IKEA Backs SMEs to Decarbonise Global Supply Chains
For many small and medium-sized enterprises (SMEs), sustainability targets can appear difficult.
The barriers often lie in limited expertise, constrained budgets and a lack of resources or time.
However, a collaboration between IKEA and the SME Climate Hub is aiming to dismantle those obstacles – especially within the supply chain.
SMEs and climate mitigation
By sharing its own climate learnings and tools, IKEA is providing SMEs with practical support to build resilience and reduce emissions.
The retailer is not only focused on greening its own operations but also sees long-term value in decarbonising every link in the chain, from sourcing and production to logistics and delivery.
While global climate targets rely heavily on industry giants, it’s the collective impact of smaller firms that carries weight.
SMEs represent around 90% of businesses worldwide and contribute an estimated 64% of global emissions, as reported by the International Labour Organization.
These figures underscore how critical their participation is in the climate challenge.
According to the Intergovernmental Panel on Climate Change, global temperatures have risen by 1.1°C since the industrial era.
Projections show that without action, temperatures could increase by as much as 6°C.
This level of warming would have drastic consequences for both people and the planet.
"Even in times of increasing complexity in the world, we have remained committed to our decarbonisation agenda and our persistence is showing positive results,” comments Elisabeth Munck af Rösenschöld, Sustainability Manager at IKEA Supply Chain Operations.
“For us, it's not only about reducing climate impact, it's about reimagining the future of global transport systems.
“We're focused on building a better, more resilient global transport system that enables zero-emission goods flows, cleaner air, supports the creation of new jobs and enhances cost-efficiency across the entire supply chain."
Within the supply chain context, each decision a company makes, be it related to raw material sourcing, transportation modes or energy use, affects this trajectory.
IKEA’s own supply chain decarbonisation strategy is guided by this awareness.
Supporting real-world action
To help SMEs take their first steps, the SME Climate Hub and IKEA are offering a series of tools designed for ease of use, requiring no prior technical knowledge, including:
- Free carbon calculators covering Scope 1, 2 and 3 emissions (direct, indirect and supply chain-related respectively)
- Sector-specific guidance on emission reduction
- Reporting templates to track progress
- E-learning modules called “Climate Fit” on governance, finance and operations
- Multilingual resources to improve accessibility
- Information on financial support, such as green loans and grants
“The IKEA goal, to be more affordable and accessible, while making steady progress on our sustainability agenda, presents a tremendous opportunity,” says Lena Julle, Acting Chief Sustainability Officer at IKEA.
“I look forward to continuing to inspire and enable our customers to live healthier and more sustainable lifestyles.
“Together, we will enable the IKEA transition towards a circular business, accelerate our climate agenda and do our part in supporting a more fair and equal society.”
The approach is intended to make climate action manageable for SMEs with limited capacity.
To participate, businesses are asked to sign the SME Climate Commitment, which states:
“Recognising that climate change poses a threat to the economy, nature and society-at-large, our company commits to take action immediately in order to:
- Halve our greenhouse gas emissions before 2030
- Achieve net zero emissions before 2050
- Disclose our progress on a yearly basis.
“In doing so, we are proud to be recognised by the United Nations Race to Zero campaign, and to join governments, businesses, cities, regions and universities around the world with the same mission.”
This public pledge connects SMEs to the global Race to Zero campaign, offering not just recognition but a community of shared commitment.
Building supply chain resilience
IKEA illustrates the potential impact of this strategy through the example of Sunnyside Guesthouse in Southport, UK.
Initially unsure where to begin, the business made small adjustments over time, eventually embedding sustainability into its daily operations.
“What once felt overwhelming has become an exciting challenge,” says Anthony Duffey, Cofounder of Sunnyside Guesthouse.
“We’ve found that in many cases, sustainability actually saves money while improving our guest experience and reputation.”
This example highlights how, when properly supported, SMEs can transition from climate inaction to climate leadership.
IKEA recognises that it cannot become climate positive without the cooperation of these supply chain partners.
Many of its suppliers and service providers are SMEs and their emissions are a substantial part of IKEA’s total footprint.
By enabling SMEs to act, IKEA strengthens its wider sustainability agenda while reinforcing its supply chain’s stability and efficiency.
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