Sustainability and Profitability Go Hand in Hand

IKEA Australia has made remarkable strides in sustainability, cutting its operational climate footprint by 89% since FY16, all while achieving an impressive 68% revenue growth. The company’s latest FY24 sustainability report highlights its commitment to environmental action, affordability, and social impact, proving that sustainability and profitability can go hand in hand.

Globally, IKEA has set a goal to halve its emissions by 2030, using FY16 as a baseline. So far, the brand has achieved a 30% reduction in emissions while increasing revenue by 20%.

“We are proud of what we have achieved this year as a company, and we will continue to innovate, lead by example, and collaborate to reach our ambitious goals,” said Renea Robson, Sustainability Manager, IKEA Australia.

Major Sustainability Milestones

• 100% Renewable Electricity: All retail operations now run on renewable energy.
• Waste Reduction: Operational waste recycling reached 74.3%, with a goal of 100% by 2030.
• Food Waste Cut by 37%: The Food Waste Watcher initiative has significantly reduced waste since 2021.
• Zero-Emission Deliveries: 45% of customer orders were delivered using zero-emission vehicles, peaking at 65% in January 2025. IKEA has invested $4.5 million in EV charging infrastructure, aiming for 100% zero-emission deliveries in metro areas by 2025.

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Social Responsibility & Community Impact

IKEA reinvested 85% of net income into its operations, directing the remaining 15% to the Stichting INGKA Foundation, which funds charitable projects through the IKEA Foundation.

Recognizing financial pressures on customers, the company invested $125 million in price reductions, affecting over 3,000 products, aiming to return to pre-pandemic pricing.

Diversity, Inclusion, and Refugee Support

IKEA Australia is also making strides in workplace inclusion:

• 50/50 gender balance achieved in management roles.
• Gender pay gap reduced to 3.5%.
• 26 weeks of paid parental leave, with superannuation provided during both paid and unpaid leave.

Through the Refugee Workforce Inclusion program, IKEA hired 35 permanent employees in FY24, engaging 220 participants since 2020. The company also partnered with Save the Children Australia, assisting 647 women and children affected by domestic violence, providing design expertise and furnishings for emergency refuges.

A Model for Sustainable Business Growth

By aligning climate action, social responsibility, and business growth, IKEA Australia sets an inspiring benchmark for corporate sustainability. The company’s long-term goals include achieving zero-waste operations, fully zero-emission deliveries, and continued leadership in affordable and responsible retailing.

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