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Inter IKEA Systems B.V. 2020People& PlanetPositiveIKEA Sustainability StrategyPublished: June 2018. Updated: August 2020
2 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020The IKEA People & Planet Positive strategy describes thesustainability agenda for the total IKEA value chain.Our sustainability ambitions and commitments are set for2030 in line with the UN Sustainable Development Goals.The purpose of this strategy is to inspire,We don’t have all the answers and cannotactivate and lead us in our decision-makingachieve our goals alone. Therefore, weand goal setting so that we together canare committed to working together in aachieve the big positive changes we wantcollaborative way, and being transparentto see in the world, and for the entire IKEAabout what we learn. We will rely on ourecosystem. This strategy gives us a roadmapculture of entrepreneurship, always movingto follow and outlines a strong, common long-forward and not waiting for perfection. Weterm agenda.will work together to achieve continuousimprovements.The IKEA People & Planet Positive strategydescribes the sustainability agenda andambition for everyone in the IKEA franchisesystem and value chain.* It will stimulateaction across IKEA in the coming years. Thestrategy will be reviewed annually to securealignment with the total IKEA strategicframework.* IKEA: one brand – many companies. The IKEA business is operated through a franchise system. That meansmany companies with different owners work under the IKEA trademark. All work towards the shared IKEA vision– to create a better everyday life for the many people – that guides every decision. The IKEA business idea is tooffer a wide range of well-designed, functional home furnishing products at prices so low that as many peopleas possible will be able to afford them. The IKEA retail business is operated by independent franchisees underfranchise agreement with Inter IKEA Systems B.V. The whole value chain means from supplier to customer.ContentsWhat sustainability means to IKEA3Being positive in a rapidly-changing world5Three focus areas11Healthy & sustainable livingCircular & climate positiveFair & equal121416Enablers: How we make it happen18Overview of ambitions and commitments19
3 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020What sustainability means to IKEAWe want to have a positiveimpact on people, society and theplanet. For us, it’s about balancingeconomic growth and positivesocial impact with environmentalprotection and regeneration.EnvironmentalWe always think long term – to be able to meetthe needs of people today without compromisingthe needs of future generations.Doing this requires rethinking and inspiringBetterLifechanges in lifestyles and consumption, and toadopt new ways of working. We are committedBetter lifefor morepeopleto leading the way forward together with ourco-workers, customers and partners and to usingour size to make a positive difference. This is botha responsibility and a business opportunity. Themore people we reach, the bigger the impact wecan have together, and the more people we canenable to live a better everyday life.SocialEconomicThe better the balance between environmental, economicand social impact, the more people will have the chanceat a better life within the boundaries of the planet
4 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020The IKEA vision is our inspirationWe want to create an IKEAbusiness model that issustainable. The IKEA vision,to create a better everydaylife for the many people, is ourinspiration.Living our valuesCo-creating a better worldCaring for people and the planet is oneWe are open and engage with others;of our core values, and it guides us inlistening and learning and sharinghow we work. From the very beginning,knowledge and ideas. Together we co-we have always viewed waste as “a sin”.create a better world. This is how IKEAWe were born in the rocky landscapehas worked, and continues to work, withof Småland in southern Sweden whereWe must transform our way of working –sustainability. We see the opportunitypeople had to be creative with theirfrom linear to circular; from only using toto use creativity and knowledge to scalelimited resources.ideas, collaborate on challenges andalso regenerating resources. As a businessreliant on natural resources and people, thiswill also mean that we can secure the futureof the IKEA business and value chain andthe livelihoods of the millions of people thatto be a partner for positive change.Being bold in facing challengesIt’s about setting ambitions that we knowSustainability can’t be achieved alone.Working long term for positive changecontribute to it.we cannot reach alone. Still, being boldis not only about setting high ambitions,We work long term for positive change,We believe that the IKEA culture – how weit’s also about being open and honestfocusing on the root-cause of issues andabout the challenges we face and makingnot only treating the symptoms. Thedifficult decisions that lead to a positiveIKEA business setup allows us to makeimpact. To take the next big steps willinvestments for the future in things likemean talking about our successes andnew technologies, innovative materials,failures, admitting we don’t have all ofand ways of generating clean energy asthe answers and being part of a widerwell as in social development in the IKEAconversation to find new solutions.value chain.work and what we value – is fundamentalto achieving our vision. In other words, it isnot only what we do, but how we do it, thatmatters.
