ikea sustainability case study

• Harvard Business School →
• Faculty & Research →
• September 2014 (Revised November 2017)
• HBS Case Collection

Sustainability at IKEA Group

• Format: Print
• | Language: English
• | Pages: 21

About The Authors

V. Kasturi Rangan

Michael W. Toffel

Related work.

• August 2015
• Faculty Research

Sustainability at IKEA Group: Video Supplement

• September 2015
• Sustainability at IKEA Group: Video Supplement  By: V. Kasturi Rangan and Michael W. Toffel
• Sustainability at IKEA Group  By: Michael W. Toffel
• Sustainability at IKEA Group  By: V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain and Jerome Lenhardt

• Work & Careers
• Life & Arts

Become an FT subscriber

Try unlimited access Only $1 for 4 weeks

Then $75 per month. Complete digital access to quality FT journalism on any device. Cancel anytime during your trial.

• Global news & analysis
• Expert opinion
• Special features
• FirstFT newsletter
• Videos & Podcasts
• Android & iOS app
• FT Edit app
• 10 gift articles per month

Explore more offers.

Standard digital.

• FT Digital Edition

Premium Digital

Print + premium digital, weekend print + standard digital, weekend print + premium digital.

Today's FT newspaper for easy reading on any device. This does not include ft.com or FT App access.

• 10 additional gift articles per month
• Global news & analysis
• Exclusive FT analysis
• Videos & Podcasts
• FT App on Android & iOS
• Everything in Standard Digital
• Premium newsletters
• Weekday Print Edition
• FT Weekend Print delivery
• Everything in Premium Digital

Essential digital access to quality FT journalism on any device. Pay a year upfront and save 20%.

• Everything in Print

Complete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.

Terms & Conditions apply

Explore our full range of subscriptions.

Why the ft.

See why over a million readers pay to read the Financial Times.

International Edition

Services & Products

• Calculate your carbon emissions Offset your carbon emissions

Follow the Camino: a travel company's quest for environmental integrity

Postnl: driving forward sustainable logistics, nespresso's accelerated journey to sustainability: a blueprint for net zero by 2035, become shareholder, sustainable investments, carbon market, nature conservation, stakeholders, how it works.

• Subscribe to our newsletter eBook - The power of trees

Latest Article

Sustainability simplified: carbon footprinting for beginners, trading carbon, trading up: the public companies transforming sustainability, the voluntary carbon market's journey through 2023 and beyond.

• ESG strategy development Calculate carbon footprint ESG reporting Case studies
• Carbon credits Biodiversity credits Plastic credits Integrate trees into your business
• About DGB Group N.V. Why public company Investor relations
• Green bonds investment Tailor-made project fund Benefits of investing green
• Carbon credit investing Forward carbon credits Carbon credit live price
• Our projects Updates from the projects Project pipeline
• Landowners and farmers Local communities Regulators and policymakers
• What is carbon farming What we can do your land How to start a carbon project
• Blog Newsroom Technology
• Events Ebooks Podcasts

It looks like you’re browsing from Netherlands. Click here to switch to the Dutch →

IKEA: leading the way in sustainability

• Share this article:

Reducing carbon emissions

IKEA recognises the impact its operations have on the environment and is taking action to minimise that impact. For example, the company has made significant investments in renewable energy, such as wind and solar power, and is actively working to transition its energy sources away from fossil fuels. IKEA has also set ambitious targets for reducing its carbon emissions, such as reducing energy consumption in its stores and distribution centres by 80% by 2030.

Developing sustainable products

IKEA is further committed to developing more sustainable products that will positively impact the environment. The company is investing in research and development to create products that use less energy and resources and have a longer lifespan. For example, IKEA developed furniture made from renewable materials, such as bamboo, and is working to improve the recyclability of its products.

Inspiring action

IKEA's commitment to sustainability is not just limited to its operations. The company also works to inspire others to take action and make a difference. Through its commitment to becoming climate positive by 2030, IKEA is setting a bold example for other companies to follow. Additionally, it is working to educate its customers about the importance of sustainability and its role in creating a more sustainable world.

The future is bright

Before you go...

As DGB Group, our sole purpose is to rebuild trust and serve the public by making the right information available to everyone. By subscribing to our mailing newsletter, you can get the latest tips and trends from DGB Group's expert team in your inbox. Sign up now and never miss the insights.

