Enabling circular loops is how IKEA will transform from a linear to a circular business, impacting all aspects from how and where we meet customers, how and what products and services we develop, to how and what materials we source and how we develop the complete IKEA value chain. It’s how we define reuse, refurbishment, remanufacturing, and recycling as a means to retain as much value as possible and extend the life of resources, products, parts and materials for our customers and IKEA.
Once customers acquire a product, the product enters the first circular loop of reuse. Reuse is how we describe the customer use of the product, and it includes all aspects of everyday product use and care, such as maintaining its condition and adapting it to the evolving needs of life. This includes passing on products to secondhand markets.
It’s the process by which used, damaged, or non-compliant IKEA products are restored to ‘like-new’ condition with limited improvements. This includes repairs and upgrades made by customers or an after-market service in their home or another location. Through refurbishment, products are evaluated, cleaned and/or repaired, can be upgraded, recertified, and eventually re-sold.
Remanufacturing by applying usable parts from dismantled products in the production of new products is a process that increases resource recovery while potentially lowering costs for IKEA.
Recycling is the process by which parts from products are transformed into new raw material, which can then be used within IKEA or external supply chains. This is the last step for every product part. The pre-requisite for a product part to reach this stage in its life cycle is that when relevant, all possibilities to go through the reuse, refurbishment, or remanufacturing loops have been considered.