Governments follow lead of corporate climate procurement – Trellis Group (formerly GreenBiz)

Ikea’s Sustainability Strategy and Alignment with Sustainable Development Goals

With annual sales exceeding $50 billion generated from approximately 860 million store visits, Ikea is leveraging its global retail presence to advance a significant climate objective. The company has committed to a 70 percent reduction in the climate footprint originating from the use of its products in customers’ homes by 2030, relative to a 2016 baseline. This initiative is a direct contribution to Sustainable Development Goal 13 (Climate Action). According to its 2023 sustainability report, the company has achieved a 52 percent reduction toward this goal. The calculation is based on the material composition and energy efficiency of its products. A key example is the sale of over 58.1 billion LED light bulbs in FY2023, which improved the portfolio’s energy efficiency by 6 percent, thereby reducing customer energy consumption and supporting SDG 7 (Affordable and Clean Energy).

Core Strategies for Sustainable Impact

1. Leveraging Procurement Influence for Sustainable Consumption

   Ingka Group, the largest Ikea retail franchisee, utilizes its significant purchasing power to ensure that sustainably produced goods do not carry a price premium for consumers. By guaranteeing high-volume orders for products like LED lighting, Ikea can influence supplier production priorities and drive industry-wide change. This strategy makes sustainable choices more accessible and affordable, directly advancing SDG 12 (Responsible Consumption and Production) by mainstreaming greener products and addressing consumer barriers related to cost.

2. Promoting Sustainable Food Systems

   Ikea actively incentivizes the adoption of plant-based diets by pricing its plant-based food options, such as meatballs and hotdogs, lower than their animal-based counterparts. The company aims for 50 percent of its main restaurant meals to be plant-based by 2025 and has currently reached 38 percent. This initiative supports multiple SDGs, including SDG 2 (Zero Hunger) by promoting sustainable food systems, SDG 12 (Responsible Consumption and Production) by reducing the environmental impact of food, and SDG 13 (Climate Action) through the reduction of greenhouse gas emissions associated with meat production.

3. Showcasing Sustainable Living Solutions

   Ikea stores feature dedicated “sustainable living” sections that educate consumers and showcase products designed to reduce environmental impact. These displays provide information on climate change, energy efficiency, and water conservation, empowering customers to make informed choices. The products highlighted directly support progress on several SDGs:

   • Home Solar and Energy Solutions: Solar panels, battery storage, and EV chargers contribute to SDG 7 (Affordable and Clean Energy) and SDG 11 (Sustainable Cities and Communities).
   • Energy-Efficient Appliances: Heat pumps reduce reliance on fossil fuels for heating and cooling, aligning with SDG 7.
   • Water Conservation Technologies: Products such as showerhead mist nozzles that can reduce water consumption by up to 95 percent directly support SDG 6 (Clean Water and Sanitation).

4. Advancing a Circular Economy through Repair and Reuse

   Ikea is focused on extending product lifecycles to minimize waste, a core principle of SDG 12 (Responsible Consumption and Production). In the last year, the company reduced the climate footprint from the “end-of-life” phase of its products by 9 percent. Key initiatives include:

   • Spare Parts Availability: Over 24 million replacement parts, such as furniture pegs and sofa covers, were provided to customers last year to facilitate repairs.
   • Buyback Programs: The company has expanded programs that allow customers to trade in used furniture, promoting reuse.
   • Design for Disassembly: The use of materials like bio-based glue makes it easier to recover materials from returned furniture for recycling.

5. Fostering Stakeholder Engagement and Inclusive Governance

   Ikea’s sustainability strategy is embedded throughout its governance structure, with every local country manager also holding the title of chief sustainability officer. The Ingka Group CSO reports to the Chief Financial Officer, ensuring that sustainability is integrated with financial decision-making. Furthermore, the company engages an external advisory forum of youth activists and professionals to provide critical feedback to senior leadership. This collaborative approach, which incorporates diverse and young voices, exemplifies SDG 17 (Partnerships for the Goals) by building multi-stakeholder partnerships to hold the company accountable and drive transformational change.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Ikea’s sustainability initiatives addresses several interconnected Sustainable Development Goals (SDGs). The primary focus is on climate action and responsible consumption, but the strategies described also directly impact goals related to clean energy, water conservation, and partnerships.