Popular Topics

• Carbon offsetting (67)
• Sustainability (58)
• Biodiversity (54)
• Nature conservation (46)
• Carbon markets (45)
• Carbon credits (44)
• Tree planting (37)
• Net zero (34)
• Deforestation (32)
• Nature-based solutions (32)

Recommended

Apple: a pioneer in carbon neutrality, heerema's voyage to a greener future: anchored in sustainability, bhp: investing in biodiversity conservation through offsetting, featured resource, the power of trees.

Read other articles

In a world increasingly attuned to the urgency of addressing carbon emissions and becoming more sust..

In an era where sustainability is not just a choice but a necessity, companies worldwide are strivin..

In a world increasingly challenged by environmental challenges, Nespresso emerges as a leader in env..

Bananas for the Earth: Chiquita's path to planting sustainable futures

For over a century and a half, Chiquita has not only been synonymous with premium quality bananas bu..

Let’s get to know you

Let's talk about how we can create value together for your sustainability journey.

Stay Updated

• Trees for Businesses
• Green Bonds
• ESG Reporting
• Carbon Footprint Analysis
• Carbon Footprint Calculator
• Carbon Credits
• Plastic Credits
• Biodiversity Credits
• Monthly Tree Planting
• Carbon Projects for Landowners
• Board of Directors
• Investor Relations
• Investor Events
• Press Releases
• Financial Reports
• Agriculture
• Biodiversity
• Carbon Offsetting
• Carbon Pricing
• Clean Energy
• Deforestation
• Desertification
• Endangered Species
• Plastic Pollution
• Saving Water
• Sustainability
• Sustainable Development
• Vital Habitats
• Waste Management
• Corporate governance & policies

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

Inside IKEA’s Digital Transformation

• Thomas Stackpole

A Q&A with Barbara Martin Coppola, IKEA Retail’s chief digital officer.

How does going digital change a legacy retail brand? According to Barbara Martin Coppola, CDO at IKEA Retail, it’s a challenge of remaining fundamentally the same company while doing almost everything differently. In this Q&A, Martin Coppola talks about how working in tech for 20 years prepared her for this challenge, why giving customers control over their data is good business, and how to stay focused on the core mission when you’re changing everything else.

What does it mean for one of the world’s most recognizable retail brands to go digital? For almost 80 years, IKEA has been in the very analogue business of selling its distinct brand of home goods to people. Three years ago, IKEA Retail (Ingka Group) hired Barbara Martin Coppola — a veteran of Google, Samsung, and Texas Instruments — to guide the company through a digital transformation and help it enter the next era of its history. HBR spoke with Martin Coppola about the particular challenge of transformation at a legacy company, how to sustain your culture when you’re changing almost everything, and how her 20 years in the tech industry prepared her for this task.

• Thomas Stackpole is a senior editor at Harvard Business Review.

Partner Center

Brought to you by:

Sustainability at IKEA Group

By: V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain, Jerome Lenhardt

By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had…

• Length: 21 page(s)
• Publication Date: Sep 2, 2014
• Discipline: Strategy
• Product #: 515033-PDF-ENG

What's included:

• Teaching Note
• Educator Copy
• Supplements

$4.95 per student

degree granting course

$8.95 per student

non-degree granting course

Get access to this material, plus much more with a free Educator Account:

• Access to world-famous HBS cases
• Up to 60% off materials for your students
• Resources for teaching online
• Tips and reviews from other Educators

Already registered? Sign in

• Student Registration
• Non-Academic Registration
• Included Materials

By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. The plan especially centered on wood, which represented 60% of IKEA Group's total procurement in volume and constituted a key lever for the company to increase its positive impact on sustainability. IKEA Group Management therefore had to decide how to manage its portfolio of wood sustainability initiatives, especially in the context of the company's aggressive growth plan.

This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.

