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IKEA’s First 26-Tonne Electric Delivery Truck

         IKEA Global's goal by 2025 is to reduce carbon emissions from product transportation to zero, and achieve climate-positive by 2030. Through collaboration facilitated by Scania, the Swedish electric vehicle brand, IKEA has partnered with Taiwan Transport & Storage (TTS), a subsidiary of Taiwan Cement Corporation, to introduce the first 26-ton electric truck (EV Truck) in Taiwan, specifically to provide replenishment services from the logistics center to three IKEA stores in Neihu, Taipei, Taoyuan, and Taichung. We also collaborated with TCC Energy Storage Technology Corporation to install charging stations. Through the joint efforts of the three parties, we aim to promote zero-carbon and green logistics transportation development in Taiwan.

          Although the cost of electric delivery trucks is higher than traditional diesel trucks, IKEA is still determined to strike a balance between environmental, economic, and social effects by investing in electric delivery trucks to fulfill its pledge to support sustainable development. In Taiwan, the external costs of traditional diesel trucks are borne by the citizens. In other words, people are forced to endure the harmful effects of carbon pollution. However, electric vehicles can internalize the cost of carbon, demonstrating IKEA’s entrepreneurial spirit.

          Moving forward, as the cost of electric vehicles decreases and the conditions of charging infrastructure improve, the cost difference between electric vehicles and diesel trucks will gradually reduce. Electric delivery trucks will become a steadier and more controllable cost for enterprises. Nevertheless, in Taiwan, electric delivery trucks still face issues like long charging times and short travel distances. There is room for improvement in these vehicles’ charging infrastructure and battery technology. If a breakthrough in battery technology is accomplished in the next few years, the electrification of vehicles in long-haul transportation can also be achieved. Otherwise, certain delivery points will still need to rely on diesel trucks.
          Along with technological and infrastructure improvements, IKEA started to use its first heavy-duty electric delivery truck (for inventory replenishment in various stores) and two charging stations in 2023. From 2025 onward, the green transportation plan will also include compact electric delivery trucks for home delivery. In 2025, the numbers will be increased to 15 compact electric delivery trucks and two charging stations; in 2027, 45 compact electric delivery trucks and six charging stations will be used. IKEA plans to add a total of 150 compact electric delivery trucks to its fleet and 12 charging stations before 2030. From inventory replenishment trucks to compact trucks for home delivery, we have planned a proper schedule to facilitate the integration of electric vehicles in our logistics system, ensuring IKEA achieves its net-zero emissions goal by 2030.

          2023 is IKEA’s first year of using an electric delivery truck. As compared to a 10.5-tonne diesel truck, a 26-tonne electric delivery truck will reduce carbon emissions by 18%, which is equal to 5.38 tonnes of CO2e. As things progress, by 2030, carbon emissions are expected to decrease by 31%, which is equal to 8.33 tonnes of CO2e. In addition, IKEA appeals to the government to adopt immediate measures for the electrification and decarbonization of vehicles to support low-carbon logistics systems. Moreover, it will be vital in promoting Taiwan’s green transformation plan and raising its competitive advantage in the global playing field.

          For enterprises, the purpose of reducing carbon emissions is not just to comply with the global goal of becoming climate-positive by 2030; it is also a step toward achieving the long-term goal of sustainable development. IKEA’s plan to include electric delivery trucks in its fleet is a crucial milestone, for it can help pave the way for green transportation in the future. Thanks to collaborative efforts between the government and enterprises, we can expect to see logistics systems that are more efficient and environmentally friendly in the near future. Not only do these efforts comply with international trends, but they also demonstrate the active role taken by enterprises in sustainable development. Doing so will bring about a positive impact on the environment, and it will contribute to Taiwan’s economic and sustainable development, too.

         Finally, we must understand that carbon emissions have a long-term impact on Earth. The quality of life of our future generations depends upon the choices we make today. Therefore, IKEA will work with the public to champion environmental protection and sustainable practices. Let us do our part by protecting the environment and living in harmony with this planet to ensure a better tomorrow for us and our future generations.

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