DOver the last decade, we have become painful with pain that climate crisis is no longer a distant threat, but a vibrant reality. It touches millions of people every day. Last year, the world exceeded 1.5 ° C of heat above pre -industrial temperatures for the first time – a milestone that reminds us of the urgency of action. Now, every part of a diploma matters. Every year we can gain in action will matter. Any leader who takes responsibility will matter.
Today, 68% of IKEA clients around the world see climate change as the biggest threat and worry about our future. The numbers, collected during a 2023 survey, vary from place to place less than you might think. At the same time, only 6% of customers are prepared to pay more for durable products and solutions. Don’t make a mistake to conclude that people don’t care. The truth is that most people just can’t afford to pay more. They expect policymakers and companies like ours to find solutions that are affordable and sustainable. And they have the right to do so. Sustainability cannot be a luxury for few people.
As a leader of a multinational business and the father of three, I see three reasons to be part of the transition to a smart climate future. To begin with, based on today’s facts and awareness, we simply cannot afford to overcome this other generation. Second, it is clear that our clients and associates around the world expect us to lead the way. People will cancel brands that do not do that. Reception is not for perfection, but sincere intentions and influential actions. Third – here comes the good news – this is great for business. In general, the smart climate means smart cost. The waste has always been expensive and every step of building a sustainable business model has a positive impact on finances. Some actions are quickly rewarded. Some take time. Like any other investment.
As we experience the pain of today’s climate impacts and hear the justified concerns for our future, we need to mobilize our optimism. It is true that we are not on the right track with the target of the Paris Agreement to limit global warming to 1.5 ° C. It is true that the trajectory is currently towards 2.5-2.9 ° C of heat by 2030 which will have catastrophic consequences if it becomes a reality. At the same time, it is also true that we have already reached the peak of the carbon per capita and we have in hand to reduce the total emissions soon.
As a company, we are committed to the Paris Agreement – we have to halve greenhouse gas emissions by 2030 and reduce them by 90% by 2050. This means emissions in field 1 in our operations, Indirect Emissions of Field 2 and Field 3, which covers emissions from the entire value chain – from raw material, production and transportation to customer use and end of product life. And it works.
Since 2016, our basic year, we have managed to reduce our climate trail by 30.1% in all areas, while we have increased business by 23.7%. To help achieve this, we have invested more than 4.2 billion euros in renewable energy abroad since 2009. We are also investing around 1 billion euros in companies working to increase recycling infrastructure. And efficiency measures have helped us reduce our energy bill by 97 million euros – or 29% – compared to five years ago. In the meantime, we have halved the food waste of our operation throughout our business. Reduction of waste, switching to renewable energy, and supporting our customers to save water, waste, electricity and money are all part of a long -term perspective that is smart source, clever climate and finally smart business .
And we are not alone. Take a look at the Alliance of World Economic Forums of Climate Leaders, which has more than 130 member companies. Over the past three years they have collectively reduced absolute carbon – in all three goals – by 10% while increasing their business by 18%, exceeding the global GDP. Not enough, but it proves that we are on the right track. Only a few years ago many of us made the leaders based on faith -based decisions. Today we really know that our changes and investments will pay – for people, for the planet and for the business.
So what is the problem? We are not fast enough and actions are not enough. With five years left until 2030, we find ourselves in half the most important way for climate action. All parts of society including small and large companies must act on their impact. We all need to fix our home knowing our carbon trail and taking action. We need a stronger and more cooperation oriented towards solutions between policymakers and corporate leaders to set the framework for the smart climate economy. We need to accelerate the difference – the time of this crisis is knocking. We also need to share our successes. Faith is always low for wrong reasons. Greening and deliberate misinformation are unacceptable, but silence by the best actors is an even greater danger. And, we must be leaders for the future. All of us have to take a greater role in collective change.
We need to challenge the myths that stand in the way of action. We have solutions and money to move towards net zero. The risk is not only the loss of the benefits of the new economy, but also suffered economic losses. According to a recent report by the World Economic Forum, the cost of inaction will be in the region 10-15%, every year. The biggest danger as a leader is to know that you could have done something, but you didn’t do it.
It’s a good business to be a good business. It costs awake. It is a smart source. And it’s the smart climate. Let us possess responsibility, lead from opportunities. Think a little: we are the first generation that we can be part of creating a sustainable future that is good for people and the planet. This inspires me. Hope it will happen to you too.
Jesper Brodin is CEO Ingka Group Ikea, Chairman of Team B, co-chair of the Wef Climate Alliance and co-chair of the UN Global Compact