© Inter IKEA systems B.V. 2012
People & Planet Positive
The IKEA Group Sustainability Strategy 2020
© Inter IKEA systems B.V. 2012
IKEA and the
planet
33 million ton of CO2 eq.
40,000 ton palm oil
150,000 ton cotton
14 million m3 wood
39 million m3 water
November 2012
IKEA Group Sustainability Strategy
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© Inter IKEA systems B.V. 2012
IKEA and
people
600,000 co-workers
at tier 1 suppliers
Co-workers
at tier 2
suppliers
139,000
co-workers
November 2012
700 million
store visitors
IKEA Group Sustainability Strategy
2 + million people in
extended value chain
© Inter IKEA systems B.V. 2012
Our customers
care
• Our customers are more
receptive to sustainability.
• They want IKEA to actively help
them.
• Same cost, quality and style
November 2012
IKEA Group Sustainability Strategy
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© Inter IKEA systems B.V. 2012
Growing IKEA
Together
To create
a better everyday
life for the
many people
November 2012
IKEA Group Sustainability Strategy
© Inter IKEA systems B.V. 2012
People & Planet
Positive
We must have positive
impacts: promoting
renewable energy,
healthy and safe
chemicals, responsible
stewardship of forests and
farmlands, and a more
fair society.
November 2012
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2
3
Strive for resource and
energy independence
Take the lead in creating a
better life for people and
communities
November 2012
IKEA Group Sustainability Strategy
© Inter IKEA systems B.V. 2012
1
Inspire and enable millions
of customers to live a more
sustainable life at home
People &
Planet
Positive
© Inter IKEA systems B.V. 2012
A more sustainable
life at home
November 2012
IKEA Group Sustainability Strategy
We aim to achieve more than a fourfold
increase in sales from products and
solutions inspiring and enabling customers
to live a more sustainable life at home.
We focus on products and solutions that
enable our customers to save energy and
water and reduce waste at home.
November 2012
IKEA Group Sustainability Strategy
© Inter IKEA systems B.V. 2012
Fourfold increase in
sales
Build on the
existing range
and develop
new and
exciting
products and
solutions!
© Inter IKEA systems B.V. 2012
Resource and energy
independance
November 2012
IKEA Group Sustainability Strategy
4,5 million m3
purchased wood comes from
preferred sources.
All wood comply with our strict
requirements on wood sourcing.
550,000 solar panels installed &
157wind turbines installed and
under installation
Two third of all cotton
used is more sustainable.
Turning waste into resources
Goals at IKEA
We will take a lead in turning waste into resources. We will develop key resource
chains securing recycled materials, ensure key parts of our range are easily
recycled, and take a stand for closed loop society. By the end of FY15 all main
home furnishing materials, including packaging, will be either made from
renewable, recyclable or recycled materials.
•
•
•
•
•
•
•
Strive for zero waste to landfill wherever possible, with a minimum of 90% of the
waste from our stores and other IKEA operations sorted for recycling by the end of
FY15.
By the end of 2020 to reduce the waste from our stores with 10% (kg/m3)
compared to 2013
To have material recycled 80 % of the waste from our operations by 2020
Enable customers to have clear and simple options for the reuse and recycling of
appropriate categories of IKEA products, e.g. mattresses, sofas, appliances and light
bulbs.
Target key raw materials with dedicated “resource chain” projects to establish
new flows of recycled materials.
By the end of FY17, 50% of the non-renewable materials used in our home furnishing
products will be recycled materials.
By FY20, 30% of the wood used by the industry group will be recycled.
Key Strategic Questions:
How does IKEA group secure materials for the future
How do we enable our customers to reuse, recycle products
at end of life
© Inter IKEA systems B.V. 2013
Circular economy at IKEA
How does it look like in society
Recycling system characteristics
• Widely policy driven system with well
developed infrastructure, recycling targets and
standards (e.g. quality and labeling)
• Industrial and technologically advanced
recycling for high value materials, such as
metals and pre consumer plastics
• Bottom up system build on voluntary
engagement of the consumers and ‘green’
lifestyle rather than monetary incentives
• Bottom up system business that has
developed in response to raw material scarcity
and high demand rather than by policy
intervention
• Highly commercial system with profitability
being the main driver and monetary
transactions taking place at every step in the
value chain
Recycling rates for common materials*
Country
Material
EU
China
Paper(a)
60%
40-50%
Cardboard
70%
80%
Steel
75%
60%
Aluminum
90%
90%
Plastics(b)
15-20%
22%
Glass(c)
50-60%
20-30%
Wood(d)
67%
70-80%
Textiles(e)
25%
<1% (<1%)
a. Excluding ”recycling abroad”, b. Post-consumer plastics, c. Glass containers, d. Including energy recovery, e. Post consumer, material rec. (collection)
* Accenture analysis and multiple (>10) cross checked third party written sources (e.g. EU commission, BIR, World Bank, Ouvertes project)
Material prioritization
Example of MATERIAL MATRIX
Transformational potential
HIGH
POTENTIAL
LOW
POTENTIAL
Apply best practice
• Wood (67)
• Plastic (15-22%)
• Textile (25%)
• Cardboard (70-80%)
• Steel (60-75%)
• Aluminum (90%)
• Ceramics
• Glass (20-60%)
• Paper (40-60%)
LOW RECYCLE RATE
IN SOCIETY
HIGH RECYCLE RATE
IN SOCIETY
6
Design for recyclability
- Recyclable material
- Easy for recycling
1 Post-consumer
-
Reuse, repair
Reverse logistics
Collection network
Incentive platform
5
Supply chain
- IKEA suppliers
- Recycled material at supplier
Pre-Consumer waste
2 Post-industrial logistic
-
4 Sourcing of recycled materials
- Resource bank/pool
- Recycled material supplier
- Alternative material supplier
3 Processing infrastructure
- Sorting technology/process
- Quality requirements
- Upcycling technology/process
- Recycling technology/process
External commercial source
Join stream with industries
Consumer goods producer
Service industry (hotel, airport)
© Inter IKEA systems B.V. 2013
How to approach Circular economy
A sustainability opportunity must
economically sustainable
Economic
opportunity
Collection
Cost
(Including
material
dumping fee)
Sorting
and pretreatment
Cost
Processing
and
recycling
production
cost
Additional
production
costs due
to use
recycled
material
Recycled Virgin
Material Material
Cost
Cost
CE100
© Inter IKEA systems B.V. 2012
A better life for people
and communities
November 2012
IKEA Group Sustainability Strategy
IWAY at all suppliers
170,000 audited improvements!
100 million children
The IKEA Foundation donated €65
million in 2011, helping children in
more than 30 countries.
BUSINESS PLAN FOCUS WEEKS FY14-16
21
© Inter IKEA Systems B.V. 2012
Home is the most important place in the world
18-Mar-16
[IKEA Business Unit/Topic name]
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