According to the latest news, the carbon footprint of a company not only exists in its own operational processes, but a large amount of carbon emissions also come from various links in its supply chain. How to effectively strengthen the management of carbon emissions in the supply chain and even the entire value chain has become the key to achieving carbon neutrality goals for enterprises. Recently, IKEA held a value chain “carbon” journey, sharing IKEA’s exploration and practice in green and low-carbon development of the value chain, and discussing the sustainable development of the enterprise with on-site guests.
Green ‘chain’ movement, starting from recyclable design
IKEA hopes to do the right thing from the beginning. Product development is the starting point of IKEA’s value chain. Following the concept of democratic design, IKEA considers sustainability from the beginning of product development and strives towards making products more recyclable.
IKEA focuses on the renewable and recyclable properties of the materials used, and continuously explores and innovates the use of recycled materials to maximize their recycling capabilities. In our opinion, being completely ‘green’ from the beginning of development has extraordinary significance for reducing carbon emissions throughout the entire product lifecycle, “Dong Chaoxing, Managing Director of IKEA Product Development Center East Asia, shared with the guests present. Thanks to this technological breakthrough, we have truly achieved the closed-loop circulation of polyester textiles, and this technology has been applied to the development of new products such as bedding, home textiles, and carpets.
This is just a microcosm of IKEA’s circular business, all of which point to a more sustainable commitment – by 2030, IKEA’s goal is to be able to define the lifecycle of all products during development, produce products using only renewable or recyclable materials, and provide 100% recyclable products.
Creating green factories, ‘chain’ drives green manufacturing
Production is a high carbon link in the value chain, and reducing its carbon emissions plays a fundamental role in the dynamic green cycle of the “chain”. At IKEA, we believe that factories on the green value chain should not only produce climate friendly products, but also strive to be “green” in energy consumption, resource utilization, production technology, and other aspects, striving to reduce the carbon footprint in production activities, in order to achieve a sustainable and efficient production model, and fully move towards “green manufacturing”.
While achieving its own sustainable and recyclable development, IKEA is also adept at leveraging synergies by helping partners transition to 100% renewable electricity. In addition, IKEA will use “material” intelligence throughout the production process. On the one hand, by increasing the utilization rate of raw materials, extending the product life cycle, and highlighting the carbon reduction effect, IKEA Industrial Nantong Factory’s 100% reuse rate of wooden waste is a vivid practice; On the other hand, IKEA is actively exploring efficient utilization models for recycled materials to re-enter the cycle of “green manufacturing”. For example, IKEA Accessories China collaborates closely with shopping malls. In the 2023 fiscal year alone, approximately 11000 tons of scattered waste paper from IKEA stores were recycled by IKEA Accessories China and returned to paper mills for raw material recycling. In addition, IKEA has discovered the value of reusing discarded plastic food containers for food delivery. After a series of processes, they can be transformed into carpets made of recycled polypropylene (planned to be launched in 2024), which will help reduce its carbon emissions by 36000 tons per year. Through this “cross-border” move between the plastic and textile industries, IKEA hopes to promote the advantages of China’s recycling of raw materials to the world.
Green new transportation capacity, ‘chain’ accelerates carbon reduction
Quality is an important commitment of IKEA, “said Lars Wretman, General Manager of IKEA Testing and Training Center.” As the gatekeepers and gatekeepers of IKEA product quality, we always use strict standards to inspect every product and constantly develop new testing methods to provide more efficient and accurate testing services.
After layers of scrutiny and strict testing at the IKEA testing and training center, safe and high-quality products will officially be put on the road. Warehousing and logistics connect the production and sales ends, which is an essential part of the value chain system and a key factor in reducing climate footprint. IKEA, which is well aware of its importance, has set higher requirements for itself – by 2030, each transportation (from partners to IKEA warehouses and stores) needs to reduce emissions by about 70%. For this reason, IKEA has been continuously increasing its layout of green logistics for many years, focusing on renewable clean energy, digital logistics management systems, and demonstration effects, and striving to build a green logistics network and green warehousing concept.
IKEA has always been committed to integrating non fossil fuels and zero emission technologies into its logistics and transportation system. Among them, the deployment of hydrogen fuel cell heavy-duty trucks in China is a major milestone for IKEA in the application of zero emission technology. At the same time, by collaborating with upstream and downstream partners, it has made positive contributions to promoting the decarbonization process of the logistics and transportation industry.
“Small changes, big differences “, join hands with the public to create a green and sustainable future
With more and more consumers considering green, health, and sustainability as important factors in their consumption decisions, and adhering to the sustainable development strategy of “benefiting humanity and the earth”, IKEA also leverages its professional knowledge in the home furnishing industry and forward-looking concepts to stimulate consumers’ enthusiasm for green and healthy living, and bring more accessible green consumption and life choices to people. At present, IKEA offers over 4000 products in the market that are particularly prominent in terms of sustainability, integrating sustainability into the daily lives of the public in a “subtle and silent” way.
In addition to bringing more sustainable products, IKEA Retail has also innovatively integrated green and sustainable elements into consumption scenarios and routes. For example, in offline stores, sustainable green routes showcase product highlights and solution inspirations. During this “carbon” journey, IKEA stores showcased the newly established “Green and Sustainable Home Living Zone” to share consumption scenarios with strong green life inspirations and encourage consumers to practice sustainable consumption concepts. IKEA always believes in “small changes, big differences” and hopes to encourage consumers to contribute to the sustainable development process through subtle green consumption choices. By listening to their needs and feedback, IKEA inspires product development and begins the next cycle of its value chain.
Ingka Shopping Center, which belongs to the Ingka Group along with IKEA, has achieved 100% of Ingka Group’s hard targets for energy conservation and carbon reduction in all projects in China for the 2023 fiscal year, and is promoting healthier and more sustainable lifestyles with its communities and partners. For example, in collaboration with IKEA in China, a series of sustainable concept activities such as the “New Life Design Festival” and “Green Planet One Planet” have been launched, showcasing new inspirations for low-carbon living to consumers and brand merchants through five dimensions of clothing, food, housing, and transportation.
Nearly two-thirds of IKEA’s climate footprint is directly linked to its supply chain. Therefore, enhancing the circular low-carbon and resource efficiency of the entire value chain will inject important impetus into achieving a more sustainable tomorrow. In the future, IKEA will continue to adhere to the sustainable development strategy of “benefiting humanity and the earth”, and the “chain” will run through the entire value chain from product development, production, testing, warehousing and logistics to retail, enabling green circulation to work together and create a better daily life for the public.
