IKEA has committed to reduce the climate footprint from our buildings by 80% in absolute terms by 2030, compared to 2016 baseline. From today onwards all our new and retrofitted buildings will use Renewable Heating and Cooling (RHC) systems. When analyzing RHC-HVAC systems, we look at several factors, such as: lowest Total Lifecycle Cost (TLC), largest positive P&L impact, decrease in CO2 emissions, decrease in Global Warming Potential (GWP) phasing out harmful refrigerants, balancing Profitability and Sustainability. IKEA’s engineering design eliminates fossil fuels from our operations, implementing more efficient RHC systems that may have higher upfront cost, but have lower TLC, reducing the environmental impact of energy production, promoting energy independence, and supporting the development of clean and sustainable energy technologies. IKEA has a holistic approach when engineering projects, analyzing the total amount of energy that the building consumes, offsetting as much of that energy with PV, analyzing building envelope improvements, energy efficiency measures, building management systems and potential improvements in operation. IKEA currently has a roadmap for all existing units to eliminate fossil fuels from our existing sites and has mandated new projects to use RHC, where we currently have approved project implementation in several sites in the US.