Ingka Group, the largest retailer of IKEA, has published its Annual Summary and Sustainability Report for FY25, highlighting continued progress on renewable energy sourcing, emissions reductions and circular business models.
The company said 94.8% of its global operations were powered by renewable electricity during the year, alongside sharp gains in zero-emission home deliveries, food waste reduction and the scaling of circular services for customers.
“Our vision is to create a better everyday life for the many people, and we firmly believe that it’s good business to be a good business,” said Juvencio Maeztu, chief executive of Ingka Group. “As a foundation-owned company we can invest for the long term to drive financial strength and have a positive impact on people and the planet.”
Total revenue for FY25 reached €41.5 billion, down 0.9% year-on-year as the company prioritised affordability despite higher customer volumes across stores and online. Operating income rose to €1.5 billion, or 3.5% of sales, up from 3.0% in FY24.
Ingka Group reported a 70.6% reduction in absolute Scope 1 and 2 emissions compared with its FY16 baseline, and a 22.3% cut versus FY24. “Closing the remaining 5.2% gap to reach 100% renewable electricity is an immediate focus,” said Karen Pflug, chief sustainability officer. She added that efforts will continue across zero-emission deliveries, energy efficiency, circular services and food waste recovery.
Zero-emission home deliveries increased to 60.1% from 41.1% a year earlier, while production food waste has fallen by 60% since FY17, avoiding the equivalent of 9.6 million meals in FY25. The company’s Buyback service sourced nearly 686,500 used IKEA products, and 424 stores now operate “As-is” areas for second-hand and discontinued items. Ingka also launched a peer-to-peer IKEA second-hand marketplace in Norway, Portugal and Spain, with plans to expand across Europe.
On social metrics, Ingka Group reported a reduction in its gender pay gap to 3.4%, from 4.0% in FY24, with fewer than 0.6% of co-workers requiring pay adjustments.
“This report highlights both the significant progress we’ve made and the complex challenges that still lie ahead,” Pflug said. “Affordability and sustainability must always go hand-in-hand. At the same time, urgent action is needed to align with the 1.5°C pathway of the Paris Agreement.”
FY25 marks Ingka Group’s first sustainability report structured around environmental, social and governance pillars, as part of preparations to align more closely with the EU’s Corporate Sustainability Reporting Directive and European Sustainability Reporting Standards. The company said Scope 3 emissions data, largely linked to the IKEA supply chain and led by Inter IKEA Group, will be included in FY26 reporting once methodologies are further strengthened.
