PEOPLE & PLANET POSITIVE 2018 - CREATING A CIRCULAR IKEA
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IKEA Australia
®
PEOPLE & PLANET POSITIVE 2018
CREATING A CIRCULAR IKEA
®
Jan Gardberg Kate Ringvall
Country Retail Manager, Sustainability Manager
IKEA Australia IKEA Australia
IKEA Australia Circular IKEA
and Sustainability
The world is changing rapidly around us. Our population is expected At IKEA our overall ambition is to become people and planet positive,
to surge to 9.8 billion by 2050. In just over a decade, 70% of the and to inspire and enable the many people to live a better everyday
world’s population will live in urban areas forming a world of many life within the limits of the planet.
powerful cities.
To do this, we are transforming IKEA into a circular business. It is
While this may seem overwhelming, at IKEA we are optimistic about one of our biggest ambitions and challenges for the future and will
the future. How can we create and design cities of the future while impact IKEA in many ways: from how we develop products, source
staying within the limits of the planet? materials, develop our supply chain and set up logistics, through to
how and where we meet our customers.
It requires bold ambitions, commitment and working together to
tackle big challenges like climate change and resource scarcity. We Looking beyond the way we currently consume, we want to take
need to rethink the way we consume and the impact it has on our the lead in circularity by joining forces with others to create real,
planet. And we cannot do this alone. lasting impact on a large scale. It’s about creating a restorative and
regenerative circular business model that we can all benefit from.
This year, IKEA launched its 2030 People and Planet Positive
Strategy. The three change drivers – healthy and sustainable living; We are proud to be going all-in when it comes to creating a people
circular and climate positive; and fair and equal – form our roadmap and planet positive world. As a leading retailer here in Australia
to creating a better everyday life for the many people globally and and globally, we have a unique opportunity to create a movement
locally. In Australia, work is already underway to achieve some of in society where better and sustainable living is desirable and
these ambitions. affordable.
In Australia, we have almost 4000 co-workers and have 19 million
visitors to our stores each year. As a leading home furnishings
retailer we recognise the role we play in creating a people and planet
positive world. We know that we can make change and create impact
through setting ourselves bold and ambitious targets, and also
inspiring our customers to be conscious consumers.
What is the Circular Economy 04
The Circular Life 06
The Facts 08
Our Ambition 09
Design is Key 10
Creating a Circular IKEA 12
Around the World 14
IKEA Tempe Take-back 16
Soft Landing 17
Driving a Sustainable Future 18
VIMLE 19
KUNGSBACKA 20
TÅNUM 22
IKEA Products 24
Sustainability in our Stores 26
Wood 28
Cotton 29
Food is Precious 30
Year in Review 32
People and Planet Positive 2030 34
Community 36
Good Cause 37
About IKEA 38
PEOPLE & PLANET POSITIVE 2018 3
WHAT IS THE
CIRCULAR ECONOMY
The circular economy is a new way of looking at the
relationship between consumers, products and the
companies that create them.
Instead of a linear ‘take-make-dispose’ model where vast amounts
of man-made and natural resources end up in landfill, the circular
economy provides a new challenge: how can products be adapted for
longevity? What parts can be replaced or repaired? What elements of
a product can be recycled, or manufactured from recycled materials?
Can the product be reimagined or re-engineered for additional uses?
Can it be refurbished or resold?
What is ‘closing the loop’?
Closing the loop is when waste products are repurposed to make
new resources, such as materials and products.
RESOURCES
Renewable / Non-Renewable WASTE
DESIGN / MANCTURE CONSUMPTION / USE
LINEAR ECONOMY
FIVE RULES OF THE
RESOURCES
CIRCULAR ECONOMY
Renewable / Non-Renewable
The idea is that nothing useful goes to waste.
IKEA has accepted this challenge in a number
DESI
GN
/
of ways.
M
AN
U
Reuse and remanufacture:
FA
1
CT
Materials and components are taken back and reused
E
UR
CL
in production.
E
CY
PAIR / RE
Sharing platforms:
CIRCULAR
ECONOMY 2 Using digital technology to increase the use of already
existing assets and products such as cars, houses, and
/ RE
equipment.
E
US
Extended product lifespan:
3
-
RE
SE
Repairing and/or upgrading existing products through
U
services and other products.
/
N
I O
PT
UM
4
CONS Product as a service:
Leasing and reusing.
Circular materials:
5
WASTE The circular supply chain introduces fully renewable,
recyclable or biodegradable materials that can be used
in consecutive lifecycles to reduce costs and increase
predictability and control.
PEOPLE & PLANET POSITIVE 2018 5Based on
current
population
growth,
there will be
an estimated
10 billion
people
on earth
by 2050.
THE CIRCULAR LIFEConsumers are becoming
more conscious about the Today only 9%
environmental impact of of the world’s
their choices. plastics
From reusable coffee cups to that we use
refillable water bottles, the move
from a ‘throw away’ culture is
are being recycled
gaining momentum. and reused1
But there’s still a long way to go. Today only
9% of the world’s plastics are being recycled
and reused1. This means a whopping 91%
is going to waste.
