New Delhi, January 30, 2026: Ingka Group, the largest IKEA retailer, has reported progress across renewable energy sourcing, zero-emission deliveries and circular business models, according to its Annual Summary and Sustainability Report (ASSR) for Financial Year 2025 (FY25).
During FY25, Ingka Group matched 94.8% of its operations with renewable electricity and achieved 60.1% zero-emission home deliveries, up from 41.1% in the previous year. The company also reduced food waste in production by 60% compared to its FY17 baseline, avoiding waste equivalent to 9.6 million meals during the year.
Ingka Group reported total revenue of EUR 41.5 billion in FY25, reflecting a 0.9% decline year-on-year amid continued efforts to keep prices affordable for customers. Despite lower top-line growth, operating income improved to EUR 1.5 billion, representing 3.5% of sales, up from 3.0% in FY24.
Commenting on the company’s approach, Juvencio Maeztu, CEO of Ingka Group, said, “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. 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.”
On the climate front, Ingka Group achieved a 70.6% reduction in absolute Scope 1 and 2 emissions compared to its FY16 baseline, and a 22.3% reduction since FY24. The company noted that closing the remaining gap toward 100% renewable electricity sourcing remains an immediate priority.
Karen Pflug, Chief Sustainability Officer, Ingka Group, said, “In FY25, we achieved a 70.6% reduction in absolute emissions from our own operations (Scope 1 and 2) against our FY16 baseline… 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.”
Circular services continued to expand, with the Buyback service sourcing nearly 686,500 used IKEA products during FY25, a 39% increase from the previous year. A total of 424 IKEA stores now operate “As-is” areas offering second-hand and discontinued products. Ingka Group also launched a peer-to-peer second-hand IKEA marketplace in Norway, Portugal and Spain, with plans to expand across Europe.
The report also highlights progress on workplace inclusion, with the company’s gender pay gap narrowing to 3.4% in FY25, compared to 4.0% in FY24. Less than 0.6% of co-workers required salary adjustments to close pay gaps.
The FY25 ASSR is Ingka Group’s first report structured around Environmental, Social and Governance (ESG) pillars, aligning with preparations for reporting under the EU Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). Scope 3 emissions data linked to the IKEA product range will be included in future reporting cycles led jointly with Inter IKEA Group.
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