Sustainability Report FY21 shows IKEA is on track towards 2030 climate commitment

The financial year 2021* was challenging but also presented important movements towards IKEA's 2030 sustainability commitments. The pandemic continued and called for measures to mitigate the effects through the entire value chain. At the same time, the IKEA business continued to deliver important sustainability achievements and make improvements throughout the value chain, such as further reducing the IKEA climate footprint.

The IKEA People & Planet Positive sustainability strategy outlines the ambitions and commitments, creating a common agenda towards 2030. Progress on the ambitions and commitments of the strategy is to be found in the IKEA Sustainability Report FY21 and the first-ever IKEA Climate Report FY21.

Climate change, biodiversity loss, and increasing inequalities make IKEA even more determined to speed up work. IKEA is committed to becoming climate positive while securing a just transition with a specific focus on respecting human rights across the value chain. To become climate positive, the climate footprint of the total IKEA value chain must be reduced in line with the 1.5°C target – including halving emissions by 2030 and reaching net-zero by 2050 at the latest.

“With two-thirds of the time left to 2030, we are on track and have reached one-third of our emission reduction through many short- and medium-term movements. We also have plans in place to address our longer-term movements and remaining complex challenges, such as the climate footprint of the materials used in the IKEA range”, says Lena Pripp-Kovac, Chief Sustainability Officer, Inter IKEA Group.

The ambition is to realize the climate positive commitment without using carbon offsets. Instead, IKEA addresses the root causes of their climate footprint within the value chain or in connection to customers, suppliers and sourcing areas. 

Highlights from the financial year 2021 include:

• Increased use of renewable energy across the value chain – reaching 100% renewable electricity in 10 additional IKEA markets, including Russia, securing that all IKEA owned factories only consume renewable electricity globally – and accelerating the transition to renewable electricity with a new programme for 1,600 direct suppliers.
• A new forest positive agenda for 2030, with the aim to enhance biodiversity, support livelihoods and mitigate climate change. More than 99% of the wood used is now FSC certified or recycled wood.
• Increased sales share of plant-based food compared to meat-based options and the launch of SOLHETTA – our significantly more energy-efficient and affordable LED bulb range.
• The launch of affordable solutions that enable people to purify the air at home (such as STARKVIND air purifier) and generate clean energy.

For IKEA Social Entrepreneurship, the report highlights our achievements during FY21 which include:

• Running programmes and making investments that support a total of 80 social entrepreneurs in 21 countries.
• Establishing six new social business partnerships in FY21, bringing our total up to 11. Together with whom, we support local communities while producing global products that create job opportunities for people who need them the most.
• Increasing sales of the products produced through our social business partnerships by 46%, contributing to including more people from marginalized groups in the IKEA supply chain.

Both the Sustainability Report FY21 and Climate Report FY21, show progress from across the entire IKEA value chain, including Inter IKEA Group, the 12 franchisees and the many suppliers. 

Each part of the IKEA business sets goals and road maps to deliver on The IKEA People & Planet Positive sustainability strategy and to allow for locally tailored and relevant activities. The strategy outlines the ambitions and commitments, creating a common agenda leading together towards 2030.

*The financial year 2021 (FY21) is the period from 1 September 2020 to 31 August 2021.