Ikea reduced its climate footprint by 24.3% while increasing revenue by 30.9%, its parent company Ingka Group revealed in its latest sustainability report.
The report is structured around four key movements – Better homes, Better lives, Better planet and Better company – and analyses both financial and non-financial performance against a range of targets.
One key driver of the retailer’s carbon footprint reduction was that, by the end of 2023, over 211,600 customers had used Ikea’s buyback and resell service, a figure that has doubled since the 2022, with around 430,000 items being given a second life as part of the scheme.
A knock-on effect of the Ikea buyback and resell service is that customers could buy returned, discontinued, ex-display and second hand items for a lower price than buying new in 373 stores in 2023.
The report also revealed that 24.6 million spare assembly parts were provided to customers, with online ordering for spare parts now available in 28 countries, lengthening the lifespan of the retailer’s products.
Ikea chief sustainability officer Karen Pflug said: “The world is facing many challenges – climate change, increasing nature loss and rising inequality, to name a few – but we are determined to be part of the solution. We’ve chosen to stay optimistic and lead with action.”
“It’s also really encouraging that our circular services are becoming increasingly important for customers; in the past year we have doubled the number of customers using our buyback and resell service.”
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Recycling also proved to be a success in 2023, with 75.9% of waste recycled, decreasing Ingka Group’s total waste by 7.3%.
Using more electricity from renewable sources was a goal for the retailer in 2023 and it successfully managed to get 79.2% of its electrical supply from renewable sources, an increase from 74.2% in 2022.
Ikea also credits its success in decarbonisation to its use of electric vehicles and zero-emissions transport, such as cargo bikes for home delivery, and route optimisation as well as its efforts to reduce journeys by driving down product returns through improved product availability and accuracy in stores.
“While we are proud of our progress and achievements in 2023 much remains to be done. Just like many others we are facing challenges and opportunities on our journey, including advancements in technology, and increasing legislation,” Pflug added.
“By working together, I’m optimistic that we can create a better future for people, planet – and our business.”
