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IKEA’s Journey from Laggard to Environmental Leader

by Richard Matthews
February 6, 2019
in Business, Leadership, Other
0

Few companies chew up resources and generate more waste than the IKEA Group.
However, the world’s largest furniture retailer has made tremendous
strides that have enabled the global brand to emerge as a leading sustainability-focused company.

Apple may have an enormous customer base, but it is dwarfed by the IKEA. With approximately one billion people served the Dutch company of Swedish origin has almost almost twice as many customers as the tech giant.

IKEA recently pledged to make all of the 12,000 products they sell from renewable and recyclable materials by 2030. They have also adopted science-based emission reduction targets pledging to derive all of their energy from renewable sources within a year.

IKEA led the retail space with their investments in renewables and efficiency and in 2018. They are also helping developing countries adapt to climate change. IKEA has invested almost $2.5 billion in renewable energy since 2009 reducing costs and managing business risks.

IKEA is an empire with an immense supply chain. With over 400 stores in almost 50 markets IKEA holds tremendous power. They have exerted their influence over their supply chains focusing on issues that reduce packaging and help to protect reforestation. IKEA employs IWay, a code of conduct with precise environmental and social requirements.

IKEA is  investing more than $1 billion to create a truly sustainable supply chain. This includes forestry, recycling technologies, renewable energy, and biomaterials. These investments; stabilize costs and minimize disruptions thereby protecting their access to materials. It also provides reputational benefits.

IKEA’s turnaround proves that going all in is well worth it.

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