Swedish home furnishing giant IKEA remains steadfast in its commitment to realizing a better everyday life for the many people and the planet.
Ikano Retail, the franchisee representing IKEA in the Philippines, has recently unveiled a comprehensive overview of its sustainability strategy and a progress report on its journey toward achieving the 2025 sustainability targets. These targets span a wide spectrum, encompassing areas such as the promotion of sustainable product sales within their stores, the pursuit of gender balance in workplaces, and a thorough assessment of carbon emissions.
This report delves into narratives from the 2023 financial year, covering the period from September 2022 to August 2023. The focus is on IKEA’s dedication to sustainability, emphasizing the promotion of healthy and sustainable living, a commitment to circular and climate-positive practices, and the establishment of a fair and inclusive corporate culture.
Healthy & Sustainable Living
IKEA remains a staunch advocate for sustainable living, consistently empowering its customers by offering an extensive range of affordable, sustainable home solutions and food items tailored for the diverse Filipino population. In the past year, IKEA successfully distributed 1,020,920 sustainable home furnishing items in the Philippines, spanning from energy-efficient bulbs to furniture crafted from responsibly sourced materials. Presently, an impressive 73% of IKEA’s home furnishing products are composed of renewable or recycled materials.
The commitment of IKEA Philippines towards fostering a sustainable future is deeply ingrained in the company’s culture, instilling a strong sense of purpose and environmental responsibility among its co-workers. Remarkably, over 90% of them feel well-equipped to care for (92%) and actively contribute to (95%) the planet.
As part of its ongoing initiatives, the brand has set a target to make 50% of the main meals at its Swedish restaurant plant-based by 2025. In the previous year, IKEA achieved 33% of this goal, introducing the HUVUDROLL plant ball as a noteworthy plant-based alternative to its popular meat counterpart.
Circular & Climate Positive
IKEA is actively implementing initiatives across its operations to enhance circularity and promote climate positivity, encompassing the circular nature of its business, recycling and waste management systems, and the electrification of home deliveries.
In the previous year, IKEA Philippines successfully reclaimed 10,880 products valued at over 9 million pesos for refurbishment, contributing to the promotion of a circular economy. These rejuvenated products were deemed ‘good as new’ by customers, exemplifying IKEA’s commitment to high-quality standards and innovation.
With an advanced recycling and waste management system in action, IKEA Philippines achieved a noteworthy 61% recycling rate for its paper and plastic waste in store operations. In its food operations, IKEA reported an impressive 70% reduction in the volume of food waste compared to the previous year.
Additionally, the longstanding partnership between IKEA and electric vehicle company Mober has flourished, leading to increased utilization of sustainable transport. IKEA has already made substantial progress, reaching one-fourth (7.7%) of its target for EV deliveries (33%) by 2025. The company remains dedicated to accelerating its electrification efforts further.
Fair & Inclusive
Since its establishment in 2021, IKEA has rapidly become one of the most cherished brands in the Philippines. While setting a benchmark for sustainability practices among retail companies, the brand distinguishes itself by placing people at the core of its positive impact on the world.
Demonstrating a commitment to inclusivity, IKEA Philippines has achieved gender balance throughout its organization, boasting a workforce with a gender ratio of 45.9% female and 54.1% male.
In its dedication to fostering a positive impact within the community, IKEA Philippines maintains a fruitful partnership with the social enterprise Rags2Riches (R2R), serving as a sewing services partner at IKEA Pasay City. Within its operations, R2R has successfully upcycled 4,000 kilograms of scrap fabrics, generating P7 million in revenues from IKEA. This direct collaboration has positively impacted 250 families in the community.
A Sustainable Future Together
As a proactive leader in the retail industry’s pursuit of sustainability, IKEA has embraced the challenge of fostering positive change in the Philippines. The receptiveness of the Philippine market to the ideals of a sustainable future serves as a driving force for IKEA Philippines to persist in its commitment to meaningful transformation.
Having successfully integrated sustainability into its achievements, IKEA Philippines aspires to be an inspiration for many individuals and other companies. Their goal is to encourage the adoption of similar practices, collectively contributing to the creation of a more sustainable future for everyone.
For more information, check out the Ikano Retail FY23 Sustainability Report and the IKEA official website at www.IKEA.ph.