This, combined with the lack of a local
recycling industry, means that we have to
find a way to stop putting things in the bin
in the first place. We need to be conscious
consumers, taking steps to reduce, reuse
and recycle.
Based on the current population growth,
there will be an estimated 10 billion people
on earth by 2050 – a 25% increase in just
over three decades.
That’s only 32 years away.
We urgently need to change the way we are
doing things if we want to secure the future
of the environment and our way of life.
1 https://www.economist.com/blogs/graphicdetail/2018/03/daily-chart-2
PEOPLE & PLANET POSITIVE 2018 7THE FACTS
81% of Australians have never heard of the circular economy. The good news
is that of the 19% of Australians that have heard of the circular economy,
the majority understand what it means; the circular economy is about looking
beyond the way we currently consume – take, make and dispose. It’s about
creating a restorative and regenerative business model.
Unleashing the potential Vintage is the new black
• More than half of the population (56%) have • Over the last five years the furniture market
thrown out furniture in the last 12 months, in Australia is expected to have grown by 1%1.
however 1 in 4 Australians would keep their 34% of Australians said they are planning
furniture if they knew how to repair or reuse it. to buy furniture in the next 12 months
with the majority (67%) happy to purchase
• Using this sample, it’s possible that 13.5 pre-used furniture if it fit the style of
million pieces of furniture could be recycled, their home.
reused or repaired and given a second life
saving it from landfill and unleashing an • Of the 34% of Australians that said they
enormous economic opportunity. wouldn’t purchase used furniture, 60% would
reconsider their decision if the furniture
• The World Economic Forum puts the had been restored by professionals and was
potential worldwide economic benefit of the safe to use; they knew how to personalise
circular economy at one trillion USD annually. the furniture to suit their home; if it was
easy to purchase and delivered or if they
• Chairs, sofas and coffee tables are the could rent the furniture so they could
top three pieces of furniture Australians continuously update their homes.
throw out.
1 IBISworld, Furniture Retailing – Australia Market Research Report,
published June 2018
• The number one reason why Australians
throw furniture out is because it’s broken
(55%), followed by no longer needing it
(34%) and then decluttering (26%).
• 60% of Australians donate their
unwanted furniture to charity.OUR AMBITION
Our ambition for 2030
is to be 100% circular
and climate positive
in our operations.
Transforming IKEA
®
into a circular business
is one of our biggest
ambitions and challenges
for the future.
PEOPLE & PLANET POSITIVE 2018 9DESIGN We are on track,
IS KEY with 60% of our
range already
based on renewable
At IKEA
® materials.
we constantly ask
is there a better way?
It is in our DNA
to think differently, Sustainability is one of the five dimensions of Democratic Design
at IKEA. It is a clever combination of form, function, quality,
be cost conscious and sustainability all at an affordable price. This formula influences
challenge ourselves every part of IKEA from product design through to our supply
chain and into our stores.
to find new and
better ways. While sustainability has always been at the core of our product
design, today we are taking a new approach – creating a circular
IKEA which takes into account all stages of the product life cycle.
We see our products
as resources for Our goal is to be circular in all aspects: from how we develop
the future. products and services, source materials and develop the IKEA
This means we supply chain, to how and where we connect with our customers.
need to design We are at the beginning of this challenging journey but
products that we are on track – 60% of our range is based on renewable
can be reused, materials.
repaired and
But we cannot do this alone – together with government and
resold right industry, co-creating with communities and other businesses we
from the start. will accelerate the transition from a linear to a circular economy,
We also need to unleashing enormous potential.
ensure that they
Today we invite you, our customers, to be part of the solution.
can eventually
be recycled. Together, we can make a lasting impact on a global scale.NINE DESIGN PRINCIPLES
To achieve circularity at IKEA all of our new products are created
IKEA wins circular
®
with these rules in mind.
economy award
1. Designed for 6. Designed for adaptability
an expected lifespan and upgradability IKEA won a major award at
Product durability, condition, Products that can fulfil the customer The Circulars, a new award
and material matches its functional need throughout life. program created by the
and stylistic lifespan. World Economic Forum and
7. Designed for care and repair
2. Designed for the use of the Forum of Young Global
Products that fulfil customer needs
renewable or recycled materials Leaders.
for easy maintenance, repair, and
Ensuring the right choice of materials long term enjoyment. The awards are open to individuals
from the beginning. and organisations and are designed
8. Designed for disassembly
to recognise and celebrate all facets
3. Designed for recycling and reassembly
of the circular economy movement.
