IKEA — full event log

Composition of Management Board changed on 1 January 2026 when Jakub Jankowski started as new CEO, replacing Jon Abrahamsson Ring.

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In FY25, the Group acquired full ownership of two companies in Latvia engaged in acquisition, cultivation and maintenance of ~8,000 hectares of forest land, primarily to govern wood supply in the Baltics and develop responsible forest management methods.

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In FY25, Inter IKEA Group revised its sustainability strategy, shifting from ambitions and commitments to an 'objectives and key results' (OKR) methodology. OKRs are set for 2030 and organised into three focus areas: Healthy & sustainable living, Climate/nature/circularity, and Fair & equal.

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The revised sustainability strategy sets a climate objective to reduce emissions in line with a 1.5°C pathway, increase carbon removals and storage, and contribute to broader societal climate change mitigation and adaptation efforts.

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The composition of the Management Board will change on 1 January 2026 when the new CEO starts. The Supervisory Board added one member on 1 August 2025, bringing it to seven members.

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Uncertainties around US trade caused turmoil and volatility on commodity markets from the second half of FY25, with price increases subsequent to tariff announcements. Effective tax rate increased by 3.8% vs prior year mainly due to lower profitability in Switzerland from high supply chain costs connected to US tariffs.

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Inter IKEA Group's revised sustainability strategy sets a climate objective to limit the impact of the IKEA value chain on global warming by reducing emissions in line with a 1.5°C pathway. This objective is formalised under the OKR methodology with 2030 key results. The strategy also includes increasing carbon removals and storage, and contributing to broader societal climate change mitigation and adaptation efforts.

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The revised IKEA Sustainability Strategy explicitly includes increasing carbon removals and storage as a key component of the climate objective, alongside emissions reductions. The acquisition of approximately 8,000 hectares of forest land in Latvia also contributes to responsible forest management and carbon storage within the IKEA value chain.

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In FY25, the Group acquired two companies in Latvia comprising ~8,000 hectares of forest land to govern part of its wood supply in the Baltics and develop new methods for responsible forest management within the IKEA value chain. This is a supply-chain lever addressing upstream raw material sustainability, particularly for IKEA Industry's wood-based furniture production which accounts for ~10% of the total IKEA range.

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Inter IKEA Group is transitioning towards a circular business by applying circular design principles and offering products and services enabling reuse, repair, refurbishment and recycling. In FY25, IKEA Components replaced plastic fitting bags with paper-based alternatives produced using paper from production waste, targeting complete phase-out of plastic consumer packaging by 2028. Alternative designs for mattresses and sofas using renewable and recycled foam content proved successful, with a pilot pocket spring mattress using majority recycled components being set up in Europe.

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The Group enforces environmental and social conditions across its supply chain through IWAY, its supplier code of conduct, which has been regularly updated since 2000 to address emerging social and environmental risks. Verification activities range from gap assessments for new suppliers to full audits for existing suppliers, with business relationships terminated for persistent non-compliance. Approximately 90% of IKEA products are sourced from external suppliers, making supply chain decarbonisation a critical lever.

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In FY25, Inter IKEA Group acquired the IKEA retail operations and real estate in Estonia, Latvia and Lithuania from Hof Group (an IKEA franchisee). Headcount increased by ~2,356 in these countries.

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In FY25, the Group acquired full ownership of retail operations and real estate in Estonia, Lithuania and Latvia (IKEA Baltics) from Hof Group, an IKEA franchisee. The acquisition resulted in EUR 198 million goodwill and EUR 91 million reacquired rights. It was the primary driver of FTE growth from 23,892 to 25,971.

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While preparing for CSRD, IKEA concluded that some GHG methodologies need refinement to ensure compliance. As a result, total GHG emissions (Scope 1, 2, 3) and energy consumption data were omitted from this FY25 statement. Both FY25 and FY26 GHG emissions will be reported jointly in the FY26 sustainability statement.

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Target to reduce absolute Scope 1 and 2 GHG emissions by 82.1% by FY30 vs FY16 baseline. Validated by Science Based Targets initiative (SBTi) Net-Zero Standard.

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Target to reduce absolute Scope 3 GHG emissions by 50% by FY30 vs FY16 baseline. SBTi-validated.

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By FY30, water withdrawals from manufacturing of IKEA products reduced by 50% within each of 15 prioritised water-stressed river basins (China, Egypt, India, Pakistan, Thailand, Turkey), and 20% in remaining locations, vs FY19 baseline. Developed with WWF.

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By 2030, the share of recycled and renewable content across IKEA home furnishing product range to be at least 90%. Currently ~25% of raw material weight is virgin non-renewable.

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By 2030, average circular fulfilment score across IKEA home furnishing product range to be at least 90%, based on Circular Design Principles (reuse, repair, refurbish, recycle).

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At least 40% male and female representation in Supervisory Board and Management Board by 2030 (Dutch legislation); equal male/female representation in Management Team by 2030.

