IKEA Sustainability Report FY20

Becoming people and planet positive

IKEA’s ambition for 2030 is to inspire and enable more than 1 billion people to live a better everyday life within the boundaries of the planet. Their ultimate goal is to transform into a circular and climate-positive business. The commitments they’ve made to reach this goal can be summed into three areas: 1) inspiring and enabling people to live healthier, more sustainable lives, 2) promoting circular and sustainable consumption, and 3) creating a movement in society around better everyday living.

Their scale and reach enable efficient production and distribution, and the ability to influence healthier and more sustainable behaviors. To develop and promote affordable, complete home furnishing solutions, they are seeking to make an impact around solutions related to clean energy, air and water, resource-efficient living, reducing waste, and healthy eating and exercising. Their FY20 Sustainability Report outlines their progress made towards these goals.

9,500+ products (from furniture to home furnishing accessories) have been assessed for circular capabilities
The climate footprint per EUR of retail sales decreased by 7% between FY19-FY20
Launched a new meat-free alternative meatball with only 4% of the climate footprint as the original
Now offer solar panels in 9 IKEA markets, with the goal of 30 by 2025
The share of recycled polyester in textile products reached 83%
By the end of FY 2020, reached a 15.5% reduction of the climate footprint in production
Made the decision to invest EUR 200 million to accelerate the transformation of the supply chain towards renewable energy and reforestation
Launched the BOTANISK collection in collaboration with 6 social businesses around the world
Developed a water recycling shower solution that aims to save up to 80% of water
Leveraged LEDs to reduce the power consumption by 36.1% in lumen per watt

14M

spare parts offered to customers to extend the life of products

98%

of wood used for products is either FSC®-certified or recycled

IKEA has a big opportunity, and responsibility, to lead the way by making healthy and sustainable living affordable, desirable, and accessible for the many people.

IKEA Sustainability Report FY20

The climate footprint of the IKEA value chain continued to decrease during the 2020 fiscal year, and they saw big improvements across the business including increased energy efficiency in lighting and appliance ranges, more plant-based food, and more renewable energy in production and transport. During FY20, IKEA reached their more sustainable sources (MSS) goal for wood.

Additionally, the IKEA business removed all single-use plastic products from the home furnishing range in 2020, and aims to remove all single-use plastic packaging material from the supply chain whenever possible. They also made progress towards prolonging the life of products and materials by enabling customers to acquire, care for, and pass on products in circular ways. While many consumers want to live healthy and sustainable lives, one main barrier is that it is perceived to be too expensive. With their sustainable ambitions (both internally and externally), IKEA hopes to make healthy and sustainable living the default option for people around the world.

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We want to be part of the global dialogue and be transparent about our commitments and collective needs for collaborations.

IKEA Sustainability Report FY20