The climate crisis is no longer a future threat; its impact is felt globally. Last year marked a concerning milestone: global temperatures exceeded pre-industrial levels, highlighting the urgent need for immediate action. Every incremental improvement and responsible leader is crucial.
A 2023 survey reveals that 68% of IKEA customers worldwide view climate change as the most significant threat, a figure remarkably consistent across various nations. However, only 6% are willing to pay more for sustainable products. This doesn’t indicate apathy; rather, affordability is a major constraint. Consumers rightfully expect businesses and policymakers to provide affordable and sustainable solutions. Sustainability shouldn’t be a luxury.
As a business leader and parent, I see three compelling reasons to drive climate action: First, we have a moral obligation to future generations. Second, our customers and employees demand leadership on this issue; brands failing to act will face consequences. Third, and critically, climate-conscious practices are financially sound. Waste is inherently costly, and sustainable business models enhance profitability. Some initiatives yield quick returns; others require a longer-term perspective, similar to any investment.
While we aren’t on track to meet the Paris Agreement’s 1.5°C warming target, current projections indicate a disastrous 2.5-2.9°C increase by 2030. However, we’ve reached peak carbon per capita, and significant emissions reductions are within reach.
Our company is committed to the Paris Agreement—halving greenhouse gas emissions by 2030 and achieving a 90% reduction by 2050. This encompasses all three emission scopes: direct operations (scope 1), indirect energy (scope 2), and the entire value chain (scope 3). And our progress demonstrates the viability of this approach.
Since 2016, we’ve reduced our climate footprint by 30.1% across all scopes while growing the business by 23.7%. This involved over 4.2 billion euros in off-site renewable energy investment since 2009, approximately 1 billion euros in companies bolstering recycling infrastructure, and efficiency measures saving 97 million euros (29%) on energy costs compared to five years prior. We’ve also halved operational food waste.
We are not alone. The World Economic Forum’s Alliance of CEO Climate Leaders, with over 130 member companies, collectively reduced absolute carbon emissions by 10% across all three scopes while growing their businesses by 18%, exceeding global GDP growth. While insufficient, this demonstrates progress. Initially, many decisions were based on faith; now, the financial returns are evident, benefiting people, the planet, and businesses.
The challenge is pace and scale. With five years until 2030, we’re at the midpoint of a crucial decade. All entities, regardless of size, must assess their carbon footprint and act decisively. Stronger collaboration between policymakers and corporations is necessary to establish a climate-smart economy. We must accelerate change, share successes, and counteract misinformation. Silence from responsible actors is as dangerous as greenwashing.
We must dispel myths hindering progress. The resources for net-zero transition exist. Inaction risks not only missed economic opportunities but also substantial financial losses—estimated at 10-15% annually, according to the World Economic Forum. The greatest risk for a leader is knowing they could have acted but didn’t.
Ethical business practices are cost-effective, resource-efficient, and environmentally responsible. Let’s embrace our responsibilities and seize the opportunities. We are the first generation capable of building a sustainable future that benefits both humanity and the planet.
Jesper Brodin is the CEO Ingka Group I IKEA, co-chair of the U.N. Global Compact, co-chair of the WEF Climate Alliance, and co-chair of the B Team.