5 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020Being positivein a rapidlychanging worldOur world is changing rapidly in many ways,and we believe that over time more and morepeople can and will have a better everydaylife. We are optimistic about the future, evenin challenging times.To create a better everyday life for the many,and to ensure the success of IKEA into thefuture, we must take on the challenges thatface us, together. And this has never been asimportant as it is today.We have identified three major challengesthat are highly relevant for our business:climate change, unsustainable consumption,and inequality. All three challenges directlyimpact people’s health and well-being.From our own history weknow that what at firstseem like challenges canbecome opportunities, andthat limitations can lead toamazing innovations.
6 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020ChallengeClimate changeClimate change is one of thebiggest challenges that humanityfaces. Temperatures are rising;the last six years (2014 – 2019)have been the hottest yearson record,1,2 and we can todayalready see the impact.3 Theurgency to act now is clear.The signing of the Paris Climate Agreementwas an important step towards coordinatedglobal action to limit the global temperatureTo limit the critical effects climate changehas on people, the planet and business,IKEA climate footprint FY16 (baseline year)% of total greenhouse gas emissions – 25 million tonnes CO2 eqthe temperature increase must be limitedto 1.5 C.3,4 To do this, global greenhouseMaterialscompared to 2010 - achieved mainly throughFood ingredients3%drastic reductions in GHG emissions, as wellas by removing CO2 from the atmospherethrough better forest and agriculturemanagement. By 2050, at the latest, thiscombined effect must reach net zeroemissions.increase to well below 2 C, aiming towards1.5 C, by the end of the century.ProductionProduct transportRetail and otherown erature/https://www.ipcc.ch/sr15/IPCC special report on the impacts of global warming of 1.5 C above pre-industrial levels and related global greenhouse gas emission pathways,in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate y-make12%4%3%Customer travel andhome deliveries10%Product use at homeProduct end-of-life438%gas emissions must be cut in half by 203026%4%The climate footprint data is annually reviewed and updated, toaccommodate for new emerging data and facts. The largest IKEA climatefootprint comes from the materials used in products. Baseline calculationFY16, percentages have been rounded.
7 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020ChallengeUnsustainable consumptionBy 2030, the global populationis expected to reach nearly 8.6billion.5 This means that moreand more people will look for achance for a better life.In a world that already uses resourcesrequiring more than one planet, billions ofnew consumers put an even greater pressureon the planet. In many parts of the world,consumption is growing at an unsustainablerate. And while many people are escapingpoverty, many also lack access to affordablerising consumption of meat and dairy, and thecurrent loss or wastage of one third of all foodproduced.6Resource scarcity and air, water and landpollution are very visible due, in part, tounsustainable consumption and wastefulness.For IKEA, unsustainable consumption is one ofour biggest challenges: How can we continueto grow and enable more people to live bettereveryday lives within the boundaries of theplanet?and healthy food.Today, it’s estimated that the world mustproduce 70% more food by 2050 due topopulation growth, but also due to trends ulation/world-population-prospects-2017.htmlFAO, the Food and Agriculture Organization of UN estimated that the world must produce 70% more food by 2050 due to population docs/expert paper/How to Feed the World in 2050.pdfCurrent loss or wastage of one third of all food produced. http://www.fao.org/food-loss-and-food-waste/en/6
