2. Regulatory Squeeze on IKEA 1. Tightening Climate Policies (EU Green Deal) • 55% emissions reduction by 2030 and net-zero by 2050 place direct pressure on IKEA’s operations, logistics, and material sourcing. • Regulatory expectations accelerate timelines for low-carbon materials, renewable energy use, and emissions accountability across Scope 1–3. 2. Rising Product Requirements • Repairability standards mandate products designed for longer lifespans, easier disassembly, and access to spare parts. • This requires IKEA to redesign product lines, update manuals, and rethink pricing and warranty strategies. 3. Digital Product Passports (DPPs) • Mandatory traceability of materials and environmental impacts. • Puts pressure on IKEA to: ◦ Digitize supply chains ◦ Share verified sustainability data ◦ Improve transparency for customers, auditors, and regulators a writting image See more