IKEA Corporate Social Responsibility (IKEA CSR): a brief overview

IKEA Corporate Social Responsibility (CSR) efforts are led by Chief Sustainability Officer, Lena Pripp-Kovac. Furthermore, retail managers at every country are also Corporate Sustainability Officers (CSO). The home improvement and furnishing chain started to research CSR reports under the title People & Planet Positive starting from 2012.

IKEA CSR efforts and activities comprise supporting local communities, educating and empowering workers and addressing the issues of gender equality and minorities within the company. Moreover, the global furniture retailer works to reduce its energy consumption and derive energy from alternative sources. Sustainable sourcing represents an additional CSR issue that IKEA aims to address within the scope of its operations.

CSR Programs and Initiatives

IKEA Supporting Local Communities 

• IKEA Group operates 422 stores in 50 markets around the world.[1] The home improvement and furnishing chain aims to cause positive impact on local communities, where its stores are located.
• Packing event organized by all IKEA stores in Sweden involved customers and representatives from Save the Children to prepare more than 37,000 welcome backpacks filled with toys and other products for children
• In UK, IKEA has planted one million trees in communities across the country
• In Australia, IKEA Perth and IKEA Adelaide employees contribute to the improvement of the environment in which children live and develop.

IKEA Educating and Empowering Workers

• Starting from January 2015, IKEA has introduced a new hourly wage structure that concentrates on the needs of its employees, rather than market standards.
• The furniture retailer has launched My Learning online system that provides employees at all levels access to face-t-face and digital learning solutions.

Employee Health and Safety at IKEA

• In 2021, the furniture retailer introduced a common solution for reporting incidents and accidents that’s easily accessible for all co-workers
• The number of accidents at IKEA was reduced by 30% in 2021, compared to2018

IKEA and Gender Equality and Minorities

• As of 2022, across IKEA retail, 3 out of 12 retailers have at least 50% of their management positions filled by women
• At Inter IKEA Group function 70% of all employees and 40% of all managers are women
• Annually on May 17^th the company celebrates IDAHOT, the International Day Against Homophobia, Biphobia and Transphobia, to stand up for the rights of lesbian, gay, bisexual, transgender, and people of all sexual orientations and gender identities.
• The Swedish furniture chain is the member of Workplace Pride Foundation and Stonewall, two organisations focused on LGBT+ inclusion in the workplace.

Energy Consumption by IKEA

• IKEA climate footprint in FY21 amounted to 26.2 million tonnes of CO2 – a decrease of 5.8% in absolute terms compared to our FY16 baseline
• Energy consuming products offered by IKEA are on average 50 per cent more efficient compared to 2008.
• There are about 700,000 solar panels installed in buildings owned by IKEA.
• IKEA owns and operates 327 wind turbines around the world and have invested in 730,000 solar panels on its buildings worldwide.[2]

Water Consumption by IKEA

• 14% of total water footprint comes from the furniture retailer products being used by customers

Water usage across IKEA value chain[3]

Waste Reduction and Recycling by IKEA

• In FY21, IKEA reached a waste reduction of 46% compared to baseline (FY17)
• In FY21, 55.8% of the materials the Swedish furniture chain sourced were renewable and 17.3% were recycled.
• 73% of the material sourced for the IKEA range for the same period was renewable or recycled
• About 60% of all products offered by the furniture retailer are based on renewable materials and 10% of products contain recycled materials.[4]
• The retail giant has an ambition to use 100% renewable and recycled materials by 2030
• Skapro Chair sold by IKEA is made of 100 per cent recycled plastic.
• The IKEA catalogue is the largest print production ever to be printed on 100 per cent Forest Stewardship Council certified paper

IKEA and Sustainable Sourcing 

• All cotton used by IKEA and 85% of wood comes from more sustainable sources
• 94% of fish and seafood sold by the company is certified to MSC or ASC standards
• The company has commit­ted to source the fish and seafood it sells and serves in restaurants and Swedish Food Markets from fisheries and farms certified by the Marine Stewardship Council (MSC) and the Aqua­culture Stewardship Council (ASC).
• IKEA serves more than 100 million cups of coffee every year. The company’s PÅTÅR coffee range is certified by UTZ, as well as, EU Organic

Other CSR Initiatives and Charitable Donations

• EUR 7.7 million has been denoted by IKEA foundation to Brighter Lives for Refugees campaign.
• 76 per cent of cotton used by IKEA is gained from sustainable sources
• IKEA enforces Supplier Code of Conduct that prohibits the use of child labour, the use of forced or bonded labour and discrimination at work. The Code of Conduct also requires the freedom of association for employees and the provision of a safe and healthy environment.
• IKEA Foundation as an independent charitable body has donated EUR 1 to Save the Children for every soft toy sold in IKEA stores in November and December since 2003.

IKEA Group Report contains a full analysis of IKEA corporate social responsibility including IKEA CSR issues. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on IKEA. Moreover, the report contains analyses of IKEA leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of IKEA marketing strategy and its ecosystem.

[1] IKEA Facts and Figures 2018 (2019) IKEA, Available at: https://www.ikea.com/ms/en_US/this-is-ikea/facts-and-figures/index.html

[2] Group Yearly Summary (2016) IKEA Group

[3] Sustainability Report FY 2021, IKEA

[4] Sustainability Report FY 2018 (2019) IKEA