Ingka Group's Net Zero Plan: Renewables & Circularity

Ingka Group, the largest retailer for IKEA, has outlined ambitious targets to halve its emissions by 2030 and achieve net zero by 2050.

The strategy involves substantial investment in renewable energy sources, innovating its approach to circularity and decarbonising its logistics chain.

These goals are part of a broader commitment to sustainability that also includes expanding its range of food with a lower environmental impact.

According to Karen Pflug, Chief Sustainability Officer at Ingka Group, the scale of global environmental challenges can be a major obstacle to progress.

“Not knowing where to start is often the biggest barrier to action,” Karen explained on LinkedIn. She believes the sheer size of the climate issue can feel overwhelming for many.

“The doom, the gloom, the planet-sized problems can feel overwhelming, even paralysing,” she says. “That’s why we believe that with the size and reach of the IKEA brand, we have both a responsibility and an opportunity to communicate sustainability in a way that inspires and enables people to take action.”

Renewable energy investments and targets

Ingka Group has already made progress towards its climate goals, reporting a 30% reduction in its total climate footprint against a 2016 baseline.

Its net zero target for 2050 is underpinned by a plan for an absolute reduction in emissions of at least 90%.

Any remaining residual emissions are planned to be neutralised through carbon removal methods.

These targets have been validated by the Science Based Targets initiative, aligning with a 1.5C pathway.

A key component of its transition plan is the phasing out of fossil fuels. Ingka Group is striving for 100% renewable energy use across electricity, heating, cooling and fuels by 2030.

Through its investment arm, Ingka Investments, the group has committed to invest €7.5bn into the renewable energy sector by 2030.

As of January 2025, these investments include 49 wind farms and 26 solar parks across 17 and nine countries respectively, alongside a battery storage project.

Circular economy and waste reduction

Circularity is being treated as a fundamental system-wide change within Ingka Group.

This approach includes initiatives to extend the life of products and reduce waste. Second-hand areas are now present in 365 of its stores, and customers can purchase these items online from 338 locations.

In the 2024 financial year, Ingka Group reported that it repurchased over 495,000 used items from approximately 260,400 customers.

Ingka Investments has also established a dedicated circular investments platform.

This platform focuses on recycling infrastructure for materials such as plastics, textiles, wood and mattresses.

It holds an ambition to invest around €1bn to help grow these capabilities.

This aligns with a transition goal to reduce its operational waste, aiming to recycle 100% of waste generated in its own operations by 2030.

Climate advocacy and policy influence

Beyond its internal operations, Ingka Group is actively advocating for wider systemic change.

In its Net Zero Transition Plan published in February 2025, Ingka Group called for national climate plans and Nationally Determined Contributions (NDCs) to be aligned with the 1.5°C target.

The plan also urged a phase-out of fossil fuels, an increase in energy efficiency and the implementation of policies to accelerate sustainable transitions.

During the COP28 climate conference, Ingka Group advocated for urgent climate action and an end to fossil fuel dependency.

It also supported the call for a meaningful price on carbon that reflects the true costs of climate change.

“What we do now will shape what lies ahead of us, and we can’t leave this to the next generation to fix,” said Karen ahead of the conference. “We know that climate action is good for business now and in the future.”

Ingka Group aims to have over 90% of its home deliveries made by zero-emission vehicles by 2028, demonstrating a clear pathway for its logistics decarbonisation.