Report On IKEA

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Report on IKEA’s Sustainable Purchasing

Initiatives

Organization Details:
The international home furnishings firm IKEA was established in Sweden in 1943 and is well-
known for its reasonably priced, fashionable furniture and home accents. Serving more than 50
nations, IKEA places a high priority on sustainability and plans to implement a circular business
model by 2030. Using recycled and renewable resources, increasing energy efficiency, and
cutting waste are all part of its sustainability strategy.

Supply Chain Operation Details

The goal of IKEA's supply chain is to provide affordable, environmentally friendly goods.
Important elements consist of

Renewable and Recycled Materials:


More than 60% of IKEA's goods are made from recycled or renewable resources, with a goal of
using just these materials by 2030.

Effective Production Techniques:


IKEA mandates that its suppliers use environmentally friendly production techniques, such
reducing energy and water usage.

Optimizes Logistics:
IKEA saves energy and space in transportation by shipping flat-pack furniture.
Supplier Audits: The business routinely checks suppliers for adherence to sustainable practices
and environmental compliance.

Waste Minimization:
By recycling materials in-house and collaborating with suppliers on waste-reduction tactics,
IKEA hopes to cut down on waste.

Product Details:
The "KUNGSBACKA" kitchen fronts, one of IKEA's eco-friendly product lines, are made with
circularity in mind:
Recycled Materials:
PET plastic bottles and recycled timber are used to make KUNGSBACKA.

Sturdy and Repairable:


The product is designed to last, and it has simple repair alternatives to prolong its lifespan.

Eco-Friendly Coatings:
The product makes use of safe, eco-friendly low-emission coatings.

Recyclable Packaging:
Packaging composed of renewable materials may be recycled.

Initiatives by Purchase Department for Green Purchasing


The following green buying initiatives have been started by IKEA's purchasing department:

Better Cotton Initiative (BCI):


IKEA only purchases cotton from environmentally friendly suppliers, such those approved by
the Better Cotton Initiative, which uses less water and chemicals.

Forest Stewardship Council (FSC) Certification:


To stop deforestation and encourage ethical forest management, all of IKEA's wood is FSC-
certified.

Provider Renewable Energy Transition:


In order to help suppliers meet net-zero goals, IKEA mandates that they switch to renewable
energy.

Recycled and Circular Material Use:


Materials that are recycled or made to be circular, including recycled polyester and PET plastics,
are given priority by the department.

Reduced Packaging Waste:


IKEA collaborates with suppliers to create flat-pack designs that require less packaging, which
lowers shipping waste and emissions.

Learning:

IKEA's business strategy has demonstrated to me the value of creating sustainable goods and
procedures from the ground up. The dedication to reducing waste and adopting certified products
shows how a company's purchasing power can have a big positive impact on the environment.
This experience highlights how crucial it is for a complete sustainability plan to match
sustainable sourcing with product design.

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