IKEA SuSTAInAbILITy PRoduCT SCoRE CARd CRITERIA In bRIEF: • More from less (using less material in the product) • Renewable material • Recycled material • Environmentally better material • Separable & recyclable material • Product quality • Transport efficiency (number of products per container) • Energy efficient production • Renewable … Personally, its high-volume, low-price business model is unsettling, and when one considers the size of the company and the stock it sells, it’s hard to imagine how the business can possibly be sustainable. It’s easier to replace than fix many of these cheap goods. “We further extended our code of conduct which is an audit process of our procurement business unit and that goes through our value chain. Children’s rights are fundamental – to the world and to IKEA. Now let’s consider the store. “It also leads to higher costs as cotton is usually grown in developing countries and farmers struggle to make a profit. We believe that if we all act together, we can build a low carbon and circular economy that secures longterm prosperity. IKEA Sustainability Report FY18 Making sustainable living more inspiring and affordable. Critics are sceptical of IKEA’s sustainability commitment, pointing out that IKEA produces fast furniture that is inferior quality and that the low prices encourage impulse purchasing and disposability. By 2030 our ambition is to inspire and enable 1 billion people to live a better everyday life within the limits of the planet. So having said this, I am still happy to be a part of the influencer partnership as I know that I have the freedom to select pieces that I like. The company hasn’t achieved this yet, particularly in Australia, but according to Dr Kate Ringvall they’re working towards it. Ikea store continued opening while others were closing, from 237 in 2006 to 316 in 2010 (Ikea Website, 2011). At IKEA… “When grown conventionally cotton uses large amounts of chemicals and water and this practice often leads to significant health risks to farmers, soil erosion and water scarcity among others,” explains Dr Ringvall. Still, organic is touted as the most people and planet-friendly form of agriculture there is and if IKEA were really serious about its commitment to sustainability, going certified organic should be the aim (full disclosure: I co-own a certified organic farm). Here Are the Results…, Eco Fashion Basics: Understanding Sustainable Textiles and Fabrics, 2018 National Sustainability in Business Conference, Q&A with Camille Reed, Founder of the Australian Circular Fashion Conference, IKEA Group has invested EUR 1.7 billion in renewable energy. Learning this and viewing these sorts of figures, one can’t help but consider the ethicality of IKEA’s tax minimisation strategies. Having a code of conduct doesn’t stop labour, environmental or social issues from arising. Good places to start would be thrift stores, eBay, Gumtree and Craigslist and even your local Facebook selling groups. Each code of conduct covers specific business needs, from working conditions, prevention of child labour, purchasing and much more. “Our work started with 500 farmers in Pakistan in the beginning and they were really reluctant to change the way they grew cotton and their cultivation techniques. The IKEA vision is to create a better everyday life for the many people, and we believe those lives are truly better when they’re lived sustainably. If you make a purchase using a link we may receive a commission. Similarly, if IKEA wants to source from only sustainable suppliers, suppliers will bend around that demand. IKEA is a Swedish-founded, Dutch-based global retail behemoth. IKEA can only, **If you enjoyed, learned from, or felt empowered after reading this piece, we’ve love for you to support us by donating to our, National Sustainability in Business Conference, Ethical Fashion 101: The Top 5 Ethical Issues in the Fashion Industry, I Used 4 Different Carbon Calculators to Work Out My Annual Carbon Footprint. “We have about 20,000 solar panels across the Eastern seaboard and we’re looking to include WA and Adelaide in that as well… We want to be producing as much renewable energy as we consume so that we can drive energy efficiency throughout the value chain.”. My reply to Sophie the PR consultant was honest and direct (surprise, surprise): I had a look at the info you sent and of course had to do my own research. We also contribute to safe, affordable and sustainable places to call home in the communities where we are present. IKEA Australia’s Sustainability Manager Dr Kate Ringvall’s presentation. We’ve been leaning that way since 2009. So, we never tolerate child labour or any form of modern slavery, and we support fair and meaningful work for everyone in our supply chain – including vulnerable groups like young or migrant workers. Now we are on track to achieve this in Amsterdam, New York, and Paris too, gave 39 million products a second life by repacking and reselling products in stores, we managed to cut food waste from our operations by 30% by the end of the fiscal year, however we did not manage to reach the goal of 50%. Related