Ikea: Assessment leading to science-based climate targets

Throughout last year, Inter IKEA Group has been setting science-based climate targets to contribute to limiting global warming to 2°C, aiming towards 1.5°C. Our vision is to create a better life for people. We recognize that climate change is one of humanity’s biggest challenges.

While our business contributes to this problem, we can provide solutions and are committed to lead the way to transform business to stay within our planet’s limits. Our total climate footprint compares to that of a small country.

By 2030, we expect to have over one billion customers. We see exceptional potential to raise our customers’ awareness and inspire them. Science- and fact-based targets provide the frame and purpose to achieve this. We used the GHG Protocol and the Science Based Target Initiative methodology, as we prepare to possibly sign up to this initiative just like IKEA Group did in October 2015.

Natural Capital Protocol used
  • No, but aligns with the Protocol’s framework
Impact drivers assessed
  • GHG emissions e.g. volume of CO2, CH4, N2O, SF6, HFCs and PFCs etc.
Organizational Focus
  • Corporate
  • Project
Valuation Type
  • Quantitative
Geographical Scope
  • GLOBAL
Dependencies assessed
  • Energy e.g. solar, wind, hydro, geothermal, biofuel, fossil fuel
  • Materials e.g. wood fiber, genetic resources, metals, minerals, plant and animal materials
  • Nutrition e.g. human or animal food
Value Chain Boundary
  • Direct operations
  • Upstream
  • Downstream
Sectors
  • Retail

Key findings

The assessment generated a complete breakdown of the footprint for IKEA Range and Supply and IKEA Industry, covering materials, food, production, transport and customer use of sold products. We can further break this down from the corporate level to individual suppliers or end products. We then conducted impact simulations to understand how different actions would contribute to the 2°C trajectory for our scope 3 emissions. Actions included suppliers switching to 100% renewable electricity, changing input materials or improving energy efficiency of our LED bulbs.

We ran a sanity check if we can reduce our Scope 3 emissions in line with the requirements for Scope 1 and 2, as well as any areas we need to innovate and achieve our ambitions. This led us to set bold science-based climate targets and has influenced our new sustainability strategy which will be communicated externally during spring.

We continue to refine the simulation tool for integrated use, action planning and goal setting. 

More information