Brand Review: Is IKEA a Sustainable Company?

Sustainably sourced, manufactured, and sold goods are no longer a niche market. From new companies that sell exclusively online to large established brands, furniture companies are finally getting the message that we must do better for our planet and our health.

IKEA is the world’s largest furniture company, selling over 100 million items every year. The flat-packaging giant has made headlines for some of its ‘people and planet positive’ campaigns in recent years. 

But is IKEA sustainable, or do they still have a long way to go? In this article, we’ll tell you all about it. 

Brief History 

Founded in 1943, IKEA started as a small business, selling through a mail-order catalog. From the get-go, its focus was affordable and functional furniture. In 1956, IKEA came up with the flat-pack and self-assembly idea to keep transportation costs low, even for bulky furniture. 

The company has come a long way since its early days. 

Today, it’s not even a single company. Inter IKEA Systems B.V. is the franchisor – they own the IKEA concept and develop products and designs. Stores worldwide are franchisees, meaning they pay IKEA for running the business and must abide by the franchisor’s standards and vision. 

The company launched its sustainability strategy in 2012, well before other large furniture and home décor brands. By 2030, IKEA is looking to:

● Provide healthy and sustainable living solutions to over 1 billion people. 

● Become circular and climate positive while growing the business. 

● Create fair and equal working conditions for everyone in their supply chain. 

Eleven years in, how well is IKEA doing? Let’s find out:

IKEA’s Commitment to Sustainable Materials

IKEA’s sustainable furniture starts with raw materials. Here is what the company is doing to move toward eco-friendly materials:

100% Sustainable Cotton

One of IKEA’s most significant achievements has been its commitment to sustainable cotton. Cotton is used widely, but it’s also one of the ‘thirstiest’ plants. Growing it consumes not only a lot of water but also pesticides. 

In 2015, IKEA switched entirely to either recycled cotton or cotton grown with less water, fertilizers, and pesticides. However, IKEA’s contribution to eco-friendly cotton predates its current sustainability strategy. Back in 2005, they were one of the organizations that backed the Better Cotton Initiative

Today, they use 77% more sustainable Better Cotton and 17% recycled cotton. The remainder is cotton labeled ‘Towards Better Cotton,’ an IKEA-specific standard. 

Sustainable Wool 

Ikea doesn’t produce many items from wool. However, it is the main component of some of their rugs and makes up a percentage of a few blankets. While they don’t disclose where the wool currently comes from, the company has committed to using only 100% sustainably sourced material by 2025. 

What does that mean?

Ikea is establishing full traceability in their supply chain to only use material that follows the Responsible Wool Standard (RWS) guidelines. The international standard requires that sheep have ample opportunity to move and graze and receive proper veterinary care. Farmers also follow practices that prevent over-grazing and resource exploitation. 

100% Renewable Plastics by 2030

Plastic is durable, cheap, and versatile. However, it also comes from fossil fuels and lasts for decades, if not centuries. To reduce plastic pollution, IKEA fully phased out single-use plastics and is moving toward fully renewable (bio-based) plastics. 

Their PLA plastic comes from corn, sugar beet, and sugar cane sources, and it’s still safe and long-lasting. For example, the popular ISTAD resealable bags contain renewable plastic from sugar cane. There are also plenty of recycled plastic products at IKEA, from doormats to kitchen cabinets. 

Most importantly, IKEA plans on using 100% renewable or recycled plastics by 2030.

Bamboo Furniture

The final highlight of IKEA’s sustainable materials effort is bamboo furniture. Bamboo is fast-growing and requires minimal fertilizer and pesticide use. It is also very durable and works for a variety of items. 

It has been named ‘the world’s most renewable material’ for a reason!

Our only concern with IKEA’s bamboo initiative is they don’t mention how the material is sourced. Unfortunately, most bamboo used today grows in China, a country notorious for lax environmental legislation and worker exploitation. Since bamboo can also require harsh chemicals in treatment, I’d love to see IKEA do more to ensure their bamboo products are genuinely sustainable. 

Other Materials

While IKEA talks directly about the materials we mentioned above, they say very little about materials like particleboard, solid wood, or even down and feathers. All that’s offered is a ‘blanket’ statement that their products meet local regulations and standards. 

Ikea states it phased out any potentially harmful chemicals, even if these are not directly banned. Things like lead, formaldehyde, or PFOA/PFAS are not used in the production of products. 

But it still leaves us with questions about the source and ethics behind many of its materials.

Special Initiatives

Around the world, IKEA has been a part of multiple sustainability projects. 

For instance, they started incorporating rice straw in their products to combat air pollution in India. How does it work? 

Rice straw is an agricultural waste product, which most farmers burn. Through the Better Air Now initiative, IKEA harnesses this byproduct into innovative products to stamp out the burning practice altogether. It’s a win-win situation where farmers get an additional source of income, and less burning reduces air pollution.  

I commend IKEA for making efforts towards more sustainable materials; however, there is too little information about the sustainability of the broader range of its popular products. For instance, the BILLY bookcase or MALM bed uses particleboard, plastic edging, stains, and resins. Yet, there are no details offered about any of these materials, specifically.

Community Impact

The products we buy affect many people we’ll probably never meet. There are hundreds, if not thousands of workers, involved in making, packaging, and shipping your item along the supply chain. 

For a large company like IKEA, the production and logistics networks are so large that implementing sustainable development strategies is essential to a better, more ethical end product. 

IKEA’s ‘people and planet’ initiatives cover how the company seeks a positive impact on worldwide communities. It includes strategies like: 

Circular Economy 

Circularity means you can enjoy your furniture longer, prevent items from going to landfills, and reduce overproduction. 

