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IKEA launches People and Planet Positive Strategy report

YarnsandFibers News Bureau 2015-02-02 17:05:00 – Mumbai

The IKEA Group Sustainability Report for fiscal year (FY ) 2014, released today, shows its People & Planet Positive strategy is on track and delivering good results. Sustainability performance is announced today alongside strong financial results, which show an increase in total sales to EUR 28.7 billion, a 5.9% increase (adjusted for currency impact) from last year.

Sustainability highlights from FY14:

• During the year, IKEA Group committed to own a further 87 wind turbines, bringing the total to 224, and installed 150,000 solar panels, increasing the total to 700,000 and taking the company a step closer to producing more renewable energy than the total energy it uses by 2020. By the end of 2015, we aim to have invested and committed to invest EUR 1.5 billion in renewable energy projects.

• The sales value of products for a more sustainable life at home passed €1 billion, a 58% increase compared with FY13. These products enable people to save or generate energy, reduce water use, cut waste and live healthier lives.

• 75% of all lighting products sold were LED or compatible with LED bulbs, which use 85% less energy and last 20 times longer than traditional (incandescent) bulbs. The entire IKEA lighting range will convert to LED by September 2015.

• €66 million saved through energy efficiency efforts in stores and warehouses since FY10.

• IKEA Group is one of the world’s largest buyers of FSC-certified wood in the retail sector, and 41% of its wood was FSC certified or recycled in FY14. All wood was sourced from suppliers that meet the IKEA forestry standard.

• The share of cotton from more sustainable sources used in IKEA products reached 76%, meaning farmers use less chemicals and water, whilst increasing their earnings. IKEA is on track to reach its goal of 100% by the end of August 2015.

• 47% of managers are women.

• The IKEA Foundation donated €104 million in 2014 to projects that support millions of children in some of the world’s poorest communities.

“Sustainability is a key driver of innovation and an integral part of our business strategy. We see it as a great opportunity to improve our business. That’s why we’ve set ambitious 100% targets, for example for our LED lighting range, important raw materials and renewable energy. We are determined to grow IKEA while also having a positive impact on people and the planet,” Peter Agnefjäll, President and CEO, IKEA Group.

“Through our People & Planet Positive strategy, we want to make IKEA completely sustainable. I’m proud to say that we’re making good progress in transforming the supply of key materials, with over ¾ of our cotton and 41% of our wood now from more sustainable sources, and we’re investing in renewable energy to bring us closer to our goal of being energy independent. And by making energy-efficient LED affordable and attractive, we’ve enabled millions of people to live a little more sustainably,” Juvencio Maeztu, CEO, IKEA India.

India Highlights

• IKEA launched MANGSIDIG, a limited collection of handmade textiles developed with social entrepreneurs in India

• Asian Fabrics, a textiles supplier in India, achieved 100% energy independence after installing a 1.5 MW PV array and four turbines that generate 20 MW wind energy

• Jansons, an IKEA textiles supplier based in Erode, Southern India, inspired by IKEA’s People and Planet Positive strategy implemented more than 15 measures, including a system to recycle wastewater for printing, a new dyeing process which uses less water, and a way to save energy. Janson’s have been able to save over 285MWh of energy, and 69 million litres of water

The IKEA Sustainability Report FY14 is available at www.IKEA.com on each country site (under About IKEA, People & Planet).

About IKEA

IKEA has been present in India for the last 27 years, sourcing for its stores around the world. In India, IKEA currently has 48 suppliers with about 45,000 direct employees and about 400,000 people in the extended supply chain. The IKEA Group is the first major single brand retailer to get FDI approval and plans to open several stores in Delhi/NCR, Hyderabad, Karnataka and Maharashtra.

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