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. At IKEA, we want to have a positive impact on people and the planet. Combined, these reports and questionnaires provide a holistic view of IKEA … Most people don’t just get in and get out of an IKEA store. 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. Now a couple of years ago, I received an email from a PR agency working with IKEA Australia on an influencer program, known as IKEA Kollectively. We’ve been leaning that way since 2009. 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. Related Post: Eco Fashion Basics: Understanding Sustainable Textiles and Fabrics, Securing long-term sustainable materials is vital for this home furnishings retail giant, but according to Dr Ringvall, making a positive impact on communities where they source materials is important too. This means rethinking and inspiring changes in lifestyle and consumption, as well as adopting new ways of working. The pandemic threatens to make this worse. Related Post: 5 Reasons Why I Love Living Off the Grid. About 700-1000 years. Not only will IKEA Greenwich be our most sustainable store in the country, we are also very excited that the new store will demonstrate … What are the alignments and conflicts? The 2012 report is the first for the superstore, whose goals begin with a fourfold increase in sales by 2020 but go on to include two pillars of sustainability, engagement of customers, … IKEA has taken big steps to encourage sustainability. IKEA is working towards sourcing only renewable, recyclable or recycled materials. The furniture may be mass-produced and cheap, but it’s definitely not $10 t-shirt cheap. We call this ‘democratic design’, it’s that clever combination of form, function, quality and sustainability all at a low price, and it helps all of us, including our co-workers, live a more sustainable life at home.”. The company hasn’t achieved this yet, particularly in Australia, but according to Dr Kate Ringvall they’re working towards it. Unsustainable consumption: In a world already using more resources than what is sustainable, unsustainable consumption puts an even greater pressure on the planet. “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. Currently, the business sources wood from 50 different countries, including Vietnam, Sweden, Poland, Russia, Lithuania and Germany. We make sure that we’re a good neighbour, that we support human rights and we act in the best interest of the children that we may be impacting as well. To learn more about IKEA”s People & Planet Positive sustainability strategy, click here. It is, shall we say, mass produced. 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. Is it tax minimisation or outright tax avoidance? IKEA sustainability ambitions for 2030 Inspire and enable more than 1 billion people to live a better everyday life within the boundaries of the planet Become circular and climate positive, and regenerate … The particle board in a kitchen door, for example, is made from recycled wood and wrapped in a plastic film made from recycled PET bottles. 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. 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. 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. Something that does not gel with my idea of “slow” living. Today, the IKEA Sustainability Report FY18 * is released – reporting progress from across the IKEA … We believe that if we all act together, we can build a low carbon and circular economy that secures longterm prosperity. This result is owed, in large, to BCI. You be the judge. 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. IKEA’s home decor products are, of course, another story. At the World Economic Forum in Switzerland this month, IKEA’s chief executive Jesper … “It also leads to higher costs as cotton is usually grown in developing countries and farmers struggle to make a profit. 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. IKEA is a Swedish-founded, Dutch-based global retail behemoth. I tend to be the type that focus on individual items and the uniqueness of a piece. What is more, this option can bring a positive sustainability … 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. 4 | INTER IKEA SUSTAINABILITY SUMMARY REPORT 14 new IKEA stores worldwide EUR 38.3 billion IKEA retail sales4 28,000 co-workers 41% of Inter IKEA co-workers are women The IKEA business in FY17 2 Inter IKEA … Loved this post? The onus is on the supplier and other third parties to ensure standards are being met and requires regular independent, unannounced audit visits to verify compliance. And, we know it’s possible for businesses to grow while shrinking the climate footprint. It’s a nice feeling whenever a well-known company reaches out, but my mind is always on the job even when my ego is being stroked. IKEA touches the lives of millions around the world and has long promised to stand by the side of the many people. We need corporations operating sustainably AND paying their fair share of corporate tax thank you very much. prevention of child labour, purchasing and much more. “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. The world is facing a climate crisis that will affect the lives of many millions of people. 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 … Most people meander, they look and admire, they take photos, they collect ideas, try, feel, sit. 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 … (Source: Boscor & Bratucu, 2009:55) Concerning its sustainability, Ikea … Inequality: As people move out of poverty, many are still struggling on very low incomes. How sustainable is IKEA? 