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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Sydney Children’s Hospitals Foundation CEO Kristina Keneally says Australia’s culture of large-scale philanthropy is becoming more sophisticated as Gold Dinner raises $75.5 million for children’s health, research and innovation.
3 min
Australia’s wealthiest donors are becoming more strategic, more ambitious and increasingly focused on creating measurable impact, according to Sydney Children’s Hospitals Foundation chief executive Kristina Keneally.
Speaking after the 2026 Gold Dinner, held last week in Sydney, Keneally said Australia was experiencing a significant shift in how major philanthropy is viewed, with large-scale giving increasingly part of conversations about leadership, legacy and social impact.
The annual Gold Dinner, now in its 29th year, brought together some of the country’s most influential business leaders, philanthropists and cultural figures, raising $75.5 million and counting in support of the Sydney Children’s Hospitals Network.
While the event has become one of Australia’s most prestigious fundraising gatherings, Keneally said its significance extends far beyond a single evening.
“Gold Dinner, the flagship event of Sydney Children’s Hospitals Foundation, represents far more than a single evening. It is a powerful demonstration of what a committed community can achieve together over 12 months,” she said.
“The strength of that community, and the trust built over nearly three decades, means people return not just for the event, but for the impact they know it delivers.”
A NEW ERA OF PHILANTHROPY
Large-scale philanthropy has long been a feature of American society, where charitable foundations and major donors often play a prominent role in funding medical research, education and social programs.
Keneally believes Australia is moving in a similar direction.
“Australia is building a stronger culture of large-scale philanthropy, but it is still evolving compared to the United States, where giving at scale is more deeply embedded and widely recognised,” she said.
She said the country’s philanthropic landscape was becoming more sophisticated as successful business leaders increasingly sought opportunities to create meaningful change through their giving.
“In Australia, while generosity has always been strong, large-scale giving has historically been less visible, but that is changing rapidly as more leaders embrace philanthropy as a powerful way to drive meaningful outcomes.”
According to Keneally, events such as the Gold Dinner are helping reshape public perceptions of philanthropy by demonstrating the tangible outcomes that major donations can achieve.
“Gold Dinner is helping to reshape how philanthropy is perceived in Australia, making it more visible, more aspirational and more connected to real-world outcomes,” she said.
WHERE THE MONEY GOES
The funds raised through Gold Dinner support clinical care, research and innovation across the Sydney Children’s Hospitals Network.
Over the past 12 months, more than $75.5 million has been raised to help fund advanced medical equipment, innovative care models and world-leading medical research. Areas of focus include precision medicine and early diagnosis, where emerging technologies are already changing how childhood illnesses are detected and treated.
Keneally said the impact is felt directly by children and families facing some of the most difficult moments of their lives.
“For children and families, this translates into very real and immediate impact. It means faster diagnoses, earlier access to life-saving treatments, and care that is more personalised and effective,” she said.
“It also ensures hospitals are equipped not just to respond to illness, but to reimagine what care can look like, giving children the best possible chance not only to survive, but to live full, healthy lives.”
BUSINESS LEADERS BACKING CHANGE
One of the defining characteristics of Gold Dinner is the calibre of its supporters.
The event has evolved into a meeting point for influential leaders from business, culture and philanthropy, many of whom see charitable giving as an extension of their professional and personal legacy.
“It speaks to a community that is not only generous, but increasingly ambitious in how it gives, combining influence, expertise and purpose to achieve outcomes at scale,” Keneally said.
Among the major supporters of this year’s event were Presenting Partner, John-Paul Nassif Foundation; Major Partners, ABC Bullion, Shaw and Partners Financial Services and One Circular Quay by Lendlease; and Premier Partner, Range Rover, whose ongoing support reflects a shared philosophy of legacy and long-term impact.
The evening also featured performances, premium hospitality experiences and fundraising initiatives designed to encourage further support for children’s health services and research.
LOOKING BEYOND NEW HOSPITALS
With major new children’s hospital developments at Randwick and Westmead progressing, Keneally said the focus is increasingly turning towards what comes next.
“The long-term vision is to ensure every child has access to world-leading healthcare, care that continues to evolve through innovation, research and global collaboration,” she said.
The foundation’s future priorities include accelerating medical discovery, expanding access to cutting-edge treatments and helping position New South Wales as a global leader in children’s health.
Keneally said the Gold Dinner remains central to achieving those ambitions because it does more than raise money.
“Gold Dinner is critical to making that vision possible. It not only provides significant funding, but also unites a powerful network of supporters who are driving the future of philanthropy in Australia,” she said.
As Australia’s culture of philanthropy continues to mature, Keneally believes that the network will play an increasingly important role in shaping the future of healthcare for generations to come.
“The result is a community that is helping to shape the future of paediatric care, not just for today’s patients, but for generations to come.”
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