IKEA Australia FY24 Sustainability and Annual Summary

Better homes ?

For generations, IKEA has been on a mission to bring inspiring and affordable home furnishings to the many people, regardless of wallet size. The focus is on omnichannel innovation, seamlessly integrating physical and digital channels to bring IKEA to more people, offering affordable products, services, and solutions that make healthier and more sustainable living easier.

Material topics:

• Affordable and accessibility of products and services
• Healthy and sustainable living
• Customer and end-use safety

Better lives ❤️

People are at the heart of everything IKEA does. The company aims to take a leading role in creating a fairer and more equal society, starting with co-workers and the supply chain, extending to customers, neighbourhoods, communities, and society at large. IKEA is determined to be a force for good.

Material topics:

• Human rights
• Equality, diversity and inclusion
• Health, safety and wellbeing
• Skills development
• Fair income
• Community impact

Better planet ?

Recognizing that there is only one planet, IKEA is taking bold steps across its business to reduce greenhouse gas emissions, minimize resource use and waste, and promote biodiversity and water conservation. Efforts are also made to make it easier for customers to act sustainably.

Material topics:

• Climate change
• Resource use, circularity and waste
• Water
• Biodiversity and forestry

Better company ?

IKEA conducts business with a humanistic outlook, guided by its vision and values. The company strives to be fair, inclusive, and empowering, with good governance and respect for human rights across its value chain. A large part of net income is reinvested into the business, with the remainder paid as a dividend to the Stichting INGKA Foundation to achieve its charitable purpose.

Material topics:

• Financial resilience
• Ethical business conduct
• Digital trust

Second lives ♻️

35,550 pre-loved IKEA products were bought and resold through the Buy Back service.

Love your IKEA products for longer

Image shows various IKEA products, possibly spare parts, organized in blue bins.

Creating lasting change ⏳

IKEA helped create safer places for women and children to call home through financial and product donations, along with in-kind support to Save the Children Australia, directly supporting 647 women and children.

Image depicts a tent juxtaposed with a house, symbolizing the transition to safer living spaces.

37,000+ customers used the free spare parts offer.

Double the impact through our Good 360 partnership

IKEA supported 1300+ people with $138,000 worth of IKEA products that were discontinued, ex-display, or excess products, which also saved 5.2 tonnes of potential waste from landfill.

Image shows a person carefully packing IKEA products into boxes, likely for donation or resale.

Plant-rich food ?

44% of IKEA's food range is now plant-based, with a lower environmental impact than meat.

Image shows a plate of food featuring plant-based meatballs with mashed potatoes, lingonberry jam, and green peas.

Delivering more value ?

A 50% discount on meals in IKEA Swedish Restaurants was offered on one day a week to make food even better value.

Refugee integration

35 permanent hires were made through the Refugee Workforce Inclusion program, with over 220 participants since 2020.

Image shows a woman smiling, representing the focus on refugee integration and workforce inclusion.

Gender balance ⚖️

A 50.2% women / 49.8% men gender balance was achieved in management positions, meeting the 50/50 goal.

Image shows two women, one in focus, representing gender balance in management positions.

LGBTQ+ inclusion ?

IKEA secured Bronze Tier Status in the Australian Workplace Equality Index, the definitive national benchmark on LGBTQ+ workplace inclusion.

Image features a rainbow flag and a person, symbolizing LGBTQ+ inclusion and workplace equality.

Operational Climate footprint ?

IKEA has reduced its operational climate footprint by 89% since FY16, while growing revenue by 68%.

Reducing waste ?️

A 37% reduction in food waste has been achieved since 2021.

Improving our recycling rate ♻️

74.3% of operational waste was recycled.

Renewable electricity ⚡

100% of electricity across retail operations was from renewable sources, including onsite energy generation and large-scale renewable energy certificates.

Image shows a person working on solar panels on a rooftop, illustrating the commitment to renewable energy sources.

Energy efficiency ?

Through energy saving initiatives, IKEA's buildings are now 16% more efficient than in FY16, using 22KW/m² less energy.

Zero emissions deliveries ?

45% of customer orders were delivered in a zero emissions vehicle. IKEA committed $4.5 million to invest in a national charging infrastructure network for delivery partner fleets.

Avoiding waste ?️

976,000 products were diverted from landfill through dedicated product recovery and quality teams.

Image shows various IKEA products being sorted, representing efforts to divert waste from landfill.

Financial results ?

• $1.725 billion in sales
• $51.3 million in profit
• $40 million in tax paid (effective tax rate 30.1%)

Meaningful career in retail ?

3,778 co-workers are employed across 10 stores, 3 Plan and Order Points, a remote customer meeting point, a service office, and a distribution centre.

Positive change ⬆️

As an Ingka Group retailer, profits are reinvested into improving stores, products, and business, or create change through the IKEA Foundation. Globally, 85% of net income was reinvested into the company, and 15% was paid as a dividend to the Stichting INGKA Foundation to achieve its charitable purpose by providing funding to the IKEA Foundation.

Increasing affordability ?️

$125 million was invested into lower prices in FY23-24.

Onsite solar investment ☀️

Three onsite solar PV projects commenced in 2024 to install a further 2.5MW of solar generation for two stores and the distribution centre.