About our sustainability reporting

Scope

This year we publish the “Ingka Group Annual and Sustainability Report” – for the first time, a combined report of our performance and achievements across our business, including sustainability, during the financial year 2018 (FY18) from 1 September 2017 to 31 August 2018, unless otherwise stated.

Each year, Inter IKEA Group will report progress against the IKEA sustainability strategy from across the IKEA value chain and franchise system. Inter IKEA Group sets the overall strategic direction for the IKEA business and includes the companies that develop and supply the IKEA product and food ranges, manufacturing, and Inter IKEA Systems B.V. – the worldwide IKEA franchisor. The IKEA sustainability report for FY18 will be published in spring 2019.

In 2018 we updated the Ingka Group sustainability strategy, which sets our sustainability ambition, focus areas and goals up to 2030. This will guide Ingka Group’s contribution to the IKEA ambition to become people and planet positive.

Environmental data

Our reporting and data collection processes involve many internal and external stakeholders. The majority of data is collected from primary sources and entered into reporting systems. Energy-related information is usually obtained from real- time meters at each site, from invoices or from service providers.

The primary unit used in energy reporting is MWh. Carbon emissions from our own operations and Scope 3 IKEA home furnishing suppliers1 are typically calculated based on real measured energy and fuel usage, while models and estimations are used to assess value chain impacts.

We calculate our energy and carbon footprint in accordance with the GHG Protocol Corporate Standard using the operational control consolidation approach, and it is externally assured. However, the data may be affected by uncertainties in scientific knowledge or in the contextual data used in calculations, especially for Scope 3. We use emission factors from publicly available sources like DEFRA (2017) and IEA (2018)2, and from local electricity and heat suppliers. Factors from publically available databases are integrated in our reporting solution (SUSTAIN). Regular updates of these databases is included in the services provided by our software vendor. In some cases, data is estimated, which is indicated in the text. Scope 2 emissions are calculated in accordance with the GHG Protocol Scope 2 Guidance, applying both the market and location based approaches. Our baseline for GHG footprint disclosure is FY16.

The following greenhouse gases are included in our reported carbon footprint: carbon dioxide (CO2), methane (CH4), Nitrous oxide (N2O), Hydrofluorocarbons (HCFs) and Perfluorocarbons (PFCs) and Sulphur hexafluoride (SF6). The GWPs used in the calculation of CO2e are based on the IPCC Fourth Assessment Report (AR4) over a 100- year period.

Carbon emissions data is calculated to reflect the transfer of IKEA range, supply and production activities to Inter IKEA Group on 31 August 2016. This ensures that reporting only covers Ingka Group. This includes the following changes:

  • Emissions reported for offices excludes offices now belonging to Inter IKEA Group.
  • Emissions related to IKEA Industry and IKEA Components has been removed from Scope 1 and 2 and are part of our scope 3 reporting. Reported FY16 scope 3 emissions, such as business travel and employee commuting have been adjusted based on actual Ingka Group staff numbers.
  • Reported FY16 scope related to Use of sold products and End of life treatment of sold products have been adjusted to reflect Ingka Group sales only, not those of other IKEA franchisees.
  • Scope 3 emissions have been categorised in accordance with the GHG Protocol Scope 3 categories. Our calculation models have been updated to reflect the Ingka Group business context and our external commitments.

We aim to ensure all information and data is relevant, transparent, consistent, accurate and complete, and that it provides an objective picture of Ingka Group’s operations. Data for IKEA stores not owned by the Ingka Group, but by other franchisees, is not covered within the scope of this report. Any other exclusions are stated in the report.

1) This data is provided by Inter IKEA Group
2) Location based emissions factors for electricity usage.