Introduction letter | Our climate agenda | FY23 summary of progress | The IKEA climate footprint throughout the value chain | Air pollution | Appendices Our climate agenda During FY23, we aligned our strategic 1 Drastically reducing GHG emissions across the IKEA value chain and are part of how we responsibly climate goals with the 1.5°C trajectory IKEA value chain, in absolute terms source materials for the IKEA range. and the Net-Zero Standard by Science The overall goal is, by FY30, to reduce the absolute Reducing the IKEA climate Based Targets initiative (SBTi). We GHG emissions from the IKEA value chain by at A strategic goal will be set once the Land Sector and footprint in line with 1.5°C Removals Guidance by GHG Protocol is 昀椀nalised, submitted our goals to SBTi mid- least 50% compared to FY16 (previous goal was which is expected to be in the summer of 2024. This Drastically reducing GHG emissions November 2023 and validation is a 15% reduction). By FY50 at the latest, we will 1 across the IKEA value chain, in reduce the absolute GHG emissions from the IKEA accounting guidance is the 昀椀nal piece since the currently pending. establishment of the Forestry, Agriculture and Land absolute terms value chain by at least 90% compared to FY16. (FLAG) target setting standard by SBTi established in 2 Removing and storing carbon from the Our main priority is drastically reducing September 2022. Even though a goal has yet to be atmosphere through forestry, agriculture greenhouse gas emissions across the IKEA As a result of our new net-zero goals, we have set, we're pursuing actions that we know will make a and products within our value chain value chain. Any remaining emissions will be either updated or set new goals for most parts positive contribution (page 8). 1 of our value chain. For materials, we have set neutralised – reaching net-zero emissions by FY50 the goal to at least halve our emissions by FY30 at the latest – by removing and storing carbon compared to FY16 baseline (page 11). For food Contributing to additional from the atmosphere through better forest and 3 Going beyond IKEA reductions in society2 agricultural management practices within the ingredients, we have updated our FY30 goal from We will contribute to additional reductions in IKEA value chain. Additionally, we will go beyond -25% to -50% emissions reduction compared to society by taking an extended responsibility for net zero and go beyond IKEA by contributing to FY16 (page 16). For product use at home, we have the climate footprint of our customers, suppliers 3 Going beyond IKEA additional reductions in society. set our FY30 goal to -70% emissions reduction and in our sourcing areas – not just the part which compared to FY16 (page 29). We have also set a we can account for in the IKEA climate footprint. A FY30 goal for reduced emissions from product strategic goal for this will be set once the guidance end-of-life by 30% compared to FY16 (page 32). for “removing and storing carbon” is ready and when the framework for going beyond has been 2 Removing and storing carbon from the developed by SBTi. We are already taking actions Reducing more emissions than atmosphere through forestry, agriculture and that we know will have a positive contribution, even the IKEA value chain emits products within our value chain though a goal has not yet been set. Storing carbon in trees and agricultural crops used for materials, food, and fuels removes We 昀椀rmly believe that we need to address the root CO2 from the atmosphere. If the land is also causes of our climate footprint within our own responsibly managed, it has the potential to value chain or in connection to our customers, 1 Excluding production, product transport, co-worker commuting and suppliers, and sourcing areas. We will not use business travel. 2 reduce climate impact. In contrast to carbon An e昀昀ect that's in addition to what's required to reduce the IKEA value chain emissions to be aligned with the 1.5°C target and will carbon o昀昀sets to achieve our ambition to reach never act as any discount or o昀昀set to reach the GHG emission o昀昀sets, the removals and storage occur within the net-zero emissions. reduction goal. 4 - IKEA CLIMATE REPORT FY23