Post: Ethical Fashion 101: The Top 5 Ethical Issues in the Fashion Industry. It’s committing to sustainability because it’s good business to do so. Known as “Circular IKEA”, the business is testing out the circular model with a new line of kitchen products, replacing raw materials with second-life materials. IKEA has released a 2030 sustainability strategy document which emphasized on using only renewable and recycled materials. We’re taking action to reduce our direct climate impact and strive for zero waste across our own operations. Low prices are a part of IKEA’s DNA and they will continue to serve the price-conscious customer whether we criticise them or not, just as the price-conscious consumer will likely continuing shopping there regardless of the arguments I raise here. IKEA has taken big steps to encourage sustainability. We’re really passionate about that.”, “Ideally we would like to move to a place where we’re making products from the waste we create. Therefore, IKEA can sell the product made of particleboard with a lower price to attract customers to opt this material as the element of their furniture. (Source: Boscor & Bratucu, 2009:55) Concerning its sustainability, Ikea … Is it tax minimisation or outright tax avoidance? Even before the COVID-19 pandemic, we knew that issues like social injustice and climate change were affecting the people with the least, the most. IKEA was founded in 1943 by Swedish entrepreneur Ingvar Kamprad who, at 17-years-old and after receiving money from his father for academic performance, launches the retail business. Head of sustainability at the Scandinavian furniture giant Jonas Carlehed told Reuters earlier this year that: “We are making a huge readjustment, maybe the biggest IKEA … This is why we continuously strive to integrate the Children’s Rights and Business Principles into our daily work. It is, shall we say, mass produced. This is true now more than ever. Related Post: Q&A with Camille Reed, Founder of the Australian Circular Fashion Conference, One of IKEA’s other sustainability commitments is to be energy-independent, meaning that it wants to generate more renewable energy than it uses. We’re present in many communities, and when those communities thrive, we do too. Loved this post? It’s part of our mission to ensure we put people at the heart of our business. plus the first letters of Elmtaryd (E) and Agunnaryd (A), the farm and village where [Ingvar Kamprad] grew up. At Ingka Group, we know we have a huge responsibility – and opportunity – to tackle the climate crisis and we want to be a part of shaping a new normal that’s better for people and planet. It’s easy to imagine these items – picture frames, bath mats, vases – being tossed out in the weekly garbage after breaking. The global Ikea … Related Post: Late Capitalism – A “Pox” on Society? ), it’s at least moving in the right direction. That’s a long time that a resource is sitting there being unused. In the previous two years, IKEA didn’t pay any tax! What are the alignments and conflicts? The world is facing another kind of crisis. On the one hand I like that IKEA’s items are affordable and that individual items can be replaced if broken etc. We keep working for another solution during FY21, enabled customers in 11 markets to use and generate renewable energy with our clean energy services such as solar panel and battery storage systems, we generated renewable energy equivalent to 132% of the energy used in our operations, up from 81% in FY18, two thirds of the electricity used in our buildings in FY20 was from renewable sources, close to 10% of customer delivery transport were made by electric vehicles or other zero emission solutions, we added around 1,000 new electric charging stations for our customers, offering EV charging at 93% of our stores, we recycled 72% of waste generated in FY20, moving towards our goal of 100% recycling of waste from our operations by 2030, we are committed to zero-emission home deliveries in five cities by 2020 and reached this milestone already in Shanghai. We all need to act now. For us, it’s about balancing economic growth and positive social impact with environmental protection and renewal. In fact, it’s so well-loved, according to Dr Ringvall, the company uses one percent of the entire global cotton supply. At the World Economic Forum in Switzerland this month, IKEA’s chief executive Jesper … Its latest range of kitchen fronts known as KUNGSBACKA is a product that incorporates the circular concept. Like all decisions of a business nature, it boils down to costs and sustainable supply. So, while I might applaud some aspects of a brand/business/product/service, as a person who highly values critical thinking, I am also unafraid to condemn and criticise. The world is facing a climate crisis that will affect the lives of many millions of people. IKEA is a huge challenge for a company which has 400+ stores … It’s easy to see IKEA as the McDonalds of the furniture world. The pandemic threatens to make this worse. But one thought still niggled at me: Can a company that relies on a low-cost, high-volume business model