8 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020ChallengeInequalityEvery year, people move out ofpoverty, while others tragically fallback into it. There is also an everincreasing level of inequality in theworld with a widening gap betweenthe wealthiest in society and therest.7According to the most recent estimates from20158 around 10% of the world’s population isliving in extreme poverty and struggling to fulfilthe most basic needs like health, education, andaccess to water and sanitation, with children andyoung people at the highest level of risk. Despiteeconomic growth, some people have seen theirjobs become more unstable and unpredictable,and their incomes stagnate. And as the pace andimpact of technological change increases, somehave been left behind and are struggling toadapt to a new reality. Young people are findingit harder to secure meaningful and stable work.9While there have been significant moves forwardin some areas, gender equality is still far froma reality. Rights and opportunities for elderlypeople, ethnic and LGBTQ communities, andpeople with disabilities are still far from equal.Today, more than 100 million people have lefttheir home countries to find employment anda better life for themselves and their families.The process of finding a job can sometimes leadto large debts from recruitment fees and – inthe worst cases – forced labour and humantrafficking. Today, there are more than 79 milliondisplaced people in the world and more than 20million refugees.107World Inequality Report 2018 https://wir2018.wid.world/ Oxfam ”The world’s richest 1% have more than twice as much wealth as 6.9 billion uth-employment/lang--en/index.htm10UN- http://www.unhcr.org/figures-at-a-glance.html
9 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020The UN SustainableDevelopment Goals (SDGs)Many of the global sustainability challengesand calls for action are described in the UNSustainable Development Goals (SDGs).Launched in 2015, the SDGs provide aninspiring framework for collective action.They guide us as we develop the IKEAbusiness, set ambitions, and engage withour partners.All of the goals are connectedand IKEA will use them as ourcompass to mobilise change inour work.
10 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020“No method is moreeffective than agood example.”Ingvar KampradHow IKEA canmake a positivedifferenceThrough our business, we havea unique opportunity to lead theway by being a good example forpositive change in society.Being a leader means looking critically at allaspects of our business, but also engagingin the debate and enabling customers, coworkers, and partners to take action andcontribute.Each one of us can be a leader for change.To change the world, good ideas must benurtured and magnified to reach as manypeople as possible.Part of our role is to use our size, creativity,innovation and knowledge in life at hometo scale ideas and be a partner for positivechange.Having a positive impact means that wealways aim to generate more than weuse ourselves, working to make a positivedifference beyond our own business.We are committed to creating a bettereveryday life for the many people and to bepeople and planet positive.
11 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020Three focus areasAs a response to the three majorchallenges impacting the IKEAbusiness, we have identifiedthree corresponding focus areasto help us to fulfil the IKEA visionand ambition to become peopleand planet positive.People& PlanetPositiveUnder each focus area we outline ourcommitments to achieving our ambitions.Healthy &sustainablelivingCircular& climatepositiveFair&equal
12 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020By 2030, our ambitionis to inspire and enablemore than 1 billionpeople to live a bettereveryday life within theboundaries of the planetHealthy &sustainable livingOur homes and the way welive have a huge impact onour health, well-being, and theplanet.Households, for example, are estimatedto consume one third of the global energyuse11 and 10% of the water use.12 Enabling asmany people as possible to generate and userenewable energy and to reduce their homeenergy and water consumption would havea great impact. Water, food and air qualityare also major concerns for people aroundthe world. The impact of pollution and wasteis already visible in everyday life for manypeople.People expect businesses and brands like IKEAnew, innovative ways of living: in smallerspaces, for being more conscious and lesswasteful in what they buy, and for prolongingthe life of their things.As one of the large food companies in theworld, we also have a responsibility to providehealthy and nutritious food. We strive to notonly offer more sustainable home furnishingand food products, solutions and services, butalso to inspire and support people to makepositive changes in their lifestyles and toconsume in more sustainable ways. Until nowour focus has been on enabling customersto become energy and resource efficientand reduce waste. We will now also focus oninspiring a shift through promoting a newmindset for healthy and sustainable living.to make living a more sustainable life bothaffordable and attractive. They are searchingfor ideas and solutions and are counting /blog/2020/02/growth-domestic-water-use
