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IKEA Partners with HMM to Slash Ocean Transport Emissions

IKEA Partners with HMM to Slash Ocean Transport Emissions



IKEA Partners with HMM to Slash Ocean Transport Emissions

In a significant step towards achieving its environmental goals, IKEA has partnered with HMM (Hyundai Merchant Marine) to utilize their Green Sailing Service, aiming to decarbonize its ocean transportation. This strategic move is expected to substantially cut IKEA's carbon footprint in its logistics operations.


A Green Sailing Initiative


IKEA's agreement with HMM marks a critical advancement in the company's commitment to sustainability. HMM's Green Sailing Service replaces conventional fossil fuels with waste-based biofuels, offering a low-carbon transport solution. This service covers routes connecting the Far East, India, and the Mediterranean. According to a press release from HMM on June 10, this initiative is projected to reduce approximately 11,500 metric tons of carbon dioxide equivalent (CO2e) emissions from March 1, 2024, to February 28, 2025. This reduction is equivalent to transporting 14,534 TEUs of zero-emission cargo from South Korea to the Netherlands.


IKEA’s Commitment to Sustainability


As one of the world's largest shippers, IKEA moves about 1.7 million shipments annually across land and sea. The company has been actively working towards its transport-related decarbonization goals, with biofuels playing an increasingly significant role in its strategy. Global Sustainability Manager Elisabeth Munck af Rosenschöld highlighted the importance of biofuels at a conference in March, emphasizing their role in reducing emissions in the short term, while acknowledging that biofuels are not the ultimate solution for achieving zero emissions.


Progress in Decarbonization


IKEA’s journey with biofuels began in 2019 through a collaborative pilot project with CMA CGM, the Port of Rotterdam, and GoodShipping. Since then, the company has made significant strides in its decarbonization efforts. Between fiscal year 2017 and fiscal year 2023, IKEA reduced its ocean transport emissions by 22% due to improved vessel efficiency and the use of biofuels. In fiscal year 2023 alone, the use of biofuels cut 25,500 metric tons of CO2e emissions.


Long-Term Goals


IKEA aims to reduce its greenhouse gas (GHG) emissions from the transportation of products by 70% by 2030, based on a 2016 baseline. The ultimate goal is to become a zero-emissions cargo owner by 2040. This ambitious target aligns with the broader industry movement, as more companies like Nike and Nestlé are demanding sustainable shipping solutions. During the COP28 UN Climate Change Conference in December 2023, several maritime CEOs committed to decarbonizing maritime shipping and called for an end to building vessels powered solely by fossil fuels.


Conclusion


IKEA's partnership with HMM to utilize the Green Sailing Service represents a proactive approach to reducing the environmental impact of its logistics operations. By integrating sustainable practices into its supply chain, IKEA is not only working towards its ambitious emissions reduction goals but also setting a benchmark for other companies in the industry. As the push for sustainable shipping solutions continues to grow, initiatives like this will be crucial in driving the global transition towards greener logistics.


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