03 Aug Sustainability at IKEA Part 2: IKEA Today

The NEVER ENDING list

IKEA has continued its quest for sustainability and keeps track of its steps towards sustainability on its NEVER ENDING list of improvements. The count is up to 81 items on the list. Some notable improvements have occurred in the areas of raw materials and transportation.

Raw materials, wood and cotton, are increasingly sustainably sourced. IKEA does not accept wood from illegally-harvested or intact natural forest sources. The amount of Forest Stewardship Council certified wood is up to about 16% currently. IKEA partners with the World Wildlife Fund to operate schools for cotton farmers in Pakistan and India. These schools focus on methods for cotton production that use less water, pesticides and fertilizers.

In the area of transportation, IKEA made flat-packing of products the standard in the 1950's and has continued because of fuel, emissions and financial savings. They even ship bulky sofas disassembled to pack shipping containers more efficiently. Currently the company is "lightening up" and moving away from wooden pallets. Plastic and "paper"/cardboard pallets are slated to become their new standard. These pallets are both lighter and easier to recycle.

IWAY Standard

All suppliers to IKEA must meet minimum standards for environment, safety and fair labor. IKEA hires third-party auditors to ensure that any company providing products, materials or services to IKEA adhere to the IWAY Standard. The standard covers impacts to air, water, land, chemical usage, worker health and safety, hours/wages/benefits, child labor, discrimination and several other issues.

Sustainability Report 2011

Last year's report highlighted the following improvements on the sustainability front:

• Energy efficiency increased by 4% saving 6.2 million euro.
• Donations to programs for children and youth up 20 million euro.
• Renewable Energy -More than half of buildings’ energy needs now come from renewable sources. Solar panel installations on 40 IKEA buildings in seven countries and 60 wind turbines produced enough electricity to power 12% of all IKEA stores and distribution centers
• Wood – Forest Stewardship Council-certified wood in the IKEA range increased from 15.8% to 16.2%.
• Cotton – More sustainable cotton up from 13.4% to 23.8% of total  cotton use

In 2011, IKEA also analyzed the materials in all of its products. The goal for 2015  is that all materials used shall be recycled, recyclable or renewable. The analysis showed that currently 45 materials do not meet any of these criteria. (These materials are found in products representing around 10% of company sales value.) Challenging materials include foam,  
rubber and plastic composites.

The 2011 report also outlines the company's goals for 2015: The IKEA Sustainability Direction 2015. One significant target is zero-waste by 2015 from all direct IKEA operations. The reduction goal for CO2 from transportation is set at 20%, but by 2016 instead of 2015. Their goals and direction focus on five priorities:

1. More sustainable product range
2. Leading in creation of low-carbon society through renewable energy.
3. Zero-waste, product reuse and recycling
4. Reduce water footprint especially for cotton cultivation.
5. Social responsibility

The above IKEA activities aren't only happening somewhere far away, but also right here at our local Round Rock store.