3/29/2024 SUSTAINABILITY FOR ORGANIZATIONAL GROWTH Presented By: GROUP-3 Rizmi MBA/24/7074 Rashad MBA/24/7096 Saheer MBA/24/7078 Fazil MBA/24/7193 1 Objectives • Overview of Sustainability Development. • IKEA’s Sustainability Strategy • IKEA’s progress on growing its business. 2 1 3/29/2024 SUSTAINABILITY The sustainability is fulfilling the needs of the current generation without compromising the needs of the future generations -EPA 3 1. ECONOMIC 2. SOCIAL ENVIRONMENT Ability of an organization It Emphasizes the well- pertains to the or system to maintain being and quality of life responsible use of long-term economic for individuals and natural resources and viability. communities. the protection of the environment 4 2 3/29/2024 • The Sustainable Development Goals (SDGs) are a collection of 17 global goals set by the United Nations in 2015. • They serve as a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by the year 2030. 5 Economic Society Biosphere 6 3 3/29/2024 I(KEA)Way Towards A Sustainable Future 7 8 4 3/29/2024 ~Ingvar Kamprad -IKEA Founder “IKEA is not the work of one person alone. It is the result of many minds and many souls working together through many years of joy and hard work.” 9 • Founded by Ingvar Kamprad in 1943 • World’s largest furniture retailers of furniture and household goods • Flat packaging and self-assembly • IKEA Vision – “To Create a better everyday life for the many people” 10 5 3/29/2024 IKEA has established a sustainability strategy called "People and Planet Positive“ Source: www.ikea.com 11 IKEA SDGs 12 6 3/29/2024 ECONOMIC SUSTAINABILITY 13 WHAT IS ECONOMIC SUSTAINABILITY? Ability to maintain its productivity capability over long-term Managing Resources Production Consumption 14 7 3/29/2024 WHAT MADE IKEA TO BECOME SUCCESS? Adopting Sustainability in the business model of IKEA Cost Efficiency Process Optimization Affordability 15 CIRCULAR ECONOMY AT IKEA Which entails minimizing waste and maximizing resource efficiency Recycling Material Reuse Energy-efficient 16 8 3/29/2024 CIRCULAR ECONOMY AT IKEA Defining Circular IKEA: the Four Loops RM Recycle or Renewable Parts Supply Manufacturing Repair Customer Recycling Remanufacturing Refurbishment Reuse 17 CIRCULAR ECONOMY AT IKEA 3 Great Circular Projects Belgium : Exchange with old furniture Sell Renew Repair Return Donate 18 9 3/29/2024 CIRCULAR ECONOMY AT IKEA 3 Great Circular Projects Denmark : Cushions with leftover fabric 19 CIRCULAR ECONOMY AT IKEA 3 Great Circular Projects Sweden : Online second-hand marketplace 20 10 3/29/2024 INVESTMENT IN ECONOMIC SUSTAINABILITY? Long-term strategic planning and investment Invests 200M euros Wind and solar power energy Renewable energy sources Sourcing and Supply-chain transparency 21 IKEA’s Economic Sustainability Achievements IKEA has made significant strides in its sustainability journey 100% Renewable Electricity 55.8% Renewable Materials, 17.3% Recycled Less Waste with Rechargeable Batteries Wood Sourcing: 99.8% FSC® certified or recycled 22 11 3/29/2024 Summary IKEA has made remarkable journey Cost Efficiency Circular economic principles Renewable Energy Investments Responsible sourcing 23 ENVIRONMENTAL SUSTAINABILITY 24 12 3/29/2024 IKEA’S ENVIRONMENT SUSTAINABILITY IKEA has made various strategies to be circular & climate positive which includes. Transforming into a circular business Prolonging the life of products using smart ways Turning waste into resources, sending zero waste to landfill Producing renewable and recycled materials with a positive environmental impact Establishing and promoting systems and services to enable a circular economy. 25 IKEA’S ENVIRONMENT SUSTAINABILITY Becoming climate positive Contributes to limiting global temperature increase to well below 2°C Reducing the greenhouse gas emissions from the IKEA value chain Aiming for renewable electricity and heat in IKEA operations Promoting on-site renewable energy generation and new installations Actively reducing air pollutants 26 13 3/29/2024 IKEA’S ENVIRONMENT SUSTAINABILITY Regenerating resources, protecting ecosystems and improving biodiversity Becoming forest positive Promoting sustainable forest management Leading regenerative projects Becoming water positive Leading projects to clean plastic pollutants from ocean & turn it into Fabrics 27 IKEA’s Environment Sustainability Achievements By 2030, all plastics used in IKEA products will be based on renewable or recycled material IKEA Introduced ABACKEN water Nozzle Transparency supply chain process Moving towards mattresses with recycled or renewable foam In 2022 total climate footprint decreased by 1.4M tones of CO2 28 14 3/29/2024 SOCIAL SUSTAINABILITY 29 IKEA’S SOCIAL IMPACT Working with social entrepreneurs for a better future Partnering in different ways Gender Equality 30 15 3/29/2024 IKEA’S SOCIAL SUSTAINABILITY Empowering and educating workers Addressing the issues of Gender equality & minorities Empowering and educating workers Reducing Energy Consumption 31 IKEA’S SOCIAL SUPPORT Development Program Direct Support Pilot Program 32 16 3/29/2024 IKEA’S SOCIAL SUSTAINABILITY ACHIEVEMENTS Provided nearly 3000 jobs to asylum seekers and refugees from 2019 to 2023 more than 100 interns found employment in IKEA internship program in Sweden. Supplier code of conduct for its suppliers regarding human rights, labour practice and environment responsibility. Fair wages and safe working conditions No suspected or confirmed cases of child labour. 33 SUMMARY: A Sustainable Future with IKEA IKEA Committed on innovative change aligned with sustainability development. From reducing carbon footprints to embracing circular business models. IKEA continues to inspire individuals and communities. 34 17 3/29/2024 References: • www.ikea.com • https://www.green.earth/net-zero/case-studies/ikea-leading-theway-in-sustainability • https://www.ingka.com/sustainability/ • https://topicinsights.com/sustainability/ikea-road-to-asustainable-future/ • https://www.designorate.com/ikea-sustainable-design-strategy/ • https://www.undp.org/ 35 THANK YOU 36 18 3/29/2024 Any Questions? 37 19
