustainable living
Two-thirds of all greenhouse gas organise our everyday lives.5 To be able to
emissions related to consumption live sustainable lifestyles based on informed
purchasing decisions and changes in behaviour,
are connected to our individual
consumers need the support from business,
lifestyles.1
governments and civil society.
1
UNEP “Emissions Gap Report”, 2020
Creating sustainable lifestyles requires a 2
Hot or Cool Institute “1.5-Degree Lifestyles”, 2021
Healthy &
sustainable
living
We will inspire and enable people to move Offering home furnishing products, Contributing to creating a shift in society
towards healthy and sustainable lifestyles, services and solutions that support a where healthy and sustainable lifestyles
healthy and/or sustainable life at home become the default
by making healthy and sustainable living a
desirable choice that is affordable, attractive
Develop and promote affordable home Provide knowledge and ideas through our
and accessible for as many people as furnishing products, services and solutions marketing and communication to guide people
possible. with the primary function to: to adopt behaviours to:
1
The IKEA business defines “plant-rich” as a meal/dish that is at least 75% plants, qualified as foods whose ingredients are derived only
from plants and the remaining 25% can contain any animal-derived ingredient.
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Climate, nature
& circularity
We have only one planet, with chain. Transitioning towards a circular business
limited resources. The escalating is essential to reduce the pressure on nature,
by minimising the use of virgin, non-renewable
impact of climate change,
resources, preventing pollution, and promoting
pressure on the world’s natural
regenerative practices. Circularity is also critical
resources, loss of biodiversity, for addressing the root causes of climate
soil erosion, water scarcity, change by transforming how we produce,
and increasing levels of air, use, and dispose of goods and by promoting
freshwater and ocean pollution sustainable patterns of consumption.
affect the lives and livelihoods
of millions of people around the By continuously reviewing and securing
a robust and responsible management in
world.
forestry and agriculture throughout the IKEA
value chain, we will remove and store carbon
Combating climate change, reversing nature
as well as prevent soil depletion and reduce
loss and moving to more regenerative practices
the use of fossil-based fertilisers. Preventing
as part of a circular economy are all urgent
deforestation and actively engaging in
global priorities.
reforestation and afforestation efforts are vital
for preserving biodiversity and ecosystems.
The largest portion of the IKEA climate
Furthermore, extending the lifespan of our
footprint comes from materials and IKEA
products and materials and transitioning to a
products1 used in customers’ homes. We’re
circular business will reduce greenhouse gas
committed to drastically reducing greenhouse
emissions and help mitigate the impacts of
gas emissions across the IKEA value chain.
climate change.
Climate,
nature &
circularity
We will contribute to limiting the global Making it easy for people to acquire, care for and Striving towards securing a just transition – Addressing land use in our business and value
temperature increase to 1.5°C, in line with pass on products in circular ways. maximising socio-economic opportunities and chains, striving to eliminate conversion of natural
the Paris Agreement, by drastically reducing minimising and managing negative impacts on ecosystems.
emissions in line with science, removing and Aiming to send zero waste from IKEA operations people and communities.
to landfill. Implementing sustainable water management
storing carbon through forestry, agriculture
in freshwater and marine environments, with a
and products as well as contributing with Regenerating resources, protecting focus on water efficiency, reducing pollution and
additional reductions in society. Taking climate action by halving emissions ecosystems and improving biodiversity protecting ecosystems.
from the IKEA value chain, on our way towards
We will also do our part to contribute to net zero Addressing our impacts and dependencies on Advancing water stewardship by leading
nature in a science-based way and taking the local regenerative projects in priority basins aimed at
clean air, water and improved biodiversity.
By FY30, reduce the absolute greenhouse gas context into consideration, with the ambition to increasing water availability, addressing pollution
emissions from the IKEA value chain by half, halt and reverse biodiversity loss and negative and enhancing climate resiliency.
compared to the baseline year FY16.1 effects on water caused by the IKEA business.
Leading regenerative projects on degraded land,
By FY50, reach net-zero greenhouse gas deforested areas and agriculturally cultivated
emissions from the IKEA value chain. areas.
Removing and storing carbon through forestry, Continuing to secure, develop and implement
agriculture and products within the IKEA value responsible sourcing standards that include
chain. environmental, social and animal welfare criteria.
Striving towards 100% renewable energy Continually improving efficiency (energy, material,
(electricity, heating, cooling and fuels) and logistics, waste, etc.) to reduce overall resource
electrification across the IKEA value chain. usage.