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Expanded renewable electricity programme for suppliers to 14 new countries, now available in 27 countries total. Includes Bangladesh, Brazil, Bulgaria, Egypt, Hungary, Indonesia, Japan, Mexico, the Netherlands, Pakistan, Slovenia, Spain, Thailand, United States.

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IKEA expanded its renewable electricity programme for suppliers to 14 new countries in FY25, making it available in 27 countries total. The supplier code of conduct (IWAY) requires suppliers to at minimum identify options for switching to renewable energy. IKEA targets increasing renewable energy in own operations and is scaling electrification, renewable fuels and energy efficiency across upstream manufacturing and transportation.

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IKEA's climate target aligns with SBTi Net-Zero Standard, which mandates 90% reduction by 2050 and neutralisation of residual emissions within the value chain. The Net Zero and Beyond agenda includes 'increasing carbon removals and storage'. Initiated a climate- and biodiversity-smart forestry project to test improved forestry practices for carbon. However, GHG removals metric (E1-9) not yet reportable.

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IKEA Industry manufactures ~10% of total IKEA range, with focus on wood-based furniture. Drying and pressing processes in particle board and HDF board manufacturing are energy and pollutant intensive. Strategy is to scale up electrification, renewable energy and energy efficiency across own manufacturing sites. Four IKEA Industry sites emit air pollutants above EU Industrial Emissions Portal thresholds (FY25 total: 2,652 tonnes).

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~90% of IKEA range is sourced from external suppliers. Raw material sourcing and product manufacturing is the largest upstream emission source. Strategy: increase share of materials with lower climate footprint (e.g. TAGGHAJ with 70% recycled aluminum, DVÄRGSTUBB with 50% recycled glass, FRAKTA bag with 90% recycled material). Material Directions roadmaps target 90% recycled and renewable content by 2030 across home furnishing range.

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Land transport electrification expanded to fleets across six new countries in FY25. Increased intermodal solutions (rail+road+sea) in Asia Pacific. Engaged with Zero Emission Maritime Buyers Alliance (ZEMBA) to support e-fuel-powered container shipping tender for ocean transport. Targets renewable fuels and energy efficiency in land and ocean logistics.

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Product use at home (especially home appliances and lighting) contributes to household energy consumption. Strategy is to improve energy efficiency of products. Launched first A Class LED bulb in SOLHETTA range per EU energy labelling regulations. No formal policy yet on product use-phase energy.

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Expanded plant-rich food offerings in IKEA restaurants (defined as ≥75% plant ingredients by weight), launching a new rice mix with vegetables dish. Addresses upstream food ingredient emissions, including ammonia from fertilisers in food production.

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Circular Design Principles applied to make products reusable, repairable, refurbishable, recyclable. Examples: VÅLFJÄLLET mattress with separable parts for recycling; replacement of single-use plastic packaging for fitting bags and duvets with paper-based packaging by 2028. Target: 90% circular fulfilment score by 2030.

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First set of forestlands acquired, ~8,000 hectares in Latvia, to enable long-term wood material access for regional suppliers and explore innovative forest management for climate resilience and biodiversity.

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On 23 August 2024, Inter IKEA Group reached an agreement with Hof Group to acquire IKEA retail operations and real estate in Estonia, Lithuania and Latvia. Combined Baltic businesses had total asset value of EUR 205 million on 31 Aug 2023 and FY23 revenue of EUR 314 million with ~1,450 co-workers. Awaiting European Competition Authority approval; not yet consolidated.

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In May 2024, Inter IKEA Group settled all accounts receivable and payable with Interogo Holding AG and terminated the treasury agreement. Treasury and working capital funding now managed in-house, resulting in significant cash inflow and reduced interest expenses.

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In FY24, IKEA opened 56 new sales locations including expansion into Colombia with two new stores and e-commerce, plus new large stores in Maebashi (Japan), Riddes (Switzerland) and smaller-format stores in multiple markets.

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IKEA Supply AG announced partnership with The International Organization for Migration (IOM) in FY24 to improve working and living conditions of migrant workers across the IKEA supply chain through capacity building on ethical and responsible recruitment.

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Since 2020, IKEA has been eliminating plastic from packaging. In FY24 transitioning fitting bag packaging from plastic to paper across products including BRUKSVARA, BRIMNES, IVAR, NYSJÖN and METOD, following successful tests with TUSSÖY mattress toppers.

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Since 2020, IKEA has been working to eliminate plastic from its packaging. Following successful tests with TUSSÖY mattress toppers in paper packaging, the company is extending paper packaging solutions to other categories. Fitting bag packaging is being transitioned from plastic to paper across products including BRUKSVARA, BRIMNES, IVAR, NYSJÖN and METOD.

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Inter IKEA Group manufactures about 10% of the IKEA product range (mainly wood-based furniture) and sources the remaining 90% from over 800 external suppliers globally. IKEA Supply AG manages the supply chain together with transport service providers, warehouse providers and customs brokers. The partnership with IOM aims to improve conditions for migrant workers across this supply chain.

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In May 2024 all accounts receivable and payable with Interogo Holding AG were settled, generating a EUR 4.8 billion cash inflow for Inter IKEA Treasury B.V. and eliminating the EUR 3,230m receivable previously on the balance sheet.

