WWF and IKEA Co-operation on Suppliers

Energy efficiency and use of renewable energy at IKEA suppliers

The focus here is on how IKEA could work with their suppliers with similar targets as within IKEA. The project will identify the possibilities, barriers, needs and possible ways on moving energy efficiency and use of renewable energy.

Energy efficiency means reducing energy consumption without reducing the use of energy-consuming plant and equipment. The aim is to make better use of the energy. Energy efficiency also means promoting behaviour, working methods, technical installations and manufacturing techniques which are less energy intensive. Energy efficiency also contributes to cost reductions. Such measures are often ignored due to institutional set ups and counterproductive incentive structures.

Shifting to carbon free or less carbon intensive fuels is also important. The use of fossil fuels such as oil and coal is common among IKEA suppliers today. Replacing such fuels with for example bio fuels will reduce CO2 emissions. With continuously higher oil prices, new environmental regulations and environmental taxes, this will also contribute to long-term cost reductions.

A challenge today is in certain markets where it is very difficult to purchase electricity from renewable energy sources. In these markets, the drivers and pushes that would be required for an introduction to green electricity on the common electricity grid, would need to be identified. Here, demand from a company like IKEA could play an important role to enable change.

The WWF/IKEA pilot projects on energy efficiency and use of renewable energy at IKEA suppliers start in Poland and Sweden, and will be further developed in China.