The financial year 2021 (FY21, the period from 1 September 2020 to 31 August 2021) was a year of both challenges and important movements towards the IKEA 2030 commitments. Although the effects of the pandemic continued, nearly all stores could re-open, and everyday life returned to something more familiar. Important sustainability achievements include:
- improvements throughout the value chain to further reduce the IKEA climate footprint
- the launch of an interactive online circular product design tool
- taking a big step towards using only renewable energy across the value chain.
The IKEA Sustainability Report FY21 and Climate Report is issued by Inter IKEA Group and covers the collective efforts from the contributors in the IKEA franchise system and value chain. In FY21, the total IKEA climate footprint decreased by 1.6 million tonnes of CO2 eq in absolute terms compared to baseline FY16, a reduction of 5.8%, while IKEA sales surpassed previous highs. This is mainly due to a more energy-efficient IKEA range, more renewable energy in production, and an increased sales share of plant-based food. “With two-thirds of the time left to 2030, we are on track and have reached one-third of our emission reduction through many short- and medium-term movements. We also have plans in place to address our longer-term movements and remaining complex challenges, such as the climate footprint of the materials used in the IKEA range”, so Lena Pripp-Kovac, Chief Sustainability Officer, Inter IKEA Group.
Among the highlights from the financial year 2021:
- Increased use of renewable energy across the value chain – reaching 100% renewable electricity in 10 additional IKEA markets (including Russia), securing that all IKEA owned factories only consume renewable electricity globally – thus accelerating the transition to renewable electricity
- A new forest positive agenda for 2030, with the aim to enhance biodiversity, support livelihoods and mitigate climate change. More than 99% of the wood used is now FSC certified or recycled wood.
- The launch of affordable solutions that enable people to purify the air at home (such as STARKVIND air purifier) and generate clean energy.
- The launch of an interactive online circular design tool based on learnings from the assessment of 9,500 products in the IKEA range, published on IKEA.com.
- Reached 56% renewable and 17% recycled materials, in total 73% of the material sourced for the IKEA range is renewable or recycled.
“The IKEA vision to create a better everyday life for the many people is more relevant than ever, says Jon Abrahamsson Ring, CEO, Inter IKEA Group. “We continue the work to make our offer more sustainable and affordable. We are phasing out less sustainable products and materials and are introducing new options.” More examples of progress against the sustainability strategy are to be found in the IKEA Sustainability Report FY21 and the first-ever IKEA Climate Report FY21. These reports show progress from across the entire IKEA value chain, including Inter IKEA Group, the 12 franchisees and the many suppliers. Each part of the IKEA business sets goals and road maps to deliver on the strategy and to allow for locally tailored and relevant activities.