We’re all in this together!

We want to make healthier and more sustainable living easy. But it’s more than just
offering smarter products – we want to create a movement for a better, more
sustainable everyday life. It’s about enabling and inspiring as many people as we
can – our customers, co-workers, suppliers, and even other companies – to join in
the effort and make more sustainable choices every day.

Unsustainable consumption and climate change remain some of the biggest

challenges for humanity. With our size and setup, we know that we can make a great
contribution towards a more sustainable world.

“Sustainable living has to be easy, and the most natural choice.”

– Malin Pettersson-Beckeman, Sustainability Communication Manager, Inter
IKEA Group
But we can’t do it alone. Everybody has a role to play in creating a sustainable
reality. For us, it starts with some big – and even small – changes. This includes
designing smarter products using renewable or recycled materials, offering healthier
and more sustainable food choices, and easier and more affordable ways for people
to reduce their waste, use less and cleaner energy and water at home.

We’re transforming the entire way of working within the IKEA value chain from a
linear to a circular business. This means designing all products from the beginning to
be repurposed, repaired, reused, resold and recycled, generating as little waste as
possible. But going circular will mean working beyond our own business – with
suppliers, governments, customers, and more – to make it happen.
We’re optimistic about the future. Through collaboration, curiosity and an
entrepreneurial spirit, we know amazing things are possible!
 “We’re committed to taking the lead and working
together – from raw material suppliers all the way to our customers and
partners.” – Torbjörn Lööf, CEO, Inter IKEA Group

Leading the way by being a good example

After converting our complete lighting range to energy-efficient LEDs, we’re now
striving towards 100% renewable energy in IKEA operations and at our direct
suppliers. We’re also focusing on using more sustainable materials in our products.
By 2030, we’re committed to only using renewable and recycled materials and to
reduce the total IKEA climate footprint by an average of 70% per product.
No more single-use plastic products
By 2020, single-use plastic products will be phased out completely from all IKEA
stores worldwide. This includes straws, plates, freezer bags, and more.

Fewer parts make a big difference

When it comes to sustainability, sofas have always been a challenge. They’re big,
they’re heavy and almost impossible to flat-pack. But that hasn’t stopped us from
exploring better ways to design, manufacture and package them.
One great success story is our new sofa frame, which now uses just 13 assembly
parts instead of 122. This reduces water and energy usage significantly and requires
much smaller packaging, so we won’t need as many transport containers and trucks.
All of this means reduced emissions and lower environmental impact – without letting
down quality and comfort.
The new sofa frame was tested in China in the summer of 2018, and will be rolled
out globally with a number of selected sofas during 2020.

Wondering what you can do?

The way we live in our homes has a huge impact on the planet – but the good news
is we can make a difference with a just a few small changes.

Watch your water

For example, the MISTELN water nozzle – developed together with the start-up
company, Altered – can dramatically reduce home water usage by up to 90% and
can be applied to every standard tap.
Look out for MISTELN starting in 2019.
See what’s cooking!
We’re on a journey to transform our stores, markets and restaurants to offer healthier
and more sustainable food.
Our new delicious vegetarian hot dog made with kale, red lentils and carrots, is one
of the more sustainable options that you can enjoy at the IKEA store.
These tasty new salmon balls, made from ASC-certified salmon, will also be making
their debut at IKEA restaurants. And for those with a sweet tooth, our 100% plant-
based soft ice is another great vegan alternative available in the summer of 2019.

Our ambitious commitments include:

Good intentions are good, of course. But we also
know that real, measurable goals are what really
count. Here’s a selection of our ambitious
commitments for becoming people and planet
positive:
 Designing all IKEA products with new circular
principles, with the goal to only use renewable
and recycled materials in our products by
2030.
 Offering services that make it easier for
people to bring home, care for and pass on
products.
 Removing all single-use plastic products from the IKEA range globally and
from customer and co-worker restaurants in stores* by 2020.
 Achieving zero emissions home deliveries by 2025*.
 Reducing the total IKEA climate footprint by an average of 70% per product,
by 2030.
 Expanding the offer of affordable home solar solutions to 29 IKEA markets* by
2025.
The Sustainable Business Model Canvas Project: Owner: Version:

Positive Impact (Maximise) Negative Impact (Minimise)

What are positive 2nd and 3rd order effects of your product on planet, society, the economy or your What are negative 1st, 2nd and 3rd order effects, and how can these be minimised? Is harmful waste
organisation (e.g. brand)? How can these effects be maximised along the complete product life cycle? generated that requires expensive disposal? Are there rebound effects or new technological risks?

You can use the left side of the Threebility Sustainability Impact Canvas to generate the input for this section You can use the right side of the Threebility Sustainability Impact Canvas to generate the input for this section

Sustainable Sustainable Sustainable Value Sustainable Responsible

Partners
Who are possible partners in becoming
more sustainable?
How can we make the whole supply chain
sustainable, transparent and circular?
Can we cooperate with partners from other
industries to form an industrial symbiosis?
Value Creation
Which are our key activities? How can we
adjust them (e.g. manufacturing) to
ensure sustainability?
Which enabling sustainable
technologies can be used?
Proposition Customer Relation customers
Which problem do we solve, which Which customer relationships satisfy Who are our customers? How can we
value do we create? customer expectations and are enable them to act sustainably?
sustainable?
What are function & form of our Which target customers may help to
product or service? How can we make current relationships promote our sustainable solution?
more sustainable?
Can we solve our customers‘ problems
more sustainably?

Can we shape anticipated environmental Can we transform sustainability into

regulations by partnering and cooperating
with relevant regulatory bodies? Sustainable Tech
& Resources
Which 1) natural, 2) energy and 3)
technical resources do we need?
Can we substitute any for more
sustainable resources?
customer value?
Is ownership necessary or is the product Sust. Channels
as a service model applicable?
How can we make our distribution channel
Can we extend the product life cycle?
more sustainable and circular?
How do we best communicate the
sustainable aspect of our product / service?
End of Life
What happens at the end of the product
life cycle?
Can the product be profitably recycled,
upcycled, reused, refurbished?

Cost Structure & Additional Costs Subsidisation Revenue & Sustainability Premium
What are the required costs and investments for my endeavour? Do tax bonuses & subsidies or 3rd Which are existing and possible revenue sources?
party funding exist for my endeavour?
Which resources / activities are the least sustainable? Do sustainable alternatives Are customers willing to pay a premium for sustainability?
exist? Is switching economically reasonable?
Can we create a unique advantage due to sustainable proposition elements?

Do price structures exist that incentivize sustainable customer behaviour?

The Sustainability Impact Canvas Project: Owner: Version:

Positive Impact (Maximise) Negative Impact (Minimise)

Technology / Product (direct 1st order effects)

Capture (e.g. of waste or emissions) Resource use during production

Energy / resource and emissions during use

Waste generated during disposal

Application of Technology / Product (indirect 2nd order effects)

Substitution (e.g. of paper through digitalisation) Induction (of resource consumption, e.g. energy)

Optimisation (e.g. of energy usage & processes) Obsolescence (e.g. via shorter product life cycles)

Societal & Structural Change (systemic 3rd order effects)

Incentivisation (e.g. of fuel saving drive styles) Rebound effects (e.g. via additional consumption)

Decision making (e.g. via agent based models) New risks (e.g. via rising network vulnerability)