Introduction

The Sweden, is one of the countries with vast amount of Scandinavian forest land. As a result,
home furniture giant company like IKEA, started its journey in 1943, with the ambition to
expand its operation in household furnishing, kitchen decoration products, furniture and other
home appliances (Loeb, 2012). Swedish furniture market consumption is huge. In 2020, the
worth of Swedish furniture consumption was 26 billion Swedish kronor (Ridder, 2021). Sweden,
is a leading European country which shows remarkable progress in achieving sustainable
development goals and drive its different industry players to work together to actively participate
in SDG implementation (Jeffrey D. Sachs, 2020).
This report focuses on case study of IKEA sustainability strategy – people and planet positive
report 2020, a Swedish founded multinational ready to assemble furniture company. IKEA has
Introduced sustainable growth strategy as one of its core business objectives and focus on
sustainable solutions as one of the areas in which the company invests the majority of its profit
(IKEA, 2019). Moreover, IKEA sourced 80% of the raw wood materials from Forestry
Stewardship Council certified or from recycled sources as of 2019 (Gaziyev, 2019). IKEA has a
motto that emphasizes on environment, social along with economic development to ensure better
life for more people in the world (IKEA, 2018).
These report epicentres on the way IKEA, a widely recognized leader in furniture industry is able
to take a leading role in achieving sustainability by implementing the vision of United Nations by
ensuring sustainable consumption and production pattern in its operation. This vision is part of
17 sustainable goals outlined in 2015 by UN with the aim to shape the world by 2030 by
implementing sustainable development in different sectors. This report aims to study sustainable
development strategy that applied to IKEA and evaluate the organization’s current operation to
achieve sustainable development goal and its possible activities to contribute in implementing
sustainability in society.
Thus, this report will evaluate the strategies of IKEA with different industry standard along with
the target indicators stated by UN in sustainable development goals to ensure that its production
and consumption process is sustainable and is the best practices in the industry.

SDG in the Global Context

Ensure sustainable consumption and production pattern is one of the 17 th sustainable
development goal which focuses on responsible consumption and production operations (Ensure
sustainable consumption and production patterns, 2021). We are using natural resources
unsustainably and wastages of the use of natural resources increases substantially. The focus of
this distinctive goal is to ensure sustainable consumption and production by promoting efficient
use of natural resources and energies, ensuring the proper management of resources and reduces
the wastages of food and raw material of production, ensuring the sound management of
chemicals and different industry wastes and stop releasing in air, water and soil, promoting

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recycling and reuse to ensure the maximum use of nature at the same time ensuring that the
environment is protected. This goal focuses on developing the life standard without hurting the
nature, thus the needs of the future generations remain protected.
Each of the goals has specific targets to achieve this goals. Besides, there are specific indicators
to evaluate the impact of the operation time to time. Ensure sustainable consumption and
production pattern is the 12th sustainable development goal which consists of 11 specific targets
and 13 numerous indicators to evaluate the goals (Ensure sustainable consumption and
production patterns, 2021). These targets focuses on achieving the sustainable management and
proficient use of natural resources, reduces wastes in production and consumption phrases which
emphasizes to design the production process that efficient use of resources and encourage reuse
and recycling. Moreover, management of waste according to international standard and protect
ecosystem from the adverse effect of industry chemicals.

According the case study, these targets, can be related with IKEA’s operation and company
strategies to achieve sustainable development goals. According to target 12.2, which indicate that
the IKEA need to ensure sustainable management and use of natural resources by the year 2030
which requires the management of the material footprint and sustainable domestic market
consumption.
Besides, according to target 12.4, IKEA need to achieve the management of chemicals usage and
dump waste responsibly by 2020 which requires the reduction of the hazardous waste generated
by participating in international multilateral environmental agreements. Furthermore, according
to target 12.5, IKEA need to reduce the generation of waste by introducing the process-
prevention, reduction, recycling and reuse in their production and maintenance operation.
According to the target 12.6 which indicates countries like Sweden to inspire different industry
players like IKEA to implement sustainable practices and start sustainability reporting which
requires publication of sustainability reports by IKEA. Since 2012, IKEA published
sustainability strategy – people and planet positive report every year (Loeb, 2012). Finally,
according to target 12.8, which indicates to ensure the ensure the access of the relevant
information and promote awareness for sustainable development, encourage understanding of
sustainable lifestyles which brings harmony in environment.
IKEA is one of the giant in furniture industry which requires the extermination of forest wood
(IKEA, 2019). It creates pressure to the nature as global carbon-di-oxide emission increases
drastically in last couple of year due to deforestation. According to Ferdig, exercise of effective
leadership for sustainable future, requires the balance of demands for economic, environmental,
and social sustainability which presents a real leadership opportunity (Ferdig, 2010). Therefore,
to achieve the sustainable development leadership, IKEA need to ensure sustainable consumption
and production pattern to reduce the adverse effect of deforestation to keep the balance in the
environment. Through the world the current production process of furniture is inefficient and it
will increase the requirement cutting more trees in the future. The current production and
consumption requires large amounts of resources between 25 to 30 billion tonnes of raw

