Ingka Group, which accounts for 87% of IKEA sales globally, has published its annual summary and sustainability report, outlining the progress it has made in renewable energy use, emissions reduction and other associated areas.
As the group noted, it matched 94.8% of its operations with renewable electricity during full-year 2025, while it increased its percentage of zero-emission home deliveries to 60.1%, up from 41.1% the previous year.
In terms of Scope 1 and 2 emissions, the group reported a 70.6% reduction compared to its FY16 baseline, and a 22.3% reduction year-on-year.
“Closing the remaining 5.2% gap for renewable electricity is an immediate focus, and we will continue to advance our efforts to drive emission reductions across the value chain by scaling zero emission home deliveries, energy efficiency, circular service offer, and maintaining our food waste recovery goals,” commented Karen Pflug, chief sustainability officer, Ingka Group.
Circular economy
The group added that its ‘Buyback’ service, through which customers can give a second life to used IKEA products, sourced more than 686,000 products last year, compared to 495,000 the previous year. Some 424 of its stores offer second-hand sales, while it also recently launched the IKEA second-hand marketplace, a peer-to-peer platform for IKEA furniture, in Norway, Portugal and Spain.
Elsewhere, the group also made progress in terms of workplace equity, with the gender pay gap decreasing to 3.4% in 2025, down from 4.0% in 2024.
Financial performance
Ingka Group, which operates the IKEA brand in 32 markets, said that total revenue in its 2025 financial year reached €41.5 billion, which was a 0.9% decline year-on-year, despite customer numbers increasing. Operating income rose to €1.5 billion, equivalent to 3.5% of sales.
“Our vision is to create a better everyday life for people, and we firmly believe that it’s good business to be a good business,” added Juvencio Maeztu, CEO of Ingka Group. “This principle guides every decision we make. As a foundation-owned company, we can stay true to that purpose by investing for the long-term – to drive both financial strength and have a positive impact on people and the planet.”
Ingka Group operates across three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Read more here.