Choosing materials and how they For moving, repairing, upgrading,
are combined to enable recycling. and remanufacturing. IKEA won the Accenture Strategy
Award for Circular Economy
4. Designed for production 9. Designed for emotional (Multinational) at an award ceremony
connection held in Davos, Switzerland on
Designed for minimum waste in
22 January 2018.
production of material, water, energy, Enabling customers to make an
and chemicals. emotional connection with the product,
This award recognised the work
like design details that support
that IKEA has done in transitioning
5. Designed for standardisation keeping memories, uniqueness,
its product development, material
and compatibility or personalisation.
sourcing, supply chain development
Enabling interchangeability also and logistics set-up across to a circular
between brands, better production model, while maintaining a strong
and remanufacturing. relationship with its customers.
PEOPLE & PLANET POSITIVE 2018 11CREATING A CIRCULAR IKEA
®
In order to become a circular business, we have had to drastically
rethink our range, services, operations and food.
The first step The challenge
Making the most of waste. Creating a circular IKEA is not simple
task or a quick fix.
Imagine a zero-waste world. A world
where discarded plastic drink bottles could Malin Nordin, Development Leader for
be turned into new kitchens. Impossible? Circular IKEA says, “We always want
Not at all. It’s already happening. to do things with speed but systematic
thinking always takes time.
In partnership with an Italian supplier,
the team at IKEA of Sweden developed “Products must be designed to last
the materials for the KUNGSBACKA kitchen longer, resources have to be used
front from recycled wood and recycled efficiently, all transport [both
PET-bottles. IKEA and our suppliers] needs
to be as efficient as possible.
For the IKEA PS 2017 collection, IKEA Unavoidable waste needs to
designer Iina Vuorivirta created a vase be turned into resources
made of the glass waste from other and IKEA needs to generate
products. its own renewable energy.
The TÅNUM rug is made entirely from “Like all big changes, you try
leftover materials from bed linen a lot of things and fail quite
production – another example of feeding often. Then you have a few
waste from production back into the successes. We need to think
product cycle. differently,” says Malin.
IKEA is working hard to do just that.Being smarter by being Designing for an
circular emotional attachment
By 2030, IKEA will be using a lot more Research has shown that an emotional
material than it is today. connection is the number one reason
consumers keep products and invest
Can IKEA grow without placing more in them to prolong their life.
pressure on resources? Is this an impossible
equation? “It is so important for the customer
to have a story that is connected to
Malin says its possible by finding smarter a product,” says Malin.
ways to use materials.
During the 2018 Stockholm Furniture Fair,
“It is not difficult to find a material that Marcus Engman, Head of Design at IKEA,
can be both renewable and recyclable,” talked about how IKEA is not only aiming
says Malin. to fulfil the functional needs of customers
but the emotional needs as well.
“The difficulty arises when ensuring
that the material is good quality and safe; In an ideal world, homes are places
that it’s free from dangerous chemicals. of sanctuary and safety, happiness and
It also has to be a manufacturable material harmony. The way people feel about the
and sit within the IKEA price range.” things in their homes enhances that sense
of peace and wellbeing.
As a global brand that is committed
to creativity and innovation, we also By creating circular products, IKEA believes
acknowledge the opportunity to make that people will feel even better about their
positive change by rethinking the way we home lives, knowing that their purchases
design our products so they can be easily are environmentally responsible, as well
reused or recycled for a second life. as durable, practical and well-designed.
Products that are good for people can
also be good for the planet.
PEOPLE & PLANET POSITIVE 2018 13AROUND THE WORLD
Ever-evolving and experimenting, IKEA has started IKEA Sweden
®
testing surprising new business models, from renting
out to buying back furniture. IKEA Sweden works with online marketplace Blocket.se to encourage
customers to buy and sell second hand products. Stores in Sweden
These two business models are innovative examples of how we can also held events for consumers with a focus on circularity and textile
create an economy that’s good for business and for the environment. take-back.
Both initiatives reenvision the lifecycle of IKEA furniture as a loop
rather than a static straight line. IKEA France
®
IKEA Chief Executive, Jesper Brodin, speaking at the World Economic IKEA France launched the ‘Second life for furniture’ initiative that
Forum held in Davos in 2018 said, “If the last decades were about encouraged customers to bring their unwanted IKEA products back
mass consumerism, now we are getting towards mass circularity. to be resold.
You build in an economic incentive, you build in a consciousness with
consumers that they don’t have to own it [the product], but instead
IKEA Japan
®
own things collectively in the world that can be shared and recycled”.
IKEA Japan enables its customers to sell furniture back to IKEA,
to then be resold. Within the first year, more than 3,500 items were
sold back to IKEA through the scheme, helping customers overcome
the problem of what to do with items that still have value but are no
longer needed.
IKEA UK
®
IKEA UK and Ireland launched a textile take-back initiative at IKEA
Cardiff, giving customers the opportunity to bring in any unwanted
textiles purchased from any store – from clothing to soft furnishings
– to be reused, repaired or recycled. The store ran workshops
showing customers how they can breathe new life into old textiles,
or turn them into something new.
