The world is facing a climate crisis that will affect the lives of many millions of people. Human activities have warmed the planet’s average temperature by more than 1°C, and despite cut in footprint during 2020 we’re still using resources at a rate equivalent more than one Earths per year*. With 1 million species at risk of extinction, we’re on course for irrevocable damage to nature and ecosystems.
Climate change is already threatening lives with heatwaves, wildfires, hurricanes and flooding becoming more common. Risks to communities include extreme weather events, rising sea levels, food and resource scarcity and collapsing ecosystems. We all need to act now. The good news is that achieving this has never been more possible than now. We have the knowledge, engagement and momentum.
At Ingka Group, we know we have a huge responsibility – and opportunity – to tackle the climate crisis and we want to be a part of shaping a new normal that’s better for people and planet. Climate change is impacting our business today, and we’ve mapped climate-related risks and taken steps to better understand the potential future costs. These include physical impacts of extreme weather on our buildings and the rising cost of using fossil fuels.
Many of the solutions to the climate crisis already exist, but they urgently need to be deployed on a massive scale. This can offer new opportunities for job creation, innovation, economic growth and reduced energy costs. And, we know it’s possible for businesses to grow while shrinking the climate footprint. In 2019, IKEA recorded its first reduction in absolute climate footprint of 4.3%, despite a 6.5% increase in sales.
We’re taking action to reduce our direct climate impact and strive for zero waste across our own operations. We’re looking for ways to reduce our indirect impact too – for instance by enabling people to travel to our stores more sustainably and generate renewable energy at home.
We believe that if we all act together, we can build a net zero society that is better for all.
By 2030 our ambition is to become circular and climate positive.
In FY20, we:
- generated renewable energy equivalent to 132% of the energy used in our operations, up from 81% in FY18
- two thirds of the electricity used in our buildings in FY20 was from renewable sources
- close to 10% of customer delivery transport were made by electric vehicles or other zero emission solutions
- added around 1,000 new electric charging stations for our customers, offering EV charging at 93% of our stores
- recycled 72% of waste generated in FY20, moving towards our goal of 100% recycling of waste from our operations by 2030
- gave 39 million products a second life by repacking and reselling products in stores
- managed to cut food waste from our operations by 30% by the end of the fiscal year, however we did not manage to reach the goal of 50%. This goal is now moved to end of December 2021
*Source: Earth Overshoot Day: www.overshootday.org