Ikea will launch rental packages, but how green is the Swedish furniture giant?



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Skeptics see the initiative of the Swedish giant as a marketing ploy, while supporters see a radical change. In both cases, Ikea announced its intention to become a circular company by 2030.

She has already started repairing and repackaging damaged goods in each store, and allowing customers to return products, including furniture, to resell or donate to charity.

The Ingka Group, which operates 367 Ikea stores around the world, this year launched a pilot project to rent furniture in four countries, a project it plans to expand to all of its 30 markets.

But rent a kitchen? The idea is actually not so absurd, said Cecilia Cbadinger, professor of strategic communication at the Swedish University of Lund.

"Ikea products can be used and reused for a long time, reducing waste," she said.

But Ikea's goal for 2030 could be difficult to achieve, given its current carbon footprint.

"The main challenges for moving to a circular economy are related to sustainable logistics (transport, storage, product badembly), services (repair, maintenance) and waste management," said Mr. Cbadinger.

The company aims to reduce its overall climate impact by 70% on average per product by 2030.

"The biggest opportunity to reduce Ikea's greenhouse gas footprint lies in the raw materials and shelf life of the products at Ikea's customers," said the company in a sustainability report published in 2018.

According to another report released earlier this year, Ikea's raw materials accounted for more than one-third of its greenhouse gas emissions, or 36.4 percent.

The transportation of goods and of customers to stores, generally located outside city centers, accounted for 19.4% of the emissions.

Environmentalists, such as Greenpeace Nordic, believe that the new Ikea initiatives are a good start, but that society still has a long way to go before it can be considered environmentally friendly.

"Ikea has the potential to become a totally circular company … but there are still significant gaps in terms of ecological footprint for which the new model does not provide a solution."

For example, its production units are located far from its main markets, which requires long polluting routes for the environment.

Most Ikea products manufactured by its subsidiary Ikea Industry are manufactured in Poland, Russia, Slovakia and Sweden, but its main sales markets are Germany (15%), the United States (14%) and France (8%), according to 2017 figures.

Greenpeace also criticizes Ikea's large-scale use of natural resources such as palm oil, wood and plastic.

Ikea is committed to eliminating single – use plastics by 2020 and helping suppliers convert their plants to make them climate – friendly.

"Do we need to own everything we have at home?" said Cbadinger of Lund University, stressing that the consumer was also responsible for making green choices.

Ikea's goal for 2030 can only be achieved if the company manages to extend the life of its products, she said.

And it's a demand increasingly demanded by consumers, said Pia Heidenmark Cook, sustainability manager at Ingka Group.

"We did a lot of research and talked with people in 10 different markets, and we found that consumer behavior and expectations are changing," especially with respect to the environment.

However, experts point out that Ikea's products, which have a low opportunity value, barely comply with the new trend of "consuming less but better".

Ikea has practically invented the disposable culture by revolutionizing furniture as fashionable, affordable and disposable items.

How does it adapt to changing consumer trends while maintaining a profitable business?

In the end, Cbadinger questioned Ikea's business model.

"Sharing and renting can be ways to become more sustainable," she said.

"But another option might be to reduce production and focus on fewer categories of quality products and higher prices that can be used for a longer period of time and can easily be repaired and maintained by consumer services. Ikea, instead of being replaced by a new product. "

READ ALSO: Zlatan reveals his love for Ikea: he has furnished his mansion in Los Angeles

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