The initiative is now being rolled out across the UK and Ireland.PEOPLE & PLANET POSITIVE 2018 15
IKEA TEMPE TAKE-BACK
®
Life after life It doesn’t stop there
IKEA Tempe is committed to creating a more To support circular living in the local community, IKEA Tempe will also
host free sustainability workshops across a range of topics, bringing
sustainable future. Whether consumers want to in local experts to share their knowledge on sustainable living.
breathe new life into unwanted items, or part ways
with them for good, we’ve found a way to help.
Why Tempe?
In exchange for a voucher, IKEA customers living in Sydney can
now give their unwanted IKEA furniture a second life by bringing To help us create a take-back service that meets the needs of
it back to store for it to be sold on to a new customer. the Tempe community, we needed to ask what their view was on
unwanted furniture. We consulted local government and businesses,
It is the first circular economy program of its kind to be as well as the local community and found:
launched in Australia.
• 91% of locals said yes to a take-back service for furniture.
How does it work? • 69% wanted to learn how to upcycle old furniture.
• The IKEA Tempe Take-back service gives customers the incentive • 65% took responsibility for the items they no longer wanted.
to recycle unwanted IKEA goods, instead of throwing them away.
Taking this research and learnings from other IKEA markets around
• Customers need to fill out an online form and email photos of their the world, we were able to launch the Tempe Take-back service.
old IKEA furniture which will then be assessed by an IKEA co-worker.
• The customer will then be advised if their furniture qualifies
for the service, and if successful they will then be offered a price
for their furniture.
• The customer has 14 days to bring their furniture to IKEA Tempe Last year we recycled
where they will receive their voucher.
1700 mattress that would
• The furniture will be put up for sale in IKEA Tempe at the same
value of the voucher given to the customer.
have otherwise gone
The new Tempe scheme joins existing IKEA programs that take-back
to landfill.
mattresses, batteries and light bulbs in stores across Australia.Mattress Take-back in Australia Mattress Take-back facts:
IKEA takes back old mattresses for our customers for a small fee when • 75% of used • Husk makes great
we deliver new beds. We have partnered with Soft Landing –
a mattress recycling social enterprise that also provides jobs and
mattress components weed matting and
traineeships for people who have experienced barriers to gaining are currently recycled. mulch.
lasting employment.
• Steel springs are • Timber is turned
Last year we recycled 1900 mattresses that would have otherwise recycled into products into kindling, mulch
gone to landfill.
like roof sheeting. and animal bedding.
• Foam is recycled
into carpet underlay.
SOFT LANDING
PEOPLE & PLANET POSITIVE 2018 17IKEA DRIVING Creating a Circular IKEA
® ®
A SUSTAINABLE
At IKEA our range is our identity. We want to do
our part in creating a waste-free and regenerative
FUTURE
economy across everything we do.
Democratic Design – a clever combination of form, function,
quality, sustainability all at an affordable price – continues
to guide the way we create furniture and do business. We
Urbanisation is an accelerating trend that will see our cities will design all our products from the very beginning to be
continue to swell. We need to consider new ways to do more repurposed, repaired, reused, resold, or recycled, generating
with less – and this includes transport. Transport is the as little waste as possible. We will use more renewable and
fastest growing contributor to climate change, comprising recycled materials and enable materials and products to
23% of energy-related carbon dioxide emissions.1 last longer.
Car sharing for our customers
IKEA has a strong partnership with GoGet, Australia’s first
and largest carshare service. Customers who visit our stores
will find a GoGet service at most of our sites in Australia. By
promoting the carshare service to our customers, IKEA hope
to trigger a mindset change where people will be more open
to sharing belongings and services.
In a sharing economy, everyone benefits. The customer gets
what they’re looking for quickly, locally and cheaply while
living a better life within the limits of the planet.
Electric Vehicles
We’ve also looked at our own operations. This year,
in partnership with one of our transport suppliers,
have rolled out two electric vehicles to deliver IKEA products
from our Springvale store to customers’
homes. This is the beginning of our
work to use only electric vehicles for our
operations and services by 2025.
1 World Health OrganisationVIMLE
The VIMLE sofa range has been designed
so that parts can be added, removed or
reconfigured depending on the way you
live at home. The removable covers make
the sofa easy to maintain and provide the
opportunity to update and personalise
depending on your style.
The VIMLE sofa range is an example of how IKEA is
transitioning to the circular economy, by supporting
customers as they go through different stages of
their lives. It has been designed to be modular and
adaptable, easily transforming to fit the needs of life
at home.
VIMLE is one of our most flexible pieces of furniture
where customers can choose to add and remove
components like an armrest and chaise longue. It can
be formed in any way you like for your space at home.
Choose the number of seats, design and functions.
As your family or home grows, add on to the sofa and
let it grow with you.
The VIMLE sofa is packaged in separate flat-packs,
making it easier to transport and better for the
environment as it alleviates the need to use heavy
vehicles to move the sofas.
Helping customers reuse, reduce and recycle is one
way IKEA is helping to co-create a circular economy
revolution.