1
The Greenhouse Gas Protocol (scope 1, 2 and 3 emissions)
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Fair
&
equal
By 2030, our ambition is to play our full part Being a responsible business and contributing Providing and supporting safe and healthy work, Being for the many people, we strive to be
in contributing to a fair and equal society to resilient societies labour rights and social protection, and striving inclusive and include different needs and
towards securing stable and predictable work for perspectives into our offer.
by respecting and promoting human rights
Respecting human rights and children’s rights everyone in the IKEA value chain.
across the value chain and contributing to by operationalizing the UN Guiding Principles on Securing a more inclusive and diverse IKEA value
resilient societies. Business and Human Rights and the Children’s Securing a just transition2 to a net-zero and circular chain by integrating social businesses, minority-
Rights and Business Principles, ensuring we economy with a focus on enabling decent work owned enterprises and small and medium-sized
We recognise our responsibility to address address our most critical human rights risks through, for example, upskilling and reskilling to enterprises (SMEs).
and impacts across our value chain. We are also meet future demands.
the negative impacts of our business and will
committed to promoting human rights and Actively providing livelihoods and opportunities to
always seek to create a positive impact for children’s rights in society. Providing and supporting that everyone in the marginalised groups of people in the IKEA value
people. We will provide and support decent IKEA value chain is empowered to play an active chain and beyond.
and meaningful work, including providing Ensuring ethical business practices, including role in their work. Everyone is free to join or form
and promoting a living wage and ensuring a combating corruption; securing ethical handling associations of their choice (or to refrain from Promoting a human-centric approach to our digital
of data and digital technology, including artificial doing so) and bargain collectively. Everyone is touchpoints and data-driven processes, ensuring
just transition.
intelligence; complying with both the letter and recruited responsibly and is free to enter and end equality, diversity and inclusion.
the spirit of the law when it comes to corporate tax employment.
We will ensure that the IKEA business policies, and being transparent about taxes paid. Ensuring our marketing and communication
contributes to a more equal, diverse and are not discriminatory, but actively challenge
inclusive society, through our business Securing a strong approach in relation to climate Being an equal, diverse and inclusive business stereotypes and promote diversity and inclusion.
and nature, health, political and social justice crises
practices as well as our products, services
to secure the safety, livelihoods and resilience Embracing all dimensions of human diversity
and communication. We will also use our size of our co-workers and partners across our value and strive to reflect the demographics of the
and influence to advocate for a fair and equal chain. societies in which we operate. Actively working to
society. prevent discrimination and ensuring equality of
Engage with communities along our value chain opportunity and treatment.
to create a positive social impact and prevent
negative impacts from the IKEA business. Promoting accessible and inclusive workplaces
both in structure and culture, where people can be
themselves and everyone’s voice is heard. 1
Responsible Wage Practices is an IKEA programme and related
framework and methodology which takes a holistic approach to the
Providing and supporting decent and subject of wages by placing equal focus on equality at work, pay
principles, competence, dialogue and a living wage.
meaningful work across the IKEA value chain Being a child-friendly business, securing child 2
ILO definition: “A Just Transition involves maximizing the social and
safeguarding, family-friendly practices3 and economic opportunities of climate action while minimizing and
carefully managing any challenges – including through effective social
Providing living wages and income in IKEA
1
inclusion and empowerment of children and youth. dialogue among all groups impacted, and respect for fundamental
operations and support the same among our labour principles and rights”.
business partners and in the wider sectors of Family-friendly practices are defined as paid parental leave, supporting
3
Overview of ambitions
and commitments
Ambitions for 2030 We will inspire and enable people to move towards We are transitioning towards a circular business built By 2030, our ambition is to play our full part in
healthy and sustainable lifestyles, by making healthy and on clean, renewable energy and regenerative resources, contributing to a fair and equal society by respecting
sustainable living a desirable choice that is affordable, de-coupling virgin non-renewable material use from our and promoting human rights across the value chain and
attractive and accessible for as many people as possible. growth. The aim is to end our dependency on virgin non- contributing to resilient societies.
renewable materials and fossil fuels.
We will offer products where environmental and We recognise our responsibility to address the negative
social impact as well as circular capabilities have been We will contribute to limiting the global temperature impacts of our business and will always seek to create a
considered. We will also offer products and services that increase to 1.5C, in line with the Paris agreement, by positive impact for people. We will provide and support
can directly support a healthy and sustainable lifestyle drastically reducing emissions in line with science, decent and meaningful work, including providing and
in, for example, the areas of energy, water, air, waste and removing and storing carbon through forestry, promoting a living wage and ensuring a just transition.
food. We will inspire behaviours that lead to a reduced agriculture and products as well as contributing with
environmental footprint as well as better health and additional reductions in society. We will ensure that the IKEA business contributes to a
wellbeing at home. more equal, diverse and inclusive society, through our
We will also do our part to contribute to clean air, water business practices as well as our products, services and
and improved biodiversity. communication. We will also use our size and influence to
advocate for a fair and equal society.
Commitments • Offering home furnishing products, services and • Transitioning towards a circular business • Being a responsible business and contributing to
solutions that support a healthy and/or sustainable resilient societies
life at home • Taking climate action by halving emissions from the
IKEA value chain, on our way towards net zero • Providing and supporting decent and meaningful
• Offering a food range that supports healthy and work across the IKEA value chain
sustainable eating • Regenerating resources, protecting ecosystems and
improving biodiversity • Being an equal, diverse and inclusive business
• Contributing to creating a shift in society where
healthy and sustainable lifestyles become the default
Key enablers Entrepreneurship and innovation - Co-creation and partnership - Business requirements - Competence and knowledge building - Codes of conduct – IWAY and IConduct - Reporting and
transparency - Inclusiveness and community engagement - Communication and marketing - Advocacy