IKEA's Ingka Group Pioneers Seine River Transport to Cut Delivery Emissions

Innovative Waterway Strategy Part of Ambitious Net-Zero Goals

Sweden's Ingka Group, the primary retailer for IKEA stores, is deploying an innovative logistics approach using boats on Paris's Seine River to transport goods to distribution points, where electric vehicles complete last-mile deliveries. The initiative represents part of the company's broader strategy to achieve a 50% reduction in carbon dioxide equivalent emissions by 2030 and reach net zero by mid-century.

The Seine transport solution allows Ingka to deliver IKEA's entire product range via waterway in the French capital, generating up to five times less CO2 emissions than traditional road delivery methods. Products arrive at specialized pontoons—the first dedicated to last-mile logistics in the Port of Paris—before being transferred to zero-emission vehicles for final customer delivery.

Targeting Scope 3 Emissions Challenge

Ingka faces a formidable decarbonization challenge, with value-chain emissions comprising 98% of the 30 million tons of CO2 equivalent the company emitted in 2016, its baseline year for net-zero targets. Transport-related emissions from delivery services, customer travel, and business operations represent the company's third-largest Scope 3 component, totaling 2.3 million tCO2e—a reduction of just 13% since 2016.

To address this challenge, Ingka is investing heavily in electric and alternative-fuel vehicles, aiming to increase zero-emissions vehicle deliveries from 40% to 90% by 2028. The retailer is also expanding pickup locations closer to customers' homes to reduce transport distances. However, the company acknowledges that emissions rose slightly between 2023 and 2024, making its transition plan's additional 40% reduction target by 2030 increasingly critical.

Strategic Regional Focus

Ingka's approach prioritizes regions with stronger regulatory support for zero-emissions vehicle transitions, positioning the company to capitalize on favorable policy environments. This strategic focus allows the retailer to accelerate deployment of sustainable transport solutions where infrastructure and incentives align with decarbonization goals.

The company benefits from its concentrated supplier base compared to other major retailers. While Ingka sources from 1,500 suppliers, 81% of its climate footprint stems from IKEA foods and products. This contrasts sharply with Walmart, which manages over 100,000 purchasing relationships, making coordinated emissions reduction more complex for the world's largest retailer.

Industry Leadership in Retail Decarbonization

Ingka's comprehensive approach stands out in a retail landscape where formal net-zero commitments remain inconsistent. According to industry analysis, at least half of the world's biggest retailers lack formal net-zero targets entirely. Even sustainability leaders like Walmart, recognized for supply chain decarbonization pioneering, struggle to deliver on short-term climate commitments.

The Seine River initiative demonstrates how logistics innovation can drive meaningful emissions reductions in urban environments. By leveraging existing waterway infrastructure and integrating electric vehicle networks, retailers can create more sustainable distribution models while maintaining service quality.

Looking Forward

As regulatory pressure intensifies and consumer expectations for sustainable retail practices grow, Ingka's multi-modal transport strategy could serve as a blueprint for other retailers operating in cities with navigable waterways. The success of the Seine project may encourage expansion to other European markets where river transport networks can support last-mile logistics operations.

The retailer's ambitious timeline—reaching 90% zero-emissions deliveries by 2028—will require continued investment in charging infrastructure, vehicle procurement, and route optimization technology. Success in meeting these targets could position Ingka as a retail industry leader in practical climate action, demonstrating that innovative logistics solutions can achieve both environmental and operational benefits.