PEOPLE & PLANET POSITIVE 2018 19KUNGSBACKA
Our KUNGSBACKA range of kitchen doors and drawer fronts were the first kitchen fronts in the
IKEA range to be made from recycled wood and plastic from recycled PET bottles. Each year,
approximately 100 billion PET bottles are consumed worldwide, and this number only reflects
bottled water. Add soft drinks to the mix and the number is much higher.
But what actually happens to all these For each door’s matte black surface, 25 half-litre
plastic bottles are used. KUNGSBACKA is an
bottles? important first step on the journey towards
ending the use of virgin oil-based plastic.
Some of them – approximately 30% – are recycled as material for
new products, while 70 billion bottles become waste or are discarded In KUNGSBACKA, the plastic bottles get a new
directly into the sea or landfill. The fact that so much plastic is life, but also a much longer life. You’ll probably
thrown away is not sustainable for the world. This is partly because finish a bottle of water within 25 minutes. If a
plastic is made from oil, a natural resource that will eventually run bottle of water is recycled and converted into
out, and partly because it takes a very long time for plastic to break plastic film on a kitchen front, the same plastic
down – an astonishing 700 to 1000 years. gets a lifetime of at least 25 years.
We need to get better at using the earth’s resources wisely and We’re not the only ones who think KUNGSBACKA
we must start seeing billions of discarded PET bottles as a resource is pretty great. This product received the Red Dot
not waste. Award for Product Design.
There are millions of IKEA products around the world, and by The Red Dot Awards were founded in 1955 and are one
offering more sustainable alternatives, we have the opportunity to of the world’s largest international product competitions.
bring about change. So we started looking at how we could replace
new materials with recycled materials in our kitchen range. This year, more than 17000 submissions from 59 countries were
received and the products entered were assessed individually by
This idea came from close collaboration with our supplier and IKEA an independent and international panel of experts.
designers. Together they developed the KUNGSBACKA kitchen front
which consists of particleboard made from recycled wood wrapped The KUNGSBACKA project started with a vision to create a more
in plastic film made from recycled PET bottles. sustainable kitchen front. To IKEA, waste is seen as a resource.KUNGSBACKA received
the Red Dot Award for
Product Design.
PEOPLE & PLANET POSITIVE 2018 21In India, 4000–5000 rag rugs are produced from offcuts every month.
TÅNUM
Rag rugs have been used in Sweden for around To make the process as easy as possible, Carita and Erik decided
that the rugs would be created in two colour settings, one light and
150 years. Women used rags from old sheets and
one dark. The first step was to make sure the supplier that created
clothes to weave rugs to decorate and protect their the quilt covers also gathered the leftovers and sorted them into
wooden floors. one light and one dark pile. The piles were then transported to the
supplier, Karupannya, where women weave the rugs by hand.
“You could tell a family story by looking at a rag rug: finding your
mother’s old summer dress or father’s old shirt. In TÅNUM you “We wanted to use this supplier for two reasons. One, because
can tell the story of IKEA textiles,” says Carita Carlström, Product we want to support him in his mission to create a better life for the
Developer for Rugs at IKEA of Sweden. community by providing women with fairly paid jobs. Two, because
this region in Bangladesh is known for having great skills in textile
The idea of the small, Scandinavian rag rug grew. At the Milan craftsmanship,” says Carita.
Furniture Fair, Carita met a young design student from Finland,
named Erik Bertel, who had designed a rag rug as a way to show
how it’s possible to create something beautiful with recycled
materials.
“We liked the idea and started to cooperate with Erik to find the
right format for the rag rug. At the same time we were investigating
the possibilities to get waste material from our quilt cover production
in Bangladesh to the supplier that could weave the small rugs by
hand. The design process was fairly easy and smooth but solving
the logistical challenges in Bangladesh was tough,” says Carita.
An easier way would have been to use new fabrics, cut them
into rags and make the rugs from new material. But this was
not something IKEA was interested in. The purpose was to make
something useful and beautiful out of waste materials.
“By only using leftovers from our own productions we can guarantee
that the textiles follow IKEA regulations. Knowing now that we will
use leftovers from the suppliers in Bangladesh, we can also ensure
that the cotton in the textiles comes from more sustainable cotton
farming,” says Carita.
PEOPLE & PLANET POSITIVE 2018 23CIRCULAR ECONOMY
IKEA PRODUCTS
®
IKEA PS 2017 vase
®
The marbled IKEA PS Vase by designer
Lina Vuorivirta is made by re-melting glass
that has been rejected due to bubbles or
At IKEA, our furniture defects created during production.
and products are our identity. “To create something unique that can
also be mass-produced was an exciting
Functional and beautiful challenge for me as a designer and for KUGGIS box with lid
but also affordable. IKEA,” says Lina.
