IKEA Australia Cuts Climate Footprint By 89% In FY24

IKEA Australia has made significant progress towards sustainability, reducing its operational climate footprint by a staggering 89% since FY16 while also recording a 68% revenue growth. The firm's FY24 sustainability report showcases its commitment to climate action, social responsibility, and community influence, proving that profitability and environmental care can coexist.

One of the highlights of the report is IKEA Australia's shift to 100% renewable electricity for its retail operations. This is part of IKEA's overall aim to cut emissions by 50% by 2030 based on a FY16 baseline. The group has already cut emissions by 30% while boosting its global revenue by 20%. Sustainability Manager Renea Robson highlighted that although considerable improvements have been made, the company is determined to continue its innovation and working together in order to successfully defy challenges and achieve its ambitious targets.

Aside from its sustainability initiatives, IKEA Australia has also made tangible steps to accommodate customers struggling financially. IKEA spent $125 million on price cuts affecting more than 3,000 products in an attempt to bring prices back to pre-pandemic levels. This move demonstrates IKEA's awareness of the affordability crisis and desire to make home furnishing solutions affordable for more Australians.

IKEA's social responsibility goes beyond being affordable. IKEA returned 85% of its net earnings to operations, with the remaining 15% going to Stichting INGKA Foundation, which supports charitable causes through the IKEA Foundation. One of its primary focuses is on giving aid to needy communities, such as refugees and victims of domestic violence.

Through its Refugee Workforce Inclusion initiative, IKEA recruited 35 permanent staff in FY24, reaching a total of 220 participants since 2020. The firm has also been a vocal supporter of refugee integration, calling attention to the fact that the economic and social contributions of refugees are frequently disregarded because of misconceptions and stereotypes. Together with Save the Children Australia, IKEA also extended necessary help to 647 children and women who were victims of domestic violence. Through its design skills and furniture, the company enabled it to convert temporary emergency refuges into welcoming and secure areas.

IKEA Australia's dedication to diversity and inclusion is also reflected through its staff policies. The company reached its target of a 50/50 gender balance within management positions and actually narrowed its gender pay gap to only 3.5%. In an effort to encourage workplace inclusivity, IKEA introduced unconscious bias training and inclusive recruitment workshops to bring more women into leadership positions. The company also provides up to 26 weeks' paid parental leave and superannuation on paid and unpaid leave.

Sustainability continues to be at the center of IKEA's business, with large-scale efforts towards waste reduction and circular economy behaviors. IKEA collaborated with Good360 to reroute excess items away from landfill, impacting more than 1,300 Australians and preventing $138,000 worth of products from being discarded. Recycling rates of operational waste stood at 74.3%, while the target is 100% by 2030. Additionally, IKEA's Food Waste Watcher program effectively reduced food waste by 37% since March 2021, affirming the company's responsible consumption stance.

Renewable power and zero-carbon deliveries are also major elements of IKEA's sustainability strategy. The business not only switched to 100% renewable electricity but also enhanced building energy efficiency by 16% since FY16. Transportation-wise, zero-emission vehicle deliveries represented 45% of total customer orders in FY24, reaching a high of 65% in January 2025. IKEA has spent $4.5 million on EV charging infrastructure and is still on track to meet 100% zero-emission metropolitan deliveries by 2025.

With IKEA Australia advancing its sustainability agenda, the FY24 report highlights its capacity to drive business expansion while ensuring environmental and social responsibility. The organization's success in lowering its climate impact, supporting community programs, and adopting circular economy practices sets a standard for companies seeking to leave a positive footprint on both humanity and the environment.