IKEA Holding Company Adjusts Key ESG Target it Had Set for its Deliveries

Ingka Group, the largest IKEA franchisee holding company, recently announced that it had modified its goal of hitting 100% emission-free home deliveries this year with a new target to reach over 90% of home deliveries made by zero-emissions vehicles by 2028. The company based these adjustments on various factors, including the availability of charging infrastructure and electric vehicles, as well as a significant increase in online orders.

Currently, home deliveries make up roughly 14% of the company’s mobility emissions.

The aforementioned objectives form part of the firm’s targets to reach net zero by 2050, decrease greenhouse gas emissions across its value chain by 50% by 2030, and decrease its mobility emissions by 40% in the next 5 years.

Ingka Group also called attention to the achievements it’d made thus far in this area, including hitting over 40% of retail home deliveries with zero emission cars last year. This is significantly higher than its 2023 home deliveries made with these same vehicles. In addition to this, the company hit 100% emission-free deliveries in twenty cities.

Karen Pflug, the company’s Chief Sustainability Officer, explained that the updated objectives now reflect the vast challenges faced in the EV sector, which include a limited range of freight EVs, varying local policies, and inadequate charging infrastructure. Pflug added that they believed many of their markets would exceed this target, noting that they also recognized some issues might persist in some countries.

The new targets were included in the company’s Net Zero Transition Plan, which offers a comprehensive plan to decarbonize every aspect of its value chain.

Primary initiatives discussed in the transition plan included offering support to 3^rd party delivery partners to encourage the use of electric vehicles and alternative fuel vehicles, collaborating with truck manufacturers on the development of their electric vehicle ranges and testing these vehicles as they are developed, insource some home deliveries using the firm’s own zero emission vehicles, and utilize route optimization to decrease distance travelled by delivery vehicles, among other plans.

In a post, Pflug revealed that the firm had contracted a project manager working on zero emissions deliveries in each of the firm’s retail countries to address local issues.

Furthermore, Ingka Group is championing for policy changes to help overcome hurdles to the zero-emission transition. This includes encouraging the use of sustainable biofuels and green hydrogen for long-haul transportation, setting targets for the phasing out of internal combustion engine vans and cars, and supporting R&D of sustainable biofuels.

Ingka Group isn’t the only firm that is making progress in greening its operations. Other entities, such as Coyuchi Inc., have also doubled down on their plans to implement ESG principles, and the tangible results from this undertaking are propelling them forward.

NOTE TO INVESTORS: The latest news and updates relating to Coyuchi Inc. are available in the company’s newsroom at https://ibn.fm/COYU

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