Sep 2, 2014 (Revised: Nov 20, 2017)

Discipline:

Harvard Business School

515033-PDF-ENG

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

• Predictive Analytics Workshops
• Corporate Strategy Workshops
• Advanced Excel for MBA
• Powerpoint Workshops
• Digital Transformation
• Competing on Business Analytics
• Aligning Analytics with Strategy
• Building & Sustaining Competitive Advantages
• Corporate Strategy
• Aligning Strategy & Sales
• Digital Marketing
• Hypothesis Testing
• Time Series Analysis
• Regression Analysis
• Machine Learning
• Marketing Strategy
• Branding & Advertising
• Risk Management
• Hedging Strategies
• Network Plotting
• Bar Charts & Time Series
• Technical Analysis of Stocks MACD
• NPV Worksheet
• ABC Analysis Worksheet
• WACC Worksheet
• Porter 5 Forces
• Porter Value Chain
• Amazing Charts
• Garnett Chart
• HBR Case Solution
• 4P Analysis
• 5C Analysis
• NPV Analysis
• SWOT Analysis
• PESTEL Analysis
• Cost Optimization

Sustainability at IKEA Group

• Strategy & Execution / MBA EMBA Resources

Next Case Study Solutions

• Wal-Mart Stores in 2003 Case Study Solution
• 3M Optical Systems: Managing Corporate Entrepreneurship Case Study Solution
• Wal-Mart Stores in 2003 (Abridged Version) Case Study Solution
• Operations Strategy at Galanz Case Study Solution
• Electrosteel Castings Ltd. Case Study Solution

Previous Case Solutions

• Agile Electric: Quality Issues in a Global Supply Chain Case Study Solution
• Intuit QuickBooks: From Product to Platform Case Study Solution
• Heavy Metal (A): Baosteel Enters Brazil Case Study Solution
• Crown Cork & Seal in 1989 Case Study Solution
• Yellowtail Marine, Inc. Case Study Solution

Predictive Analytics

April 19, 2024

Popular Tags

Case study solutions.

Case Study Solution | Assignment Help | Case Help

Sustainability at ikea group description.

By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. The plan especially centered on wood, which represented 60% of IKEA Group's total procurement in volume and constituted a key lever for the company to increase its positive impact on sustainability. IKEA Group Management therefore had to decide how to manage its portfolio of wood sustainability initiatives, especially in the context of the company's aggressive growth plan.

Case Description Sustainability at IKEA Group

Strategic managment tools used in case study analysis of sustainability at ikea group, step 1. problem identification in sustainability at ikea group case study, step 2. external environment analysis - pestel / pest / step analysis of sustainability at ikea group case study, step 3. industry specific / porter five forces analysis of sustainability at ikea group case study, step 4. evaluating alternatives / swot analysis of sustainability at ikea group case study, step 5. porter value chain analysis / vrio / vrin analysis sustainability at ikea group case study, step 6. recommendations sustainability at ikea group case study, step 7. basis of recommendations for sustainability at ikea group case study, quality & on time delivery.

100% money back guarantee if the quality doesn't match the promise

100% Plagiarism Free

If the work we produce contain plagiarism then we payback 1000 USD

Paypal Secure

All your payments are secure with Paypal security.

300 Words per Page

We provide 300 words per page unlike competitors' 250 or 275

Free Title Page, Citation Page, References, Exhibits, Revision, Charts

Case study solutions are career defining. Order your custom solution now.

Case Analysis of Sustainability at IKEA Group

Sustainability at IKEA Group is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Sustainability at IKEA Group is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Sustainability at IKEA Group case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Sustainability at IKEA Group will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Sustainability at IKEA Group case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Sustainability at IKEA Group, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Sustainability at IKEA Group case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Sustainability at IKEA Group case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Sustainability at IKEA Group

Step 1 – Problem Identification of Sustainability at IKEA Group - Harvard Business School Case Study

The first step to solve HBR Sustainability at IKEA Group case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Ikea Sustainability is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Ikea Sustainability, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Sustainability at IKEA Group. The external environment analysis of Sustainability at IKEA Group will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Sustainability at IKEA Group case study. PESTEL analysis of " Sustainability at IKEA Group" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Sustainability at IKEA Group macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Sustainability at IKEA Group

To do comprehensive PESTEL analysis of case study – Sustainability at IKEA Group , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Sustainability at IKEA Group

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Sustainability at IKEA Group ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Ikea Sustainability is operating, firms are required to store customer data within the premises of the country. Ikea Sustainability needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Sustainability at IKEA Group has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Ikea Sustainability in case study Sustainability at IKEA Group" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Ikea Sustainability in case study “ Sustainability at IKEA Group ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Ikea Sustainability in case study “ Sustainability at IKEA Group ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Sustainability at IKEA Group ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Ikea Sustainability can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Sustainability at IKEA Group case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Ikea Sustainability needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Sustainability at IKEA Group

Social factors that impact sustainability at ikea group, technological factors that impact sustainability at ikea group, environmental factors that impact sustainability at ikea group, legal factors that impact sustainability at ikea group, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: sustainability at ikea group case study solution.

