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IKEA Group

No. of employees
139,000
Revenue
€27 billion
Country
Netherlands
IKEA Group

Overview

IKEA offers well-designed and functional home furnishings at affordable prices. Founded in Sweden in 1943, the IKEA Group today has 298 stores in 26 countries and 139,000 co-workers committed to its vision to create a better everyday life for the many people.

Care for people and the environment is integrated in every step of the business. IKEA continuously supports initiatives that benefit causes such as children or the environment. One of the biggest challenges in the 21st century is how to tackle the expected shortage of resources and climate change, while providing a good quality of life for people around the world.

IKEA's new sustainability strategy, People & Planet Positive, builds on its many years of working with environmental and social issues and explains how we will play our part in meeting those challenges.

People & Planet Positive will help IKEA grow within the limits of one planet and has three focus areas:

  • To inspire and enable millions of customers to live a more sustainable life at home.
  • To make IKEA energy and resource independent.
  • To help create a better life for people and communities.

Current Activities

People & Planet Positive, aims at inspiring millions of customers to live a more sustainable life at home, making IKEA energy and resource independent as well as creating a better life for people and communities.

A more sustainable life at home

IKEA is creating affordable products so customers can use less energy and water at home and reduce waste. Enabling customers to live more sustainably will make a significant difference, and with 690 million visitors to IKEA Group stores worldwide, even small changes will add up to a big impact. IKEA has already launched many products and solutions that enable customers to live more sustainably, and many more are in development. 

The company's energy consuming products were 32% more efficient than those on the market in 2008, and it has improved water efficiency too. For example, IKEA's dishwasher range is 22-51% more water efficient than products in its range in 2008. IKEA will also convert all the lighting it sells to energy efficient LED. The bulbs last for up to 20 years and use up to 85% less electricity compared to traditional incandescent lighting.

Resource and energy independence

IKEA is cutting costs and protecting resources by making more from less, turning waste into resources and switching to renewable energy. By using resources more sustainably, it can be part of global efforts to protect the environment and tackle climate change. Already, 91% of materials used in IKEA products are renewable, recyclable or recycled. Its goal is for all main materials to be renewable, recyclable or recycled by financial year 2015 (FY15).

All wood used in IKEA products is sourced from suppliers that meet its IWAY Forestry Standard and it has increased the amount of wood it uses from forests certified to Forest Stewardship Council (FSC) standards to 23%.

IKEA works with WWF and the Better Cotton Initiative to help make cotton farming more sustainable. In FY12 it invested €1.9 million in sustainable cotton farming projects, reaching more than 100,000 farmers. 34% of its cotton came from preferred sources, including from farmers licensed to grow Better Cotton.

The company is also investing €1.5 billion in renewable energy, focusing on wind and solar. This will take it closer to its target to produce as much renewable energy as the energy consumed in IKEA Group stores and buildings by FY20. In FY12 it produced renewable energy equivalent to 34% of its total energy consumption. At the end of the year, it had 250,000 solar panels on buildings and 83 offsite wind turbines in operation. Compared with FY05, the stores were 13% more energy efficient in FY12.

Better life for people and communities

Through its supplier code of conduct, IWAY, IKEA aims to safeguard good working conditions and minimize the environmental impact of its supply chain. At the end of FY12, 100% of home furnishing suppliers were approved against IWAY, or being phased out. Thousands of IKEA and independent audits are carried out every year to check suppliers meet these high standards. 

IKEA wants to take a lead in creating a better life for the people and communities touched by its business. The IKEA Foundation gave €82 million in 2012 (€65 million in 2011) to create opportunities for children living in the developing world. Currently funded programs, run by expert partners such as UNICEF and Save the Children, will benefit an estimated 100 million children.

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