Ingka Group, the largest IKEA retailer, has published its Annual Summary and Sustainability Report for FY24, highlighting investments to make IKEA more accessible, affordable, and sustainable. Despite a challenging year, the company focused on transformation, reporting a 23.7% revenue increase and a 30.1% reduction in its climate footprint since FY16. Over 96% of electricity across 28 countries is now renewable, and 41.1% of deliveries use zero-emission vehicles. Ingka Group has committed to investing EUR 7.5 billion by 2030 in renewable energy, with an additional EUR 0.7 billion invested this year.
Jesper Brodin, CEO of Ingka Group.
'I am deeply grateful for the work and leadership carried out by colleagues over the past year. In challenging times, we decided to invest EUR 2.1 billion into lowering the prices on thousands of products to support many more people to fulfil their dreams and needs in life at home, no matter the size of the wallet. At the same time, we took important steps in strengthening our science-based climate targets, remaining deeply committed to the Paris Agreement. This is the most important decade and by additionally reducing our climate footprint while growing the business, we prove that the business case for investing in climate action works,' says Jesper Brodin, CEO, Ingka Group.
Throughout FY24, Ingka Group expanded by lowering prices, opening new stores, and enhancing digital and logistics infrastructure. This included investments in automation and AI, with new features added to the IKEA app. The company opened three stores in Japan, Norway, and Switzerland, added 40 Plan and Order Points, and three Ingka Centres.
Ingka Group also supported over 81,000 individuals through various initiatives and continued its refugee employment programme, helping more than 3,700 refugees since 2019. Environmentally, the group aims to reduce emissions by 50% across its value chain by 2030 and achieve net-zero emissions by 2050.
"Thanks to all our dedicated colleagues – it was a year of many wins and of course lots of learnings, and we are pleased to have made good progress towards our updated SBTi targets. But challenges remain, as we continue to integrate sustainability across our business and take action on the complex challenges facing the world – from climate to rising inequality. There are many achievements to be proud of, including supporting refugees and asylum seekers via our Skills for Employment programme and we have now committed to support an additional 3,000 by the end of 2027. We firmly believe sustainability and affordability must go hand-in-hand, so during this year we launched our Sustainable Living Shops online and continued to scale up our circular services by piloting IKEA Preowned, our new peer-to-peer second-hand marketplace, to enable customers to buy and sell used IKEA furniture at even lower prices. We will continue to innovate and lead by example on our journey, and we don't under-estimate the challenges the world is facing, but we are determined to use our size and reach to play a leading role. By radically collaborating across industries and communities, I am confident we will reach our goals,' says Karen Pflug, Chief Sustainability Officer, Ingka Group
In FY24, Ingka Group reported EUR 41.8 billion in revenue and EUR 0.8 billion in net income. Despite a downturn in the home furnishing sector, the company reinvested 85% of its net income into long-term growth. Its AI literacy initiative trained over 4,000 co-workers, supporting responsible technology use.
More information:
Ingka
www.ingka.com