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Ikea Australia

OVERALL

Owned
NLD
Rating
Praises, some criticism

Home furnishings and accessories

Ten stores with additional 2 pick up locations across Australia in 2018.

Company Ownership

Ikea Pty Ltd   AUS     website      facebook   
  INGKA Holding BV   
   owns 100% of Ikea Pty Ltd  
NLD     website         

Furniture

Ikea was founded in Sweden by Ingvar Kamprad in 1943, but has since relocated its headquarters to the Netherlands. Holding company that controls 315 of the 360 outlets of IKEA.

      Stichting INGKA Foundation   
       owns 100% of INGKA Holding BV  
NLD     website         

Foundation

Founded in 1982 my IKEA founder Ingvar Kamprad. One of the largest charitable foundations in the world. The IKEA Group of companies is owned by the Stichting INGKA Foundation, whose funds can only be used for reinvesting into the IKEA group, or donated for charitable purposes through the Stichting IKEA Foundation.

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
Ikea Pty Ltd
Business Ethics Banksia Sustainability Award 2020
This company won the Large Business Award at the 2020 Banksia Sustainability Awards. "The IKEA furniture Buy Back service incentivizes customers to upcycle old IKEA goods instead of throwing them away."
Source: Banksia Foundation (2020)
Social 2015 CHOICE Shonky Award
Named and shamed in the 2015 CHOICE Shonky Awards for advertising non-leather furniture in the leather furniture section of Ikea's Australian website.
Source: Choice (2015)
Environment MSC certified products
This company sells products which are certified by the Marine Stewardship Council.
Source: MSC (2022)
Environment Renewable energy use
Greenpeace's Reenergise campaign ranks Australia's biggest electricity using companies on their commitments and actions regarding renewable energy use. This company has committed to powering their operations by 100% renewable electricity by 2030, and invested in on-site solar. However they have not signed a power purchase agreement (PPA) to buy power from a wind or solar project.
Source: Greenpeace (2021)
Environment APCO member
Australian Packaging Covenant Organisation (APCO) is a not-for-profit organisation leading the development of a circular economy for packaging in Australia. Each year, APCO Members are required to submit an APCO Annual Report and Action Plan, which includes an overall performance level from 1 (Getting Started) to 5 (Beyond Best Practice). This company received a packaging performance level of 2 (Good Progress) in its 2022 APCO Annual Report.
Source: APCO (2022)
Animals Good Egg Award 2013
The RSPCA Good Egg Awards acknowledge major companies that make the switch to cage-free eggs. Ikea Australia was awarded a Good Egg Award in the Retail category in 2013 for their commitment to commence sourcing only cage-free eggs for use in its cafes.
Source: RSPCA Australia (2013)
Animals Cage-free eggs commitment
This company is listed on the RSPCA Australia website as 'cage-free and proud', signifying a commitment to source 100% cage-free eggs. Essentially cage-free means barn laid, which is better than cage eggs, but still much worse than free-range or organic eggs when it comes to animal welfare.
Source: RSPCA Australia (2020)
Business Ethics Mattress recycling program
Mission Australia's Mattress Recycling program is a social enterprise which rescues mattresses destined for the dump and breaks them down into their component parts for recycling, creating green jobs for long term unemployed and disadvantaged people. Two IKEA stores in Sydney joined the program in 2015, with plans to expand.
Source: company website (2015)
Business Ethics Sustainability claims
This company has a number of sustainability claims on its website, including sourcing 76% of their cotton from more sustainable sources, use of solar panels and wind turbines, and providing affordable LED lighting.
Source: company website (2015)
INGKA Holding BV
Environment Palm oil scorecard - WWF
The WWF Palm Oil Buyers Scorecard 2021 assesses 227 companies on the actions companies have taken to ensure their own palm oil supply chain is sustainable and free of deforestation, natural ecosystem conversion, and human rights abuse. This company is rated 'leading the way' with a score of 21.57 out of a possible total of 24.
Source: WWF Palm Oil Buyers Scorecard (2021)
Environment Climate policy engagement
This company appears on InfluenceMap's 2021 A-List of Climate Policy Engagement, which identifies 15 corporate leaders advocating for ambitious climate policy across a range of sectors and regions. To qualify, a company must exhibit sufficient support for ambitious climate policy, strategic levels of engagement with climate policy, and leadership in its sector. Links to industry associations egregiously opposing climate policy can disqualify a company from the list. Only 4% of companies evaluated make the A-List.