• sales & marketing ,
• leadership ,
• corporate governance ,
• Advertising & Branding ,
• Corporate Social Responsibility (CSR) ,

Amanda Watson

Leave your thought here

© 2019 Texas Business School. All Rights Reserved

USEFUL LINKS

Follow us on.

Subscribe to our newsletter to receive news on update.

Dark Brown Leather Watch

$200.00 $180.00

Dining Chair

$300.00 $220.00

Creative Wooden Stand

$100.00 $80.00

2 x $180.00

2 x $220.00

Subtotal: $200.00

Free Shipping on All Orders Over $100!

Wooden round table

$360.00 $300.00

Hurley Dry-Fit Chino Short. Men's chino short. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. Made with sweat-wicking fabric. Fitted waist with belt loops. Button waist with zip fly provides a classic look and feel .

Select Region or Brand

• Charleston, SC
• Columbia, SC
• Lehigh Valley, PA
• Long Island
• New Orleans, LA
• Long Island, NY
• Mecklenburg, NC
• Oklahoma City, OK
• Rochester, NY
• South Carolina
• Greenville, SC
• Color Magazine
• Massachusetts
• North Carolina
• Rhode Island
• Milwaukee, WI
• Designers Today
• Furniture Today
• Gifts & Decorative Accessories
• Home Accents Today
• Home Furnishings News
• Home Textiles Today
• Manage Print or Online Subscription
• Manage Email Subscription

Upcoming Event

Building a Sustainable Future – Maximizing Incentives for Decarbonization

• My Projects
• My Preferences
• Digital Edition
• Classifieds
• Submit a public notice
• Event Sponsorship
• Classified Advertising
• Editorial and Special Products Calendar
• Real Estate
• Construction & Development
• Economic Development
• Finance & Banking
• Business & Economy
• Regional Planning & Transit
• Nation & World
• Business calendar
• Top Projects
• Top Women in Finance
• Reader Rankings
• The Power 30 Comercial Real Estate
• The Power 30 Developers
• The Power 30 M&A
• The Power 30 Construction & Real Estate Law
• Empowering Women
• Women Who Lead
• Minnesota Icon
• Rising Young Professionals
• Top Women in Construction
• Experts Forum
• Partner Content
• M&A Monthly
• Twin Cities Apartment Sales Tracker
• Twin Cities Apartment Development Tracker
• Twin Cities Hotel Sales Tracker
• Twin Cities Hotel Development Tracker
• Rochester Sales Tracker
• Rochester Development Tracker
• Public Notices
• Submit a Public Notice
• Professional Announcements
• Professional Announcements submissions
• Plaques & Permissions

Ikea to expand sustainability efforts with EV stations

Thomas Lester, BridgeTower Media Newswires // April 19, 2024 //

This undated photo shows solar panels lining the roof of the Bloomington Ikea store. Ikea’s next sustainability drive includes adding 500 public fast EV chargers and more than 300 fleet chargers in the coming years. (File photo)

• The Buy Back & Resell service — where Ikea buys back its Family members’ gently used Ikea furniture in exchange for Ikea store credit — is offered year-round at nearly every store in the U.S. and online.
• In 2023, Ikea launched solar installation projects (solar car parks and battery energy storage systems at units across the country) and a large-scale renewable heating and cooling project to eliminate fossil fuels from its operations.
• It currently operates zero emission last-mile deliveries in New York City, the Los Angeles market, and 16 other markets with more to come.
• Ikea offers a variety of healthy and more sustainable food choices, such as veggie balls, plant balls and most recently offered plant-based hot dogs.

Share this!

