IKEA A/S

IKEA A/S, headquartered in Denmark and operating in the Retail trade services sector, has reported its carbon emissions and committed to ambitious climate targets.

For 2021, IKEA A/S reported total Scope 1 emissions of 79,392,000 kg CO2e and Scope 2 emissions (market-based) of 54,597,000 kg CO2e. The company's Scope 3 emissions in 2021 were substantial, with purchased goods and services accounting for 16,281,406,000 kg CO2e, and the use of sold products contributing 4,460,785,000 kg CO2e. Upstream and downstream transportation and distribution were also significant contributors, at 1,112,149,000 kg CO2e and 1,705,660,000 kg CO2e respectively. End-of-life treatment of sold products amounted to 1,750,718,000 kg CO2e.

Looking at previous years, in 2020, Scope 1 emissions were 78,686,000 kg CO2e and Scope 2 (market-based) were 59,157,000 kg CO2e. In 2019, Scope 1 emissions were 90,661,000 kg CO2e and Scope 2 (market-based) were 74,836,000 kg CO2e.

IKEA A/S's climate commitments are cascaded from its parent company, Inter IKEA Holding B.V., which is also known as IKEA in its Science Based Targets initiative (SBTi) commitments. The IKEA home furnishing business has committed to reach net-zero greenhouse gas emissions across its value chain by FY2050.

Near-term targets, also set by Inter IKEA Holding B.V., include a 50% absolute reduction in Scope 1, 2, and 3 GHG emissions by FY2030, from a FY2016 base year. Within this target, Scope 1 and 2 GHG emissions are targeted for an 82.1% reduction. Additionally, Scope 3 GHG emissions from franchisees are aimed for an 80% reduction, and other remaining absolute Scope 3 GHG emissions are targeted for a 50% reduction within the same timeframe. The company also commits to increasing its annual sourcing of renewable electricity to 100% by FY2025 and maintaining it through 2030. Furthermore, Inter IKEA Holding B.V. aims to reduce absolute Scope 3 GHG emissions from downstream transportation and distribution by 30% by FY2030 from a FY2016 base year. These targets are classified as consistent with reductions required to keep warming to 1.5°C.