In an effort to reduce impacts in its supply chain, Ikea says it works with its suppliers to improve energy efficiency, encourage alternative fuel use, increase renewable energy generation, reduce water use and increase water recycling. In FY2012 Ikea developed plans with suppliers for energy saving activities at 11 energy-intensive supplier factories in China. Ikea estimates that these factories could reduce their energy intensity by five to 20 percent.
The company also last year began publishing data collected from direct suppliers on water consumption. The company tracks its suppliers’ environmental impacts in a sustainability index. From FY2011 to FY2012 Ikea improved its Supplier Sustainability Index score from 33 to 39.
It also set new goals for its suppliers in FY 2012. These were:
- By the end of FY2015 – 20 percent reduction in supplier carbon emissions from 2011 levels.
- By the end of FY2017 – 20 percent improvement in supplier energy efficiency from 2011 levels.
- By the end of FY2020 – home furnishing suppliers 30 percent more water efficient than in 2011.
The company increased the percentage of its wood that comes from Forestry Stewardship Council Chain of Custody-certified suppliers, from 62 percent in FY2011 to 63.5 percent in FY2012. In FY2010 just 47 percent of the company’s wood came from such suppliers.
The company also increased the percentage of its suppliers who are FSC Chain of Custody-certified, to 42.2 percent in FY2012 from 34.9 percent in FY2011. In FY2010 20.3 percent of Ikea’s suppliers were Chain of Custody-certified.
