Ingka Group: IKEA's EV Fleet and Net Zero Circular Logistics

Ingka Group, the largest retailer for IKEA, is targeting a 50% reduction in its emissions by 2030 and aims to achieve net zero by 2050.

A major part of this strategy involves decarbonising its logistics network with a focus on EVs for home deliveries.

Ingka Group is also investing in renewable energy sources to power its operations and future EV fleet innovating for circularity and expanding its range of lower-impact food options.

Zero emissions deliveries 

“Not knowing where to start is often the biggest barrier to action,” says Ingka Group Chief Sustainability Officer Karen Pflug on LinkedIn.

“The doom, the gloom, the planet-sized problems, can feel overwhelming, even paralysing. 

“That’s why we believe that with the size and reach of the IKEA brand, we have both a responsibility and an opportunity to communicate sustainability in a way that inspires and enables people to take action.”

Against its 2016 baseline Ingka Group reports a 30% reduction in its total climate footprint.

A cornerstone of its forward-looking strategy is the transition to a zero-emission delivery fleet.

By 2028, Ingka Group aims for over 90% of its home deliveries to be conducted using zero-emission vehicles a move that necessitates a substantial investment in EV technology and charging infrastructure.

This target is a critical component of its broader 2050 net zero goal which involves an absolute emissions reduction of at least 90%.

Any remaining emissions are planned to be neutralised through carbon removal methods.

Ingka’s targets have been validated by the Science Based Targets initiative and are aligned with a 1.5°C pathway.

The transition plan extends beyond vehicle electrification including a phase-out of fossil fuels and a commitment to 100% renewable energy for electricity heating cooling and fuels by 2030.

Ingka Group also aims to minimise operational waste striving to recycle 100% of waste from its own operations within the same timeframe.

According to its FY24 report, Ingka is on track to meet its published targets.

Renewable energy investment for fleet power

To support its ambitious EV transition Ingka Group is making key investments in renewable energy through its investment arm Ingka Investments.

Ingka Group acknowledges that the environmental benefits of EVs are maximised when the electricity used to charge them comes from clean sources.

By 2030 Ingka says it will have invested or committed to invest €7.5bn (US$8.8bn) in the renewable energy sector.

This funding is crucial for developing the infrastructure needed to power a large-scale commercial EV fleet.

As of January 2025 Ingka Group's portfolio includes 49 wind farms across 17 countries and 26 solar parks in 9 countries.

By 2030 Ingka says it will have invested or committed to invest €7.5bn (US$8.8bn) in the renewable energy sector.

This funding is crucial for developing the infrastructure needed to power a large-scale commercial EV fleet.

As of January 2025, Ingka Group's portfolio includes 49 wind farms across 17 countries and 26 solar parks in 9 countries.

It has also initiated a battery storage project demonstrating a comprehensive approach to energy management.

These assets are fundamental to ensuring that the transition to electric vehicles contributes effectively to Ingka Group's overall decarbonisation.

Advocating for a system-wide transition

Ingka Group’s commitment to sustainability extends beyond its own operational changes.

Ingka Group is treating circularity as a system-wide transition with initiatives like second-hand areas in 365 of its stores and online purchasing options for used items in 338 stores.

In its Net Zero Transition Plan published in February 2025, Ingka called for global climate plans and Nationally Determined Contributions (NDCs) to align with the 1.5°C target.

Ingka Group has advocated for a phase-out of fossil fuels increased energy efficiency and the implementation of policies to accelerate sustainable transitions. At COP28 it argued for urgent climate action and an end to fossil fuel dependency.

“What we do now will shape what lies ahead of us and we can’t leave this to the next generation to fix,” explained CSO Karen ahead of the conference.

“We know that climate action is good for business now and in the future.”