Related Content

Just Sold: Black Swan buys Rochester apartments

Rochester-based Black Swan Living has acquired the 29-unit Uptown Apartments for[...]

April 19, 2024

Just Sold: Big River makes $5.3M industrial acquisition

Big River Real Estate in Minneapolis has made a $5.3 million light industrial ac[...]

April 18, 2024

St. Paul to require EV infrastructure in new, expanded parking lots

Renters in certain St. Paul apartment buildings may be better equipped to own an[...]

Construction among leaders as Minnesota adds 11K jobs

Minnesota added 11,000 jobs in March on the strength of gains in construction an[...]

Rochester vacates right of way to make room for multifamily project

A new multifamily development is a step closer to possibly breaking ground, as t[...]

Spring homebuying season sees sluggish start as March home sales fall

The spring homebuying season is off to a sluggish start as home shoppers contend[...]

Finance & Commerce Daily Newsletter

Sign up for your daily digest of Minnesota News.

• By signing up you agree to our
• Privacy Policy

Upcoming business events

See the full list of events here

Editor’s Picks

Sanford medical office buildings in Bemidji sold for $23M

‘Project Bengal’ pitches 3 million-square-foot industrial project in Farming[...]

The U.S. division of the Swedish furniture brand plans to install a total of 500 public fast charger[...]

Rochester-based Black Swan Living has acquired the 29-unit Uptown Apartments for $5.35 million, push[...]

Big River Real Estate in Minneapolis has made a $5.3 million light industrial acquisition, but the t[...]

Renters in certain St. Paul apartment buildings may be better equipped to own and operate electric v[...]

Minnesota added 11,000 jobs in March on the strength of gains in construction and four other key sec[...]

A new multifamily development is a step closer to possibly breaking ground, as the Rochester City Co[...]

The spring homebuying season is off to a sluggish start as home shoppers contend with elevated mortg[...]

Climate change to cost global economy $38T a year by 2049

A new study says climate change will reduce future global income by about 19% in the next 25 years.

Climate change concerns grow, but few think Biden’s climate law will help

A new poll shows that 45% of U.S. adults are concerned about climate change, but few believe Biden�[...]

California bill would require business owners and landlords to disclose identities to public

A California lawmaker wants to require business owners and landlords to disclose their identities un[...]

Special Publications

Top Women in Construction 2024

Proud to highlight female business leadership for International Women’s Da[...]

The POWER 30: Developers 2023

Rising Young Professionals 2023

Beyond The Skyline Podcast

Beyond the Skyline is a podcast and video interview about economic development, real estate and construction in Minnesota.

Listen here

Privacy Overview

The marketplace for case solutions.

Sustainability at IKEA Group – Case Solution

The "Sustainability at IKEA Group" case study assesses the People and Planet Positive sustainability plan of the company. It discusses the program concerning its being aligned with IKEA's business model.

​V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain, Jerome Lenhardt Harvard Business Review ( 515033-PDF-ENG ) September 02, 2014

Case questions answered:

Case study questions answered in the first solution:

• How would you assess IKEA Group’s People and Planet Positive sustainability plan? Is the plan likely to help the company transform its business? Are the plan’s targets too limited, appropriate, or too ambitious?
• How do you feel about the progress IKEA Group has made in implementing the plan?
• How does IKEA’s sustainability strategy align with its business model? What are the overlaps? What are the conflicts?
• Which option(s) should IKEA Group pursue to address IKEA’s Wood Supply Chain sustainability? Which has the highest leverage for IKEA?

Case study question answered in the second solution:

• What strategy would you recommend for IKEA for its wood sustainability without compromising its growth target for 2020?

Not the questions you were looking for? Submit your own questions & get answers .

Sustainability at IKEA Group Case Answers

You will receive access to two case study solutions! The second is not yet visible in the preview.

1. How would you assess IKEA Group’s People and Planet Positive sustainability plan? Is the plan likely to help the company transform its business? Are the plan’s targets too limited, appropriate, or too ambitious?

The strategy for sustainability at IKEA Group, ‘people and planet positive,’ aims at meeting the needs and interests of many people and society while protecting the environment. The strategy is intended to also improve the quality of life of people and communities within the planet’s limits.

The company is committed to the right working conditions, uses resources efficiently, and recycles waste into resources. It also promotes renewable energy, responsible stewardship of forests, water, and farmlands, and a better society that respects human rights across its integrated value chain.

