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 IKEA retail & other operations (1.8% of the total IKEA value chain climate footprint in FY23) 1 Climate footprint (million tonnes CO2 eq) In FY23, the climate footprint from IKEA the 昀椀rst IKEA store on the South American continent Reducing food waste FY16: 0.58 Baseline retail and other operations decreased - with 100% renewable electricity already secured. FY22: 0.51 -12% (vs FY16) by 17% compared to FY22, and 27% We reached the goal of reducing food waste from FY23: 0.42 -27% (vs FY16) compared to the baseline FY16. Since it’s relatively easier to secure 100% renewable preparing meals for IKEA restaurants by 54% -80% Goal FY30 compared to FY16 electricity, we are focusing on achieving that 昀椀rst. compared with the baseline FY17. In FY23, we saved Doing so provides time to identify solutions and 5 We saw a modest increase in both the share of up to 8.5 million meals. renewable electricity, moving from 75% to 77% plan investments for renewable heating, cooling Goal FY30 between FY22 and FY23, and the overall renewable and fuels, which are more capital-intensive and The reduction was achieved with a food waste energy share, which progressed from 63% to 69% sometimes require retro昀椀tting existing buildings. measurement solution that uses a smart scale. The By FY30, reduce the absolute GHG emissions from retail between FY22 and FY23. Renewable energy includes We prioritise electri昀椀cation of heating using ground- tool measures the amount of food waste produced and other own operations by 80% compared to baseline and air-source heat pumps over other solutions in IKEA restaurants, bistros, Swedish cafés and co- 2 FY16. renewable electricity in addition to renewable wherever possible. sources of heating, cooling, and fuels for transport. worker restaurants. By the end of FY23, 95% of all Sub-goal Noteworthy improvements to renewable heating IKEA stores had food waste solutions in place. were observed in Germany (+36 percentage points), By FY25, consume Lithuania (+18 percentage points) and the Czech 100% renewable 100% 3% electricity in retail and 75% 77% Republic (+16 percentage points). Heating other operations.3 9% One of the drivers behind the slight increase in Refrigerants renewable electricity share was that IKEA retail 12% Türkiye achieved 100% renewable electricity in FY23, Fuels for Climate footprint internal 75% transport (tonnes CO2 eq) Electricity FY22 FY23 FY25 compared to 7% in FY22. We also made signi昀椀cant Renewable electricity share progress in other retail markets, such as Australia (% kWh) (from 17% in FY22 to 78% in FY23) and Thailand (from 11% in FY22 to 34% in FY23). The new retail market in Halving food waste in line with the SDGs Chile also opened its 昀椀rst store in Santiago de Chile - In June 2023, the World Resources Institute (WRI) recognised the IKEA business for halving food waste (compared to the FY17 baseline, 1 Scope: GHG Protocol, scope 1 & 2 emissions and scope 3: Fuel- and energy-related activities (including transmission & distribution losses) of Inter IKEA Group operations (excl. production at IKEA Industry and IKEA Components) and IKEA retail part of our franchisees’ business. This, therefore, includes scope 3: Franchises. in meal preparation at IKEA restaurants) in 2 Scope: Inter IKEA Group and the IKEA retail business of Ingka Group. line with the UN Sustainable Development 3 Scope: Inter IKEA Group (excl. production at own units of IKEA Components and IKEA Industry) and the IKEA retail business of Ingka Group (scope 1 & 2). 6 4 Scope: IKEA restaurants, bistros, Swedish cafés and co-worker restaurants which have implemented the digital solution to measure food waste. Goal (SDG) 12.3, setting an example for other 5 This was calculated for all IKEA CMPs using a food waste digital solution. companies. 6 WRI, "IKEA Becomes First Global Company to Halve Food Waste" 2023. 25 - IKEA CLIMATE REPORT FY23