that encourages mass-consumption ever be sustainable? The size and scale of our business means we impact the lives of millions of people around the world. It should be noted that IKEA doesn’t hold any other independent certifications such as Fair-Trade and B-Corp. IKEA is one of those forward-thinking global brands already embracing the circular economy. IKEA’s New Green Image Comes with Some Assembly Required Sweden's most recognizable export is trying to change perceptions among consumers, transforming itself from famous maker of … Five years later, Kamprad makes the historic decision to include furniture in the range and several years later, published the now-iconic IKEA catalogue. IKEA can only try as hard as they can to eradicate child labour. In 2019, IKEA recorded its first reduction in absolute climate footprint of 4.3%, despite a 6.5% increase in sales. The material can be found in many of its products, from sofas to mattresses, pillows and bedding. So we need to be mindful of how we use those resources and IKEA is really keen to do something different and use our resources in a second-life way.”, With millions of products in stores around the world, and close to a billion people shopping at IKEA each year, a business decision to incorporate waste and recycled plastic in their products can have a huge impact and accelerate positive change. Today, the IKEA Sustainability Report FY18 * is released – reporting progress from across the IKEA … Offering low-cost, visually appealing furniture in well-designed highly-coordinated warehouse spaces, it’s little wonder IKEA is the world’s largest furniture retailer and has been for the last decade. Here at Eco Warrior Princess, we challenge ethical elitism in all its forms and companies that are providing low-income individuals and families somewhat greener choices isn’t something we’ll turn our nose up at. Anecdotally, an IKEA bookshelf that was painstakingly self-assembled (by my ex, not me), purchased 12 years ago, now sits in my sister’s home office, still in great condition and still in vogue. The business has survived more than 70 years because it’s giving customers what they want. To learn more about IKEA”s People & Planet Positive sustainability strategy, click here. “It’s a natural resource that we will run out of one day because it takes a very long time to break down. Steve Howard, IKEA Group’s Chief Sustainability Officer (CSO), saw major opportunities … This is no easy task given the scale of its retail operations but one has to give them credit for a grand vision. About 700-1000 years. We are committed to providing decent, meaningful and engaging employment for every co-worker, and we stand up for equality. Guided by our values, we want to create lasting positive change in the communities where we are present. It gets worse. Then please support Eco Warrior Princess on Patreon! If this is okay by IKEA, then we can move forward . This includes textile collections, sewing services, and last mile services, supporting fair work for young workers, parents and caregivers, while eliminating child labour entirely from our Ingka Group supply chain, ensuring our IKEA stores and Ingka Centres meeting places are playful and safe spaces for children – for example, by providing Småland crèches at our stores and kid’s centres, and playgrounds and activity areas at our meeting places, offering safe products for children, and marketing these appropriately, contributing to a healthy environment for children to live in – both now and in the future – through our climate initiatives, working together with others to strengthen child-friendly and connected neighbourhoods and cities, reinforcing community and government efforts to respect children’s rights. The shop will feature gently used IKEA furniture as part of its efforts to reach its 2030 climate targets. Inequality: As people move out of poverty, many are still struggling on very low incomes. This result is owed, in large, to BCI. Are those customers wrong? I tend to be the type that focus on individual items and the uniqueness of a piece. The IKEA sustainability strategy The IKEA vision is to create a better everyday life for the many people, and we believe those lives are truly better when they’re lived sustainably. I think many businesses transitioning to sustainable business practices should take a leaf or two out of IKEA’s sustainability playbook – just not its tax one. These include physical impacts of extreme weather on our buildings and the rising cost of using fossil fuels. Combined, these reports and questionnaires provide a holistic view of IKEA … An average store is typically 300,000 square feet or the size of five football fields and is set out like a stylishly-decorated rabbit warren filled with purposely curated display areas that captivate the visual senses and encourages you to purchase something you had no intention of purchasing, à la Gruen effect. She explains that sustainability is at the centre of IKEA’s business strategy and that it informs how the business designs and makes their products: “At IKEA we make products with sustainability at their