The KUGGIS box series is made from
For us, it starts with design and ends “Despite all vases being mouth-blown in recycled PET plastic, made into brand
with sustainability. The good news for the same mould, they get a unique look new practical storage boxes. A good way
the planet? The process is regenerative, because the melted glass is made to reduce our consumption of new raw
with recycling, reusing, repurposing of various shades of leftover material materials and be kinder to the environment.
at the heart of our business. from the glassworks,” she says. Recycle it again, and it gets yet another life.SOARÉ place mat
SOARÉ begins its life in the Mekong River. The waterway is teeming with water
hyacinth, which grows incredibly fast. People living near the riverbank harvest and
dry the water hyacinth and then weave the stalks together to make the SOARÉ place
TOMAT spray bottle mat. Many women undertake the task, keeping the river passable while preserving the
tradition of their craft. They are able to use the income from their weaving to better
From February 2017, the production of the their families and give their children new opportunities.
TOMAT bottle switched over from 100% virgin
plastic to 50% virgin plastic and 50% plastic With this kind of thinking, there’s no need to choose between
recycled from IKEA Group shrink wrap waste. sustainability and quality.
PEOPLE & PLANET POSITIVE 2018 25SUSTAINABILITY
IN OUR STORES
Highlights
• In the last financial year we diverted 79% of our
waste from landfill.
• At IKEA Rhodes and IKEA Richmond, our lights
in stores are now 100% LED.
• We have almost 20000 solar panels across
our stores in Australia. The panels would generate
enough solar energy to power 967 homes for an
entire year.
• So far in this financial year we have recycled
almost 4400 tonnes of cardboard across our
stores. We’re always looking at ways to reduce the
amount of energy required to run our stores
• Our recently opened Distribution Centre / Customer and transport our products.
Distribution Centre is a state of the art facility. We do this by investing in renewable energy, upgrading
Among a range of sustainable features, it has our equipment and coming up with innovative ways to
electric powered fork lifts, and is the home to green cut down on waste and carbon emissions.
crane technology where the 9 robotic crane arms
From shrinking down the amount of space our products
convert breaking energy into electricity which take up in transport vehicles, to installing solar panels
is fed back into the building to power the on the roofs of our stores, we have made significant
lights. improvements and investments over the past three years.An important
part of the circular
economy is ensuring
we do our best
to reduce our
environmental
impact.
The scale of IKEA globally
means that when we source
raw materials, like cotton
and wood, from more
sustainable sources it has
a huge impact on people
and planet.
PEOPLE & PLANET POSITIVE 2018 27WOOD
Many reasons to That was in addition to 30 million
hectares (that’s an area larger than
love wood Victoria and Tasmania combined)
of FSC forest, which we had already
Beautiful, durable, renewable added through a partnership project
and recyclable, there are many with WWF.
reasons why IKEA loves wood – Our IWAY Forestry Standard sets clear
and has an opportunity to make requirements for all wood used in IKEA
a difference – for both people products. This includes a ban on wood
and the planet. that has been illegally harvested from
sources involved in forest-related social
Almost 1% of all of the commercially conflicts, or from High Conservation Value
harvested wood in the world goes into IKEA Forests. All suppliers must comply with the
products, packaging and printed materials. standard before they can start deliveries.
We improve our relationships with suppliers
This means we have the ability – and with certification audits to check compliance.
responsibility – to not only influence how
the wood is sourced, but also how the • Two thirds of IKEA products are
forests are managed. With a growing made from wood.
business and an increasing share of wood
being sourced from ethically managed • Thanks to an advance production
forests, we can have a positive impact on process, IKEA can use 20% less
communities, biodiversity, and the climate. material to make BILLY bookcases
We call this ‘Forest Positive.’ while maintaining the same good
quality.
By August 2020, we aim to source 100%
of our wood, paper and cardboard from • Of the wood IKEA uses today,
more sustainable sources. 76% comes from more sustainable
sources. Birch, acacia, pine, beech
In July last year, IKEA contributed to the and fir are the five most common
Forest Stewardship Council (FSC) certification types of wood used to make IKEA
of 15 million hectares of forest in priority products.
areas. This is more than double the total
estimated area needed to supply IKEA.COTTON
Let’s have a conversation This is a perfect example of circular
thinking – where we focus on how our raw
about cotton materials are sourced.
Australians are the second largest • In FY17 IKEA used 145000 metric tonnes
consumers of textiles, buying on of cotton, around 1% of the world’s total
supply. As the leader in selling cotton
average 27 kilograms of new from more sustainable products, the
clothing and textiles every year. work IKEA does has a huge impact
on people and planet.
And most of those products are made
from cotton. • IKEA uses cotton in over 3500 products
across its range from cushions,
It lives in nearly every home, but when bedsheets, sofas to towels.
grown conventionally cotton farming uses
huge amounts of water and chemicals. • The more sustainable cotton IKEA
uses is 18% recycled, 82% from
At IKEA we were uncomfortable with the the Better Cotton Initiative and other
fact that growing cotton in the conventional more sustainable sources such as the
way is often harmful to the environment E3 program in the US.
and the people involved.
