Ingka Group Unveils Detailed Net Zero Transition Plan

Ingka Group, which operates 400 IKEA stores, has introduced a new transition plan outlining a comprehensive roadmap to decarbonize its entire value chain. The plan provides a deep analysis of emission categories such as store operations, construction materials, mobility, and investments. It also identifies key sources of emissions, decarbonization levers, case studies, external dependencies, and specific actions for each category.

The plan covers emissions from materials, food ingredients, production, product transport, construction materials, goods and services used in operations, own operations, mobility, product use at home, product end of life, and investment. Additionally, it includes a category for the “estimated innovation and efficiency gap,” representing emissions reductions that require scaling existing solutions or developing new technologies.

Karen Pflug, Chief Sustainability Officer at Ingka Group, emphasized the depth of the plan, stating, “Thanks to the dedication and work of many colleagues across the business, this plan has taken in many learnings and goes deeper than ever before into each of our climate emission categories for our business. We hope that by being transparent about our challenges, dependencies, and innovation gaps we can inspire others and lead conversations that will support us in achieving the transition in our own business and broader society.”

According to the plan, materials are the company’s most significant emissions source, accounting for 45% of its value chain footprint. It is also the largest area for anticipated emissions reductions by 2030, with a target of cutting emissions by 50% from a 2016 baseline—equivalent to 5.4 million tonnes CO2e. Ingka Group aims to achieve this through increasing recycled content in IKEA products, improving material efficiency, reducing waste, selecting low-carbon materials, securing renewable energy in material supply chains, and expanding responsible forestry and agriculture practices. Strengthening traceability systems and gathering better data from suppliers are also identified as critical steps to improving emissions tracking and reduction opportunities.

Other key initiatives include phasing out fossil fuels and achieving 100% renewable energy across the value chain by 2030, expanding plant-based food options in IKEA restaurants, increasing investments in low-carbon asset classes, working with suppliers to set emissions reduction targets, transitioning to renewable heating and cooling, developing circular services to extend product lifecycles, and ensuring more than 90% of home deliveries use zero-emission vehicles by 2028.

Beyond direct emissions reductions, the transition plan also highlights Ingka Group’s engagement with stakeholders and policymakers. The company advocates for national climate commitments aligned with limiting warming to 1.5°C, policies that accelerate the renewable energy transition, fossil fuel phase-outs, and financial mechanisms to support sustainable transport, food systems, waste reduction, and responsible forestry.

Simon Henzell-Thomas, Climate & Nature Manager at Ingka Group, underscored the need for collaboration, stating, “Climate change is highly complex, and we don’t pretend to have all the answers, but as a multinational business we have a responsibility to be part of driving the transition to net zero in society. But we can’t do it alone. Climate change has no borders and together—across the public and private sector—we must collaborate across industries and with governments and customers to drive real change.”