Commercial, Energy Efficiency, GHG Emissions  -  September 15, 2023

Ingka Group Adds Green Steel

Ingka Group, the largest IKEA retailer, announced it has signed an agreement for the delivery of green steel to be used in IKEA warehouse racking. 

The agreement with H2 Green Steel forms part of Ingka Group's  plan to reduce its climate footprint and will account for 50% of warehouse racking purchased globally.

Warehouse racking is used to store everyday home furnishing items at Ingka Group, and half of it will be replaced by green steel.

The signed agreement between Ingka Procurement AB and H2 Green Steel will come into effect starting in 2026. The green steel will be produced at H2 Green Steel's new plant in Boden, northern Sweden, where it will start production at the end of 2025 and be implemented in IKEA stores starting in 2026.

"The innovation of companies like H2 Green Steel holds great potential for a positive business and climate impact. We are delighted to announce this agreement, as we also want to inspire other businesses to follow. Significant steel volumes from our warehouse racking business will contain green steel. Such improvements will allow us to transition from traditional steel to less carbon-intensive and can support us in reducing carbon emissions in this category by up to 95 percent," says Karen Pflug, Chief Sustainability Officer of Ingka Group, in a statement. "If more companies who use steel move to source green steel, it would have a significant impact on global greenhouse gas emissions."

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