Leading Companies Ikea, Fortescue, and Lendlease Break Away from Net Zero Goal and Pioneer in 'True Zero' Initiatives
In a significant stride towards global climate action, three major companies - IKEA, Fortescue, and Lendlease - have surpassed traditional net-zero sustainability commitments and are now championing what is known as 'real zero' commitments.
'Real zero' is a new benchmark in climate action that requires companies to have a clear and credible plan to phase out fossil fuels and reduce their emissions as close to zero as possible, and as quickly as possible, without relying on carbon offsets. This approach focuses on rapidly decarbonizing operations and eliminating fossil fuel dependence rather than balancing emissions with offsets.
Fortescue, an iron ore and energy provider, is commended for its commitment to reach net zero without leaning on carbon credits. The company plans to completely phase out fossil fuels across its Australian terrestrial operations by 2030, net zero for Scope 3 emissions by 2040, and power its mines in remote Australia by 100% renewable energy. Fortescue is also leading in advocacy and support of an economy-wide transition, shifting the global focus from reliance on purchasing voluntary offsets.
IKEA, the Netherlands-headquartered, Swedish-founded organization, has achieved an 89% reduction in its operational climate footprint since 2016, while growing revenue by 68%. The home furnishings retailer has a clear plan to phase out fossil fuels before 2050 without resorting to offsets. IKEA is also committed to becoming a circular business and diverted more than one million products in Australia from landfill last year.
Lendlease, a homegrown Australian building and construction company, has a market capitalisation of $3.8 billion and has significant infrastructure projects in London, Singapore, and New York. The company is committed to completely phasing out fossil fuels and reaching absolute zero by 2040.
Climate Integrity and the University of Technology Sydney (UTS) have named Ikea, Fortescue, and Lendlease as global decarbonisation leaders. These companies are setting the benchmark for 'real zero' leadership and demonstrating what can be achieved through strong internal leadership, fostering a culture of commitment to targets, and embedding climate and emissions reduction throughout the entire business.
As consumers become increasingly sceptical of brands' environmental claims, with 78% of ANZ consumers questioning the credibility of such claims, these companies' actions are a beacon of hope. 82% of ANZ consumers believe it is important that sustainability is reflected across all aspects of a business.
In summary, IKEA, Fortescue, and Lendlease are demonstrating leadership in climate action by moving beyond net zero to aggressively reduce their climate impact through measurable, fossil fuel phase-out strategies. These companies are paving the way for a more sustainable future and are setting an example for other businesses to follow.
- The commitment by Fortescue, an iron ore and energy provider, shows their dedication to real zero, aiming to eliminate fossil fuel dependence and switches to 100% renewable energy for their mine operations.
- IKEA, the Swedish-founded home furnishings retailer, has made significant strides towards real zero by achieving an 89% reduction in operational emissions while growing revenue and pursuing a circular business model.
- Lendlease, the Australian building and construction company, stands amongst the decarbonisation leaders with their commitment to phase out fossil fuels and reach absolute zero emissions by 2040, demonstrating the potential for a more sustainable future in business practices.
