Special Report: Leading the Way to a Better Planet

More Than Just Furniture
Ikea, the international retailer of ready-to-assemble furniture, has taken steps within its organization to better care for the planet. It's not just the company and its employees that are striving to make a difference, however. Ikea customers have been making a positive impact, too.

It starts with Ikea offering products that enable its customers to live a more sustainable life at home. From LED light bulbs — by 2016 all of the light bulbs sold at Ikea will be LED — to energy-efficient appliances (e.g., induction stovetops) to recycling bins, Ikea provides the tools you need to do more with less and conserve energy.

Ikea is working behind the scenes to make itself a more sustainable organization. It sources products in a responsible way while investing in renewable energy and energy-efficient technology to help tackle climate change and lessen its impact. Ikea has partnered with the World Wildlife Fund and the Forest Stewardship Council to support responsible forestry practices for all the wood that it uses in its products. The retailer's long-term goal is that all wood used in its products is recycled or comes from forests independently verified as responsibly managed.

Cotton, the second most important raw material for Ikea behind wood, is also a strategic priority for the brand. Ikea recently reinforced its goal to use only cotton produced entirely in line with the Better Cotton Initiative in all its products by the end of 2015. Ikea plans to grow worldwide demand for sustainable cotton at affordable prices, ensuring that consumers don't have to pay a premium for cotton products that are more sustainably farmed than conventional cotton — e.g., using less water and fewer chemicals and pesticides. Forecasts suggest cotton production costs will increase as conventional cotton farming becomes more water and chemical intensive. Ikea believes it's possible to produce cotton at a lower cost and through practices that have a lower impact on the environment. In 2012, Ikea used 160,000 tons of cotton in its products.

In addition to sourcing sustainable products, Ikea is working to make its facilities (e.g., brick-and-mortar stores and distribution centers) more energy efficient. Nearly 90 percent of all waste in the company's stores is recycled or used for energy production, and more than half of the energy used to power Ikea buildings is renewable. Solar panels are being added to all new and existing structures, and Ikea is investing heavily in wind farms. The retailer is in the midst of building a nine-turbine wind farm in central Sweden, which will produce renewable electricity equivalent to 75 percent of the electricity consumption of all the brand's stores in the country.

An international brand, Ikea ships its products to customers across the globe. This means trucks, ships and planes are transporting those goods — and emitting carbon dioxide in the process. Ikea has set a goal to increase its fill rate — i.e., the share of the space in trucks and containers that's actually used — from its current 63 percent to 70 percent. More products transported per load translates to fewer deliveries and a sizable decrease in carbon dioxide emissions.

"One way to fit bigger loads is to get rid of bulky wooden pallets and replace them with space-saving paper pallets," said Klas Ekman, Ikea's group transport manager, on the company's website. "They are only one-third the height of their wooden ancestors and the inches saved often means that we can fit one more layer of products in trucks and containers. Some 90 percent of shipments from suppliers to Ikea distribution centers and stores are now made using paper pallets or loading ledges."

The Soul of its Organization
Staples Soul is the office supply retailer's initiative to make a positive difference for its customers, associates and the environment. In 2011, the retailer unveiled its overarching sustainability strategy, which contains five pillars:

• sell more sustainable products and services;
• offer easy recycling solutions for our customers;
• eliminate operational waste;
• maximize energy efficiency and the use of renewable energy; and
• become a sustainability leader in the global community.