IKEA: leading the way in sustainability

Few companies illustrate the scale of what serious climate action looks like better than IKEA. As one of the world's largest furniture retailers, IKEA's choices ripple across thousands of suppliers, millions of customers, and entire supply chains, making its sustainability strategy a genuine test case for what large-scale decarbonisation can achieve.

From renewable energy and circular product design to consumer-facing programmes that put sustainability directly into people's homes, IKEA continues to set a benchmark for how a global retailer can align commercial growth with credible, science-based climate action.

This article was updated in 2026.

Reducing carbon emissions

IKEA recognises the impact its operations have on the environment and is taking action to minimise that impact. The company has moved beyond its earlier "climate positive by 2030" pledge, which it formally retired in 2024 in favour of a stronger, Science Based Targets initiative (SBTi)-approved agenda called Net Zero and Beyond. Under this framework, IKEA's parent company, Ingka Group, commits to halving absolute carbon emissions across its entire value chain by FY30 (versus its FY16 baseline), reaching net zero by FY50, and cutting emissions by 90% by that same year.

Progress is already visible. In its FY24 Sustainability and Climate report, Ingka Group reported a total climate footprint of 21.3 million tonnes of CO₂e, a 5% reduction year-on-year and a 28% cut against its FY16 baseline. Renewable electricity across its own operations rose to 81% (up from 77%), and 491 direct supplier factories, representing 44% of its supply base, now run on 100% renewable electricity.

Backing this up financially, Ingka Investments has pledged €7.5 billion towards renewable energy by 2030, having already committed €4.2 billion to wind and solar projects worldwide. In October 2025, this included its first renewable energy investment in India: a 210 MWp solar installation in Rajasthan worth roughly €97.5 million, expected to generate 380 GWh of clean electricity annually once operational in December 2026.

Developing sustainable products

IKEA is further committed to developing more sustainable products that positively impact the environment, investing in research and development for products that use less energy and fewer resources, sourcing furniture from renewable materials like bamboo, and improving recyclability across its range.

This commitment now extends deeper into recycling infrastructure. In January 2025, Ingka Investments committed over €1 billion to European recycling companies, including a mattress foam recycler and two plastics recyclers, supporting IKEA's goal of becoming a fully circular business by 2030. On the product side, 97% of the wood IKEA uses is now FSC-certified or recycled, foam use in mattresses has dropped 20% through alternative materials, and a shift to paper-based packaging removes an estimated 1,400 tonnes of plastic from its supply chain every year. IKEA has also started selling solar panel kits directly to customers, extending its climate ambitions beyond its own stores and into people's homes.

Read more: Net zero needs nature: a carbon credit guide

Inspiring action

IKEA's commitment to sustainability is not just limited to its operations. The company educates customers about the importance of sustainability while positioning itself as a model for other corporations to follow.

This now includes practical, customer-facing programmes such as Buy Back & Resell, which lets shoppers trade in gently used furniture for store credit so it can be resold rather than discarded. Paired with its consumer solar offering, these initiatives show how IKEA translates its own net-zero ambitions into everyday choices for the millions of customers it serves, reinforcing its position as one of the clearest examples of a global retailer aligning its business model with science-based climate targets.

Read more: Industries with the biggest nature footprints and what their decarbonisation looks like

The future is bright

IKEA's journey shows that credible climate action isn't a one-off pledge, it's an ongoing commitment to measuring, reducing, and taking responsibility for your footprint, and continuously raising the bar as science and technology advance. Whether you're a global retailer or a growing SME, the fundamentals are the same: understand your emissions, cut what you genuinely can, and take responsibility for what you can't yet eliminate.

For most businesses, some emissions remain unavoidable in the short term, whether that's supply chain logistics, raw materials, or energy that hasn't gone fully renewable yet. This is where high-quality carbon credits play a vital role: they let you take verified, immediate responsibility for your remaining footprint while you keep reducing emissions at the source.

At Green Earth, we develop and manage nature-based and biodiversity projects around the world, giving SMEs and large corporates alike access to verified, high-integrity carbon credits that fund real environmental impact, from reforestation to clean energy access for local communities.

Sustainability is no longer optional, it's what customers, investors, and regulators increasingly expect. By taking responsibility for your carbon footprint today, your business doesn't just reduce risk, it builds trust, unlocks new opportunities, and contributes to a healthier planet for everyone. Ready to take the next step? Explore our store with a wide range of verified projects globally that can support your sustainability strategy.