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 Customer travel & home deliveries (8.4% of the total IKEA value chain climate footprint in FY23) 1 Climate footprint (million tonnes CO2 eq) FY16: 2.1 Baseline In FY23, the climate footprint from customers from the Swedish Food Market, café, and FY22: 2.1 0% (vs FY16) customer travel and home deliveries restaurant, which were not accounted for in previous FY23: 2.0 -5% (vs FY16)2 decreased by 5% compared to both FY22 reporting due to data unavailability. -30% Goal FY30 and the FY16 baseline. While the absolute emissions from home deliveries compared to FY16 showed an 8% increase compared to the baseline This is primarily due to a signi昀椀cant 17% reduction FY16, there was a 6% reduction compared to FY22. Goal FY30 in customer travel emissions compared to By FY30, reduce the absolute GHG emissions by 30% the baseline, as well as an 8% improvement This is driven by our commitment to increase the 2 share of deliveries made via electric trucks, which compared to baseline FY16. in e昀케ciency (in terms of kg CO2 eq per store rose from 12% to 25% between FY22 and FY23. This customer). The reductions have largely been Sub-goal facilitated by our strategic expansion into city transition to EVs marks a signi昀椀cant step forward in New, more accessible IKEA city store opens centres, which has improved the accessibility of our journey towards reducing the climate footprint in Copenhagen, Denmark By FY25, aim for 100% of 25% our stores and meeting places. As a result, average connected to our operations. transport for customer As a step towards expanding and bringing deliveries and services to journey times for our customers and co-workers a昀昀ordable home furnishing closer to use electric vehicles (EVs) 12% 100% have been reduced, contributing to an overall To reach the FY25 goal, aiming for 100% zero-emission or other zero-emission customers, the 昀椀rst IKEA city store in Denmark 2 home deliveries,² we are continuously testing new solutions. emissions reduction. opened in August 2023. Its location in FY22 FY23 FY25 solutions, such as using hydrogen vehicles in Austria downtown Copenhagen makes it accessible Share of EV or other Achieving emission reductions for customer travel and China. We are also 昀椀nding innovative ways to for more than a million people within 20 zero-emission solutions increase the share of zero-emission deliveries, such depends on the increased use of zero-emission as utilising cargo bikes in Milan and implementing minutes by bike, public transport or car. To vehicles, particularly electric vehicles (EVs). To boat deliveries in Paris. While our ambition is 100% support more sustainable travel to and from support this, the IKEA franchisee Ingka Group the store, the city store has 500 bike parking 11% Home expanded its charging infrastructure to 3,090 EV zero emissions by FY25, we recognise that more spaces. Loaner cargo bikes and direct home deliveries chargers at IKEA stores in FY22. Building on this realistically we will reach 80%, due to limitations in 89% Climate technology, availability of charging infrastructure and delivery options are also o昀昀ered for customers Customer progress, the number further increased to 4,575 footprint travel in FY23. policies in the markets. Even if this falls short of the – enabling zero-emission home deliveries. (tonnes CO2 eq) 100% ambition, it's a huge leap compared to where 250 trees and shrubs are planted on-site with Notably, this year we extended our coverage for we started from. a quarter of the façade covered with green customer travel calculations to include IKEA food planting. The open roof garden also serves as a As part of the goal to reach 50 cities, the IKEA new public park within the city and will become part of a long green pedestrian street on franchisee Ingka Group has deployed 100% zero- emission vehicles in 17 cities and continues to expand rooftops. Solar cells on the roof also contribute 1 Scope: GHG Protocol, scope 3 emissions: Downstream transportation and distribution of Inter IKEA Group operations and IKEA retail part of our franchisees’ business. this work to additional cities. to providing renewable energy to the store. 2 Scope: Inter IKEA Group and the IKEA retail business of Ingka Group. 28 - IKEA CLIMATE REPORT FY23