• Farmers participating in the IKEA
In 2005, IKEA became a founding projects had 14% higher yield and
member of the Better Cotton Initiative, their gross margin improved
a program run in partnership with WWF, by 26%.
other international companies, NGOs and
the United Nations Environment Program. • In India, farmers participating in
IKEA supported sustainable cotton
Over the past 13 years, IKEA has projects have used 27% less
invested over AU$6.6 million in developing fertiliser, 49% less pesticide
a sustainable cotton industry, while also and 9% less water.
working to help farmers in India and
Pakistan increase their yields.
PEOPLE & PLANET POSITIVE 2018 29FOOD IS PRECIOUS
Food Waste
Every day, about one third of all the food harvested
or produced around the world is lost or thrown away.
That equals about 1.3 billion tonnes of food wasted
per year, while at the same time one person in nine
goes hungry.
Food waste is estimated to cost the Australian economy around $20
billion each year. Australian consumers throw away around 3.1 million
tonnes of edible food a year, with another 2.2 million tonnes disposed
of by the commercial and industrial sector.
National Food Waste Summit
The IKEA initiative, Food is Precious, aims to cut food waste by 50%
by August 2020. By introducing a smart scale solution that measures In 2016, the Australian Government committed to the development
wasted food and its sources, IKEA has enabled its co-workers to find of a National Food Waste Strategy and went on to convene a National
clever ways to prevent food waste. Food Waste Summit in November last year.
The smart scale solution is made up of a touch screen connected to The National Food Waste Summit brought together people with
a floor scale that carries a waste bin to weigh food waste. The data an interest in reducing food waste across the food supply and
collected helps identify ways to prevent food being thrown away. consumption chain, with the aim of stimulating ideas around food
waste prevention and repurposing.
Over 20% of all IKEA stores have implemented the food waste
system, resulting in a reduction of 79200 kg food waste. This is Expert presentations covered diverse topics including food waste and
the equivalent of one million meals. the circular economy, urban and rural case studies on harnessing
food waste, and a panel discussion on the food supply chain,
The scales will be installed in IKEA stores around Australia by the with presentations from primary production, manufacturing and
end of the year. distribution, retail and food service and hospitality experts.IKEA Richmond closes the loop with Enrich360
®
Enrich360 is a program designed to save our soil, remove food waste from landfill
and provide us with more nutritious, tasty food.
IKEA is one of the first big food companies in Australia to use the program, closing
the loop between food waste and our suppliers.
How does it work? Food waste from our café and restaurant is collected and put
into an organics recycling machine which turns the left over organics into bio mass.
The bio mass is collected by the Enrich360 team and is taken to the IKEA fruit and
vegetable supplier as fertiliser for their farm. It is used to improve their soil and helps
them grow better produce. The more people eat at IKEA Richmond, the more local
farmers benefit and the better things get for everyone.
Coffee grounds for customers
Used coffee grounds are a rich source of nitrogen, making them an excellent garden
fertiliser. IKEA saves 100% of its coffee grounds and some IKEA stores in Australia
give them away to green thumbed customers.
The coffee grounds are available free of charge. They’re packed into boxes and
customers are encouraged to scatter moderate amounts around their plants and
veggies, or add the grounds to their compost or worm farms. The grinds are also
handy for deterring snails.
Onsite organics recycling at IKEA
®
IKEA has a goal to ensure that food waste doesn’t end up in landfill. To meet our
‘zero food waste to landfill goal’, IKEA Logan and IKEA North Lakes invested around
$80000 installing on-site food organics recycling equipment that will turn food waste
into a high grade fertiliser that is donated to local schools and gardens.
PEOPLE & PLANET POSITIVE 2018 31IKEA ® YEAR IN REVIEW
We are guided by the IKEA vision to create
®
a better everyday life for the many people.
That means offering beautiful, functional, good quality
and sustainable home furnishings at affordable prices.
It’s about ensuring everything we do has a positive impact
for people and the planet.
PEOPLE & PLANET POSITIVE 2018 33PEOPLE
AND PLANET
POSITIVE 2030
Our 2030 Goals
Our overall ambition is to become people and planet
positive, and to inspire and enable people to live a better
life within the limits of the planet by 2030. To bring about
this change, globally IKEA has identified three key drivers:
Healthy & Sustainable Living:
1 Inspire and enable one billion people to live a better life
within the limits of the planet.
Circular & Climate Positive:
2 Strive for zero waste, be 100% circular and climate
positive in our own operations, and advocate for positive
change in society.
Fair & Inclusive:
3 Improve the wellbeing of millions of people by becoming
a truly inclusive and people-centred brand, company and
employer.Highlights:
• Wood: • Food for thought:
All of the wood used in IKEA products is sourced Our IKEA Restaurants sell 100%
in compliance with the IKEA IWAY Forestry Section, sustainably sourced fish and seafood
working towards the aim of sourcing 100% from (ASC and MSC certified), cacao, tea
more sustainable sources such as Forest Stewardship and coffee (UTZ certified).
Council® (FSC®) certified or recycled wood by 2020.
