Introduction letter | Our climate agenda | FY23 summary of progress | The IKEA climate footprint throughout the value chain | Air pollution | Appendices FY23 progress on external initiatives The following is a summary of all IKEA 1 1 Coolfood Pledge5 Goal FY30 and FY50 Progress FY23 commitments towards external initiatives. The 昀椀gures below are a summary of the progress versus the IKEA commitment for the Coolfood Pledge. The goal is to, by Based on the pre-de昀椀ned scope of each NEW Goal FY301: Inter IKEA Group commits to reduce FY30, aim for at least a 25% absolute reduction in food-related -22% To reach net zero we will initiative, the values could di昀昀er compared absolute GHG emissions across the IKEA value chain (scope -50% neutralise remaining GHG emissions or a 38% relative reduction in food-related GHG to those shared in the IKEA Sustainability 1, 2 & 3) at least 50% by FY30, from a FY16 base year. This emissions by removing and emissions per 1,000 calories compared to FY16. includes a reduction of at least 50% for scope 3 GHG 30.9 24.1 -90% storing carbon in forestry, Report FY22 and IKEA Climate Report FY22. emissions. agriculture and products within our value chain. Progress against 25% absolute target 1 (million tonnes CO2 eq) NEW Goal latest FY50 : Inter IKEA Group commits to reach FY16 FY23 FY30 FY50 net-zero GHG emissions across the value chain by latest FY50. Science Based Targets initiative (SBTi) (million tonnes CO2 eq) Agriculture Carbon Total % change supply opportunity since The target boundary includes biogenic chain costs baseline emissions and removals from bioenergy emissions Goal FY30 Progress FY23 Goal FY30 Progress FY23 feedstocks. For greenhouse gas (GHG) FY16 1.01 4.13 5.14 0% emissions from bioenergy, the global Inter IKEA Group commits 1 -26% FY17 0.99 4.03 5.03 -2% warming potential (GWP) of CO2 is assumed FY30 goal (updated) : For FY18 1.04 4.19 5.23 +2% to reduce scope 1 & 2 0.4 IKEA franchisees’ (scope 3, 0.57 FY19 0.88 3.41 4.29 -16% GHG emissions -82.1%⁴ to be zero, while the GWP of CH4 and category 14) retail operations FY20 0.72 2.77 3.49 -32% compared to FY16.3 0.42 N2O are still included. See listed emission -80% (their scope 1 & 2), reduce FY21 0.83 3.40 4.24 -18% 0.08 -82.1%⁴ the respective absolute GHG -80% FY22 1.00 4.15 5.15 0% factors in the climate footprint calculation FY16 FY23 FY30 emissions 80% by FY30, from FY16 FY23 FY30 FY30 -25% methodology, page 38. the FY16 base year. (million tonnes CO2 eq) (million tonnes CO2 eq) Goal FY25 Progress FY23 Goal CY40 Progress FY23 Progress against 38% relative target (kg CO2 eq per 1,000 kcal) 100% 100% Agriculture Carbon Total % change Inter IKEA Group commits EV100+ by The Climate supply opportunity since to consume 100% Group: Only procuring zero- chain costs baseline renewable electricity for 97% emission medium and heavy- emissions its own operations (scope duty vehicles (MHDVs). 53% 1 & 2) by FY25. 0% 0.12% FY16 2.53 10.32 12.85 0% FY16 FY23 FY25 FY16 FY23 FY40 FY17 2.46 9.99 12.45 -3% FY18 2.41 9.73 12.14 -6% (million tonnes CO2 eq) FY19 2.10 8.14 10.24 -20% FY20 2.04 7.84 9.88 -23% FY21 2.31 9.45 11.77 -8% Goal CY40 Progress FY23 FY22 2.35 9.77 12.12 -6% FY30 -38% 100% Cargo Owners for Zero Emission Vessels (coZEV): 1 Submitted to SBTi in mid-November 2023 and pending approval. Only purchase zero-emission 2 Pending methodology through the Land Sector and Removals Guidance by the GHG Protocol. ocean transport services. 5 3 The 昀椀gures presented here di昀昀er from those in the rest of the IKEA Climate Report Scope includes scope 1 & 2 emissions for Inter IKEA Group owned operations for IKEA retail & other operations and production (IKEA Industry and FY23 because its calculation methodology introduces concepts such as the Carbon 0% 0% IKEA Components). Opportunity Costs. As this is reported in the beginning of each calendar year, the 4 Preliminary submission to SBTi for scope 1 and 2 reduction is 82.1%. We might revise and strengthen the target in our FY24 report. FY16 FY23 FY40 IKEA Climate Report FY23 covers the progress up until the calendar year 2022. (million tonnes CO2 eq) 37 - IKEA CLIMATE REPORT FY23