Whatever you want, a chair, book, sofa, bed even a pillowcase they probably have it. Although, some assembly is required. Ikea, the yellow and blue furniture mammoth from Sweden has quickly become a mainstay in many households. Through their alternative approach to interior design, which super cheap prices and a do-it-yourself attitude, Ikea made roughly 42.7 billion dollars in revenue during the 2018 economic year. When you walk through one of Ikea’s showrooms, however, it’s hard to understand how they’re able to make that much money. But Ikea’s low-price points and glossy designs are part of the reason why so many customers continue to brood to their big-box collection. So, simple to understand why IKEA is so cheap, and in addition to that, whether their low prices mean a weak commitment to mitigating their environmental impact. The story of IKEA’s cheap prices can be tied back to the mindset of its recently deceased owner: Ingvar Kamprad. Kamprad was a greatly cost-conscious man. According to a research article, he still drove an old Volvo and recycled tea bags despite his huge amount of wealth. He defends the idea of “lista” or “making do,” both in his own life but also in the basic values of the Ikea empire. Essentially, IKEA seeks to produce low-cost, essential and utilitarian solutions for daily life. And it does that in several ways. Similar to stores like Costco, IKEA leverages buying a huge amount of material to drive the price to decline All of those materials are “flat-packed” so that the maximum number of items can be shipped and stored in one place. On top of the list, they shift the assembly part of furniture onto the buyer, which means they avoid a huge amount of cost on the manufacturing end. They push the effort and time needed to construct furniture onto people eager to buy their stuff. So, the key to IKEA’s cheap products is a knowledge of where and how to cut corners, whether that’s in the manufacturing step, shipping step, or up to the point of sale. In the search for better margins and more profits, for example, Ikea has been blamed heavily for avoiding conceivably billions of euros in taxes by funneling cash through a web of subsidiaries and sub-companies. But does Ikea have the same disfavor for their environmental initiatives? In some cases, Ikea’s low prices are thanks to the cost-saving effects of the business's new environmental initiatives, but alongside these highly publicized sustainability efforts lie some questionable practices that leave much to be desired. Let’s start with the good. Ikea has made overwhelming headway on the renewable energy front. According to their 2018 sustainability report, Ikea has installed over 900,000 solar panels across its showrooms and warehouses and owns and operates 441 wind turbines all in the pursuit of becoming energy independent by 2020. This is certainly admirable considering there are 424 Ikea stores worldwide that require a massive amount of fuel and energy to run. Alongside this rapid transition to renewable energy, Ikea committed to slowdown emissions for all home deliveries by 2025, which means a fully electric home transportation fleet within the next five to six years.
At the top of the list, Ikea wants to reach a circular waste model by 2030. With the single-use of plastics elimination in the store combined with the use of recycled materials in their products, like their KUNGSBACKA line which uses recycled wood and plastic to create kitchen cabinets, Ikea has set out to reconsider their relationship with waste. So, in terms of climate change goals and ambitions, Ikea is doing better than most of the other big-named brands in the field. But, there’s always a back to the coin. We shouldn’t just applaud Ikea for doing something everyone else should already be doing. It’s our job as consumers and to consider the consequences of a brand that decides on a shockingly low price for their furniture and then challenges the design team and supplier to meet that price at whatever the amount. In fact, according to Ikea, the carbon footprint of the company grew from 23.3 million tonnes of CO2 in 2016 to 24.6 million tonnes of CO2 in 2018, which is roughly 1.2 million tonnes more CO2 in just 2 years. Even though they installed hundreds of thousands of solar panels on their showroom roofs, they’re still a growing company. And in terms of materials, Ikea consumes 1% of the world's logged wood for their furniture. For just one company that is truly a huge amount. According to the company, they seek to plant more trees than they consume, stating that in the 2018 economic year they logged 700,000 trees and planted 3.6 million trees. But Ikea’s track record when it comes to which trees its forestry subsidiary wood cuts down hasn’t been perfect. In short, Ikea is doing good, but there are also negative ramifications to the growth mindset of this massive fast-furniture company. So, as we look towards Ikea’s lower cost, we can understand a couple of things. Its “cheapness” is the product of streamlined marketing and sales, strong control of their supply chain, some unique approaches like flat-packing and DIY assembling, as well as a little help from cheap renewable energy. That being said, there is also a tension between the cheap first, everything else second mentality that seems to ooze from all things Ikea and their environmental practices. They’ve made an approach to crafting more durable furniture, but Ikea is a business. Mass consumption of their furniture is their reason to exist. The more you buy, the better they do, but at the same time, the better they do, the higher the environmental cost. Ikea is ultimately interested in sustainability because that’s what customers want and it’s good for business. So, the next time you’re consuming on those classic Ikea Swedish meatballs, look around; appreciate the fact that Ikea has made itself into a strong leader in sustainability for big companies, but also understand that buying Ikea will never “save the planet” or help mitigate climate change. Buying that Tarva bed frame is certainly less bad than other options, but searching for a different bed frame in a local antique or second-hand furniture store is the better option for the environment.
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