13 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020Healthy &sustainablelivingWhat we have done so farOur ambitions for 2030We are committed toIKEA already enables people to actively live ahealthier and more sustainable life at home witha focus on the efficiency and functions of thehome, offering affordable products and solutionsfor water efficiency, energy efficiency, renewableenergy, and waste sorting solutions.By 2030, we will inspire and enable people tomake healthier and more sustainable choices.We will, together with others, define whatsustainable consumption means for IKEA.We will develop all products using the IKEAdemocratic design approach and circulardesign principles. We will work together withothers to prolong the life of products andmaterials and thereby promote a sharing andcircular economy.Creating a movement in society around bettereveryday livingFor many years, IKEA has worked proactivelywhen it comes to the use of chemicals in IKEAproducts; phasing out, often ahead of legislation,potentially harmful chemicals.All IKEA products and solutions are designedwith quality, form, function, low price, andsustainability as the IKEA democratic designdimensions.Even though we have accomplished many things,we are only at the beginning, and there is stillmuch to be done.Sustainability cannot be a luxury for the few!We will make healthy and sustainable living adesirable choice that is affordable, attractiveand accessible for as many people as possible.The IKEA business will enable people togenerate renewable energy and be energyand water efficient, to purify the water andair in their homes, eliminate waste, andcontribute to adapting their homes to copewith the impact of climate change. We willcome together and work to improve healthand well-being.Inspiring and enabling people to redefine their lifeat home – a life that is sustainable, supports safety,health and well-being, and is within the means ofthe many people.Leading the transition towards a new definition of abetter everyday life and being a driving force behindchanges in unsustainable consumption patterns.Inspiring and enabling people to live healthier,more sustainable livesOffering better, more affordable, smart productsand solutions that enable people to live safer,healthier and more sustainable lives.Providing knowledge and ideas to inspire people tolive better, healthier and more sustainable lives.Offering a food range that makes more sustainable,healthier eating delicious and affordable for themany people.Promoting circular and sustainable consumptionSeeing IKEA products as raw materials for thefuture and ensuring that all products have circularcapabilities: designed from the very beginning to berepurposed, repaired, reused, resold and recycled.Providing and promoting services, solutions,inspiration and offering easy access to knowledgeto prolong the life of product and materials. Invitingand enabling customers and other partners to bepart of the solution by making it easy to buy, fix,sell, share and give away products.
14 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020By 2030, our ambitionis to become climatepositive and regenerateresources while growingthe IKEA businessCircular &climate positiveWe have only one planet, withlimited resources. Pressureon forests, fisheries andagriculture, loss of biodiversityand wildlife, ocean pollution,erosion of soil and increasinglevels of air and fresh waterpollution affect the lives andlivelihoods of millions of peoplearound the world.The global resource scarcity is alreadyimpacting the IKEA business and, moreimportantly, the lives of people throughoutthe IKEA value chain. To be people andplanet positive in the future we must furtherdevelop responsible sourcing programmes,continue to improve resource utilisation anddramatically reduce greenhouse gases inabsolute terms, independent of how much wegrow the IKEA business.
