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IKEA

IKEA Sustainability Strategy, FY16 to FY30

To create a better everyday life for the many people
The IKEA vision

Affordable, accessible, and sustainable

Thirteen groups of franchisees run IKEA’s shops under one franchisor, Inter IKEA, and they share one vision. Inter IKEA’s chief executive, Jon Abrahamsson Ring, gives the direction in three words: more affordable, accessible, and sustainable.

“We want to make IKEA more affordable, accessible and sustainable, including for people with thin wallets.”
Jon Abrahamsson Ring, chief executive, Inter IKEA Group
−10%+3%

Affordable

  • Prices were lowered by an average of 10% across all markets in FY24.
  • New products launch at lower recommended prices than the ones they replace.
  • In FY25 the lower prices helped raise both sales volumes and customers by 3%.
  • Europe 39
  • North America 16
  • Asia 6
  • Middle East 5

Accessible

  • 66 new sales locations opened in FY25, from small formats to full-size stores and plan and order points.
  • New markets are on the way in Panama and Costa Rica.
  • IKEA stores had 915 million visits in FY25, up from 899 million, the fifth year of growth in a row.
  • Online sales were 28% of IKEA sales.
FY16
FY24−28%

The line: the FY30 goal, half of FY16

Sustainable

  • At least halve greenhouse gas emissions across the IKEA value chain by FY30, compared with FY16, and reach net zero by FY50 at the latest.
  • The climate footprint was 28% below FY16 in FY24.
  • 81% of the electricity in IKEA retail and other operations was renewable in FY24.
  • 97% of the wood in IKEA products was FSC-certified or recycled.

Halve the climate footprint by FY30

In FY24 IKEA’s climate footprint was 28% below FY16, across the whole value chain and all its franchisees. Each box is 1% of the FY16 footprint.

0%

below FY16 in FY24

21.3 million tonnes of CO₂ equivalent in FY24, as IKEA reported it that year.

Figures for FY25 and FY26 are due in the Inter IKEA Group FY26 Annual Report in November 2026.

The goal in FY24

At least half by FY30, and net zero by FY50 at the latest.

The Science Based Targets initiative approved IKEA’s net zero goals in June 2024.

Online sales were 28% of IKEA sales in FY25

Each room is as wide as its share of IKEA sales in FY25.

69%

In stores

28%

Online

Services 3%

IKEA retail sales

FY23
€47.6bn
FY24
€45.1bn
FY25
€44.6bn

The sales of all thirteen groups of franchisees: IKEA products, food, and services.,

915 million store visits in FY25, up from 899 million.

In FY25 IKEA was preparing to open in Auckland, New Zealand, in December 2025, with new markets to follow in Panama and Costa Rica.

  1. The goal got harder once it was in reach.

    In FY21 IKEA’s goal was a footprint at least 15% lower by 2030, and the footprint was 5.8% below FY16. Two years later, at 22%, it strengthened the goal to at least half, and the Science Based Targets initiative approved it in June 2024. We recommend raising a target that is going to be met early, rather than coasting to it.

  2. A direction in three words.

    More affordable, accessible, and sustainable: thirteen groups of franchisees with different owners can repeat it and act on it. We recommend a direction short enough to say in every meeting, so people know which way to lean when the plan doesn’t cover a decision.

  3. A costly move, reported with what it brought.

    IKEA reports its lower prices beside what they bought: 3% more volume and 3% more customers in FY25, while sales in euros fell by 1%. We recommend saying what a costly move is meant to bring, and reporting the two side by side.

Sources

  1. 1. IKEA (2026). The IKEA vision, values and business idea. IKEA UK, accessed 28 September 2026. ikea.com
  2. 2. Inter IKEA Group (2022). IKEA releases Sustainability Report and Climate Report FY21. Inter IKEA newsroom, 18 January 2022. ikea.com
  3. 3. Inter IKEA Group (2023). IKEA Sustainability and Climate Reports FY22: Reduced climate footprint and significant increase of renewable energy. Inter IKEA newsroom, 15 February 2023. ikea.com
  4. 4. Inter IKEA Group (2024). IKEA Sustainability and Climate Reports FY23: reduced GHG emissions and accelerated climate actions. Inter IKEA newsroom, 25 January 2024. ikea.com
  5. 5. Inter IKEA Group (2025). IKEA Sustainability and Climate Reports FY24: making progress towards climate goals and investing in the future. Inter IKEA newsroom, 30 January 2025. ikea.com
  6. 6. Inter IKEA Group (2025). IKEA retail sales figures for FY25. Inter IKEA newsroom, 16 October 2025. ikea.com
  7. 7. IKEA (2025). The year in review FY25. IKEA Global, accessed 28 September 2026. ikea.com
  8. 8. IKEA (2026). Sustainability Reporting FY25. IKEA Global, accessed 28 September 2026. ikea.com

Headwater is not connected with Inter IKEA Systems B.V. or any IKEA company. IKEA is a trade mark of Inter IKEA Systems B.V. Updated 28 September 2026.

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