International Business Strategy Ikea

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People & Planet Positive IKEA Group Sustainability Strategy for 2020

Please visit People & Planet on www.IKEA.com

CONTENT PEOPLE & PLANET POSITIVE
01. The world around us 02. IKEA vision and business foundations 03. People & Planet Positive 04. Overview: People & Planet Positive 05. A more sustainable life at home 06. Resource and energy independence 07. Better life for people and communities 08. A little IKEA & sustainability directory

THERE IS A RAPIDLY CHANGING WORLD AROUND US
For most of human history the world was sparsely populated and resources, from forests to fisheries, seemed unlimited. We started the 20th century with 1.65 billion people in the world, a population not much greater than that of China or India today. Society used resources and generated waste with little restraint and few concerns. While this helped drive growth and improve the livelihoods of many millions of people, it was a long way from a sustainable society. The global population has now reached seven billion, resources are increasingly scarce and climate change is a reality. The world is on track to warm by four degrees Celsius by the end of this century, which will have a severe effect on weather patterns, water availability and agriculture1. We have already lost half the world’s forests and degraded an estimated 60% of the world’s ecosystems2. Today’s global economy is almost five times the size it was 50 years ago and is set to triple again by mid-century. There were just 12 cities with a population above one million people in 1900, while today there are more than four hundred and the world’s urban population swells by more than one million people every week3. Billions of people are expected to enter the consumer society in the coming decades4. This is cause for celebration, in part, as many people are coming out of poverty. However, not all will have prosperous lives, with billions remaining poor and continuing to struggle to provide for themselves and their families. When it comes to the environment, society is currently using resources at a rate that requires 1.5 planets.5 Global carbon emissions continue to rise at a time when they need to peak and then decline rapidly. Recycling rates have increased around the world, but the majority of valuable processed materials are still thrown away rather than reused, leaving room for significant improvements and opportunities. Rising energy and raw material costs are putting pressure on businesses and families across the world. When it comes to the IKEA business, unless we act boldly, price increases for energy, wood, textiles, metals and plastics will affect our costs and force price increases for our customers. Even if concerns about sustainability or climate change are put to one side, being careful with resources, managing costs for the future, controlling energy use and looking after your people is good for business. A sustainable world that provides a great quality of life for many people and protects the environment is possible. We can provide economic opportunities and empower people so they are able to better provide for themselves and their families. We can utilise the massive potential of renewable energy; we can develop exciting new products and services that help people live a more sustainable life at home; we can transform waste into resources; and protect our forests, farmlands, seas and rivers for future generations. IKEA can be a small, but significant, force in helping to create this more sustainable world. There are also many other new opportunities ahead of us. Over the coming decades hundred of millions homes around the world will shift to smart home energy manage-ment and will produce their own power. The market for solar electric power is set to be worth $130 billion per year for the next decade, close to the value of the global furniture industry6. The global recycling industry is growing rapidly with even greater revenues of $160 billion per year7. Tens of...
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