IKEA’s Latest Climate Target: Glue
The furniture group has spent more than a decade working to replace a fossil-based glue that represents 5% of its global carbon footprint
3 min
Swedish furniture brand IKEA is switching to a new glue to help meet its climate goals, underscoring how small changes can make a measurable impact.
Inter IKEA—which owns the IKEA brand, develops its products and manages its supply chain—said around 5% of its value chain’s carbon footprint comes from fossil-based glue in its particle-and-fiber boards, used in products such as cupboards, wardrobes and shelves. It said Wednesday that it is aiming to eliminate 40% of its fossil-based glue in the boards by fiscal 2030, which could cut its greenhouse-gas emissions by 1.5 percentage points, depending on future business growth.
A factory in Kazlu Ruda, Lithuania will be the first to use a biobased glue made from corn in industrial plants rather than the food chain. IKEA is also trialing other biobased glues. The changes are part of IKEA’s efforts to meet its goal to use only renewable or recycled materials by fiscal 2030.
“It’s not an easy transformation. We are talking about the industry using the same glues for 60 years and that glue has been optimized for performance and cost for 60 years,” said Venla Hemmilä, material and technology engineer at IKEA of Sweden.
IKEA began searching for alternatives to fossil-based glue more than a decade ago, but found lower carbon, biobasedoptions were too expensive and the industry wasn’t well prepared to supplythem. Today, there is still a premium for biobased glues but it isn’t expected to be passed onto shoppers and should come down as production scales up.
The company expects biomaterials to become more cost competitive with fossil-based materials in the coming years. IKEA hopes its manufacturing footprint will accelerate that cost reduction of greener alternatives and that other companies will follow its lead. It declined to provide the names of the green glue suppliers for competitive reasons.
Glue became a focus for the group after 2016. That year IKEA examined how its climate goals aligned with the Paris Agreement and charted how they could expand the business while cutting their emissions, said Andreas Rangel Ahrens, head of climate at Inter IKEA Group.
“It is so easy to set goals, but how do you actually understand the impact and what to drive?,” Mr. Rangel Ahrens said.
To address that challenge, Mr. Rangel Ahrens said IKEA carried out a breakdown analysis of the sources of its carbon footprint, including production, materials and food. It also enlisted consultants to conduct life-cycle assessments of certain materials. In the 2022 financial year, IKEA said 52% of its emissions came from the materials in its products, the next highest contribution was 14% from people using its products at home, followed by production, which was responsible for around 8%.
Companies often use spending metrics, such as purchased goods, to calculate the carbon footprint of their materials. Instead, Mr. Rangel Ahrens said IKEA uses weight because it allows them to measure changes in a material, such as recycled and renewable content.
For example, when IKEA looked at its particle-and-fiber boards, it estimated the emissions coming from transport, forestry and energy, among other areas. It discovered around half of the material’s emissions were from the glue used to bind the wood chips and fibers together, meaning that fossil-based glue was responsible for about 5% of IKEA’s carbon footprint, Mr. Rangel Ahrens said.
This detailed approach to break down a product’s footprint allows sustainability teams to identify specific areas for other parts of the business to work on. “We are not just telling them you should reduce emissions from suppliers by 80% and go fish,” Mr. Rangel Ahrens said. We tell them where to focus and then they actually know what to do rather than just getting a very ambitious goal dropped on their laps, he said.
The company has also reduced emissionswith other targeted changes, including plant-based meatballs, a bookcase that uses paper foil instead of veneer, and switching to LED lightbulbs. It is also exploring how to add biobased content into coatings.
“It’s very important for us that sustainability is not a luxury for the few. It needs to be available also for people with thin wallets,” Mr. Rangel Ahrens said.
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From making unpopular decisions to learning when to listen, leaders from five businesses reveal what nobody prepared them for — and how running a company has challenged their expectations.
Technology and semiconductor shares fell sharply as investors questioned the debt financing the AI infrastructure boom and confronted higher rates and Chinese competition.
Elon Musk is exploring a potential merger between Tesla and SpaceX, a deal that could reshape the future of AI, robotics, autonomous vehicles and space technology. With a combined valuation potentially reaching $3.5 trillion, the move could bring Musk’s vision of an interconnected technology ecosystem closer to reality, although a deal remains uncertain.
5 min
Elon Musk has engineered ties between Tesla TSLA 3.41%increase; up pointing triangle and SpaceX SPCX 7.79%increase; up pointing triangle that are hard to break, and now he wants to fuse them together permanently.
Musk has run both Tesla and SpaceX concurrently over the past two decades, using a schedule that dictated which days he spent focused on each business.
The companies have often shared resources and personnel, signaling their close ties. Last year, SpaceX looked into creating a spacesuit for Tesla’s humanoid robot Optimus, a person familiar with the matter said. Tesla last week showed off its new Roadster, a vehicle featuring SpaceX rocket thrusters that it hopes to soon bring to market.
