SynopsisIngka Group, the largest IKEA retailer, has inked a deal with H2 Green Steel to supply green steel for IKEA's warehouse racking, marking a substantial step toward reducing carbon emissions. This initiative aligns with IKEA's commitment to becoming climate-positive by 2030. By incorporating green steel, they aim to slash carbon emissions in this category by up to 95%. The partnership signals the potential for broader industry transformation by inspiring other businesses to adopt sustainable steel sourcing.ArticleIngka Group, the primary IKEA retailer, has taken a significant stride in its sustainability journey by collaborating with H2 Green Steel to introduce green steel into IKEA's warehouse racking systems. This initiative is a crucial part of Ingka Group's ongoing efforts to curtail its carbon footprint and contribute to a more environmentally responsible future.Steel production is a substantial contributor to global greenhouse gas emissions, accounting for approximately 7 percent of the total. Moreover, it is responsible for a quarter of Europe's industrial CO2 emissions. Recognizing the environmental impact of steel production, Ingka Group has chosen to focus on replacing traditional steel in its warehouse racking, which plays a pivotal role in storing everyday home furnishing items.Karen Pflug, Chief Sustainability Officer of Ingka Group, expresses the significance of this decision: "The innovation of companies like H2 Green Steel holds great potential for a positive business and climate impact." This collaboration is expected to reduce carbon emissions in the warehouse racking category by an impressive 95 percent. It aligns perfectly with IKEA's ambitious goal to become climate-positive by 2030.Ingka Group's commitment to sourcing high-quality green steel, which significantly reduces carbon emissions, is in line with the broader sustainability efforts undertaken by IKEA. The company is dedicated to adhering to the Paris Agreement and is actively working to limit global temperature rise to 1.5°C above pre-industrial levels.Henrik Henriksson, CEO of H2 Green Steel, emphasizes the role of pioneering customers like Ingka Group in driving the demand for green steel. He highlights the transformation occurring in the steel industry, with a shift from traditional, polluting blast furnaces to direct reduction processes powered by green hydrogen.IKEA's dedication to sustainability is evident through its efforts to reduce its climate footprint and enable customers to lead healthier, more sustainable lives. In February, Ingka Group achieved a remarkable 13.6 percent reduction in its total climate footprint (scope 1, 2, and 3) compared to the baseline year FY16.The signed agreement between Ingka Procurement AB and H2 Green Steel will take effect in 2026. Green steel production will commence at H2 Green Steel's new facility in Boden, northern Sweden, with production starting by the end of 2025. IKEA stores will implement green steel in their operations starting in 2026.ConclusionIngka Group's partnership with H2 Green Steel to introduce green steel into IKEA's warehouse racking is a significant step toward reducing carbon emissions and promoting sustainability. By adopting green steel, the company aims to achieve an impressive 95 percent reduction in emissions within the warehouse racking category. This collaboration not only aligns with IKEA's commitment to becoming climate-positive by 2030 but also sets an example for other businesses to follow in embracing sustainable steel sourcing practices. This initiative represents a crucial milestone in the journey toward a greener and more eco-friendly future.