IKEA


IKEA: Company Profile

As we all know IKEA sells affordable flatpack furniture and household goods.

Over recent years the company has made many positive noises regarding sustainability, but do its ethical commitments hold any weight? 

Last updated: June 2016

Annual Revenue€31.9 billion

 

Other Brands-

 

Company Score7 out of 20

 

BoycottsNo

 

Ethical Consumer Best Buy?No

 

Ethical issues by category

IKEA scores Ethical Consumer's best rating for supply chain management. It was working with a number of NGO's to improve this further including FSC, WWF, Better Cotton Initiative, UNICEF, UNHCR and Save the Children.

The company did however have operations in several countries regarded by Ethical Consumer as oppressive regimes. These included China, Russia, India, Vietnam and Thailand. The IKEA website also had links to the company's websites in different countries including Israel, Jordan and Saudi Arabia.   

Ethical Consumer environmental reporting rating
IKEA receives Ethical Consumer's middle rating for its environmental reporting. It showed a good understanding of its main impacts and had a series of targets. However the report was not independently verified. For a company with IKEA's resources and reach we would expect them to achieve the best Ethical Consumer rating in this category.

Other policies
Ethical Consumer could not be sure the company was not sourcing GM or Uzbek cotton, and therefore, it received negative marks in the genetic engineering and workers' rights categories. IKEA was considered to be addressing pollution and toxics issues associated with cotton through its work with the Better Cotton Initiative.

The company received a best rating from Ethical Consumer for its timber sourcing. This was because the company was sourcing over 50% of its wood from sustainable sources and was involved with a number of stakeholders to further improve their sourcing. By 2020, it aimed to have 100% of its wood and paper sourced from more sustainable sources, defined by IKEA as FSC certified or recycled material.It also had targets for some auditing and reporting of raw material sources.

The company scores negative marks on our rating system for the sale of factory farmed meat and leather. 

Due to the fact that Stichting INGKA Foundation had two or more subsidiaries which were considered to be of high risk of being used for tax avoidance purposes, the company received Ethical Consumer's worst rating for the likely use of tax avoidance strategies.

This included two holding companies in Luxembourg and one in Switzerland. The company also had a subsidiary based in Hong Kong which was listed as involved in finance, although it also had subsidiaries based in China. 

In-Depth Information

See the IKEA company page for detailed company information, background stories behind the ratings direct from our Corporate Critic database, and 'email the company' tool.

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