Progress on sustainability –
IKEA sustainability report 2012

Sustainability has always been important to us. It is part of who we are and how we work towards our vision of a better everyday life for the many people. Our new sustainability strategy, “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.

These are some examples of what we’re doing to create change for the better – in our business and for our customers. You can find out more in our Sustainability Summary and our Sustainability Report.
A more sustainable life at home

A more sustainable life at home

We’re creating affordable products so customers can use less energy and water at home and reduce waste. Enabling our 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. We have already launched many products and solutions that enable customers to live more sustainably, and many more are in development.

Our energy consuming products were 32% more efficient than those on the market in 2008, and we have improved water efficiency too. For example, our dishwasher range is 22-51% more water efficient that products in our range in 2008.

We will convert all the lighting we sell to energy efficient LED. These bulbs last for up to 20 years and use up to 85% less electricity compared to traditional incandescent lighting.
Resource and energy independence

Resource and energy independence

We’re cutting costs and protecting resources by making more from less, turning waste into resources and switching to renewable energy. By using resources more sustainably, we can be part of global efforts to protect the environment and tackle climate change.

Already, 91% of materials used in our products are renewable, recyclable or recycled. Our goal is for all main materials to be renewable, recyclable or recycled by FY15.

All wood used in our products is sourced from suppliers that meet our IWAY Forestry Standard and we’ve increased the amount of wood we use 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 we invested €1.9 million in sustainable cotton farming projects, reaching more than 100,000 farmers. 34% of our cotton came from preferred sources, including from farmers licensed to grow Better Cotton.

We are investing €1.5 billion in renewable energy, focusing on wind and solar. This will take us closer to our target to produce as much renewable energy as the energy consumed in IKEA Group stores and buildings by FY20. In FY12 we produced renewable energy equivalent to 34% of our total energy consumption. At the end of the year, we had 250,000 solar panels on our buildings and 83 wind turbines in operation.
Better life for people and communities

Better life for people and communities

We’re improving life for our own co-workers and those working for our suppliers, as well as for communities and children around the world.

Our co-workers come from many different countries but share the same values. Diversity is important to us and we have increased the share of women in management to 47% from 40% last year. We’re pleased that 83% of co-workers that responded to our co-worker survey said they are proud of the way IKEA works with sustainability.

Through our supplier code of conduct, IWAY, we aim to safeguard good working conditions and minimise the environmental impact of our 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 our high standards.

We want to take a lead in creating a better life for the people and communities touched by our 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 programmes, run by expert partners such as UNICEF and Save the Children, will benefit an estimated 100 million children.