• SDG 7: Affordable and Clean Energy – The article emphasizes Ikea’s efforts to improve energy efficiency and promote renewable energy sources for its customers.
• SDG 6: Clean Water and Sanitation – Specific products and future innovations aimed at reducing household water consumption are mentioned.
• SDG 12: Responsible Consumption and Production – This is a central theme, demonstrated through Ikea’s strategies to influence consumer behavior, promote a circular economy, and reduce waste.
• SDG 13: Climate Action – The entire article is framed around Ikea’s ambitious climate goals, focusing on reducing the carbon footprint of its products during their use phase.
• SDG 17: Partnerships for the Goals – The article highlights how Ikea collaborates with suppliers and external stakeholders, including youth activists, to drive its sustainability agenda.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the initiatives described, several specific SDG targets can be identified:

1. SDG 7: Affordable and Clean Energy

   • Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The article directly supports this target by detailing how Ikea’s switch to more efficient products, such as an “updated [LED] product [that] improved the portfolio’s efficiency by 6 percent,” reduces customer energy consumption. The promotion of heat pumps that “reduce heating and cooling costs” also aligns with this target.
   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. Ikea contributes to this by offering “Home solar services, including solar panels, installation and… battery storage systems.”

2. SDG 6: Clean Water and Sanitation

   • Target 6.4: By 2030, substantially increase water-use efficiency across all sectors. The article mentions Ikea’s showcase of products like “meters for reporting on water consumption” and a “showerhead mist nozzle that reduces bathroom water consumption by up to 95 percent,” which directly promote water efficiency in households.

3. SDG 12: Responsible Consumption and Production

   • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. Ikea’s strategy to “encourage repair, reuse and refurbishment” through the increased availability of spare parts (“more than 24 million replacement items last year”), a “buyback program for ‘old but goodie’ items,” and the use of “bio-based glue, which makes it easier to disassemble and recover materials” are direct actions towards this target.
   • Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles. The article describes how Ikea’s in-store “‘sustainable living’ products in a special showcase” includes “educational displays with data about climate change, recommendations about how to improve energy efficiency, [and] insights about water conservation.” This initiative directly aims to educate and empower consumers.

4. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. As a corporate actor, Ikea integrates climate measures into its core business strategy with its “pledge to cut the climate footprint from products Ikea customers use at home by 70 percent by 2030.” This demonstrates a business-level application of this target’s principle.
   • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation. By guiding customers toward lower-emission products and providing educational displays, Ikea is actively working to raise consumer awareness and capacity for climate action, as noted by their CSO: “really making them understand their personal agency, that small things can make a difference.”

5. SDG 17: Partnerships for the Goals

   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The article explains how Ikea “wields its procurement influence” and uses its scale to “drive industry-wide change” with its suppliers, representing a powerful private-private partnership for sustainability. Furthermore, the creation of an “independent, external advisory forum… composed of youth activists and professionals” is a clear example of a civil society partnership to ensure accountability and generate new ideas.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several explicit quantitative and qualitative indicators that can be used to measure progress:

• Climate Footprint Reduction: The primary indicator for SDG 13 is the stated progress towards Ikea’s net-zero goal. The article specifies a “52 percent reduction to the baseline it set in 2016” against a target of a 70% reduction by 2030.
• Energy Efficiency Improvement: An indicator for SDG 7.3 is the “6 percent” improvement in the efficiency of Ikea’s LED light bulb portfolio in FY2023.
• Share of Plant-Based Meals: For SDG 12, progress on shifting consumption patterns is measured by the share of plant-based meals. The article states Ikea is at “about 38 percent” towards its goal to “switch 50 percent of the ‘main meals’ it offers to plant-based by 2025.”
• Waste Reduction and Circularity: Indicators for SDG 12.5 include the “24 million replacement items” sent out to encourage repair and the “9 percent” reduction in the climate footprint of the “end of life” phase of its products compared to the previous year.
• Water Consumption Reduction: A product-specific indicator for SDG 6.4 is the potential “up to 95 percent” reduction in bathroom water consumption from the showerhead mist nozzle.
• Sales of Sustainable Products: An implied indicator for SDG 12.8 is the sales performance of sustainable items. The article notes, “We have seen a higher index of sales when we prioritize those products in the sustainable living section.” This suggests sales data is used to track the success of their educational and promotional efforts.

4. Summary Table of SDGs, Targets, and Indicators

Source: trellis.net