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 Moving towards Striving towards 100% renewable zero-emission ocean shipping energy in logistics services In FY23, the absolute climate footprint In FY23, the absolute climate footprint New energy-e昀케cient distribution from ocean transports decreased by from logistics services decreased by centre in China 25% compared to FY17. 35% compared to FY22. When new IKEA distribution centres are built, sustainability needs to be considered This was primarily due to improved vessel The decrease was mainly due to a higher share from the start. One such example is the of renewable electricity, from 86% in FY22 to 91% new distribution centre in Foshan in e昀케ciency within the industry and the use of biofuels. There was also a reduction in the in FY23. This is on track towards the goal of using southern China, which opened in FY23. relative emissions from ocean transport by less 100% renewable electricity by calendar year 2025 The unit has a total of 4,877 photovoltaic than 1% compared to FY22 and by 22% compared (CY25). to the baseline FY17. (PV) panels installed on the roof and in The movement was made possible by the the parking lot. These have a capacity of renewable electricity programme for suppliers, 2.5 MW and can generate around 2 GWh Even though we use biofuels in ocean shipping investments in renewable energy by the IKEA of renewable electricity per year, and also today, the long-term solution is zero-emission franchisee Ingka Group and making renewable power 20 charging stations for co-workers’ shipping, which is not yet available at scale. To Continuing the journey towards zero- electricity a top priority in the tender processes electric cars. emission ocean shipping move the industry faster towards zero-emission for external logistics service units. options, sector initiatives such as the Cargo To further support zero-emission Owners for Zero Emission Vessels (coZEV) In March 2023, we became the 昀椀rst member For external units, IKEA goods sometimes make transports, four charging piles that can ambition statement and the Zero Emission of the Zero Emission Maritime Buyers Alliance up only a part of the capacity of a warehouse. charge up to eight EV trucks at the same (ZEMBA). ZEMBA is a buyers’ group of cargo However, in line with going beyond IKEA, the whole time are available. Currently, 60% of all Maritime Buyers Alliance (ZEMBA), are key. owners in which 20 global companies have warehouse needs to run on 100% renewable transports to and from the unit are made come together to demand zero-emission ocean energy, not just the capacity for the IKEA with EV trucks. shipping. business. This is an example of how the IKEA In order to improve the energy e昀케ciency business in昀氀uences GHG reductions beyond our In September 2023, ZEMBA launched the 昀椀rst- of the distribution centre, skylights are in climate footprint. ever request for proposal (RfP) to accelerate place to utilise the natural daylight, and all the transition to zero-emission shipping – a After 100% renewable electricity has been ceilings are equipped with LED lights and highly needed action-oriented initiative, where achieved by CY25, the next milestone will be to daylight sensors. A common monitoring ZEMBA is seeking bids for 600,000 twenty-foot reach 100% renewable energy (including heating, platform is also installed to continually containers (TEUs) fuelled by zero-emission cooling and fuels) by CY30. fuels, over a period of three years. identify energy e昀케ciency improvements. 24 - IKEA CLIMATE REPORT FY23