This plan is a significant step towards transforming business and innovations, creating new business opportunities, and leading the change in society. The idea to make more sustainable products (energy-efficient LED lighting) and provide affordable solutions is likely to benefit the consumers, environment, and society by saving money and time and living an exciting life.

Similarly, the IKEA Group will be able to achieve a competitive advantage through its access to important raw materials, improved relationships with co-workers and customers, development and maintenance of a supplier base, and increased productivity.

The plan’s targets are ambitious because they pertain to all aspects of business and add value. IKEA’s success in its business and becoming people and planet positive depends on its ability to enable change throughout its business, and more critical because they are aimed at creating a positive impact on people and the planet.

Also, the IKEA group has highlighted three key change drivers that will make it possible to achieve the stated targets for sustainability:

• Inspiring many customers to live a more sustainable life at home. This is by taking the lead in developing and promoting products and solutions that help customers reduce waste and save energy.
• Engaging and involving people and communities, suppliers, and co-workers through impactful, relevant, and unique communication.
• Striving for resource energy independence. Sourcing raw materials from more sustainable sources produces a renewable energy source and promotes energy efficiency throughout its value chain.
• Taking the lead in contributing to a better life for people and communities by supporting human rights and preventing child labor.
• By August 2017, develop and implement a transparent and reliable system for the responsible recruitment of workers at first-tier suppliers in critical areas…

Unlock Case Solution Now!

Get instant access to this case solution with a simple, one-time payment ($24.90).

After purchase:

• You'll be redirected to the full case solution.
• You will receive an access link to the solution via email.

Best decision to get my homework done faster! Michael MBA student, Boston

How do I get access?

Upon purchase, you are forwarded to the full solution and also receive access via email.

Is it safe to pay?

Yes! We use Paypal and Stripe as our secure payment providers of choice.

What is Casehero?

We are the marketplace for case solutions - created by students, for students.

Top 10 Sustainability Case Studies & Success Stories in 2024

Environmental and social practices have a significant impact on the long-term success of businesses. Some businesses outperform others in this area, giving them a competitive advantage. We will present ten sustainability success stories to executives searching for methods to close the sustainability gap between themselves and outperformers. 

We take a holistic approach to sustainability when presenting these case studies, seeing environmental and social challenges as a part of maintaining a sustainable business (see Figure 1). We also recognize that, while technology can aid in the improvement of corporate sustainability, changing business processes can be just as successful. As a result, we will provide a variety of scenarios that fully demonstrate the ESG framework .

1. UPS ORION: Improve transportation efficiency

Transportation activities accounted for almost 30% of US greenhouse gas (GHG) emissions. (See Figure 2). For a company like UPS, which distributes goods across regions, transportation activities make up the bulk of GHG emissions. As a result, enhancing transportation efficiency is crucial for organizations like UPS to remain sustainable.

As a solution, UPS adopted an AI system called ORION which is a route optimizer that aims to minimize the number of turns during the delivery. Initiation began in 2012 and up today UPS has been working on developing it.

ORION saves UPS 10 million gallons of fuel per year, which means that in addition to the financial benefits, it decreases UPS’s carbon footprint by 100,000 metric tonnes per year, or the equivalent to removing more than 20,000 cars from the roads.

There are public cloud route optimizer systems which businesses can deploy without building hardware. These tools help firms to use their software as a service by paying a subscription cost.

To learn more about ensuring supply chain sustainability with technology you can read our Top 5 Technologies Improving Supply Chain Sustainability article.

Figure 2: US GHG emissions.

2. IKEA IWAY: Make business with ESG oriented corporations

Supplier code of conducts are established guidelines that require other businesses to demonstrate their operations’ social and environmental impacts. The objective is to reward companies that meet strong ESG standards. It is also one of the positive governance indications for organizations, as we highlighted in our ESG metrics article .

IWAY is the supplier code of conduct of IKEA forcing suppliers to meet certain environmental and humanitarian qualities to work with. The initiative has been in place for over 20 years, and over that time, IKEA has refined it based on their prior experiences. IWAY six is the most recent version of IKEA’s supplier code of conduct, which evaluates:

• Core worker rights.
• Safety of the working place.
• Life-work balance of employees.
• Water and waste management of potential suppliers.
• Prevention of child labour. 

