Real Zero: It’s time for a new benchmark in corporate climate accountability.
Fortescue, IKEA and Lendlease named global ‘real zero’ leaders in new research report.
The companies are rising to the challenge and shifting from net zero to real zero strategies—a science-based approach to decarbonisation that phases out fossil fuels without relying on offsetting.
Fortescue, IKEA and Lendlease are setting the benchmark for real zero leadership, demonstrating what can be achieved through strong internal leadership and embedding climate and emissions reduction throughout the entire business.
Report Findings
Despite operating in sectors labelled harder-to-abate like mining, construction and retail, these companies are taking a vanguard position on emissions reductions, investing in the technology to reach real zero and demonstrating a viable, profitable, and economic pathway to decarbonisation.
Fortescue, IKEA and Lendlease are setting a new standard for credible and rapid progress in decarbonising at the pace that’s urgently needed across four areas of positive practice and leadership:
Commitment to phase out fossil fuels for significant parts of the business, including in the harder to abate sectors of mining and construction.
Commitment to achieve decarbonisation without reliance on offsets and prioritise absolute emissions reductions within their value chains.
Efforts to collaborate and support sectoral reform through leadership and information sharing, involving advocacy for real zero, Scope 3 emissions protocol, and deep engagement across their value chains to progress decarbonisation solutions.
Strong internal leadership and commitment to real decarbonisation outcomes, fostering a culture of commitment to targets is a core part of the companies’ culture, and climate and emissions reduction is embedded throughout the entire business.
REPORT
Real Zero Leadership: Positive Practice in the Net Zero Pledges of Australian Companies
“The ambition displayed by Fortescue, IKEA and Lendlease is redefining what corporate climate leadership could and should look like both in Australia and around the world.”
Claire Snyder
Director, Climate Integrity
CASE STUDIES
Fortescue
Fortescue is an ASX-listed mining, metals and renewable energy and technology company based in Western Australia, and one of the world's largest producers of iron ore. It’s the only heavy industry company in the world committed to phasing out fossil fuels.
Fortescue has ambitious real zero targets that don’t rely on offsets or carbon capture storage, backed by an industry-leading Climate Action Plan that goes beyond the requirements of science-based pathways and the UN recommendations.
Fortescue is leading the way in action and advocacy, championing an economy-wide transition and looking to shift the current global reliance on purchasing voluntary offsets to a focus on real zero. It’s using its real zero approach to demonstrate that sufficient investment in decarbonisation, with readily available technologies, can be economically beneficial.
"We are world leading, there’s no other company with our emissions within heavy industry that has committed to phasing out fossil fuels. Real zero is a particular language we use because it avoids all disinformation around offsets and carbon capture and storage and focuses on the real problem – which is fossil fuels.”
Dr Shanta Barley | Chief Climate Scientist
IKEA
IKEA is the world’s largest furniture retailer, with 899 million people visiting their stores in 2024. In line with its mission to be “for the many”, IKEA is committed to climate action and the company's role in maintaining a liveable planet.
That’s why IKEA has made sustainability a central part of its business strategy – committing to ambitious and achievable real zero targets that don’t rely on offsets. The company has set targets to decarbonise every part of its business, from production to retail, prioritising genuine emissions reductions, and making it a leader in global decarbonisation.
IKEA integrates clear climate goals into its business plan and galvanises staff to deliver against them, making a commitment to innovation that keeps up maximum pressure to decarbonise, even when it’s difficult. IKEA wants to set a new standard for business climate action that drives changes and inspires the broader business community to go further.
“Gone are the days where sustainability is on the edge of the business … it’s not about having big sustainability teams, it’s about baking it into the business plans, your goals, your country goals, and making sure that it’s part of running business. Otherwise it just won’t happen.”
Simon Henzell Thomas | Climate and Nature Manager, Ingka Group
Lendlease
Lendlease is an Australian real estate business with an international investment platform and listed revenues of $9.2 billion (2024). Its Mission Zero plan has market-leading emissions reduction targets that cover all aspects of its business activities: construction, development, investments and tenants’ emissions in all operational jurisdictions.
With the target of Absolute Zero Carbon by 2040 across Scope 1, 2 and 3 emissions and to completely phase out fossil fuels in construction by 2040, Lendlease is one of the most significant and ambitious leaders in the climate transition.
By enshrining climate commitments as “whole of business” targets, Lendlease has established itself as a decarbonisation leader within the construction and development sector. They champion and support an industry-wide transition by publishing guides and reports to share insights, help others on their decarbonisation journey and drive industry consensus around Scope 3 reporting boundaries.
“It was important that leadership decided what targets and what level of ambition they were going to set for the organisation because they were going to be the business’ targets. Targets for which day-to-day decisions across the business would determine our success or otherwise.”
Cate Harris | Group Head of Sustainability & Global Head of Lendlease Foundation