Reducing your business’ carbon emissions have never been so important.
It will take a collective effort to reach our net zero targets, and all of us have a part to play.
From small independent businesses to huge multinationals.
Keep reading to find out who is leading the way when it comes to cutting emission
Some of the UK’s biggest commitments
The Race To Zero campaign is a global initiative from the UN to rally leadership and support from businesses, cities, regions, and investors for a healthy, resilient, and zero-carbon recovery that will also prevent future threats, create decent jobs, and support inclusive, sustainable growth.
There are many FTSE100 companies in the UK signed up to this scheme, but some of the most unique commitments are included below:
- Vodafone has pledged to reduce its own carbon emissions to zero by 2030, before eliminating its full value chain emissions, reaching net-zero by 2040.
- Sainsbury’s has committed £1 billion over the next 20 years to become net zero by 2040. As part of this pledge, the company has also committed to reduce food waste, plastic packaging and water usage as well as increase recycling, biodiversity and healthy and sustainable eating
- AstraZeneca has committed to achieving zero carbon emissions from its global operations by 2025 and becoming carbon negative across its entire value chain by 2030. This involves doubling its energy productivity; using 100% renewable energy for power and heat and sustainable product design such as the launch of next-generation respiratory inhalers
- Rolls-Royce has committed to net zero greenhouse gas emissions associated with its operations and facilities by 2030. This involved establishing a circular economy approach to their manufacturing process meaning up to 95% of their jet engines can now be recycled
- Barratts has committed to achieving net zero by 2040 – the first major housebuilder to do so. The leading housing company has already reduced its carbon emissions by 21% and is in the process of constructing a hydroelectric turbine that will feed enough renewable energy into the national grid to supply over 250 homes annually with their energy needs
- Legal and General has committed to become net zero across their entire operational footprint from 2030. On top of this, they have announced they will open the UK’s first net-zero carbon retirement community by 2030, located in central Bedfordshire and have pledged that all homes built by their housing services will be capable of operating at net zero carbon emissions from 2030
- Aviva became the first major insurer worldwide to target Net Zero carbon by 2040. Their pledge includes the commitment to invest £2.5 billion in low carbon and renewable energy infrastructure and power all their offices with 100% renewable electricity
- Severn Trent has committed to delivering a net zero water supply for customers by 2030, and helped publish the Net Zero 2030 roadmap, a major step for the sector. Severn Trent is also ensuring the 2022 Games in Birmingham will the first ever carbon neutral Commonwealth Games
The FTSE 100 companies in the race to net zero
The full list of the top 100 UK companies signed up to the Race to Net Zero scheme is listed below in alphabetical order:
- AstraZeneca plc
- Aviva plc
- Barratt Developments
- Berkeley Group Holdings
- British Land
- BT Group plc
- Burberry Group plc
- Croda International
- Diageo plc
- Entain
- GlaxoSmithKline plc
- Intern’l Consolidated Airlines Group
- Intertek
- JD Sports
- Land Securities
- Legal & General Group plc
- London Stock Exchange Group plc
- Phoenix Group
- Reckitt Benckiser
- Rightmove
- Rolls-Royce Holdings plc
- J Sainsbury plc
- Schroders
- Severn Trent
- SSE plc
- Tesco plc
- Unilever plc
- United Utilities
- Vodafone Group plc
- WPP plc
A Case Study in Emissions Reduction and Sustainability – IKEA Innovation
It is sometimes difficult to really pick out the details of how these huge companies are achieving equally huge reductions in their footprint.
For smaller businesses, remember, these companies have vast teams and unlimited resources dedicated to these projects.
How you choose to pursue your own emissions and reductions goals is really down to you.
But, to get the ball rolling, we have included the details of how one of the largest companies in the UK have smashed the ball out of the park when it comes to their sustainability targets.