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materials per capita (Wiedmann, 2013). Increasing amount of the resource in the production and
consumption will increase the amount of waste in the process which will hamper the ecosystem.
Thus, to ensure future sustainability of the organization, IKEA need to achieve sustainable
consumption and production pattern in the operation. According to the Ferdig sustainability
model, company like IKEA need to introduce new strategies that drive the organizations
operation to minimize the usage of the material in the production, therefore natural balance will
be restore without hampering organizations economic progress.
z
IKEA, focuses on to ensure better life for all by balancing stable economic growth and positive
social relation by maintaining environmental protection and regeneration. Efficient use of
resources is the key to ensure future sustainable development. Thus, it has put its focus on
ensuring sustainable consumption and production pattern (goal 12).
IKEA publishing sustainability strategy report since 2012 which is the successful implementation
of target 12.6. The company has been giving annual sustainability reports in line with target
12.6. as per the global reporting initiative guidelines. In this report IKEA stated the progress of
the previous year and target that are yet to achieve in the future. The report emphasizes on the
management to co-create a better world for all by sharing information, reducing the adverse
effect of the climate change. Moreover, information of social engagement, development of
environmentally efficient product and good working environment and equal employment
practices also discussed in the report. This report is a dashboard which describes the past
progress and future responsibilities of IKEA. IKEA focuses on three major focus areas- ensuring
healthy & sustainable living, circular & climate positive operation, and fair & equal employment
practice to fight against climate change, unsustainable consumption, and inequality (IKEA,
2018).
IKEA, focuses on the 91% more sustainably sources wood like- forest stewardship council
certified or recycle wood in 2019. It reduced the .4 million m 3 RWE and increased the use of
recycle material in board material production to 28% (IKEA, 2019). In 2019. IKEA started to
work in regeneration of the new forest land that would help to reduce the adverse effect of the
deforestation. In paper and packaging process 75% product came from recycled product. IKEA
also help Indian farmers, in Maharashtra by teaching them efficient water saving techniques to
save the ecosystem. They also trained 4000 pakistani farmers to climate smart crop production.
In
2019, 40% of IKEA’s plastic products were from recycled or renewable sources. Due to the
numerous activities around the world, IKEA actively participate in achieving SDGs (IKEA,
2019).
Yet, IKEA requires to cut trees, use chemical in their production process. Due to the increasing
demand of modern furniture, IKEA requires to increase its production every year which also
increase deforestation. Besides, other sources like plastic can reduce the amount deforestation yet
this substance are dangerous to the environment. IKEA currently working on developing strategy

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that might lead the organization to minimize the use of raw material in the production that
requires deforestation.
Conclusion
IKEA, is working for 8 years to achieve goal -ensure sustainable consumption and production
pattern (Goal-12) which is a great example of determination. Yet, IKEA has lot to achieve to
completely achieve the goal. IKEA, should focus on it reforestation process and increase its
activities. As a result, in the future, IKEA will be able meet the demand of the amount of tree
require in the manufacturing process without hurting natural forest and ecosystem. Therefore, my
suggestion is to reforesting and increase the use of recycles product in production. Because,
without the nature, we will perish.

Bibliography
Ensure sustainable consumption and production patterns. (2021). Retrieved from United
Nations: Department of Economic and Social Affairs: https://sdgs.un.org/goals/goal12
Ferdig, A. M. (2010). Sustainability Leadership: Co-creating a Sustainable Future. Journal of
Change Management, pp. 25-35.
Gaziyev, M. (2019). IKEA and Sustainability: Sustainable Development Through the Lens of
Individual, Organisational and Network Perspective. ResearchGate.
IKEA. (2018). IKEA Sustainability Strategy – People & Planet Positive. IKEA.
IKEA. (2019). Sustainable Growth Report. IKEA.
Jeffrey D. Sachs, G. S.-T. (2020). Sustainable Development Report 2020 :The Sustainable
Development Goals and Covid 19. Cambridge: Cambridge University Press.
Loeb, W. (2012, December 5). IKEA Is A World-Wide Wonder. Retrieved from Forbes:
https://www.forbes.com/sites/walterloeb/2012/12/05/ikea-is-a-world-widewonder/?
sh=12f05ea427b9
Ridder, M. (2021, April 13). Furniture consumption in Sweden from 2010 to 2020. Retrieved
from Statista: https://www.statista.com/statistics/431459/swedish-furniture-
marketconsumption/
Wiedmann, T. S. (2013). The Material Footprint of Nations.

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