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. It will profit from flying the flag of corporate sustainability while easing the guilt of their mass consumer. Learning this and viewing these sorts of figures, one can’t help but consider the ethicality of IKEA’s tax minimisation strategies. 'Eco' Perfection Doesn't Exist. “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.”. We work hard to ensure co-worker and customer safety and have increased our focus on health and safety with suppliers and home delivery service providers. © Ingka Holding B.V. 2021.Some images by courtesy of Inter IKEA Systems B.V. You might like this one too: Just How Sustainable Is American ‘Ethical’ Fashion Label Everlane Anyway? For reasons I can’t put my finger on now, we never did end up working together. But then, IKEA didn’t invent industrialisation and mass-production – it’s just one of many companies playing the game of capitalism – and winning. One last note. After an employee removes legs off of a piece of furniture to fit into a car, the concept of the flat pack and self-assembled furniture was born. We all need to act now. Learn more about our sustainable efforts including solar energy, … This can offer new opportunities for job creation, innovation, economic growth and reduced energy costs. But it can’t guarantee it. Jennifer Nini is a writer, activist and the founding editor of Eco Warrior Princess. By 2030 our ambition is to inspire and enable 1 billion people to live a better everyday life within the limits of the planet. Fast furniture describes the manufacture, not necessarily consumer behaviour. “It’s pretty clear that being able to talk and play in that sustainability field is beneficial to … A formidable business strategy. that as a global business it produces as much renewable energy as it consumes. We recognise the challenges people are facing and the rapid changes in our communities – particularly where rights and opportunities are far from equal. the IWAY Standard, the IKEA Group Sustainability Strategy for 2020, and the IKEA Group Sustainability Report FY16. IKEA is a huge challenge for a company which has 400+ stores … Copyright © 2010-2018. Like all decisions of a business nature, it boils down to costs and sustainable supply. Each code of conduct covers specific business needs, from working conditions, prevention of child labour, purchasing and much more. 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 … Steve Howard is a leading sustainable business professional and is a recognised authority on sustainability and climate change. Her passion and enthusiasm for her employer was evident: “Having spent many years in government, I finally found a place where my value set is met and IKEA is meeting those every day,” she shares with the audience made up of over a hundred of Australia’s sustainability thought leaders. Our long-term goal is to transform the entire cotton market across the globe.”. Only a forensic accountant will be able to work that out. At IKEA… We are committed to providing decent, meaningful and engaging employment for every co-worker, and we stand up for equality. We divert 70-80 percent of our waste as a company across the country. With 1 million species at risk of extinction, we’re on course for irrevocable damage to nature and ecosystems. It’s committing to sustainability because it’s good business to do so. 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? According to The Guardian, in the 2015-16 fiscal year, IKEA recorded $1 billion of revenue and paid a pitiful $11 million tax to the Australian government. “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. If this is okay by IKEA, then we can move forward . This is not something IKEA is known for. 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. 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 … In FY20 we began work with Inter IKEA Group to substantially update IWAY, clarifying requirements for animal welfare and ‘gig economy’ platforms. “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. “We further extended our code of conduct which is an audit process of our procurement business unit and that goes through our value chain. After listening to her brilliant talk and reading IKEA’s People & Planet Positive strategy, I come to the conclusion that as far as big businesses go, their sustainability mission seems genuine enough. You’re really just walking into a clever experiential advertising campaign and you’re powerless to stop it. 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. 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. A quick search on Google and it’s clear that this kind of behaviour is not an isolated incident. That’s a big amount of resources that we could be using that we’re currently not for a whole range of reasons.” – Dr Kate Ringvall, IKEA’s Australian Sustainability Manager in her talk at the 2018 National Sustainability in Business Conference. Since 2009, IKEA Group has invested EUR 1.7 billion in renewable energy, has committed to owning and operating offsite wind turbines and have installed around 750,000 solar panels on IKEA buildings and stores globally. 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. 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). IKEA, the popular Swedish-based home furnishings retailer, has been chronicled as an economic indicator in terms of its global sales and materials sourcing. We also partner with suppliers to help them meet our standards, and if we find they don’t improve over time, we stop working with them. If there is consumer demand for the KUNGSBACKA range, IKEA hopes roll. 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