3. General Electric digital wind farm: Produce green energy efficiently

Wind turbine productivity varies greatly depending on the design, weather conditions, and geography of the location it is deployed. Using IoT and digital twins to collect data on each wind turbine and simulate possible modifications such as adjusting the direction of the wind turbine can assist corporations in locating their wind turbines in a wind farm more effectively (see Figure 3).

Furthermore, the performance of wind turbines declines with time and may require maintenance; employing sensors and digital twins can assist in determining the appropriate time for repair.

Figure 3: How digital twins can optimize wind turbine productivity.

The General Electric’s (GE) digital wind farms are based on these two elements. GE optimized over 15,000 turbines using sensors and digital twins technologies. Each wind farm can create up to 10% more green energy as a result of the digital wind farm initiative, which helps to enhance our worldwide green energy mix.

4. Swire Properties green building: Minimize GHG emissions

Swire Properties is a construction company that operates in China and especially in the Hong Kong area. In 2018, the company built One Taikoo Place which is a green building that aims to reduce GHG emissions of Swire Properties in order to align with sustainability goals of the company’s stakeholders.

Swire properties use 3D modeling techniques to optimize the building’s energy efficiency. Reduce electricity consumption by using smart lighting systems with sunshine and motion sensors. A biodiesel generation system has been installed in the building, which converts waste food oil into biodiesel. Swire Properties additionally uses low carbon embedded materials and a lot of recycled materials in their construction.

Swire Properties was able to cut GHG emissions intensity throughout their portfolio by nearly 20% because of the usage of digital technologies and low carbon integrated materials.

5. H&M Let’s Close the Gap: Deposit scheme for gathering raw material

In 2021, we consumed 1.7 times more resources than Earth generates annually because our economic outlook is based on production, use and disposal. Such an economy is not sustainable and that is the reason why the concept of circular economy (CE) is trending nowadays.

The most basic principles of CE is to use trash as a raw material for production through innovation, recycling, or repairing and reusing existing products.

H&M’s “Let’s Close the Gap” project began in 2013 as a CE best practice that collects and categorizes discarded clothing from customers. If the garment is in decent condition, they will restore it and find a new owner for it. If a garment reaches the end of its useful life, H&M will recycle it and reuse the material in new goods.

Customers who bring in their old clothes are rewarded with tokens that can be used to get a discount at H&M shops. Incentivizing customers creates a complete CE loop.

In 2019, 57% of H&M’s raw materials were sustainable, according to Forbes. By 2030, the company hopes to improve it 100 percent.

6. Gusto: Hiring female engineers to close gender inequality gap

Gender inequality remains a major social issue despite all the improvements. There are two common types of gender disparity in the workplace. The first is gender pay disparity, which occurs when companies pay male employees more and provide better working conditions than female employees in the same position. 

The second is occupational segregation, in which women are hired for non-technical jobs while men hold the majority of leadership roles. This was the situation at software firm Gusto, where female engineers made up slightly more than 5% of the engineering team at the beginning of 2015. 

Julia Lee , one of Gusto’s first female engineers, claimed that other engineers did not accept her ideas because she was a “female engineer.” Gusto initiated an HR drive to reduce gender inequality by prioritizing the recruitment of female engineers, prohibiting female workers from scrolling, and deleting masculine job ads like “ninja rockstar coder.”

Gusto was able to improve its female engineer ratio to roughly 20% by the end of 2015 thanks to the campaign. The average ratio among software businesses’ engineering teams was 12% in 2013, therefore this was a significant improvement in a short period of time.  

7. HSBC: ESG concerned green finance

Finance companies can help speed up the transition to sustainable business practices by supporting initiatives run by responsible businesses. By the end of 2025, HSBC has committed to investing $100 billion in sustainability projects. HSBC already has funded sustainability projects that require more than $50 billion in investment as of 2019, indicating that the corporation is on track to meet its objective.

HSBC created an ESG risk evaluation framework to assure funding for green projects in 2019. Since then, the framework has been improved. In 2021, HSBC’s ESG practices were rewarded with an AA rating by MSCI.

