Achieving a Sustainable Wood Supply Chain

• IKEA has four potential options :-

1. OWNING MORE FORESTS-
• By 2013, IKEA group was sourcing 20% of its wood from leased forests in
Russia
• Access to more FSC- certified wood in future.
• Forest rotation period could exceed the lease term.
• Leasing and managing would enable IKEA to be fully responsible.

2. DRIVING HIGHER PROCUREMENT TARGETS AND STANDARDS.

• IKEA followed a risk-based approach to determine the amount of FSC-
certified wood include in 50% target for more sustainable sources by 2017.
• IKEA Group partnered with World Wide Fund for Nature (WWF).
3. Using More Particleboard –
• IKEA invented developed a new lightweight particleboard which is 30% less dense.
• Product made of particleboard is 20% cheaper than product made of solid wood.
• Replacement rate of solid wood by particleboard was around 5% per year.
• Particleboard will diminish consumers willingness to purchase the product.

4. Using More Recycled Wood –

• Recycled wood was cheaper than virgin particleboard in countries that had ample
supply of recycled wood.
• It is difficult to collect used wood and it may incur large cost.
• To minimize cost for collecting recycled wood, only board plants located near
urban area could be used for recycled wood.
• Could be problematic in regions where there was no incentive to collect wood.