How IKEA AU Slashed its Operations Climate Footprint by 89%

IKEA’s sustainability pledges and achievements not only benefit its own business, but the planet.

Speaking off the back of its Annual Summary and Sustainability Report FY24, Ingka Group CEO Jesper Brodin said the company proves the “business case for investing in climate action works”.

And now, IKEA says that its business in Australia has reduced its operational climate footprint by a staggering 89% in the last decade.

IKEA solar to cover 70% of warehouse power

One of the most effective ways for businesses to reduce their carbon footprint is by investing in renewable energy sources. 

Solar power, in particular, has become an attractive option for many due to its decreasing costs and improving efficiency.

IKEA has unveiled a new large-scale solar project at Sydney’s Marsden Park, which could generate up to 70% of the energy needed to run its round-the-clock warehouse operations.

The AU$2.9m (US$1.8m) initiative is delivered by Smart Commercial Solar and includes more than 4,000 solar panels covering 9,000m² of rooftop space. 

To maximise the benefits of the renewable energy it will harness, IKEA’s project includes the installation of a 1MW battery — allowing excess energy generated during the day to be stored and used during peak demand periods and at night.

IKEA Australia Country Sustainability Manager Renea Robson says: “Showing we have significantly reduced our emissions from operations while growing the IKEA Australia business proves that investing in climate action and delivering commercial success is absolutely achievable — together.

“This new project we are proud to launch at our Marsden Park distribution centre is a standout example of the kind of investments we are making — not only because they are good for the planet and taking our renewable energy ambitions to the next level, but because they benefit our business, too.”

For more than 10 years, IKEA Australia has been prioritising renewable energy generation and implementing energy storage solutions across its stores and distribution centres, capitalising on the vast rooftop and parking area spaces available. 

This began in 2014 and, as of today, IKEA Australia has successfully installed solar panels on nine out of its 10 signature ‘big blue box’ stores, as well as on the distribution centre in Marsden Park.

The new project at Marsden Park will boost renewable energy generation onsite from 26% up to 70%, powering day-to-day IKEA operations in the distribution warehouse alongside charging the EVs used for IKEA home deliveries.

Smart Commercial Solar’s CTO Kealy Day adds: “What I’m most proud of in this project is how Smart has evolved with technology and the market to make solar and battery storage a cost-effective, practical solution for businesses. 

“It’s proof that clean energy isn’t just the right choice — it’s now the smart choice.”

Sustainability at IKEA Australia

In IKEA Australia’s annual summary and sustainability report says that, for the wider IKEA business, success is measured across four key pillars: 

In keeping with these markers of success, IKEA Australia has achieved the following in FY24, as outlined in the report:

• 100% renewable electricity use in retail operations
• 44% of main dishes are now plant based, with these meals having a lower environmental impact than those with meat
• 45% of customer orders were delivered in a zero emissions vehicle, peaking at 65% in January 2025
• AU$4.5 million investment in dedicated electric vehicle chargers for delivery partner fleets in all IKEA stores across the country and distribution centre
• Supported more than 1300 people with AU$138,000 worth of IKEA products that were discontinued, ex-display or excess products. This also saved 5.2 tonnes of potential waste from landfill.

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