And in recent months, Musk has repositioned both companies by expanding beyond their core operations toward a shared mission centered on artificial intelligence.
The world’s richest man on Tuesday signaled his interest in tying up SpaceX and Tesla, marking what would be the biggest corporate merger of all time. Because he serves as chief executive of SpaceX and Tesla, Musk said committees of independent directors at both companies are evaluating a possible deal, adding that a transaction might not come to fruition.
The committees will likely evaluate, with lawyers and bankers, how each company would fare in a potential deal and how a deal might best be structured. They then present their conclusions to their respective boards, who typically vote on whether to proceed.
“It’s an odd Kabuki dance where two groups of people are talking and I can’t be in the conversation,” Musk told SpaceX investors on Tuesday in response to an analyst’s question about a potential deal.
For Musk, the merger supports his vision of a world full of autonomous cars, humanoid robots and weekly rocket launches, as well as the data centers and satellites required to keep the whole thing running.
Some investors and analysts said they expect a transaction would be structured as an all-stock deal, with SpaceX potentially paying a modest premium for Tesla shares.
SpaceX, which has a market value of about $2 trillion, said it is seeing sharp growth in revenue across its businesses, which include operating data centers, launching rockets and operating satellite networks such as the internet service Starlink. Tesla is valued at about $1.5 trillion and is expanding its operations beyond its automotive and energy business. Shares in both companies traded higher following the news Tuesday.
Musk’s substantial ownership stakes in both companies, along with voting control at SpaceX, has enabled him to set the deal in motion. Analysts and investors said the deal will probably face regulatory scrutiny internationally, though some see Musk’s close relationship with the Trump administration as an asset to getting approval.
Blurred lines
The companies haven’t said which directors are on the special committees evaluating a potential deal. Several SpaceX and Tesla board members have either personal or business ties to Musk. And like Musk, venture capitalist Ira Ehrenpreis sits on both boards.
In a filing this week, Tesla outlined millions of dollars in business agreements with SpaceX and its subsidiaries last year, including $143 million in car sales to SpaceX, $3.3 million in advertising that it bought on the social-media platform X and $430 million in revenue from the sale of Megapack batteries for SpaceX’s data centers.
The companies also split the cost of resources including the use of Musk’s SpaceX jet and the bill for his personal security, which he runs through a private company.
Employees at both companies routinely move between companies to work on special projects, and some executives have dual roles, including Charles Kuehmann, vice president of materials engineering at both SpaceX and Tesla, and Ashok Elluswamy, the vice president of AI software at Tesla who runs a joint venture with SpaceX called Digital Optimus.
Over the years, Musk has launched new startups within his empire, including brain-implant company Neuralink, underground-tunnel developer the Boring Company and xAI, the AI startup that merged with SpaceX in February.
It is that AI business that Musk thinks can serve a market worth tens of trillions of dollars, justifying the need for a merger.
The business case goes like this: Tesla is developing robotaxis and robots, which it calls “physical AI.” SpaceX is working on the back end of physical AI: the data-center capacity and internet connection required for those robotaxis and robots to operate continuously.
“I don’t see what the value of Tesla is if it’s not merged with SpaceX,” said investment adviser Ross Gerber, a former Tesla bull turned critic invested in both companies. “If they don’t merge, the brains of everything that runs Tesla is owned by another company.”
On top of it all, both companies face constraints on the supply chains they need to make this world a reality, particularly when it comes to chips. To address this, Musk earlier this year announced a joint venture between Tesla, SpaceX and Intel to design and manufacture chips in Texas. “The most epic chip-building exercise by far,” he has said.
Musk at the wheel
For Musk, a merger would also solve two problems: demands on his attention and his lack of control at Tesla.
Tesla for years was Musk’s only public company, a status that came with greater scrutiny. There, Musk reports to a public board, as well as individual investors who make up around 30% of Tesla’s voting power, according to FactSet.
The question of Musk’s attention became a particular focus for investors and the board in recent years after he acquired Twitter in 2022 and launched xAI in 2023, and again in 2025 as he spent time in Washington, D.C., running the Department of Government Efficiency in the early months of President Trump’s second term.
As Tesla’s car business suffered in 2025, Musk threatened to take his AI ambitions outside the company if he wasn’t granted 25% voting control. Last November, Tesla shareholders approved a new pay package for Musk, which created a path for him to vastly expand his stake.
As of Sept. 30, Musk owned a roughly 20% stake in Tesla, according to the company’s proxy filing.
The SpaceX IPO gave Musk a different path. When SpaceX went public in June, the deal’s structure enabled him to have more than 80% voting power at the company—so much that he can’t be fired and decisions can’t be made without his support.
If SpaceX acquires Tesla, he will likely stay in control.
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