heart and we sell at a price that puts them well within the reach of the many people, and that’s really one of our goals. The latest announcement out of IKEA-land is a rather huge one and not entirely surprising considering the retailer’s tireless activity in the environmental sustainability department, which, most notably, has involved installing 342,000 solar panels atop its stores.Currently, 34 American IKEA … Like most people, our customers want to enjoy a decent quality of life without negatively impacting the environment – but not at the expense of price, quality or convenience. A formidable business strategy. She explains that s, United Nations Universal Declaration of Human Rights (1948) and the International Labour Organisation Declaration on Fundamental Principles and Rights at Work (1998). In 2010, after studying Fashion Business, she launched Eco Warrior Princess to explore her interests in fashion, politics, social justice and sustainability. With products like veggie hot dogs, kitchen fronts made from recycled plastic bottles, and energy-saving solutions, we’re paving the way for more sustainable … *Source: Earth Overshoot Day: www.overshootday.org. IKEA and Forestry Joining forces for the forest Sourcing from over 50 countries, our business can have a significant impact on the world’s forests and the timber industry. Our long-term goal is to transform the entire cotton market across the globe.”. The following year, in 2017, IKEA reportedly paid the Australian Taxation Office (ATO) just $289,000 tax – despite selling $1.16 billion of flatpacks! Eco Warrior Princess. 'Eco' Perfection Doesn't Exist. Since it consumes one percent of the world’s wood supply, this is a welcome step in the sustainable direction. Steve was Chief Sustainability Officer (CSO) at IKEA Group and served on IKEA’s Executive Group Management from 2011-2017. So, our mission overall is to meet the needs of people today without compromising the needs of future generations. We know our customers want IKEA to help make living a more sustainable life affordable, attractive and accessible. Here Are the Results…. IKEA touches the lives of millions around the world and has long promised to stand by the side of the many people. The Principles were launched in 2012 by Save the Children, the UN Global Compact, and UNICEF. To us, this means creating fair working conditions together with our suppliers, to use our planet’s resources wisely, and to inspire our … Five years later, Kamprad makes the historic decision to include furniture in the range and several years later, publ… “It’s pretty clear that being able to talk and play in that sustainability field is beneficial to … Annual Summary & Sustainability Report | FY20, Read the IKEA Sustainability strategy here, we use IWAY – the IKEA supplier code of conduct, increased communications on sustainability across our stores, shopping centres and websites to inspire customers and highlight products in ranges that can help save energy and water, reduce waste and live a healthier life at home, inspired 6,000 co-workers and 92,000 customers through the IKEA Better Living app, through insights about their climate footprint of everyday life and how to shrink it, tested solutions to encourage circular consumption such as Furniture as a Service in six markets, buy-back schemes for second-hand IKEA furniture and our spare parts service, phased out all single-use plastic items offered in customer and co-worker restaurants, bistros and cafés within our target, except for disposable cups for hot drinks where a thin plastic coating for safety reasons is still used. Although a natural, biodegradable fibre, the environmental and social impacts of conventionally-grown cotton is enormous. It will profit from flying the flag of corporate sustainability while easing the guilt of their mass consumer. Copyright © 2010-2018. IKEA is fully supportive of global climate commitments, including the EU Green Deal, urging the EU to build its recovery package to support and accelerate the transition towards a climate neutral and … To make a positive impact on the planet, we have identified three major challenges impacting our business: Climate change: No longer a distant threat, but a visible reality, we believe that the climate change is one of the biggest challenges facing humanity. We are committed to implementing the UN Guiding Principles on Business and Human Rights as the basis for our responsibility to respect human rights. Regardless of whether our suppliers work in construction, security or cleaning, we expect them to comply with our standards – and this includes treating their co-workers fairly. Dr Ringvall is right. Each code of conduct. Like all businesses, it must balance financial imperatives with its sustainability objectives – it’s just that their business case for sustainability is a strong one and that’s why they’re so dedicated. that as a global business it produces as much renewable energy as it consumes. Related Post: 5 Reasons Why I Love Living Off the Grid. “The changes that we make and that we consider in our supply chain and the way that we approach