IKEA is committed to the Paris Agreement and contribute to limiting global warming to 1.5°C by becoming climate positive. This includes reaching net-zero emissions latest 2050 and halving the greenhouse gas (GHG) emissions in absolute terms from the total IKEA value chain by 2030. We will achieve this by drastically reducing greenhouse gas emissions and by removing and storing carbon from the atmosphere through better forest and agricultural management practices within the IKEA value chain. Statements About Greenwashing StoryStatements About Greenwashing Story
IKEA welcomes dialogue and scrutiny of companies’ climate commitments and goals, such as net-zero targets, to secure that these are aligned with the science of 1.5°C. The report by the NewClimate Institute is a constructive addition to this.
While we have achieved much already, such as breaking the trend by decreasing our absolute GHG emissions while increasing business growth, most things remain to be done. We also have plans in place to address our longer-term movements and remaining complex challenges, such as the climate footprint of the materials used in the IKEA range. We aim to continually improve the quality and transparency of reporting our greenhouse gas emissions. During financial year 2022, we will align with the recently launched Net-zero standard by Science Based Targets initiative to secure that our climate goals are in line with the science of 1.5°C. The outcome will be included in the next IKEA Sustainability Report for FY22.
Furthermore, IKEA highlights the need to have external credible standards for definitions and reporting to safeguard and eliminate greenwashing and unsubstantiated claims, as well as secure common science-based frameworks to compare progress. We will therefore continue our contribution to the development of an accounting standard for measuring and setting goals on the positive climate effect of carbon removals and storage through the GHG Protocol and the FLAG project by Science Based Targets initiative. It is essential to have a common, predictable and credible legal framework governing the rules on voluntary green claims.
We are aware that the current goal of drastically reducing GHG emissions across the value chain (scope 1, 2 and 3) by at least 15% in absolute terms by 2030 is not in line with the new SBTi Net-zero standard from 2021. Accounting for our expected growth, the current goal means an average 70% climate footprint reduction per IKEA product, in relative terms. Today, only the IKEA goal for scope 1 and 2 is aligned with 1.5°C.
An important note is that the climate positive commitment was set in 2018 before corporate standards were in place for net-zero and accounting the effect from carbon removals and storage. As standards become available, we are aligning our goals and accounting to be in line with these.
After the SBTi Net-zero Standard was launched in November 2021 work has been underway during financial year 2022 to align the current and approved SBTi goal with the new standard. We will also share sub-goals for each part of the IKEA value chain to be more transparent on how each part of the IKEA climate footprint will be reduced, especially the largest climate footprints (materials and product use at home).
The carbon removals and storage through forestry, agriculture and prolonging the life of products contributes to the climate positive IKEA by 2030 and net-zero latest 2050. The contribution to achieving the net-zero goal will be defined as a part of ongoing work to align with the SBTi Net-zero Standard. In contrast to the net-zero pathways, we will take action to have a clear contribution from carbon removals and storage before 2030.
The contribution from going beyond IKEA does not contribute to the net-zero pathway, act as any carbon offset or is a part of our scope 1, 2 and 3 reporting. It is how we can achieve additional reductions in society compared to what’s required by the SBTi net-zero standard. Therefore, going beyond IKEA is not part of a net-zero claim, and additional activity to enable further reduction of t greenhouse gases emissions in society.