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 Product use at home (15.9% of the total IKEA value chain climate footprint in FY23) 1 Climate footprint (million tonnes CO2 eq) FY16: 8.0 Baseline FY22: 4.4 -45.1% (vs FY16) FY23: 3.8 -52.2% (vs FY16) -70% Goal FY30 compared to FY16 Goal FY30 (updated) By 2030, reduce the absolute GHG emissions from product In FY23, the climate footprint from that goal was met a few years ago, a new goal was use at home by at least 70% compared to baseline FY16. product use at home decreased by 13% pending based on the net-zero alignment. compared to FY22 and 52% compared to Sub-goal the baseline FY16. Since FY22, the climate footprint from product use at home decreased by 13%, mainly due to By FY30, phase out all fossil-based para昀케n used for candles. reductions coming from lighting (-7 percentage As a part of our new net-zero goals, we have revised our goals in product use at home to 70% emission points) and appliances (-6 percentage points), reduction compared to baseline FY16. while the reduction in candles is negligible. The development mainly stems from the continued 1% Candles Most of the footprint from product use at home improvement of energy e昀케ciency and a larger comes from the electricity consumption of products sales share of our most energy-e昀케cient LED bulb 28% such as lighting and home appliances. A smaller range, SOLHETTA. Home appliances portion comes from gas hobs, refrigerants used Climate The decrease in sales volume, including a 2.7% footprint in refrigerators and freezers, and the burning of decline for lighting and 7.4% for appliances 2 (tonnes CO2 eq) candles at home. compared to FY22, was a contributing factor to the reduction. There was also an increase In FY23, due to signi昀椀cant progress made since of 4 percentage points in renewable electricity 71% FY16, we set a new goal for product use at home. Lighting consumed by customers across all IKEA markets Our previous internal goal was for a 30% absolute since FY22. reduction by FY30 compared to baseline FY16. As 1 Scope: GHG Protocol, scope 3 emissions: Use of sold products and connected fuel- and energy-related activities (incl. transmission & distribution losses). 2 Smart home products from IKEA are currently excluded from the footprint. We are developing the methodology to measure the climate footprint of smart home products from IKEA, and it will be included in the FY23 climate report. 29 - IKEA CLIMATE REPORT FY23