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On 23 August 2024, the Group signed an agreement to acquire IKEA retail and real estate operations in Estonia, Lithuania and Latvia from franchisee Hof Group. Total asset value EUR 205m (FY23), revenue EUR 314m (FY23), ~1,450 co-workers. Pending European Competition Authority approval; expected to close within 4-6 months.

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Recruitment stops and organisational restructurings in FY24 reduced average FTE from 24,944 (FY23) to 23,892 (FY24), a reduction of ~1,052 FTEs, helping stabilise costs despite inflationary pressures.

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The report states CSRD will be applicable to the Group from FY26. Until then, sustainability information including climate data is disclosed only in the separately published IKEA Sustainability Report and IKEA Climate Report, not in this Annual Report.

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Inter IKEA Holding B.V. and Inter IKEA Systems B.V. set a target of at least 40% of the least-represented gender on Management Boards and Supervisory Boards by end of 2030, and 50% equal representation in management teams.

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IKEA Industry divested its 4 Russian production units, concluding the process at end of March 2023. Assets had been impaired in FY22. The sale generated a gain in FY23 but combined with FY22 impairments resulted in a net accumulated loss. FTE reduction from 27,331 to 24,944 was mostly driven by this divestment.

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Finding new glue solutions is one of the main approaches to reducing the IKEA climate footprint, as most glue consumption is used in board production. IKEA is switching to bio-based alternatives to reduce fossil-based glue usage by 40%, with a goal to have most board-producing factories using lower-climate-footprint glues by FY30. The first IKEA Industry factory in Kazlu Ruda, Lithuania is already using a glue system made of technical starch from corn in large-scale production, with multiple parallel trials of other glue systems underway.

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In FY23, ownership of Inter IKEA Group was transferred from Interogo Foundation and Interogo Holding AG to Inter IKEA Foundation. Outstanding long-term loan payable was transferred through capital contribution, reducing non-current liabilities to near zero and eliminating EUR 324 million annual interest expense.

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Programme launched in June 2021 enabling supply partners to access 100% renewable electricity through bundled frame agreements or PPAs. Expanded to Czech Republic, Germany, Italy, Sweden, Turkey, Lithuania, Portugal, Romania, Slovakia, and Vietnam due to high supplier interest.

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Inter IKEA Holding B.V. and Inter IKEA Systems B.V. set a target of at least 40% of the least-represented gender on their Management Boards and Supervisory Boards by end of 2030, with 50% female/male representation in sub-top management teams by the same date.

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The Group is constantly looking for new ways to make production more sustainable and energy-efficient across its 33 production units. Almost two-thirds of the IKEA climate footprint is directly connected to the supply chain, including production at suppliers. Investments were made in FY23 in extending or improving existing production units, and a new distribution centre in South China was taken into operation.

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On 31 August 2023, ownership and control of Inter IKEA Holding B.V. was transferred from Interogo Foundation and Interogo Holding AG to Inter IKEA Foundation. Inter IKEA Foundation subsequently made a capital contribution of EUR 8.3 billion (comprising EUR 5.4bn loan converted to equity and EUR 2.8bn cash), eliminating the large related-party loan and transforming the balance sheet.

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IKEA announced a shift from fossil-based to bio-based glue alternatives targeting a 40% reduction in fossil-based glue usage. Goal is to have most board-producing factories in the IKEA supply chain using lower-climate-footprint glues by FY30. First factory in Kazlu Ruda, Lithuania now using technical starch from corn at scale.

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During FY23 a restructuring transferred 100% ownership from Interogo Foundation/Interogo Holding AG to Inter IKEA Foundation. The outstanding loan payable of EUR 5,400m was transferred via capital contribution, reducing non-current liabilities to near nil and dramatically lowering interest expenses in FY24.

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In June 2021, the Group launched a programme enabling supply partners to consume 100% renewable electricity through bundled frame agreements or Power Purchase Agreements (PPAs) that the Group participates in. Due to high supplier interest in pilot countries and the contribution to limiting carbon footprint, the programme was extended to suppliers in Czech Republic, Germany, Italy, Sweden, Turkey, Lithuania, Portugal, Romania, Slovakia, and Vietnam. This is a dependent lever targeting the ~two-thirds of IKEA's climate footprint that is directly connected to the supply chain, including production at suppliers.

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The Group has a responsibility to secure good social, environmental and working conditions across the IKEA supply chain. The supplier code of conduct IWAY sets out minimum requirements on environmental, social and working conditions. Since its inception in 2000, IWAY has been regularly updated to address emerging social and environmental risks, and suppliers are responsible for communicating requirements to their employees and sub-suppliers. The majority (~90%) of IKEA products are sourced from external suppliers, making supply chain decarbonisation a primary strategic lever.

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In June 2022, Inter IKEA Group announced the scale-down of all business and operations in Russia and Belarus following the February 2022 invasion of Ukraine. All import/export stopped, purchasing and logistics offices in Moscow and Minsk closed permanently. Resulted in significant impairments recorded in FY22.

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