Ingka Group Unveils Net Zero Transition Plan By 2050

Ingka Group, the parent company of IKEA, has announced its ambitious Net Zero Transition Plan, outlining a detailed roadmap to significantly cut greenhouse gas (GHG) emissions across its value chain. The plan focuses on reducing emissions by 50% by 2030 and achieving net zero by 2050. The initiative comes as part of the company’s broader sustainability strategy, reinforcing its commitment to environmental responsibility and climate action.

As the largest franchisee of IKEA, operating 400 stores globally, Ingka Group has conducted an in-depth analysis of its carbon footprint across multiple emission categories, including store operations, construction materials, mobility, and investments. The plan not only identifies key sources of emissions but also highlights potential decarbonization strategies, case studies, external dependencies, and specific actions required to meet its climate goals.

Of high priority in the transition plan are materials, for which 45% of company value chain emissions arise. Materials is where 50% should be reduced with an absolute decrease of 5.4 million tonnes of CO₂ equivalent, from a base year of 2016 by 2030. To reach this goal, IKEA will increase the share of recycled content in its products, enhance material efficiency, reduce waste, and integrate low-carbon materials during the design phase. Additionally, the company will work towards securing renewable energy in its materials supply chain and expand responsible forest and agricultural management practices. Strengthening traceability systems and collecting better data from suppliers will also play a crucial role in identifying further emission reduction opportunities.

The plan goes into detail about the five key materials that contribute most to emissions in IKEA’s value chain: wood, metals, textiles and comfort (such as stuffing materials), plastics, and paper. The company will focus on increasing sustainable sourcing and innovation in these areas to minimize environmental impact.

In addition to materials, IKEA is also taking several steps to decrease its overall emissions footprint. Perhaps the most notable commitment is phasing out fossil fuels entirely, with the goal of 100% renewable energy throughout its entire value chain by 2030. IKEA will also increase its selection of plant-based foods in its in-store restaurants, recognizing the contribution of food production to global emissions. The transition plan also calls for increased investments in low-carbon asset classes, supplier engagement to set emission reduction targets, and the adoption of renewable heating and cooling systems across operations.

IKEA is also making strides in transforming its customer experience by developing circular services that help prolong the life of its products. This includes initiatives like second-hand furniture programs and repair services. In transportation, the company is working towards making more than 90% of its home deliveries emission-free by 2028, primarily through the adoption of electric and other zero-emission vehicles.

A crucial aspect of the transition plan is the recognition of the “innovation and efficiency gap”—the amount of emissions that require further technological advancements to be fully mitigated. While existing solutions will contribute significantly to the company’s emission reduction targets, IKEA acknowledges that some reductions will depend on the development and scaling of new technologies.

It also highlights the collaboration between businesses, governments, and other stakeholders in achieving the plan. Ingka Group has a strong stance on policy engagement. They are advocating for nationally determined contributions aligned with the 1.5°C target for the Paris Agreement. They encourage governments to accelerate renewable energy transition, fossil fuel phase out, and policies for circular economy, sustainable transportation, and responsible forestry and agriculture.

Ingka Group Chief Sustainability Officer Karen Pflug underlined the importance of the transition plan, affirming that the company is committed to transparency and collective action. She pointed out that the roadmap is based on comprehensive research and learnings across the business and is intended to act as a catalyst for sustainability discussions across the industry.

Simon Henzell-Thomas, Ingka Group's Climate & Nature Manager, emphasized the power of working together, that even though IKEA is doing so much in sustainability, one company cannot address climate change. He urged industries, governments, and customers to join forces and propel real progress toward a net-zero future.

With this ambitious plan, Ingka Group is not only taking responsibility for its carbon footprint but also setting an example for other multinational businesses. By prioritizing renewable energy, sustainable materials, circular economy principles, and emission-free logistics, IKEA is positioning itself as a leader in corporate climate action.

As climate concerns continue to rise, IKEA’s roadmap highlights both the challenges and the opportunities in transitioning to a low-carbon economy. While the company acknowledges that there are still hurdles to overcome—particularly in scaling up new technologies and ensuring stronger supply chain traceability—it remains committed to driving meaningful progress. By aligning its business operations with science-based targets, engaging in policy advocacy, and fostering innovation, IKEA aims to lead the transformation towards a sustainable future.

Ingka Group's Net Zero Transition Plan is a clear signal that businesses need to act rather than wait around for policies on how to reduce their environmental impact. In the book, through embedding sustainability into materials sourcing, energy use, mobility strategies, and product design, IKEA shows that corporate responsibility and commercial success can go hand in hand in the fight against climate change.