Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index Healthy & sustainable living - Our circularity agenda - Our climate agenda - Regenerating resources - Fair & equal - IWAY Commitments and goals During FY23, we aligned our strategic 1 Drastically reducing GHG emissions across the IKEA value chain and are part of how we climate goals with the 1.5°C trajectory the IKEA value chain, in absolute terms responsibly source materials for the IKEA range. and the Net-Zero Standard by Science The overall goal is, by FY30, to reduce the Reducing the IKEA climate Based Targets initiative (SBTi). We absolute GHG emissions from the IKEA value A strategic goal will be set once the Land Sector footprint in line with 1.5°C submitted our goals to SBTi mid- chain by at least 50% compared to FY16 and Removals Guidance by GHG Protocol is 昀椀nalised, which is expected to be in the summer of November 2023 and validation is (previous goal was a 15% reduction). By FY50 1 Drastically reducing GHG emissions across the IKEA value chain, in at the latest, we will reduce the absolute GHG 2024. This accounting guidance is the 昀椀nal piece currently pending. emissions from the IKEA value chain by at least since the establishment of the Forestry, Agriculture absolute terms and Land (FLAG) target setting standard by SBTi Our main priority is drastically reducing 90% compared to FY16. established in September 2022. Even though a goal 2 Removing and storing carbon from the atmosphere through forestry, agriculture greenhouse gas emissions across the IKEA and products within our value chain As a result of our new net-zero goals, we have has yet to be set, we're pursuing actions that we value chain. Any remaining emissions will be either updated or set new goals for most parts know will make a positive contribution. neutralised – reaching net-zero emissions by 1 FY50 at the latest – by removing and storing of our value chain. For materials, we have carbon from the atmosphere through better set the goal to at least halve our emissions Contributing to additional by FY30 compared to FY16 baseline. For 3 Going beyond IKEA reductions in society2 forest and agricultural management practices food ingredients, we have updated our FY30 We will contribute to additional reductions in within the IKEA value chain. Additionally, we goal from -25% to -50% emissions reduction society by taking an extended responsibility for will go beyond net zero and go beyond IKEA by 3 Going beyond IKEA contributing to additional reductions in society. compared to FY16. For product use at home, the climate footprint of our customers, suppliers we have set our FY30 goal to -70% emissions and in our sourcing areas – not just the part Read more about our work on climate change, reduction compared to FY16. We have also set a which we can account for in the IKEA climate including a detailed breakdown of our climate FY30 goal for reduced emissions from product footprint. A strategic goal for this will be set once footprint in the IKEA Climate Report FY23. end-of-life by 30% compared to FY16. the guidance for “removing and storing carbon” is ready and when the framework for going beyond has been developed by SBTi. We are Reducing more emissions than 2 Removing and storing carbon from the already taking actions that we know will have a the IKEA value chain emits atmosphere through forestry, agriculture positive contribution, even though a goal has not and products within our value chain yet been set. Storing carbon in trees and agricultural crops We 昀椀rmly believe that we need to address the used for materials, food, and fuels removes root causes of our climate footprint within CO2 from the atmosphere. If the land is also our own value chain or in connection to our 1 Excluding production, product transport, co-worker commuting and responsibly managed, it has the potential to customers, suppliers, and sourcing areas. We will business travel. 2 An e昀昀ect that's in addition to what's required to reduce the IKEA reduce climate impact. In contrast to carbon value chain emissions to be aligned with the 1.5°C target and will not use carbon o昀昀sets to achieve our ambition to never act as any discount or o昀昀set to reach the GHG emission o昀昀sets, the removals and storage occur within reach net-zero emissions. reduction goal. 23 - IKEA SUSTAINABILITY REPORT FY23