How Ingka Group's Sustainable Sourcing Drives Net Zero Goal
Ingka Group, IKEA’s largest retailer, operates in 31 markets and is responsible for around 90% of IKEA’s global retail sales.
As a key strategic partner, it drives innovation and development across the IKEA business while ensuring alignment with shared sustainability goals.
The company’s Net Zero Transition Plan lays out a roadmap for reducing emissions across its operations and supply chain, reinforcing IKEA’s long-term commitment to environmental responsibility.
Ingka Group’s plan aims for a 50% reduction in absolute greenhouse gas (GHG) emissions across its value chain by FY30, using FY16 as the baseline and ultimately achieving net zero emissions by FY50.
The approach covers direct emissions from company-owned facilities and vehicles (Scope 1), indirect emissions from purchased electricity and heating (Scope 2) and the broader supply chain emissions, including product sourcing, transport and customer use (Scope 3).
Karen Pflug, Chief Sustainability Officer at Ingka Group, highlights IKEA’s long-standing commitment to sustainability: “As part of the IKEA vision of creating a better everyday life for the many people, sustainability has been an important part of the business for many years, with the first IKEA environmental policy introduced in 1991.”
Ingka Group has already made notable progress, reducing its overall climate footprint by 30.1% since FY16 while growing its business by 23.7%. These reductions stem from strategic sourcing of renewable electricity, energy efficiency improvements and adjustments in product volumes.
The company’s science-based climate targets, first set in 2018 and strengthened in 2023, align with the Paris Agreement's ambition to limit global temperature increases to 1.5°C.
Renewable energy and circular design
The Net Zero Transition Plan identifies specific areas where Ingka Group can make the most significant impact.
Sustainable sourcing and procurement play a central role in this strategy, particularly in reducing Scope 3 emissions—the most challenging yet crucial component of the company’s sustainability goals.
Key actions include:
- Expanding the use of renewable energy across the IKEA value chain, with a goal of 100% renewable energy use by 2030
- Retrofitting 150 units with renewable heating and cooling systems by 2030
- Increasing the use of low-carbon materials in store renovations and product design
- Achieving more than 90% zero-emission home deliveries by 2028
- Investing in asset classes with lower carbon footprints
- Offering more plant-based food options in IKEA restaurants to reduce the environmental impact of food production
To support these initiatives, IKEA continues to innovate in circular economy practices, aiming to extend product lifespans through repair, resale and recycling services.
By redesigning products for longevity and recyclability, the company is embedding sustainability into its core business model.
Collaboration and policy support for industry-wide change
Ingka Group acknowledges that meaningful climate action requires collaboration across industries, governments and consumers.
The company actively advocates for policies that accelerate the transition to renewable energy and circular economies.
Simon Henzell-Thomas, Climate & Nature Manager at Ingka Group, stresses the importance of collective action: “Climate change is highly complex and we don’t pretend to have all the answers, but as a multinational business we have a responsibility to be part of driving the transition to net zero in society.
“But we can’t do it alone. Climate change has no borders and together – across the public and private sector – we must collaborate across industries and with governments and customers to drive real change.
"2025 is a critical milestone for governments to deliver their own ambitious national climate plans ahead of COP30, so we invite policymakers, industry peers and customers to collaborate in accelerating the transition to a sustainable future.
“We can only get there by working together.”
Ingka Group’s policy recommendations include setting ambitious national climate targets, phasing out fossil fuels and implementing frameworks to accelerate renewable energy adoption and circularity.
As the company continues to refine its Net Zero Transition Plan, it hopes to inspire other businesses to take similar steps in sustainable sourcing, procurement and supply chain management.
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