In FY17 we reached 77%, maintaining our position as • Home solar for customers:
the world’s biggest user of FSC certified wood.
Some IKEA stores around the world
• LED Bulbs: are already selling home solar,
and in Australia, we are exploring
Since 2015, IKEA only sells energy-saving long-life LED opportunities to see if we can do
bulbs and lights. Purchasing just one LED bulb will save the same locally.
around 22 traditional bulbs from landfill. In Australia
we have sold around one million units of LED lighting
equipment in FY18.
• Employees:
IKEA strives for gender equality, as of March 2018,
IKEA Australia had 53% female employees and
47% male employees.
• Electric Vehicles (EV):
IKEA is committed to achieving zero emission home
deliveries by 2025. IKEA Springvale has made 780
deliveries using an EV since October 2017. This
represents 14% of its total deliveries and a saving
of 8130 kilometres in emissions.
• Solar panels:
Globally we have 416 wind turbines and 750000 solar
panels on IKEA stores and sites around the world,
generating the equivalent of 73% of the energy used
in FY17. Our ambition is to energy independent by 2020.
PEOPLE & PLANET POSITIVE 2018 35COMMUNITY
LIVING LOCAL COMMUNITY GRANTS
The IKEA Living Local Community Grants program is a national program run by IKEA
across Australia. The stores invite applications from local not-for-profit organisations,
with the most inspiring proposal receiving goods, as well as support to design
and implement their makeover.
IKEA North Lakes supports IKEA Tempe supports
® ®
North Brisbane Women’s Refuge Lentil As Anything
North Brisbane Women’s Refuge operates a transitional house that Lentil as Anything is a not-for-profit vegan restaurant where guests
provides a safe space for women and children who have escaped pay what they can afford for their meal. It supports the community
domestic violence. IKEA North Lakes worked with the charity to make by providing people with wholesome and nutritious meals, while
the space more inviting, with colourful soft furnishings, accessories also offering a pay it forward system where customers can pay for
and furniture. someone else’s meal. They train long-term unemployed people,
migrants and refugees in order to help them find paid work.
The new space was designed to encourage mums and their kids to
build stronger social connections in the community by giving them a IKEA Tempe helped make over an area of the cafe, refreshing
space they are proud to bring new friends home to. the space.Childrens’ drawings
comes to life
Every year IKEA runs a drawing
competition where children all around
the world have a chance to bring their
soft toy dream to life.
Last year we had over 2200 entries
GOOD CAUSE from budding young artists across
Australia. Ten of these were chosen
as finalists and submitted to the IKEA
team in Sweden who choose five
drawings that will be made into soft
toys as part of the SAGOSKATT range.
Meet Foxy
Let’s Play for Change In November last year, IKEA stores The Let’s Play for Change campaign
around the world celebrated the arrival highlights the importance of play for
One of our big global campaigns over the of ‘Foxy’. Foxy is a soft toy that was a better everyday life.
past year has been Let’s Play for Change. designed by Joseph, a seven year old
Over 400 of our stores around the world boy from Adelaide, South Australia. The global Let’s Play for Change
actively stood up for people’s right to play. campaign resulted in a 45 million euro
Foxy was one of ten soft toys brought donation to six international charity
Did you know that four out of five to life from 70000 drawings submitted partners.
Australians believe we don’t play enough? globally. In Australia, the proceeds
And that one in three adults only take from the sale of this range went to
time out 2-3 times a month to enjoy Save the Children. It’s nice to give twice
activities for themselves?
The IKEA childrens’ range is focused on Across our stores in Australia we
Local research found that just 40% creating safe and affordable children’s encouraged customers and co-workers
of Australians believe that playing with products that can help every child to ‘Give Twice’ by buying a soft toy
their children is important. learn, develop and, most importantly, from the collection to give to the Red
have fun through toys that encourage Cross. As a result of this initiative, we
So how do we encourage people to role play, imagination, creativity and collected more than 4000 soft toys for
play more in their everyday lives? movement. underprivileged kids.
PEOPLE & PLANET POSITIVE 2018 37ABOUT IKEA
®
Customers around the world have embraced the IKEA
concept since its inception over 50 years ago. IKEA is
the world’s largest home furnishings retailer with over
355 IKEA Group stores in 29 countries, employing more
than 149000 co-workers. In 2017, there were a total
of 817 million IKEA store visits globally, and the IKEA
website was visited 2.1 billion times.
The IKEA vision is to create a better everyday life for the many people
and offer well-designed, functional and affordable, high quality home
furnishing, produced with care for people and the environment.
IKEA achieves this through clever product design, cost-effective
manufacturing, buying in bulk and transporting in flat packs.
For more information visit www.ikea.comThe IKEA vision
®
is to create a better
everyday life for the
many people.
PEOPLE & PLANET POSITIVE 2018 39IKEA Australia
®
People & Planet Positive 2018
IKEA.com.au/ppp_report
©INTER IKEA SYSTEMS B.V. / IKEA AUSTRALIA PTY LTD 2018You can also read
