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Ikea Has Cut Climate Impact by 12% in 6 Years

Ikea says it made significant progress in reaching its climate goals during fiscal year 2022. That’s according to the home goods company’s Sustainability Report FY22 and Climate Report FY22, which were released this week.

According to the latter report, Ikea reduced its climate footprint by 5 percent in fiscal 2022, to 25.8 million tons of CO2eq. That adds up to a 12 percent decrease since fiscal 2016.

“With six years of CO2 budget left in the world to limit global warming to 1.5°C, the need to act is more important than ever,” said Jon Abrahamsson Ring, CEO, Inter IKEA Group. “We are committed to doing our part, taking a full value chain approach, working towards becoming climate positive and securing a just transition. We strive to take a holistic approach to our sustainability work, as climate change, nature loss and inequality are interdependent.”

Ikea pointed to the increased use of renewable energy in retail and production as a key driver of the progress. The company expanded the use of renewable electricity in its retail outlets by 5 percent—76 percent in 2022 compared to 71 percent the year prior. And as of last year, 24 Ikea retail markets are consuming 100 percent renewable electricity.

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Across its production operation, Ikea increased the share of renewable electricity to 64 percent compared to 52 percent in fiscal year 2021. The company launched a program in China during fiscal 2021 that enables suppliers to purchase renewable electricity. Ikea will expand the program to 10 additional markets in 2023, including Germany, Turkey and Sweden.

Product-wise, Ikea expanded its energy-efficient lightbulb line, Solhetta, which reduced the climate footprint of product use at home by 20 percent from fiscal 2021 to 2022.

Ikea also pointed to other initiatives—including increasing its plant-based food options at in-store dining locations and developing a program that makes it easier for customers to prolong the lifespan of its products—as contributors to the reduction in environmental impact.

“Every year, more than 2.4 billion people are exposed to dangerous levels of air pollution. There is a strong synergy between reducing GHG emissions and air pollution,” said Andreas Rangel Ahrens, head of climate, Inter Ikea Group. “With this report, we are taking the lead by being one of the first to disclose the air pollution generated across our value chain. Even though more work is needed, we hope that by transparently sharing our findings, we inspire other companies to also address air pollution while taking climate action.”