Multinational companies across the world are taking a stand with being sustainable and eco-friendly. Their sustainability initiatives can be a guiding benchmark for other companies to rope in and adopt the same. Lifestyle or the home decor industry is flourishing through and through. However, the industry has been being criticized for a long time for its high levels of waste generation and also carbon emissions.
Brands and architecture companies are taking initiatives to draw themselves towards bringing more sustainable and eco-friendly options. Replacement of raw materials, increased durability and changes in the supply chain can help manage the emissions.
IKEA is one of a kind multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances and home accessories, among other goods and home services. A 17-year-old Ingvar Kamprad found the company in 1943. Having a Swedish origin and Dutch headquarters, till date the company has spread its location in 50 countries with more than 463 IKEA stores.
The company has been able to get itself the position of being the world’s largest furniture retailer since 2008. The firm has excelled in providing modernist designs, attention to cost control; operation details and continuous product development while being associated with an eco-friendly simplicity.
Products & Services by IKEA:
Furniture and Homeware:
IKEA is known for selling unassembled or flat packs. The final product is then assembled by the customers themselves. This helps in reducing transport costs, time and fuel by carrying more items at once. The company claims that it has been a pioneering force in sustainable approaches to mass-consumption culture.
Solar PV systems, Smart home solutions, flat-pack houses and apartments and furniture rentals are some of the other products and services that IKEA has to offer.
Ikea’s business idea- To offer a wide range of well-designed, functional home furnishing products at prices so low, that as many people as possible will be able to afford them.
Sustainability at IKEA:
Caring for people and the planet.
IKEA looks at growing unsustainable consumption, climate change and inequality as challenges. To meet these challenges IKEA in collaboration with its partners, co-workers and customers have plans on taking ambitious steps towards a more sustainable future.
All the Sustainable Development Goals are connected and IKEA plans to use them as a compass to mobilize change in their work.
“No method is more effective than a good example.”- says Ingvar Kamprad.
Hence, through their business, IKEA says that they have a unique opportunity to lead the way by being a good example to bring about positive change in society.
IKEA’s sustainability strategy- People & Planet Positive.
This particular strategy describes the sustainability agenda for the entire IKEA value chain. The ambitions and commitments are set for 2030 in line with the UN’s Sustainable Development Goals. The company also believes that they cannot achieve this alone and therefore want to achieve this collaboratively and transparently.
They need to find the right balance between economic growth and positive social impact with environmental protection and regeneration. A collaboration between these three factors that can affect human life and the planet can lead to a ‘Better life for more people.’
Being positive in a rapidly-changing world:
The company aims at creating a better life through opportunities and amazing innovations.
Three focus areas:
IKEA has identified three major focus areas in correspondence to the three challenges.
Healthy and sustainable living:
By 2030, our ambition is to inspire and enable more than 1 billion people to live a better everyday life within the boundaries of the planet.
Commitment to making everyday living positive for our health, well-being and the planet; promoting circular and sustainable consumption; inspiring and enabling people to live better lives.
Circular & climate positive:
By 2030, our ambition is to become climate positive and regenerate resources while growing the IKEA business.
An effort to not put pressure on biodiversity, control pollution and make our environment better for millions around the world. Commitment to transforming into circular business, becoming climate positive, regenerating resources, protecting ecosystems and improving biodiversity.
Fair & Equal:
By 2030, our ambition is to create a positive social impact for everyone across the IKEA value chain.
The company believes that the world is ever-changing and through their business, they can support and influence change. With their size and scope, they understand their responsibility and great opportunities to create a positive change for many people. Commitment to providing and supporting decent and meaningful work across the IKEA value chain, being an inclusive business and promoting equality.
They make all this happen through responsible sourcing, advocacy, co-creation, partnership, incentives, communication, reporting and transparency.
During FY20, we reached our forestry goal, and today more than 98% of the wood used for IKEA products is from more sustainable sources, such as FSC®-certified or recycled.
“We want to create an IKEA business model that is sustainable. The IKEA vision, to create a better everyday life for many people, is our inspiration.”
Living our values, being bold in facing challenges, co-creating a better world, working long term for a positive change are important checks for achieving their vision.
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