15 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020Circular& climatepositiveWhat we have done so farOur ambitions for 2030We are committed toOur approach of making more from less hasenabled the IKEA business to reduce waste andbecome more efficient in all we do.By 2030, our ambition is to be a circularbusiness built on clean, renewable energy andregenerative resources, de-coupling materialuse from our growth. The aim is to end ourdependency on virgin fossil materials and fuels.We will reduce greenhouse gases and contributeto limiting the global temperature increase to1.5 C by the end of the century. We will alsocontribute to a world of clean air and water andimproved biodiversity.Transforming into a circular businessActively reducing air pollutants.Prolonging the life of products and materials,using resources in a smarter way and meetingcustomers in new ways.Designing, building, operating and maintainingall of our buildings individually according to localconditions, in order to stay within the boundaries ofthe planet.We have also come a long way in transforminghow we source more sustainable materials. Since2015, 100% of our cotton, fish and seafood hascome from more sustainable sources (BCI , MSC,ASC).We are continuously working with our 2020 goalof sourcing 100% of our wood & paper from moresustainable sources. And we have taken stepsto begin to phase out virgin fossil plastic fromthe IKEA product range, a focus that will alsocontinue towards 2030.We have been vocal in our support for atransition to a low carbon economy and limitingclimate change to 1.5 C, and have investedheavily in renewable energy and improvedenergy efficiency.Turning waste into resources, sending zero wasteto landfill.Taking the lead in transforming secondary materials(i.e. reused and recycled materials) into clean andsafe resources.Sourcing and producing renewable and recycledmaterials with a positive environmental impact.Establishing and promoting systems and services toenable a circular economy.Becoming climate positiveReducing more greenhouse gas emissions thanthe IKEA value chain emits, while growing theIKEA business. This will be achieved withoutrelying on carbon offsetting.Halve the absolute net greenhouse gas emissionsfrom the total IKEA value chain by 2030. Thisincludes drastically reducing GHG emissions acrossthe IKEA value chain by at least 15%, and achievethe remaining part by removing CO2 from theatmosphere and store it through better forest &agriculture management within the IKEA valuechain, and prolonging the life of IKEA products andrenewable materials.13Striving for 100% renewable energy (electricity,heating, cooling and fuels) across the IKEA valuechain.13Promoting on-site renewable energy generationand new installations to make more renewableenergy available to the many.Regenerating resources, protecting ecosystemsand improving biodiversityContinuing to secure and develop responsiblesourcing standards that include environmental,social and animal welfare criteria.Becoming forest positive, promoting sustainableforest management to eliminate forest degradationand deforestation. Using innovative approaches toforest management, protection, restoration andregeneration.Leading regenerative projects on degraded land,deforested areas and agriculturally cultivated areas.Becoming water positive by leading anddeveloping water stewardship programmes.Leading regenerative projects to clean pollutedwaters and protect biodiversity. Specifically focusingon leading projects to clean plastic pollutants fromoceans.Sourcing wood, cotton, food, and other rawmaterials from more sustainable sources.Providing and promoting services, solutions,inspiration and offering easy access to knowledgeto prolong the life of product and materials. Invitingand enabling customers and other partners to bepart of the solution by making it easy to buy, fix,sell, share and give away products.13The Greenhouse Gas Protocol (scope 1, 2 and 3 emissions)
16 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020Fair & equalBy 2030, our ambition isto create a positive socialimpact for everyone acrossthe IKEA value chainAlthough we face manychallenges in the world today,we believe that through ourbusiness we can support andinfluence positive change.With our size and scope comesboth responsibility and greatopportunities to create positivechange for the many people.opportunities for families and communities.We need to embrace change in ways thatare moving away from their home by choice,make people’s lives better. By growing theIKEA business in an even more inclusive wayand providing decent,15 and meaningful work,we can play our part in creating a fair andequal society.Children and families have always been afocus for IKEA. We have seen that by makingdecisions with the best interests of childrenEquality is a base from which to build abetter life. We have the ability to directlysupport gender equality as well as rightsand opportunities for elderly people, ethnic,LGBTQ communities and people withdisabilities.Through our business and global reach,we can provide opportunities for migrantworkers, refugees and other groups whonecessity or force. We can provide emergencysupport, training and employment, and workwith others to create change in the systemsthat put people at risk.The IKEA vision and ambitions for people goacross the full IKEA value chain, and we expectthe same or higher standards of ourselves aswe do of our suppliers and business partners.in mind, we can create positive change and15The ILO (International Labour Organisation) definition of decent workhttps://www.ilo.org/integration/themes/dw mainstreaming/lang--en/index.htm
