IKEA
IKEA has released its sustainability strategy entitled “People & Planet Positive”, and is using it to drive innovation as well as transform its business, steer investment, and open up new opportunities. Its end-goal is to support the Paris Agreement in becoming climate positive by 2030 through the reduction of GHG-emissions whilst still expanding the company.
"Our long term ambition is to reduce greenhouse gas emissions by 70% per shipment by 2030."
Elisabeth Munck af Rosenschöld
Head of Sustainability, IKEA Supply Chain Operations
In 2019, IKEA product transportation from factory to store generated 1.1 million tonnes of CO2e by road (0.5), intermodal (0.1) and ocean (0.5) - around 5% of the total GHG-emissions from the IKEA value chain. This excludes last-mile delivery, which is operated by IKEA franchisees.
INGKA Group, the biggest franchisee of IKEA retailers also has an agenda for more sustainable transport in last mile deliveries, moving to electrification:
- By 2025, as part of its EV100 commitment, INGKA Group aims for 100% of customer deliveries and services to be by electric vehicle or other zero-emission solutions. Major cities like Amsterdam, Los Angeles, New York, Paris and Shanghai will achieve this by 2020.
- INGKA reached the target for 100% electric home delivery in Shanghai one year ahead of the 2020 target.
Report and set targets
- IKEA calculates and reports emissions from transportation and logistics of its home-furnishing products using Clean Cargo data for container shipping, and IKEA is exploring the alignment with the GLEC Framework for all other modes and logistics sites.
- IKEA’s emission reduction targets include freight transportation and are externally validated as being science-based and in compliance with Paris Agreement goals through initiatives such as Science Based Targets initiative (SBTi) and Exponential Road Map.
- By 2030, IKEA aims to reduce the absolute GHG-emissions from product transport by 15% compared to 2017. This translates to a reduction of GHG-emissions by 70% per every m3 of transported goods by 2030.
Reduce
- Making every shipment as efficient as possible by applying the concept of flat-pack, self-assembly products consistently and by using large containers.
- Replacing fossil fuels with alternatives and increasing the use of intermodal options. In 2019 intermodality represented approximately 40% of Ikea’s global land transportation methods, eliminating 33,000 trucks from European roads compared to the previous year.
- In Sweden, all product transportation is now done by hydro-energy powered train or by vehicles fueled by HVO/biodiesel.
- IKEA and GoodShipping completed a groundbreaking pilot program powering two ocean-going CMA CGM container vessels with biofuel made from used cooking oil and forest residue.
Collaborate
Stakeholders such as NGOs, employees, suppliers, potential customers and strategic partners participated in the strategy’s development.
- Actively participates in leading freight initiatives, such as Clean Cargo for container shipping, the Smart Freight Shippers Alliance China, and the European Clean Trucking Alliance to scale efforts through collaboration with peers and suppliers while advocacting for supportive policies and inclusive regulations.
- Joined forces with corporates to spearhead the Exponential Roadmap initiative, requiring signatories to halve their supply chain emissions by 2030 and make climate-related targets and performance a key part of purchasing criteria and contracts.
- Recognized as the 3rd most sustainable leader in the GlobeScan SustainAbility Leaders Survey Report of 2019.
About company
IKEA makes home furnishing products affordable and accessible to as many people as possible, while creating a positive impact on people and the planet. IKEA employs 200,000+ people in 50 countries, generating 41.3 billion retail sales in 2019.
Find out more on www.ikea.com.
References
Inter IKEA Sustainability Report FY19
IKEA sustainability strategy - People & Planet Positive
Ikea sustainability report NEW (update August 2020)
GlobeScan SustainAbility Leaders Survey-2019 Report
Greener transports for a smaller climate footprint
Ingka.com Sustainable Home Deliveries
IKEA commitments to become "people and planet positive" by 2030
Snapshots. The history of the IKEA brand at a glance
IKEA Group fast-tracks targets for zero emission home deliveries
Ikea, CMA CGM and GoodShipping complete test programme successfully
Ikea, Unilever and BT spearhead net-zero supply chain initiative