We are on a journey to create a better company and a better everyday life for the many people. In this Annual Summary and Sustainability Report, we set goals and evaluate our performance by working to be better in four ways: better homes, better lives, better planet and better company.
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Financial year 2022 has been yet another exceptional year that has challenged us in new ways, yet it has also been one of the most rewarding. We continued to face the impacts of the pandemic even as supply and availability slowly started recovering, as well as economic and political instability and the tragic ongoing war in Ukraine, which led to the decision to close our IKEA Retail operations in Russia.
In the light of the challenges, we have never been prouder of the IKEA community, showing the strength of togetherness during a year that has tested us like never before. We managed to achieve solid performance in a disrupted environment, and continued to invest in making IKEA better.
We made big investments in becoming more accessible, affordable and sustainable – while performing strongly across our four priorities of creating Better homes, Better lives, a Better planet and a Better company. Our sense of purpose is stronger than ever.
Our vision is about creating a better everyday life for the many people, always keeping sight of the needs and dreams in life at home – and being as accessible and affordable as possible. During the year we have invested substantially into new and existing stores, digital tools, services and customer support.
We continue to do everything we can to keep prices as low as possible, as it’s in our DNA to be affordable. In addition, we continue to inspire and enable our customers to make greener choices with our home furnishing expertise, the IKEA range and solutions that save both money and energy like our clean energy subscriptions and circular services.
We are a people-centred company and employer, creating better lives for the many people and this starts with our co-workers. During FY22 we made progress on our commitments to create a workplace that is as diverse as the world is and as inclusive as the world should be.
We are prioritising learning and development as well as improving the co-worker experience. We provided our co-workers in Ukraine and Russia with income assistance and teamed up with partners like the UN Refugee Agency (UNHCR) and the Red Cross to provide humanitarian assistance. Our donations and support helped local organisations to assist 300,000 people affected by the crisis including furnishing temporary accommodation for some of those displaced by the war.
By 2030, we are committed to becoming climate positive by reducing more greenhouse gas emissions than the IKEA value chain emits, while growing the IKEA businesses. We have reduced our overall climate footprint by 13.6% from FY16.
We are aware of the challenges ahead, and in this most important decade for humankind, we are committed to taking a lead through actions in our operations and value chain, by supporting our customers and partners to make positive changes and through the significant investments we are making in renewable energy. Since 2009 we have invested or committed to invest EUR 3.1 billion and over the coming years, we will double that.
Being a foundation owned company, we have a long-term perspective of our business and our investments. Our founder, Ingvar Kamprad, left us with a simple, yet impactful financial policy “earn the money, before spending it”. This still guides us and across last year we have had a solid performance, where our revenue has increased by 5.7% and we delivered operating income of EUR 2.0 billion. We have invested in transforming the company into an omnichannel business, becoming more accessible whenever, wherever and however our customers want to interact with IKEA. The solid performance gives us resources to continue to invest in creating a better IKEA that is more accessible, affordable and sustainable.
We know that it’s good business to be a good business, with profit and purpose going hand in hand and we are optimistic about the future, home has never been more important.
In the coming year, we celebrate 80 years of legacy – we will unleash our entrepreneurial spirit, build on our strengths – loving the past while creating the future.
Most things remain to be done. Glorious future!
Jesper Brodin, President and CEO, Ingka Group
Juvencio Maeztu, Deputy CEO and CFO, Ingka Group
Our passion for a better life at home is what makes us IKEA. As people across the world face rising economic uncertainty, the need to feel happy and safe at home is perhaps more important than ever. This is how we make healthy living and sustainable products desirable, affordable and accessible for more people.
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People are at the heart of everything we do. We want to take a leading role in creating a fairer and more equal society and improve the lives of the many people that interact with our company. From reducing the gender pay gap to supporting those in need – learn more about how we work to create better lives.
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We are taking steps to help achieve the IKEA commitment to become a climate positive and circular business by 2030. We’re exploring ways to play our part in creating a circular economy and reducing our climate footprint, for example by reducing our energy consumption, switching to renewable energy and using zero emission deliveries. And we’re making it easier for our customers to act too.
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We do business with a humanistic outlook, achieving our purpose through our strategic direction, our leadership and our values. Learn how we deliver on ambitions and goals in revenue, investments and governance – and work to build a better company.
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