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Girl walks inside an IKEA department store with a shopping basket and the background is filled with shopping baskets. The picture is also taken in profile.

Ingka Group Annual Summary FY22

Better Company

We do business with a humanistic outlook, guided by our vision and values. Our structure, combined with 79 years of experience, allows us to be financially independent. To build a better company, we invest in the long-term good of our customers, our business, people, society and our planet.

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Building a better company

Financial year 2022 (FY22) saw a rise in inflation, increasing cost of energy and raw materials, resulting in a difficult year for people as well as businesses. Despite a challenging environment, Ingka Groups’ revenues increased, and our operating income remained stable. We take pride in our progress, but to increase transparency, we highlight our challenges as well.

Customer shops at IKEA department store and stands at the conveyor belt to pack his goods.

What we are proud of

Our goal is to be a well-managed, successful, purpose-led company, a business run honestly and with integrity. Achieving our purpose through our strategic direction, our leadership and our values – this is how we created a better company during FY22.  

  • Ingka Group’s total revenue for 2022 increased by 5.7% compared to FY21, amounting to EUR 42.0 billion. The operating income was stable.
  • The normalised tax rate remained in the 25–30% band. 
  • Since 2009, Ingka Investments has invested or committed to invest EUR 3.1 billion in renewable energy, including EUR 0.9 billion in FY22.   
  • More than 98,300 co-workers completed our Code of Conduct training.   
  • Completed 256 IWAY, our supplier code of conduct, reviews of Ingka Group suppliers and 168 IWAY Initial Assessments of potential new suppliers.  
  • Developed our Digital Ethics Policy that applies across our digital services, including algorithmic systems.  
Customer charges his car at an electric charging pole in an IKEA parking lot.

Challenges we are addressing

Financial year 2022 has been challenging for many, as well as for Ingka Group. Amid rising inflation and increasing cost of energy and raw material, we made substantial investments and efforts to minimise price increases. Our business was impacted by the war in Ukraine and although the pandemic had less impact than previous years, it still caused store closures in some countries, supply disruptions and stock availability.   

We are not currently able to report fully on progress against all our targets for integrity and business ethics due to changes to our data systems in FY22. We are reviewing how to address this.

Progress against targets

Our vision is to create a better everyday life for the many people. We are setting targets and evaluating our performance for how we can become better in four ways: better homes, better lives, better planet and better company. Below you will find our targets and performance towards becoming a better company.

Financial Independence and performance

1.
Make a positive economic contribution through our business activities, including the jobs we create, our procurement, the taxes we pay and through our community investment.   
Achieved

Performance against target

Total Ingka Group operating income was EUR 2.0 billion and net income EUR 0.3 billion. In FY22, Ingka Group corporate income tax amounted to EUR 0.5 billion. In FY22, our total tax bill, including other taxes such as property and environmental taxes, amounted to approximately EUR 1 billion (FY21 1.1 billion). In FY22 85% of net income was reinvested in the company to secure that we make IKEA more affordable, accessible, and sustainable. The other 15% is paid as dividend to Stichting INGKA Foundation to support charitable activities of the IKEA Foundation.

Total Ingka Group revenue

Revenue

(EUR million)

Operating income

(EUR million)

Taxes in FY22

Ingka Group pays taxes in all countries in which we operate. We view this as an important part of our wider economic and social contribution to society. In FY22 Ingka Group have published our global tax principles on Ingka.com and became a signatory to the B Team Responsible Tax Principles. We are also publishing the Ingka Group Tax report, including country-by-country tax data.

Picture of the IKEA city store and the IKEA logo.
Last updated 2023-02-28

Investing with impact

1.
Ingka Investments does not make or hold direct investments in fossil fuel or nuclear power businesses.
Achieved

Performance against target

In FY22 we did not directly invest in businesses that explore for, extract, process, refine, or transport fossil fuels or nuclear power, or any utilities businesses that use these fuels.