The climate footprint from materials
The biggest portion of the IKEA climate footprint comes from raw material extraction and processing materials used in the IKEA range. In order to reduce their climate footprint, IKEA focussed on the materials they use the most and those that have the largest climate footprint: wood, metals, paper, textile furnishings and plastics. This represents 90% of their material needs and climate footprint.
Although wood represents the largest material share, metals have a higher climate footprint since they are more energy-intensive to produce. As a result, IKEA now aim to significantly increase recycled metal content while securing that for all materials, they have a complete portfolio of actions to reach the required reductions by 2030. To reduce the pressure on the world’s forests, IKEA have set a new goal to use one third recycled wood by 2030.
Goal for 2030: Goal under development currently.
The climate footprint from food ingredients
VÄRLDSKLOK, a plant-based mince, was launched recently. As with HUVUDROLL, IKEA’s plant-based meatball alternative, VÄRLDSKLOK is based on pea-protein and will provide a similarly small climate footprint.
IKEA restaurants and other foodservices operated at a reduced capacity during the COVID pandemic. This impacted the overall sales of food, which in turn reduced the absolute climate footprint. A better indicator is tracking the development of the relative climate footprint per kg food ingredient, which has decreased by 13.4%.
The positive development in relative measures is supported by trends in the share between plant-based and meat-based food options.
Goal for 2030: To reduce the food-related greenhouse gas emissions in absolute terms by 25%, or a 38% relative reduction in food-related greenhouse gas emissions per calorie.
The climate footprint from production
Significant progress was made regarding greenhouse gas emissions reductions at suppliers. Large movements in securing 100% renewable energy for purchased electricity took place. By securing renewable electricity, all IKEA owned factories as of 1st January 2021 only consume renewable electricity – globally.
Goal for 2030: To reduce the absolute greenhouse gas emissions by 80%.
The climate footprint from product transport
Land transport relative emissions decreased by 2.2% due to an increase in intermodal solutions from 41% to 45%. IKEA also managed to maintain the filling rates of their containers.
Although the progress in using biofuels in ocean shipping did not meet IKEA’s expectations, this was mainly due to the turbulence in the transportation industry and constant network adjustments, followed by high-cost pressures from supply chain challenges. Consequently, the overall share of alternative fuels decreased from 3.3% to 0.8%.
Goal for 2030: To reduce the absolute greenhouse gas emissions from product transport by 15%.
The climate footprint from customer travel and home deliveries
The climate footprint from customer travel and home deliveries decreased by 0.9%. IKEA reached their goal to install charging stations at all stores in 32 markets was reached.
Although the share of deliveries made via electric trucks increased from 9.6% to 11%, the climate footprint from home delivery increased by 46% in absolute terms. This is mainly due to the COVID-19 pandemic, online shopping and customer demand for delivery.
Goal for 2030: To reduce the greenhouse gas emissions from customer travel and home deliveries by 50% in relative terms (per store customer).
The climate footprint from product use at home
The second-largest part of the IKEA climate footprint after materials comes from the electricity needed for lighting and home appliances in their customers’ homes. A small part of the climate footprint comes from gas-driven hobs, refrigerants used for refrigerators and freezers, and the burning of candles.
The climate footprint from product use at home has decreased by 3%, mainly due to improved energy efficiency of IKEA’s LED bulbs. The share of renewable electricity that IKEA customers are using has increased by 5%.
Goal for 2030: Goal under development currently.
The climate footprint from product end-of-life
Despite using significantly larger material volumes today, IKEA’s climate footprint from product-end-of-life has increased by only 1.0%. Their ambitions are to transform into a circular business by securing the use of renewable or recycled materials while prolonging the life of their products through reuse, repair and recycling. Becoming a circular business also means designing their products to be recycled, generating secondary raw materials. As a result, products are less likely to end up in landfills or be incinerated.
Products can’t be recycled if no infrastructure exists so IKEA are working together with communities and societies to increase the possibilities to prolong the life of their products and enable recycling. This is done by supporting the development of responsible waste management set-ups, circular product loops and creating work opportunities in neighbourhoods in connection to product care and recycling.
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