sustainability with our customers will make a difference. For us, it’s about balancing … At the recent Edie Live exhibition on achieving a sustainable future, IKEA UK’s sustainability manager, Hege Sæbjørnsen, indicated that building a circular economy into IKEA’s business model will be … Sustainability – caring for people and planet is at the core of our business … Something that does not gel with my idea of “slow” living. We will continue the initiative to support at least 2,500 refugees by 2022. IKEA’s five codes of conduct are known as ‘‘The IKEA Way’ within the company and include provisions based on various international conventions and declarations such as the United Nations Universal Declaration of Human Rights (1948) and the International Labour Organisation Declaration on Fundamental Principles and Rights at Work (1998). It’s clear that IKEA’s business model is the reason for its success and it’s not going to change now; anyone who thinks or wishes otherwise is naive. Even if the democratic design process is slow (five years of designing, trialling and testing according to Dr Kate Ringvall), its production system is scarily efficient. It is a part of EWP mission: to be a part of conversations that are substantial and not just gloss over like a badly written advertorial. By promoting sustainable home furnishing and food products, services, life-at-home knowledge and inspiration, we can make healthier and more sustainable living possible for the many people. How sustainable is IKEA? Some of the objectives outlined in the report include: With over 400 stores worldwide, roughly 170,000 employees, 915 million customers each year and sales revenue exceeding EUR 34.2 billion (in FY2016 this equated to USD $37.6 billion), we wonder: Good intentions aside, can IKEA ever be sustainable? “This initiative has enabled farmers to cut costs, improve their techniques and use less chemicals and water, increasing their profits, and as a result, they can afford a better quality of life for their families and schooling for their children.”, As of September 2015, all the cotton used at IKEA came from “more sustainable” sources. Jennifer is also the founder of The Social Copywriter, a digital agency harnessing the power of copywriting and content marketing to help mindful businesses reach more people. To help us maintain our standards throughout our supply chain, we use IWAY – the IKEA supplier code of conduct – which sets out the social and environmental requirements for IKEA Retail suppliers. Head of sustainability at the Scandinavian furniture giant Jonas Carlehed told Reuters earlier this year that: “ We are making a huge readjustment, maybe the biggest IKEA has ever made, … Most people meander, they look and admire, they take photos, they collect ideas, try, feel, sit. We’re looking for ways to reduce our indirect impact too – for instance by enabling people to travel to our stores more sustainably and generate renewable energy at home. This is a business that understands future trends and adapts to the ever-changing consumer marketplace – and their sustainability mission will ensure a strong, profitable future. When she's not perfecting a sentence or coaching business clients, you will find her at her certified organic farm reconnecting with nature. And, we know it’s possible for businesses to grow while shrinking the climate footprint. Sustainability can’t be a luxury for the few. prevention of child labour, purchasing and much more. A great customer experience to be sure, but it’s intentionally laid out to encourage customers to buy more than what they set out to buy. Not long after, the business begins to design and make their own furniture, due in large to risks of supplier boycotts. The opportunities that IKEA takes benefit of through its sustainability outline include: An immense opportunity can be seen in a rising demand for environmentally friendly products (Times, … Well, more sustainable every day. One last note. This goal is now moved to end of December 2021, we reached 45 refugees within our job training and language skills initiatives in 3 countries in FY20. That’s why we place responsible … Worldwide, Ikea owns more wind turbines than stores, as it closes in on a target to become "energy independent" by 2020.Ikea now has 416 wind turbines and 750,000 solar panels, generating the equivalent of 73% of the energy it used last year. However, let’s make no bones about it – IKEA is a business. This means creating a fairer and more equal society, by growing our business in a fair and inclusive way. Risks to communities include extreme weather events, rising sea levels, food and resource scarcity and collapsing ecosystems. Climate change is impacting our business today, and we’ve mapped climate-related risks and taken steps to better understand the potential future costs. The sustainability report describes how the IKEA business tackles global challenges such as climate change, unsustainable consumption and inequalities. Fixed if broken, donated or sold on, not dumped in the right direction s easier to replace fix. 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