Ethical Performance
inside intelligence for responsible business


Ikea seeks suppliers' compliance with sustainability code by end of year

April 2012

The furniture multinational Ikea will remove suppliers from its supply chain if they depart from its code of conduct as it pushes for full compliance this year.

This action, meeting part of the company's 'never-ending list' CSR strategy introduced in 2010, will phase out all non-compliant furniture suppliers after September. All food suppliers for Ikea restaurants are already fully compliant.

The company has more than 1,000 furniture suppliers in 53 countries, of which just over half are approved, but including only 11% in China. However, exceptions are expected to be made for the latter.

Ikea says: "Many suppliers in China do not comply with requirements relating to working hours, and it is not realistic to close the gap between the legislated working hours and reality in a short period of time."

Ikea intends to roll out the code of conduct further by building closer partnerships with suppliers, strengthening advice services to them, and including cleaning and security services.

In addition, the company's sustainability report announces a €470m ($623m, £394m) investment in renewable energy. Ikea claims that half the energy for its buildings is renewable, mainly from wind and solar sources.

Ikea has made a number of high-profile CSR investments and commitments in recent months, having come a long way from the 1970s, when it was accused of using prison labour in East Germany.

IKEA | Global | Supply Chain Management


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