What: Ikea pursues comprehensive 'real zero' carbon emissions strategy through operational transformation and infrastructure investment, moving beyond traditional offset-based approaches.

Why it is important: The shift from offset-dependent strategies to comprehensive operational changes provides a blueprint for retailers seeking to achieve meaningful environmental impact while driving business innovation.

Ikea is pioneering a transformative approach to sustainability by pursuing 'real zero' carbon emissions across its entire business operations. Rather than relying on carbon offsets, the global furniture giant is implementing fundamental changes throughout its value chain. The company has achieved 100% renewable electricity usage in its Australian stores, while over 70% of its delivery fleet now produces zero emissions. Lauren Sinfield, public affairs and advocacy lead at Ikea Australia & New Zealand, emphasizes the company's long-term mindset in embedding sustainability across all business aspects. The Marsden Park distribution centre exemplifies this commitment through its solar and battery project, demonstrating how logistics hubs can evolve from cost centres to sustainability assets. While the company faces challenges in regional zones where infrastructure gaps remain, its transparent approach to disclosure and climate governance, including reviewing 252 industry associations for climate alignment, sets new standards for retail sector transformation.

IADS Notes: Ikea's 'real zero' strategy exemplifies the evolving approach to retail sustainability observed throughout 2024-2025. As highlighted in Harvard Business Review's May 2025 analysis, successful retailers are moving beyond scattered environmental initiatives to implement focused, comprehensive strategies. This aligns with February 2025 data showing 47% of companies integrating sustainability into product development, while Euromonitor's research revealed 63% of consumers actively seeking environmental impact through purchases. The approach mirrors successful transformations seen in September 2024, when major retailers like Central Retail committed to net-zero emissions through practical operational changes. Ikea's transparent communication about regional challenges, particularly in delivery infrastructure, reflects the industry-wide response to March 2025's EU sustainability directives (CSRD, CSDDD, and ESPR), which demand comprehensive environmental reporting and due diligence. The company's investment in facilities like the Marsden Park distribution centre parallels Falabella's May 2025 strategy, demonstrating how infrastructure transformation can support both environmental goals and operational efficiency.

What retailers can learn from Ikea’s ‘real zero’ climate strategy