Image of an open landscape with water and greenery where wind turbines are located.
Last updated 2023-02-15
2.
Accelerate investments by Ingka Investments into renewable energy to EUR 6.5 billion by 2030.
On track

Performance against target

Since 2009 Ingka Investments has invested EUR 2.5 billion in renewable energy and additional EUR 0.6 billion investments have been secured.

Image of an IKEA department store with many solar cells in the parking lot.
Last updated 2023-02-15
3.
Develop an ESG screening methodology for investments in financial markets to be launched in FY22.
On track

Performance against target

We developed the methodology during FY21 and we are now implementing it. We continue to strictly exclude investment in certain sectors (e.g. fossil fuel) and are using the positive ESG screening criteria to help us invest with impact including in specific solutions to tackle climate change, unsustainable consumption and inequality.

A customer with an IKEA case on a platform filled with IKEA products on a sunny day.
Last updated 2023-02-15

High standards of governance

1.
Achieve gender balance across our governing bodies and senior leadership (boards and committees) by FY22.
Not on track

Performance against target

At the end of FY22, women made up 38% of our Group Management (including our Management Board), 39% of board members for our three Ingka businesses and 49% of committee members. There were no women on our Management Board (2 members). The percentage of women on Group Management reduced from 50% in FY21. This is due to one female member leaving the business who was replaced by two co-managers who are both men.

At country level, women made up 47% of permanent board members. We will keep working towards achieving and maintaining 50/50 representation for boards and committees. Our boards and committees are small in size and individual changes can have a large impact on total figures creating significant variations from year to year. All figures are correct as of September 1st 2022.

Read more about Ingka Group Boards and Management

Want to know more?

Learn about the IKEA franchise system and how we are organized.

Last updated 2023-02-15

High standards of integrity and business ethics

1.
All new co-workers complete training on our Code of Conduct within a month of joining and existing co-workers complete refresher training once every two years.
Not on track

Performance against target

In FY22, over 98,300 co-workers completed our Code of Conduct training (including induction training for new joiners and refresher training), up from 93,000 in FY21. We are working to improve the way we record training data to enable us to monitor and drive progress against our target.

Image of employee walking through an IKEA department store wearing blue IKEA clothes and a hat.
Last updated 2023-02-15
2.
All co-workers in sensitive roles complete face-to face training on our anti bribery and corruption framework.
Achieved

Performance against target

Our anti-bribery and corruption procedures require in-depth training for any co-workers in sensitive roles (such as procurement and real estate)1. We also have an e-learning programme on anti-bribery and corruption, which includes annual refresher training.

Picture of three employees inside a lunch room, closest to me sits a guy wearing blue Ikea clothes and a blue cap with the text HEJ on the back.
Last updated 2023-02-15
3.
We aim for 100% of contracted suppliers to achieve IWAY compliance each year.
On track

Performance against target

All of our contracted suppliers (representing over 75% of our spend) had signed the IWAY Compliance Commitment and were assigned a risk level by the end of FY22.  IWAY Compliance also requires risk mitigation for high- and critical- risk suppliers. One of the key ways we mitigate risk for high- and critical- risk suppliers is by auditing suppliers to check compliance with the IWAY supplier code of conduct. We aim to audit all new suppliers rated as high- or critical-risk. We track total number of IWAY Reviews for high- and critical-risk-suppliers and are working on better visibility over our data to improve the way we monitor IWAY performance as part of continuous supplier management. 

IWAY reviews of Ingka Group Suppliers FY22

IWAY reviews by supplier type FY22 

(% of reviews)

  • Customer Fulfilment* 47.3%
  • Real Estate 37.1%
  • Professional Services 5.9%
  • Marketing 5.9%
  • Equipment 3.9%
  • Digital & Technology 0%

*Customer Fulfilment covers logistics, home deliveries, warehousing and services including installation.

Curious to know more?

Learn all about the IWAY supplier code of conduct.

Last updated 2023-02-15

1Our in-depth training on anti-bribery and corruption is delivered face-to-face (either in person or online).

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