Sweden’s Ingka Group, the primary retailer of the IKEA brand, has implemented an innovative approach to reducing transport emissions by utilizing boats on the Seine River in Paris. This strategy enables the company to transport goods to distribution points, where they are subsequently picked up by electric vehicles (EVs) for final delivery. This initiative aligns with Ingka’s commitment to a substantial reduction in carbon emissions, targeting a 50% reduction in carbon dioxide equivalent (tCO2e) emissions by 2030 and aiming for net-zero emissions by mid-century.
Strategic Focus on Zero-Emissions Vehicles
The company is concentrating its efforts in regions that provide regulatory support for transitioning to zero-emissions vehicles. According to Trellis.com, formerly known as GreenBiz, Ingka faces a challenging Scope 3 emissions problem, where value-chain emissions accounted for a staggering 98% of the 30 million tons of tCO2e emitted in 2016, the baseline year for its net-zero strategy. To tackle this issue, Ingka is making significant investments in electric and alternative-fuel vehicles, with the goal of increasing the share of home deliveries completed with zero-emission vehicles from 40% to 90% by 2028.
In addition to enhancing vehicle emissions, Ingka aims to establish more pick-up locations closer to customers’ homes. Notably, the third-largest component of Ingka’s Scope 3 emissions includes transport-related emissions from delivery services, as well as travel by customers, employees, and business partners. Since the 2016 baseline, the retailer has managed to reduce this transport footprint by only 13%, now totaling 2.3 million tCO2e. Alarmingly, emissions have increased slightly between 2023 and 2024.
Challenges and Comparisons with Competitors
Ingka’s transition plan outlines a further 40% reduction in emissions by 2030, aiming to bring the total down to 1.6 million tCO2e. Despite these ambitious goals, Trellis’s report highlights that at least half of the world’s largest retailers lack a formal net-zero target. For instance, Walmart, recognized as a leader in supply chain decarbonization, continues to face difficulties in fulfilling its short-term commitments.
Walmart’s advantage in pursuing net-zero goals largely stems from its close relationship with its primary product supplier. In contrast, Ingka collaborates with approximately 1,500 suppliers, with a significant 81% of its climate footprint attributed to IKEA’s food and product offerings, according to data from both companies. This stands in stark comparison to Walmart’s extensive network of at least 100,000 purchasing relationships.
As global companies increasingly commit to sustainability, Ingka Group’s initiatives serve as a noteworthy example of how innovative strategies can drive meaningful change in reducing carbon emissions. The effectiveness of these efforts will not only be measured by their immediate impact but also by their ability to inspire other retailers to embrace similar paths toward sustainability.