HSBC is also working toward a goal of using 100% renewable energy as their source of electricity by 2030. Company reduces its consumption of paper, and single used plastics for coffee and beverages.

For more information about best ESG practices you can read our Top 6 ESG Reporting Best Practices article.

8. Signify light-as-a-Service: Enhance production stewardship

The product-service system ( PSS ) is a business model in which producers acquire a product over its lifetime and rent or lease it to the users. PSS ensures product stewardship since the product always becomes the asset of the company. It encourages producers to provide high-quality, repairable items in order to extend the product’s useful life. As a result, it helps to close the circularity gap by ensuring better use of natural resources.

Signify, a luminaire producer, adopts such a business strategy where it demands a subscription fee according to usage period of their lightning systems. PSS allows Signify claims that PSS allows them to produce 0 luminaire waste and drops maintenance costs around 60%.

9. Airbus additive manufacturing: Manufacture lighter planes with 3D printing

AIMultiple expects that additive manufacturing will disruptive for the airplane manufacturing since:

• It speeds up the manufacturing of parts compared to traditional molding techniques.
• It is cheaper due to effective use of raw materials and time reduction of production.
• It enables the manufacturing of lighter parts by up to 45% , resulting in lighter planes that burn less fuel. According to Airbus, additive manufacturing technology can reduce an A320 plane’s annual GHG emissions by around 465,000 metric tons, which is roughly the same as eliminating 100,000 automobiles from the road for a year. (An average car emits 4.6 tonnes of GHG per year). 

To effectively use 3D printers Airbus partnered with Materialise , a Belgium-based technology company  that specialize in additive manufacturing.

For more information regarding improving corporate sustainability by digital transformation you can read our Top 4 Digital Technologies that Improve Corporate Sustainability article.

10. Tata Power: Solar plants on the roofs

Rooftops offer a lot of empty space that can be used to install solar panels. Such initiatives have been taken in various parts of the world. Tata Power does it in India and generates green electricity by using idle places of buildings.

In 2021, Tata Power was able to spread their program throughout 90 Indian cities, producing 421 million watts of electricity, which is equivalent to nearly 40 thousand homes’ yearly electricity use in the US. (The average annual power usage for a residential utility customer in the US was 10,715 kWh in 2020, according to the EIA .).

We expect that in the near future the cooperation between energy and construction companies will enhance the use of idle places in buildings in a more effective way. Such an industrial symbiosis reduces both sectors’ ESG risk.

For more information on the top carbon footprint calculators, check our article, Top 7 Carbon Footprint Calculator Software/Tools for Businesses .

To learn more about corporate sustainability you can contact with us:

This article was drafted by former AIMultiple industry analyst Görkem Gençer.

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month. Cem's work has been cited by leading global publications including Business Insider , Forbes, Washington Post , global firms like Deloitte , HPE, NGOs like World Economic Forum and supranational organizations like European Commission . You can see more reputable companies and media that referenced AIMultiple. Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization. He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider . Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

To stay up-to-date on B2B tech & accelerate your enterprise:

Next to Read

Top 7 carbon footprint calculator software/tools of 2024, top 14 esg metrics ceos must disclose in esg reports (2024), 3 reasons to measure product carbon footprint in 2024.

Your email address will not be published. All fields are required.

A wonderful collection of case studies on corporate sustainability. I enjoyed the read. I am convicted to delve into promoting sustainability in Africa.

Hello, James! Thank you for your feedback. Awesome! That’s a great cause to pursue.

Related research

Top 6 Circular Economy Best Practices for Businesses in 2024

5 Ways to Reduce Corporate Carbon Footprint in 2024

People & planet

To meet the challenges of unsustainable consumption, climate change and growing inequality, we are taking ambitious steps towards a more sustainable future through collaboration with partners, co-workers and customers.

Our three focus areas are:

Healthy and sustainable living

Circular and climate, fair and equal.

Inspire and enable more than 1 billion people to live a better everyday life within the boundaries of the planet.

Prioritise drastically reducing greenhouse gas emissions across the IKEA value chain and move toward the use of only renewable or recycled materials by 2030, as well as regenerating resources while growing the IKEA business.

Play our full part in contributing to a fair and equal society by respecting human rights, creating a positive impact for people across our value chain and contributing to resilient societies.