17 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020Fair&equalWhat we have done so farOur ambitions for 2030We are committed toWe have already taken some important stepsand are ready to do more to achieve our vision.By 2030, IKEA will be a leader in creating a fairand equal society that benefits the many. Wewill do this by growing the IKEA business inan even more inclusive way, respecting andencouraging diversity and promoting decentand meaningful work across the IKEA valuechain, enabling people to provide a good life forthemselves and their families.Providing and supporting decent and meaningfulwork across the IKEA value chainChildren’s rights have always been at the heart ofwhat we do, and we were part of the development,and now implementation of, the Children’s Rightsand Business Principles.IWAY – our supplier Code of Conduct continues tobe the base of our work to secure human rights andgood working conditions throughout our supplychain, and we have significantly expanded thescope of its implementation, in addition to regularlyreviewing and updating both our standards andprogrammes.We are working with social entrepreneurs andengaging actively in local communities to be aninclusive business. And we continually develop ourapproach to vulnerable groups within the IKEAvalue chain.Being inclusive is about both engaging withothers in the work they do and inviting others toparticipate in our work.Respecting human rights in all areas of theIKEA business and continuing to ensure theimplementation of international labour standards.Always ensuring that workplaces are safe andcontribute to the healthy development of people.Ensuring access to competence and skillsdevelopment, enabling people to grow and reachtheir full potential.Providing and supporting stable, regular andpredictable employment.Making gender equality a reality.Ensuring that children’s rights are integrated intoeverything that we do.Providing and promoting learning and workingopportunities for young people.Ensuring that the IKEA value chain is made up ofdiverse business partnerships that drive innovation,business growth and social impact.Engaging in our communities to create a positiveimpact on livelihoods and contribute to an inclusivelocal economy.Promoting equalityEnsuring that we - together with others - definewhat constitutes a fair income and make it possiblefor everyone in the IKEA value chain to have a fairincome.Ensuring that everyone in the IKEA value chain hasa voice and is engaged and empowered to play anactive role in their workplace.Being an inclusive businessGrowing the IKEA business providingopportunities for the many.Continuing to build a diverse, inclusive workplaceand empowering and supporting people to bethemselves at work.We will stand up for our ambitions, values andbeliefs, advocating for change and playing an activerole to support it.We will engage with others sharing knowledge,challenging each other and being transparent.
18 - IKEA Sustainability Strategy - People & Planet Positive - Inter IKEA Systems B.V. 2020Enablers: how we make it happenThrough our strength, sizeand business setup, we canthink long-term and makeour commitments becomea reality. We will influencepositive change in the worldand will share our approachand what we learn to inspireothers through:AdvocacyInclusiveness and community engagementReporting and transparencyWe will use our size and influence and playWe will be inclusive, and actively engage inWe will be open and transparent and allowan active role in society advocating for andthe communities where we operate throughothers to learn from our successes, failures,promoting positive change based on ourIKEA stores, offices, warehouses, factories andchallenges and ways of working. IKEA isvalues.online.100% committed to reporting our progressin line with the SDG goals. To move fromCo-creation and partnershipBusiness incentivesvision to action, each business needs toWe will work together in new ways andA key enabler is to secure that investmentprioritise and measure our progress.continue to support organisations thatmechanisms and incentives are in place todevelop sustainable value for people, thesupport the transformational change needed.planet and our business. We will seek outnew partners with unique perspectives
Healthy & sustainable living 12 Circular & climate positive 14 Fair & equal 16 Enablers: How we make it happen 18 Overview of ambitions and commitments 19 * IKEA: one brand - many companies. The IKEA business is operated through a franchise system. That means many companies with different owners work under the IKEA trademark.
