Introduction letter | Our climate agenda | FY23 summary of progress | The IKEA climate footprint throughout the value chain | Air pollution | Appendices Materials - Food ingredients - Production - Product transport & logistics services - IKEA retail & other operations - Co-worker commuting & business travel - Customer travel & home deliveries - Product use at home - Product end-of-life Materials (46.6% of the total IKEA value chain climate footprint in FY23) 1 Climate footprint (million tonnes CO2 eq) FY16: 12.1 Baseline FY22: 13.5 +11% (vs FY16) FY23: 11.2 -7% (vs FY16) -50% Goal FY30 compared to FY16 Goal FY30 (updated) each supplier. Safeguarding data availability and In FY23, the climate footprint from towards more recycled content or using new By FY30, reduce the absolute GHG emissions from materials materials decreased by 17% compared to quality, as well as addressing gaps and overlaps, innovative materials or technologies, for example, by at least 50% compared to baseline FY16. remains a challenge, especially from our suppliers. FY22 and 7% compared to the baseline can still initially a昀昀ect the price – limiting the Sub-goal Work, therefore, continues into FY24 with the aim FY16. potential scale and impact. Even when a昀昀ordable, By FY30, aim to only use recycled or renewable materials. of providing accurate climate footprints of materials sustainable materials exist, access can be limited for the next IKEA Sustainability Report and IKEA The main contribution to the decrease was a drop or the traceability of the raw materials di昀케cult to Climate Report. secure. Finding innovations and solutions that can 6% in volume (m3) of products manufactured in FY23, be quickly deployed remains challenging as many Textiles and comfort materials compared to FY22. 8% 5% Reducing the climate footprint of materials is a new materials and technologies are at the research 2 Rigid plastic Other long-term development agenda. As a part of our stage or in need of scaling up. Drawing any further conclusions on the performance of the climate footprint of materials new net-zero goals, we have increased our ambition 10% Weight 59% to halve emissions from materials by FY30 compared Read more about our work with responsible Metals Wood continues to be di昀케cult, as the amount of materials to our FY16 baseline. The long-term development sourcing of materials in the IKEA Sustainability (tonnes) used in the IKEA range is based on estimations for and innovation plans for our material agenda are Report FY23. 12% most types of materials. Accurate yearly 昀椀gures for steered by IKEA material directions. These material Paper di昀昀erent amounts of materials continue to only be directions have so far helped us to identify actions 12% available for wood and paper. The disclosed climate that will enable us to reach most of the needed 18% Rigid plastic footprint, therefore, is a conservative estimate Textiles and footprint reduction by FY30. Each business plan comfort materials 21% that doesn’t re昀氀ect actual improvements for the of our home furnishing businesses is linked to Wood materials used in the IKEA range. It also means that a material roadmap leading up to FY30. These Climate footprint there is no update to the 昀椀gures shared in FY21, roadmaps address the implementation of material 13% where we reported that 56% of the materials we (tonnes CO2 eq) Paper sourced were renewable and 17% were recycled. innovations and developments, as well as active 10% material choices within the IKEA range. 2 27% 1 Other Scope: GHG Protocol, scope 3 emissions: Purchased goods and services – raw Metals During FY22, a project was started to develop material extraction and transports occurring until the entry gate of tier 1 home furnishing, food (packaging only), components, and catalogue and solutions for measuring the material amounts, both The overall challenge of balancing a昀昀ordability, print suppliers. 2 as designed in the range and as manufactured at accessibility, and sustainability remains. Moving Other: candles, ceramics, custom-made worktops, electronics, green plants, Share of material weight (% tonnes) vs. climate footprint (% tonnes CO2 eq). glass and natural 昀椀bres. 11 - IKEA CLIMATE REPORT FY23