Introduction letter | Our climate agenda | FY23 summary of progress | The IKEA climate footprint throughout the value chain | Air pollution | Appendices In FY23, we made the following updates to the stricter guidelines for recognition of renewable IKEA retail and other operations This survey data acts as a representative sample methodology: electricity consumption. We introduced principles The climate footprint of IKEA retail and other and re昀氀ects the total commuting patterns of all related to accounting rules and acceptable employees of the IKEA business. The commuting • The calculation logic was updated based geographical attributes, time recognition and operations covers all IKEA operations (stores, schedule and number of days working are applied warehouses, o昀케ces, etc.) by Inter IKEA Group on availability of the market-speci昀椀c range, technology selection. to the actual number of employees for Inter IKEA reducing the share of estimated data. This and the IKEA retail business of each of the IKEA Group, the IKEA franchisee Ingka Group and other update was conducted for years FY22 and franchisees. It does not include IKEA owned factories IKEA businesses. FY23. By next report, all historical data will be by IKEA Industry and packaging and distribution updated with the improved calculation logic Product transport and logistics services units by IKEA Components, since these are reported For business travel, the climate footprint is and recipe data. The climate footprint of product transport is in production. calculated by our travel agencies and their travel measured as any transport managed by IKEA Supply The footprint is measured as the scope 1 and scope booking systems, which have integrated climate Chain Operations, IKEA Industry, IKEA Components 2 emissions of each unit, as well as any connected footprint calculations. All climate footprints are Production and IKEA Marketing & Communication. In essence, calculated using emission factors provided by BEIS this is all product transport from our direct supplier fuel- and energy-related activities (scope 3, category and encompass various modes of travel, including 3). All units provide their primary data on the The climate footprint of production is the 昀椀nal step to any IKEA unit, as well as product transport air, rail, public transport, rental cars, private vehicles, in the supply chain where IKEA home furnishing or between IKEA units. It is measured per shipment for consumption of energy sources and refrigerants, taxis and hotel accommodations. food products, components or printed media are each transport route and calculated in line with the as well as any renewable energy attributes for Both footprints cover WTT emission factors. produced. It also includes the IKEA owned factories standard EN 16258. The emission methodology in purchased energy (electricity and district heating or operated by IKEA Industry and packaging and this category is in alignment with GLEC Framework cooling). In FY23, we made the following updates to the distribution units by IKEA Components. The footprint is measured as the scope 1 and scope 2 emissions of by Global Logistics Emissions Council (GLEC). The related GHG emissions for each energy source methodology: each tier 1 supplier or unit, as well as any connected In FY23, we made the following updates to the are calculated using emission factors provided • The methodology for co-worker commuting methodology: by the GHG Protocol (combustion of fuels and now encompasses the return journey for co- fuel- and energy-related activities (scope 3, category refrigerants) and the IEA (purchased electricity and workers, which was previously omitted from our 3). All units provide their primary data on the consumption of energy sources and refrigerants, • The climate footprint of logistics services now heating). The only exception to this is for the IKEA calculations, resulting in a twofold increase in our as well as any renewable energy attributes for incorporates emissions from the distribution franchisee Ingka Group, where the GHG emissions climate footprint. centres that are operated by the IKEA franchisee from fuels are calculated using emission factors purchased energy (electricity and district heating Ingka Group based on Distribution Service by BEIS. Work is in progress to align the emission and cooling). The related GHG emissions for each Agreement with Inter IKEA Group and the factors throughout the IKEA businesses. energy source are calculated using emission factors distribution centres owned by Inter IKEA Group. Customer travel and home deliveries provided by the GHG Protocol (combustion of fuels), These were previously under the Retail and Other The climate footprint of customer travel is measured UK Department for Business, Energy & Industrial Operations footprint as part of Category 14: Co-worker commuting and business travel on the IKEA store level based on the number of Strategy (BEIS) (upstream emissions of purchased Franchises. The climate footprint from co-worker commuting customers (transactions) combined with a survey fuels and refrigerants), and the International Energy through Brand Capital. The survey provides the for the Inter IKEA Group is based on the survey Agency (IEA) (purchased electricity and heating). In average time travelled by customers to the store per FY23, we have continued to use the market-based conducted for co-worker travel to stores, factories mode of transport. The average travel time at the approach as set in FY22. During FY23, we introduced and o昀케ces by the IKEA franchisee Ingka Group. 39 - IKEA CLIMATE REPORT FY23