Introduction letter | Our climate agenda | FY23 summary of progress | The IKEA climate footprint throughout the value chain | Air pollution | Appendices Climate footprint calculation methodology • Tank-to-Wheel (TTW): TTW emissions cover all Overall away from quali昀椀ed estimations – or that science material amounts. For the other material areas, we The following is a high-level summary of how the and accounting standards are improved. Historical the energy used once transformed. These are currently lack systems to follow up, and so we rely IKEA climate footprint is calculated. The scope data is always revised to ensure that all disclosed emissions occurring during the combustion of on close collaboration with our direct suppliers to fuels by vehicles. covers the entire IKEA value chain. This includes performance re昀氀ects progress and not a change in estimate the amounts to the best of our knowledge. the raw material extraction and processing for accounting. • Well-to-Wheel (WTW): WTT + TTW together make As we improve our ability to measure more the materials or food ingredients used in the IKEA up WTW GHG emissions. materials and have to estimate a smaller part of our range, how they are produced at our direct suppliers material usage, the material footprint is subject to Emission factors change. or IKEA owned factories, and then transported to the IKEA stores and warehouses. It covers all IKEA For used emission factors, please see each separate Materials However, historical data is always revised for entry. comparability to ensure that any trend is due to stores, warehouses, o昀케ces and other operations, The climate footprint of materials is calculated as as well as co-worker commuting and business 1 improvements of the materials rather than the data travel. All travel by IKEA customers to IKEA stores is We always strive to use the latest values for global the cradle-to-gate footprint from raw material quality. included, as well as any home deliveries, ordered warming potentials of reported GHG as de昀椀ned by extraction and all processing steps and transport by customers, of products from IKEA stores to the Intergovernmental Panel on Climate Change up until the gate of our tier 1 suppliers where the The climate footprint is also subject to change as their homes. The product use at home is mainly (IPCC) in its Sixth Assessment Report (AR6). Due IKEA products are manufactured, which are covered the emission factors in ecoinvent and other LCA the electricity consumption needed to power our to a lag in updates in third-party emission factor under “production”. The amount of material is databases are updated from one version to another. databases and for the purposes of comparability, lighting and appliances products, as well as the GHG multiplied with an emission factor speci昀椀c to its emissions released when burning candles. Finally, this can di昀昀er. As soon as these sources are recycled content, renewable content, sourcing updated with AR6 values, we will adapt to these and the climate footprint from the product end-of-life country (if available) and material company (if Food ingredients secure that IKEA climate footprint calculations are is included should a product not be recycled, but available), using ecoinvent and other life cycle conducted in line with the most recent IPCC reports. The climate footprint for food ingredients is assessment (LCA) databases. The emission factors instead incinerated or land昀椀lled. Some agendas are are based on sector averages, which are then calculated in a similar way as materials – from For GHG emissions from bioenergy, the global still under development. Until these are integrated modelled based on the amount of traceability and cradle-to-gate to the factory manufacturing the into other climate footprints, they are categorised as warming potential (GWP) of CO2 is assumed to primary data we have available for the supply chain food products. For food ingredient amounts, a "Other" for the sake of transparency. be zero, while the GWP of CH4 and N2O are still of that material. As more traceability is gained or system is in place to measure the ingredients per The climate footprint calculations are conducted included. more primary data is obtained from our material product for the global food range. A majority of the in line with the GHG Protocol and its guidance The following types of emission factors may be suppliers, the emission factors are continually market-speci昀椀c range is now also measured using the same system. Today, 20% of the total weight re昀椀ned to make them more speci昀椀c to the IKEA documents. referenced in the report and are de昀椀ned below: supply chain. sold is estimated due to lack of recipe-speci昀椀c data. The calculation models are annually reviewed • Well-to-Tank (WTT): WTT fuels account for the The climate footprint is also subject to change as upstream scope 3 emissions associated with For material amounts, measured data exists for to re昀氀ect the IKEA value chain, and its parts, as the emission factors in ecoinvent and other LCA all wood and paper because systems are in place extraction, re昀椀ning and transportation of the raw accurately as possible. Updates could be made databases are updated from one version to another. to measure and follow up on at least a yearly due to increasing traceability and gaining access fuel sources to site (or asset) prior to combustion. level. These represent about three-quarters of the to more supplier-speci昀椀c information – moving 1 Cradle-to-gate is an assessment of a partial product life cycle from resource extraction to factory. 38 - IKEA CLIMATE REPORT FY23