Dver the past decade, we have become painfully aware that the climate crisis is no longer a distant threat but a living reality. It affects millions of people every day. Last year, the world exceeded 1.5°C of warming for the first time above pre-industrial temperatures – a milestone that reminds us of the urgency to act. Now every fraction of a degree counts. Every year we can gain actions that will matter. Every leader who takes responsibility will count.
Today, 68% of IKEA customers worldwide consider climate change the biggest threat and worry about our future. The figures, collected during a 2023 survey, vary less from one country to another than one might think. At the same time, only 6% of customers are willing to pay more for sustainable products and solutions. Don’t make the mistake of concluding that people don’t care. The truth is that most people simply cannot afford to pay more. They expect policymakers and businesses like ours to find affordable and sustainable solutions. And they are right to do so. Sustainability cannot be a luxury reserved for a few.
Inasmuch as manager of a multinational company and father of three children, I see three reasons to participate in the transition to a climate-smart future. First of all, given today’s facts and consciousness, we simply cannot afford to pass this on to the next generation. Second, it is clear that our customers and colleagues around the world expect us to lead the way. People will deselect brands that don’t do this. The expectation is not perfection but sincere intentions and impactful actions. Third – here’s the good news – it’s great for business. In general, smart climate management means smart cost management. Waste has always been expensive and each step in building a sustainable business model has a positive impact on finances. Some actions pay off quickly. Some take time. Like any other investment.
As we feel the pain of today’s climate impacts and listen to justified concerns about our future, we must harness our optimism. It is true that we are not in line with the Paris Agreement objective of limiting global warming to 1.5°C. It is true that the trajectory is currently heading towards warming of 2.5 to 2.9°C by 2030. which would have disastrous consequences if it became a reality. At the same time, it is also true that we have already reached peak carbon per capita and are within reach of reducing total emissions soon.
As a company, we are committed to the Paris Agreement: we must halve greenhouse gas emissions by 2030 and reduce them by 90% by 2050. This means for emissions from scope 1 of our operations, indirect scope 2 emissions and scope 3, which covers emissions. across the entire value chain, from raw materials, production and transportation to customer use and end of product life. And it works.
Since 2016, our reference year, we have managed to reduce our climate footprint by 30.1% across all areas, while increasing our activity by 23.7%. To achieve this, we have invested more than €4.2 billion in off-site renewable energy since 2009. We are also investing around €1 billion in companies working to strengthen recycling infrastructure. And efficiency measures have allowed us to reduce our energy bill by €97 million, or 29%, compared to five years ago. At the same time, we have cut food waste in half across our business. Reducing waste, switching to renewable energy and helping our customers save water, waste, electricity and money are part of a long-term perspective that is resource-smart, climate-smart and , ultimately, smart in business terms.
And we are not alone. Take a look at the World Economic Forum’s CEO Climate Leaders Alliance, which has more than 130 member companies. Over the past three years, they have collectively reduced their absolute carbon emissions (in all three areas) by 10% while increasing their activity by 18%, surpassing global GDP. This is not enough, but it proves that we are on the right track. Only a few years ago, many of us leaders made decisions based on faith. Today, we know full well that our changes and our investments will pay off, for people, for the planet and for businesses.
So what’s the problem? We are not fast enough and actions are not enough. With five years to go until 2030, we are halfway through the most important decade for climate action. All parts of society, including small and large businesses, must act accordingly. We all need to get our own house in order by knowing our carbon footprint and taking action. We need stronger, more solutions-focused collaboration between policymakers and business leaders to set the framework for a climate-smart economy. We must accelerate change: time is running out on this crisis. We must also share our successes. Trust is at an all-time low for all the wrong reasons. Greenwashing and intentional misinformation are unacceptable, but the silence of the best actors poses an even greater risk. And we must be leaders for the future. We must all take a greater role in collective change.
We must challenge the myths that stand in the way of action. We have the solutions and the money to go carbon neutral. The risk is not only of missing out on the benefits of the new economy, but also of suffering its economic losses. According to a recent report from the World Economic Forum, the cost of inaction would be around 10 to 15% each year. The biggest risk as a leader is knowing that you could have done something, but you didn’t.
It’s good business to be a good company. It’s profitable. This is a resource-smart solution. And it’s climate smart. Let’s take responsibility, let’s take advantage of opportunities. Think about it: we are the first generation that can help create a sustainable future that is good for people and the planet. This inspires me. I hope this is the case for you too.
Jesper Brodin is the CEO of Ingka I IKEA Group, Chairman of Team B, Co-Chair of the WEF Climate Alliance and Co-Chair of the UN Global Compact.