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IKEA's climate footprint shrinks from pre-pandemic level despite record sales

By Anna Ringstrom STOCKHOLM (Reuters) - IKEA, the world's biggest furniture brand, said on Tuesday it was on track to become climate positive by 2030 as its annual carbon...
IKEA's climate footprint shrinks from pre-pandemic level despite record sales © Reuters. FILE PHOTO: The company's logo is seen outside of an IKEA Group store in Saint-Herblain near Nantes, France, March 22, 2021. REUTERS/Stephane Mahe/File Photo

By Anna Ringstrom

STOCKHOLM (Reuters) - IKEA, the world's biggest furniture brand, said on Tuesday it was on track to become climate positive by 2030 as its annual carbon emissions fell 6% from pre-pandemic levels despite record sales.

Brand owner Inter IKEA said emissions in the value chain - from raw material production to customers' use and disposal of products - totalled 26.2 million tonnes of CO2 equivalent in the 12 months through August, against an upwardly revised 27.9 million in fiscal 2019, when emissions fell for the first time.

The revision was due to bigger emissions than estimated previously from materials such as wood, paper-based materials, plastics and candles, a company spokesperson said.

Compared to fiscal 2020, when emissions fell as stores closed temporarily due to the pandemic, emissions increased 6%, from an upwardly revised 24.7 million tonnes of CO2 equivalent.

While the climate footprint from materials kept expanding, the drop in total emissions came mainly from the use of more renewable energy across operations, and a larger share of sales of more energy efficient light bulbs and plant based food.

Whether emissions will fall in the current year will depend on the sales performance of such products alongside the speed of the switch towards renewable energy in production. IKEA expects the footprint from materials to keep expanding this year.

Inter IKEA CEO Jon Abrahamsson was confident about reaching IKEA's target to be climate positive - reducing more greenhouse gas emissions than its value chain emits - by 2030.

"We have (since baseline year 2016) managed to do a third of what our ambition is for 2030 so we are well on track. Then there are big challenges ahead and we need to put all our energy and efforts into securing that we continue on a positive trend towards this goal," he said in an interview.

IKEA, most of whose products are wood-based, increased retail sales in fiscal 2021 to 41.9 billion euros ($47.7 billion) despite global supply chain disruptions as consumers spent more on their homes.

One of the world's biggest wood buyers, it used 21 million cubic metres of wood in products and packaging, up around 10% from the year before.

It said in its sustainability report for 2021 that 99.5% of the wood used was from responsibly managed forests - as certified by the Forest Stewardship Council (FSC) - or recycled. Some 14% of wood used was recycled, up from 12% the year before.

($1 = 0.8793 euros)

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27-05-2022 10:13:26 (UTC+7)

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 EUR/USD1.0760↑ Buy
 GBP/USD1.2657Neutral
 USD/JPY126.79Buy
 AUD/USD0.7136Neutral
 USD/CAD1.2752Neutral
 EUR/JPY136.43↑ Buy
 EUR/CHF1.0302Buy
 Gold1,851.75↑ Buy
 Silver22.120↑ Sell
 Copper4.2980↑ Buy
 Crude Oil WTI114.12Neutral
 Brent Oil114.38↑ Buy
 Natural Gas8.827↑ Buy
 US Coffee C225.78↑ Sell
 Euro Stoxx 503,740.31Sell
 S&P 5004,057.84↑ Sell
 DAX14,231.29↑ Sell
 FTSE 1007,564.92↑ Sell
 Hang Seng20,683.00Buy
 Small Cap 20001,838.24Buy
 IBEX 358,888.80↑ Sell
 BASF50.790Neutral
 Bayer65.90↑ Buy
 Allianz198.80↑ Buy
 Adidas176.76↑ Buy
 Lufthansa6.850↑ Buy
 Siemens AG118.52↑ Buy
 Deutsche Bank AG10.414↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,830/ 6,940
(10/ 20) # 1,730
SJC HCM6,840/ 6,940
(10/ 10) # 1,729
SJC Hanoi6,840/ 6,942
(10/ 10) # 1,731
SJC Danang6,840/ 6,942
(10/ 10) # 1,731
SJC Nhatrang6,840/ 6,942
(10/ 10) # 1,731
SJC Cantho6,840/ 6,942
(10/ 10) # 1,731
Cập nhật 27-05-2022 10:13:29
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ↀ Giá vàng thế giới
$1,853.03-1.1-0.06%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-V31.25031.870
RON 95-III30.65031.260
E5 RON 92-II29.63030.220
DO 0.05S25.55026.060
DO 0,001S-V26.35026.870
Dầu hỏa 2-K24.40024.880
ↂ Giá dầu thô thế giới
WTI$113.09-0.1-0.09%
Brent$117.51-1.66-1.41%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD23.030,0023.340,00
EUR24.263,1125.622,23
GBP28.523,9629.740,84
JPY177,60188,03
KRW15,9119,38
Cập nhật lúc 10:08:25 27/05/2022
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