Thursday 4 July 2019

IKEA takes the next step in putting sustainability at the core of its business

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Ingka Group
(Ingka Holding B.V. and its controlled entities)
  • Peter Betzel takes on the additional responsibility of Chief Sustainability Officer for India
  • Today Ingka Group announces that the Country Retail Managers of 30 IKEA retail businesses will take on the role of country Chief Sustainability Officer (CSO) as well. This change formalises their responsibility for sustainability in the countries and is part of a wider transformation agenda that Ingka Group has embarked on
Mumbai, India, July 04 2019: Ingka Group and IKEA India are taking the next step in transforming the business by integrating sustainability in the core of the IKEA retail business. As a part of that, the Country Retail Managers will be overall accountable for implementing the IKEA sustainability strategy, People & Planet Positive in their respective countries.
“We want to grow the IKEA business in a sustainable way - we know that our future success lies in our ability to make a positive impact for people and planet. By taking this step to integrate sustainability into every aspect of our retail operations, we can accelerate the transformation of the business to become even more affordable, convenient and sustainable for our customers,” says Tolga Öncü, Retail Operations Manager, Ingka Group.
Through the integrated role, Country Retail Managers will take greater leadership in moving towards the IKEA ambition to inspire and enable one billion people to live a better life within the limits of the planet by 2030. Sustainability performance will now be integrated as a formal part of the individual and team goals for the country.
“I am excited and inspired by formally taking on the role of Chief Sustainability Officer. I have a greater responsibility to ensure that sustainability is integrated into everything we do as a business. It’s especially relevant for India and we have many ambitious plans. We have always had an inspiring vision and values, and now we are moving further and faster in demonstrating the connection between business success, long term growth and our commitment to people and planet. This gives me and all our co-workers great energy to create the new IKEA together” says Peter Betzel, CEO, IKEA India. 
As well as working towards achieving science based targets to contribute to fulfilling the Paris Agreement, the company is committed to a range of initiatives in its 30 markets. To mention a few; home solar is offered in seven countries and will be offered in all by 2025, furniture leasing will be tested during the coming year, and IKEA Retail China already offers zero-emissions home delivery in Shanghai with all countries working to achieve this by 2025. In India we will use 100% Electric vehicles for our delivery services by 2025. Last year, the Better Air project was initiated with the goal of converting rice husks that causes major pollution in Northern India into IKEA products. The first collection FORANDRING will be launched this autumn.
The change in the country organisation will take effect on 1 September 2019.
For further information, please contact
Nivedeeta Moirangthem| IKEA India| nivedeeta.moirangthem2@ikea.com
Aditya Karlekar | Six degrees BCW | +91 9930933882 | adityak@sixdegreespr.co.in
Read more about Ingka Group’s sustainability performance and commitments in the Annual & Sustainability Summary report: https://www.ingka.com/about-us/annual-and-sustainability-summary-reports/
Read more about sustainability performance across the IKEA value chain and franchise system in the IKEA Sustainability Report FY18: https://newsroom.inter.ikea.com/publications
* Ingka Group has committed to a range of initiatives as part of its contribution towards the IKEA People and Planet Positive strategy, for example:
-      Offering home solar and other complementary clean energy services to customers in all 30 of its IKEA retail markets by 2025
-      Testing furniture leasing as part of its effort to develop circular business models
-      Halving emissions from customer and co-worker travel by 2030 and aiming for zero emissions home deliveries in all 30 IKEA retail countries by 2025
-      Aiming for 100% renewable heating and cooling in all its buildings by 2030, and by 2020, aiming to generate as much renewable energy as the energy it consumers across its operations 
** Climate positive means to reduce more greenhouse gas emissions than the IKEA value chain emits.
To make the transformation to a low-carbon business happen, IKEA will:
  • Transform into a circular business – moving towards recycled and renewable materials, designing all products from the very beginning to be repurposed, repaired, reused, resold and recycled, and providing the circular services supporting these flows.
  • Strive towards 100% renewable energy throughout the entire IKEA value chain.
  • Inspire and enable more than 1 billion to live a better everyday life within the limits of the planet.
To become a circular business by 2030, IKEA has set several targets across the value chain:
-      All IKEA products will be made from renewable and recycled materials by 2030
-      All IKEA products will be circular – designed in line with circular design principles to be re-used, repaired, upgraded, and recycled from the very beginning.
-      As part of this, IKEA will remove single-use plastic products from the home furnishing range and from customer and co-worker restaurants (Ingka Group) by 2020
-      All markets are testing new ways of meeting customer needs across how customers acquire, maintain and let go of products at end of life, with furniture leasing being one current test.
Some India specific examples
·         Waste management: We are following the framework of prevent, reduce, reuse, and recycle. As of today we are sending our waste to certified recycler. We have tied up with IKEA purchasing suppliers where our cardboard and plastic waste will go for recycling into our value chain
·         Energy Efficiency and Renewable Energy: In our premises we have solar panels generating renewable energy. We will explore the possibilities to purchase renewable energy for the remaining part of our consumed energy.
·         Sustainable Mobility: We have the goal to adopt 100% Electric vehicles (EV) by 2025 for customer deliveries. Transport of the coworkers with EV will be the next step.                 
·         Water ManagementWe are working with efficiency, harvesting, cleaning of water in our own operations and in surrounding communities. As first step, a workshop has been conducted in Bengaluru as part of the India-Sweden joint declaration on Innovation Partnership for a Sustainable Future. Ideas are currently being evaluated.
·         Better Air project in North India: IKEA launched the ‘Better Air Now’ initiative with the aim to take action on a global environmental issue by turning rice straws - a harvesting residue that contributes heavily to air pollution when burned - into raw material. The first results are seen in the upcoming collection FÖRÄNDRING to be launched during autumn 2019. The long-term ambition is to create a model for how to reduce air pollution in other crop burning regions of the world, which is why IKEA has joined the Climate and Clean Air Coalition.
·         Energy efficiency in supply chain: The IKEA Purchasing organisation works with close to 60 suppliers in India and we are working with them as part of IWAY, our code of conduct to become more Energy and Resource efficient.

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