Sweden’s Ingka Group, the primary retailer of the IKEA brand, is implementing an innovative strategy to reduce transport emissions by utilizing boats on the Seine River in Paris. This approach allows the company to transport goods to distribution points, from where they are picked up by electric vehicles (EVs) for last-mile delivery. The initiative is part of a broader goal to cut carbon dioxide equivalent (tCO2e) emissions by 50% by 2030 and achieve net-zero emissions by mid-century.
The focus on regions with supportive regulations for zero-emission vehicles aligns with Ingka’s commitment to sustainability. According to data from Trellis.com, formerly known as GreenBiz, the company confronts a significant challenge regarding Scope 3 emissions, which accounted for 98% of its total emissions of 30 million tons of tCO2e in 2016. This year serves as the baseline for its net-zero target. To meet its objectives, Ingka is investing in electric and alternative-fuel vehicles, aiming to enhance the proportion of home deliveries fulfilled using zero-emission vehicles from 40% to 90% by 2028.
In addition to increasing the number of EVs, Ingka is establishing more pick-up locations closer to customers’ homes. Transport-related emissions from delivery services, along with emissions from customer, employee, and business travel, represent the third largest component of Ingka’s Scope 3 emissions. Since the 2016 baseline, the retailer has managed to reduce this footprint by just 13%, achieving a total of 2.3 million tCO2e. Notably, emissions from this category rose slightly between 2023 and 2024.
Ingka’s transition plan intends to deliver an additional 40% reduction in emissions by 2030, targeting a decrease to 1.6 million tCO2e. This ambitious plan, however, is set against a backdrop where, according to Trellis’ “Chasing Net Zero” series, at least half of the world’s largest retailers lack a formal net-zero target.
For comparison, Walmart, recognized as a leader in supply chain decarbonization, is reportedly struggling to fulfill its short-term commitments. Despite its extensive network of over 100,000 purchasing relationships, Walmart’s strategy is heavily reliant on its connection with key suppliers. On the other hand, Ingka collaborates with approximately 1,500 suppliers, with 81% of its climate footprint attributed to IKEA’s food and product offerings.
As Ingka Group continues to innovate in its approach to reducing transport emissions, the effectiveness of its strategies will be crucial in determining its progress toward sustainability goals. The integration of environmentally friendly transport methods, such as utilizing the Seine River, exemplifies the proactive steps companies can take in addressing climate change and its associated challenges.