IKEA states they want to become a circular business by 2030, and they’re already taking significant steps toward this goal. 

In 2019, they recycled or repurposed 47 million products, reselling the vast majority of them. Over 60% of their entire product range is based on renewable products. This, combined with their sustainable materials efforts, brings IKEA much closer to complete circularity. 

Products With a Mission

Several IKEA product lines support their ethical production credo. 

For example, in 2010, the company started passing strict regulations to their weaving centers in India and Bangladesh. They moved centers closer to where workers lived and developed a new loom that requires less physical strength. Rug weaving became a full-time income source for thousands of women in these workshops. 

IKEA offers a large selection of hand-weaved rugs made with respect towards the craftspeople and their communities. 

Similarly, they’ve started offering LED light bulbs and light solutions. Not only do LEDs use considerably less energy, but they also last longer, reducing waste and saving you money in the process. 

The SOARÉ woven placemat is another example. It’s made from water hyacinth from the Mekong River area in Vietnam. By offering both hand-made and machine-weaved placemats, IKEA ensures locals can still make an income from production while keeping up with customer demand. 

Sustainable Food 

Did you know that a plant-based diet can reduce your carbon footprint by over 70%? IKEA does, and they’re actively working to promote eco-friendly eating at their cafes and restaurants. 

In addition to their traditional staples, the menu now includes veggie meatballs and hotdogs. Plus, the fish and seafood products are all from fisheries certified by the Marine Stewardship Council (MSC), supporting sustainable industry practices.

IKEA has committed to making 50% of its restaurant meals plant-based by 2025.

Urban Store Design

When I think of a trip to IKEA, the first thing that comes to mind is a car ride out to a suburban big box store. That’s about to change. The company is shifting to an urban, car-less design for some of its stores. 

For instance, the new Vienna Westbahnhof store will be built on the main shopping street, easy to access by foot, public transport, or bicycle. The grid-like façade will have over 100 trees and no car spaces, with on-the-day delivery services replacing the traditional ‘flat-pack and transport it yourself’ principle. 

Equity for Marginalized Groups

IKEA has proactively taken a stance on issues like LGBTQ+ inclusion and racial equity. 

It was one of the first brands to air a commercial featuring a same-sex couple. It has been supporting the community ever since, with its most recent campaign backing LGBTQ+ homelessness relief.  

The company also established a Racial Equality Taskforce council and donated over one million dollars to racial equity charities. 

So is IKEA Greenwashing?

So far, so good, right? IKEA seems to have a comprehensive strategy in place. They’re working to reduce environmental impact and actively support local communities. 

But how much of this comes from a place of genuine concern? IKEA is very vocal about these initiatives, using them as a marketing tool to draw in eco-conscious consumers. 

Are they greenwashing? There are some cases where they might be. 

Car-Sharing, Illegal Timber, and More

For example, marketed as an eco-friendly way to get to the store, its car-sharing initiative in France was a disappointment. The issue was their advertising made it appear like they were going to introduce an IKEA car. Not only did this underwhelm customers, but its environmental impact was minimal, considering 90% of IKEA customers still traveled by car. 

The company also opposed US legislation against unsustainably logged timber import, even though they claim to support responsible wood. It was linked with illegal logging in Ukraine as recently as 2020

Finally, even though they used the WWF Earth Hour logo back in 2009, they only dimmed the lights to avoid scaring away customers. 

Greenwashing or Not: Why It’s So Hard to Tell

As a large international retailer, IKEA’s supply chain is incredibly complex. What is more, the franchise model adds a level of difficulty when it comes to introducing environmental campaigns. 

It’s hard to determine if they’re greenwashing or simply ignorant about their suppliers. For instance, when the illegal logging scandal came out, IKEA claimed they cut ties with any partner that doesn’t meet their sustainability requirements. When you’re running an international business, you miss things. Did they know about the illegal timber, or was this a case of ignorance? There is no way to know for sure. 

Another challenge comes when IKEA tries to branch out of its core business. The recalled Sladda bicycle is a prime example of this. The “Scandinavian bike for the world” was marketed as an affordable option for would-be urban cyclists. Unfortunately, a design flaw led to multiple belt snapping cases, some resulting in injuries. The product, as well-intentioned as it might have been, failed the real-world test. 

Ultimately, whether IKEA is greenwashing or promoting genuinely eco-friendly initiatives is up for debate. But, even a company known for its sustainable practices can use misleading advertising, so always take claims with a grain of salt.  

IKEA’s Outlook for the Future

First things first, we hope to see even more transparency and accountability. Now more than ever, people expect to know about the entire product lifecycle. From obtaining raw materials, through manufacture, packaging, transportation, and finally the in-store operations, 

IKEA has taken steps toward an ethical business model and has big goals looking forward. By 2030, the company plans to use 100% renewable and recycled materials and reduce its total carbon footprint by an average of 70% per product. 

New initiatives are also working to address the elephant in the room – unsustainable consumption. IKEA’s sustainable furniture efforts can’t work in a fundamentally planet-damaging business model. Campaigns such as furniture leasing are positive steps toward breaching the gap. We are certainly hoping to see more of that in the future. 

And if you feel that adding more new items to your home (even if sustainably produced) is not for you, we pulled together some other affordable options worth checking out.

Conclusion

IKEA is known for three things – meatballs, ‘theme park’ showrooms, and sustainability. While there have been some cases of greenwashing, the Swedish furniture giant is making substantial progress on sustainability goals, moving toward a green business model by 2030. 

Ultimately, is IKEA sustainable? 

We lean towards yes, though always remember to do your research, especially when it comes to big brands with billion-dollar marketing budgets. 

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