Ingka Group steps up circular push and low-carbon operations
FY25 saw strong gains in clean deliveries, renewable power use and second-hand furniture services across IKEA stores.
Ingka Group, the largest IKEA retailer, increased zero-emission home deliveries to 60.1 per cent in financial year 2025, up sharply from 41.1 per cent a year earlier, according to its Annual Summary and Sustainability Report.
The company said scaling clean home deliveries is a key part of its efforts to reduce emissions from its own operations and across the value chain. During the year, Ingka Group achieved a 70.6 per cent reduction in absolute emissions from its own operations compared with its FY16 baseline.
Alongside cleaner deliveries, Ingka Group matched 94.8 per cent of its operations with renewable electricity in FY25. The company said closing the remaining gap to reach 100 per cent renewable electricity sourcing is an immediate priority.
The report also highlighted progress in cutting waste and extending product life. Production food waste was reduced by 60 per cent since FY17, while the Buyback service sourced nearly 686,500 used IKEA products in FY25, up from 495,000 in the previous year.
Ingka Group reported revenue of EUR 41.5 billion in FY25, a decline of 0.9 per cent year on year, as it continued to focus on keeping prices low despite higher customer visits. Operating income improved to EUR 1.5 billion, or 3.5 per cent of sales.
The FY25 report is the company’s first to be structured around Environmental, Social and Governance pillars, as part of preparations to align more closely with European sustainability reporting standards.
