IKEA - Environmental Performance

Environmental Performance

After initial environmental issues like the highly publicized formaldehyde scandals in the early 1980s and 1992, IKEA took a proactive stance on environmental issues and tried to prevent future incidents through a variety of measures. In 1990, IKEA invited Karl-Henrik Robèrt, founder of the Natural Step, to address its board of directors. Robert's system conditions for sustainability provided a strategic approach to improving the company's environmental performance. In 1990, IKEA adopted the Natural Step framework as the basis for its environmental plan. This led to the development of an Environmental Action Plan, which was adopted in 1992. The plan focused on structural change, allowing IKEA to "maximize the impact of resources invested and reduce the energy necessary to address isolated issues." The environmental measures taken, include the following:

1. Replacing polyvinylchloride (PVC) in wallpapers, home textiles, shower curtains, lampshades and furniture—PVC has been eliminated from packaging and is being phased out in electric cables;
2. minimizing the use of formaldehyde in its products, including textiles;
3. eliminating acid-curing lacquers;
4. producing a model of chair (OGLA) made from 100% post-consumer plastic waste;
5. introducing a series of air-inflatable furniture products into the product line. Such products reduce the use of raw materials for framing and stuffing and reduce transportation weight and volume to about 15% of that of conventional furniture;
6. reducing the use of chromium for metal surface treatment;
7. limiting the use of substances such as cadmium, lead, PCB, PCP, and AZO pigments;
8. using wood from responsibly managed forests that replant and maintain biological diversity;
9. using only recyclable materials for flat packaging and "pure" (non-mixed) materials for packaging to assist in recycling.
10. introducing rental bicycles with trailers for customers in Denmark.

In 2000 IKEA introduced its code of conduct for suppliers, called the IKEA way of purchasing.... shortened to IWAY. Today IWAY is a totally integrated part of IKEA's purchasing model. IWAY covers social, safety and environmental questions. Today IKEA has around 60 IWAY auditors that performs hundreds of supplier audits every year. The main purpose with IWAY is to make sure that the IKEA suppliers follows the law in each country where they are based. Most IKEA suppliers fulfill the law today with exceptions for some special issues, one being excessive working hours in Asia, in countries such as China and India.

More recently, IKEA has stopped providing plastic bags to customers, but offers reusable bags for sale. The IKEA restaurants also only offer reusable plates, knives, forks, spoons, etc. Toilets in some IKEA WC-rooms have been outfitted with dual-function flushers. IKEA has recycling bins for compact fluorescent lamps (CFLs), energy saving bulbs and batteries. In 2001 IKEA was one of the first companies to operate its own cross-border goods trains through several countries in Europe.

In August 2008, IKEA also announced that it had created IKEA GreenTech, a €50 million venture capital fund. Located in Lund (a college town in Sweden), it will invest in 8–10 companies in the coming five years with focus on solar panels, alternative light sources, product materials, energy efficiency and water saving and purification. The aim is to commercialise green technologies for sale in IKEA stores within 3–4 years.

In order to make IKEA a more sustainable company a product life cycle has been created, and there is now a never ending list. The idea stage says that products should be flat packed so more can be shipped at once, and that products should be easy to dismantle and recycle. Raw materials are used, and since wood and cotton are two of the most important products in IKEA production so IKEA makes the most out of every tree and cotton plant, and works with environmentally friendly forests and cotton without the excessive use of chemicals and water. Manufacturing comes third in the life cycle and includes IWAY which is IKEA's code of conduct for manufactures and suppliers which makes and enforces requirements for working conditions, social and environmental standards, and what suppliers can expect from them in return. Marketing is another part of IKEA's life cycle and as much of their paper for their catalogues comes from responsibly managed forests. The catalogue is also now made smaller which requires less paper, and less waste in the process. This also enables more catalogues to be shipped per load. IKEA stores recycle waste, and many run on renewable energy, and energy-saving bulbs and sensors are used. All employees are trained in environmental and social responsibility, and IKEA strives to give customers access to good public transit, and well as the stores being involved in the local community. IKEA products help customers to live a more sustainable life at home. The coffee served is also certified organic. The last stage of the life cycle is the end of life. Most IKEA stores take back burned out light bulbs and drained batteries and makes sure they are recycled responsibly. IKEA is also currently working on developing a way to take back recycled sofas and other home furnishing products that have reached their own end of life. IKEA' daughter Swedwood practices clearcutting in forests designated as High Conservation Value Forests by Forest Stewartship Council.

As of June 2012, IKEA had 17 stores powered by solar panels in the United States, with 20 additional installations in progress. The company then announced plans to install solar panel systems to two more stores in the USA.