IKEA’s overarching 2030 goal is to reduce absolute GHG emissions by at least 15% compared to the baseline of 2016. The climate footprint from IKEA retail and other operations is 2.3% of the total IKEA value chain footprint. The Goal for 2030: To reduce the greenhouse gas emissions from customer travel and home deliveries by 50% in relative terms (per store customer) compared to FY16.

The IKEA climate footprint in FY21 is estimated to be 26.2 million tonnes CO2 eq, a decrease of 5.8% in absolute terms compared to the baseline FY16, but an increase of 5.7% compared to FY20.

In FY21, IKEA achieved 100% biofuels use for all domestic deliveries and carriage movements in the United Arab Emirates, a transition that began in 2018. The biofuel is produced from used cooking oil collected in the local market. By using 100% biofuel, IKEA reduced its climate footprint for those transports by 84% compared to fossil diesel, or 280 tonnes of CO2 eq. Similarly, in the Netherlands, IKEA service provider switched to 100% biofuel made from waste and residue. This resulted in a 90% reduction in the climate footprint of diesel, reducing it by 2,900 tonnes of CO2 eq. IKEA moved 70% of the transport volumes between Lithuania and Sweden to liquified biogas (LBG). This setup will save about 644 tonnes of CO2 eq. IKEA is committed to becoming a circular business by 2030. Apart from being key milestones, these developments also show how replacing fossil-based fuels are often local solutions based on the availability of biofuels and the infrastructure.

Another way IKEA improved the efficiency of the logistics network was by transporting larger volumes with each transport, reducing the number of trucks needed. That’s why IKEA increased the number of bigger trucks they use in Europe and Asia, as well as moving from standard trailers to solutions with higher capacities. By transporting higher volumes with each transport, the GHG emissions are reduced as fewer trucks are needed. IKEA is also continually optimising their network to find the shortest distances and most efficient routes to reduce the climate footprint. In FY21, the climate footprint for product transport decreased in absolute terms by 2.8% compared to the baseline year FY17.