IKEA's sustainability advances in China with innovation drive climate footprint reduction

IKEA has shown strong results in its sustainability through progresses in innovations and technology development in the fiscal year 2023, as they have vowed to continue to invest in the use of recycled and renewable materials and electrification throughout their value chains in key markets including China.

According to the recently released IKEA Sustainability Report Fiscal year 2023 and IKEA Climate Report Fiscal Year 2023, the company achieved a 22 percent reduction in its total climate footprint, which is estimated to be 24.1 million metric tons of CO2, compared to their baseline in fiscal year 2016 and a decrease of 12 percent compared to the previous year.

Par Stenmark, chief sustainability officer at Inter IKEA Group, attributed this success to the increased adoption of renewable electricity throughout their value chain.

IKEA has significantly increased its utilization of renewable electricity, with the shares rising from 63 percent to 71 percent in production in fiscal year 2023. In retail operations, there was a notable uptick from 75 percent to 77 percent; in logistic services, the figure soared from 86 percent to 90 percent. IKEA facilitated the transition of 142 suppliers or factories to 100 percent renewable electricity last year, bringing the total number to 408.

IKEA has been fostering support programs for suppliers in key markets such as China, India and Poland since 2021 to embrace renewable electricity practices.

More than 80 percent of IKEA suppliers in China now operate on renewable electricity, marking a significant milestone with over 200 suppliers in total making the transition. IKEA opened a distribution center in Foshan, Guangdong province in September last year to further enhance its green logistic work in China. IKEA has extended its support programs to an additional 10 supplier markets.