Source: Influence Map (2021)
Environment CDP Climate Change Score of A
In 2022, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of A.
Source: CDP (2022)
Social A- in toxic chemical ranking
In 2019 the Mind the Store campaign ranked 43 major US retailers on their efforts to eliminate toxic chemicals from consumer products. This company received a grade of A-.
Source: Mind the Store (2019)
Animals Tier 3 in farm animal welfare rankings
The 2021 Business Benchmark on Farm Animal Welfare (BBFAW) report ranks global food companies on how they are managing and reporting their farm animal welfare policies and practices. This company appeared in tier 3, "Established but work to be done", with tier 1 being the best, and tier 6 the worst.
Source: BBFAW (2021)
Business Ethics Materials sourcing
The Material Change Index (MCI) is a voluntary benchmark that tracks the apparel and textiles sector's progress toward more sustainable materials sourcing (cotton, polyester, nylon, manmade cellulosics, wool, down and leather), as well as alignment with global efforts like the Sustainable Development Goals and the transition to a circular economy. This company is identified as one of 36 "Leading" companies.
Source: Textile Exchange (2020)
Environment Using illegal timber
In 2020 Earthsight's 18-month-long investigation found that Ikea is selling beech chairs made from wood which was illegally felled in Ukraine's forests. Tens of thousands of chairs made from illegal wood are being sold at Ikea stores across the globe each year. This illegal harvesting is being enabled by the corrupt state-owned forestry enterprises which run most of Ukraine's forests. Ikea is the largest consumer of wood in the world. Earthsight estimates Ikea uses one tree every second.
Source: earthsight (2020)
Social Workers rights in China
This 2016 investigative report by China Labour Watch reveals labor abuses in five Chinese cookware factories. One or more of these factories supply this company. Labor abuses include low wages, excessive overtime,, dangerous work environments and humiliating living conditions.
Source: China Labor Watch (2016)
Social Forced labour in China
The Chinese government has facilitated the mass transfer of Uyghur and other ethnic minority citizens from the far west region of Xinjiang to factories across the country. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of international brands. The 2021 Laundering Cotton report investigates how forced-labour-produced cotton and cotton-based goods from the Uyghur Region wend their way into international supply chains of well-known international clothing brands, including brands owned by this company.
Source: Sheffield Hallam University (2021)
Environment 36% in Forest 500 Rankings
Forest 500 identifies the 350 companies and 150 financial institutions with the greatest exposure to tropical deforestation risk, and annually assesses them on the strength and implementation of their deforestation and human rights commitments. This company received a score of 36%.
Source: Forest 500 (2022)
Environment Supply chain practices in China
This company received a score of 25.3/100 (retrieved 10-Oct-2020) in the Corporate Information Transparency Index (CITI), a system for evaluating supply chain practices in China, particularly in regards to environmental management and water pollution. Scores are calculated using government compliance data, online monitoring data, and third-party environmental audits, as well as trends in the environmental performance of factories in the company's supply chains.
Source: IPE (2020)
Business Ethics Tax avoidance
This company scores Ethical Consumer's worst rating for the likely use of tax avoidance strategies, and has at least two high risk subsidiaries in tax havens.
Source: Ethical Consumer (2022)
Environment Soy scorecard - WWF
The WWF Soy Scorecard 2016 rates companies on their use of responsible soy, grown without damaging the environment and harming people. This company failed to respond to requests for information.
Source: WWF Soy Scorecard 2016 (2016)
Social Sweatshop Hall of Shame 2010
Named in the International Labor Rights Forum's "Sweatshop Hall of Shame 2010", which highlights apparel and textile companies that use sweatshops in their global production. [Listed under Information due to age or report]
Source: International Labor Rights Forum (2010)
Environment Climate action commitments
As listed on the We Mean Business website, this company has committed to the following climate action initiatives: adopt a science-based emissions reduction target; commit to 100% renewable power; responsible corporate engagement in climate policy; commit to electric vehicles.
Source: We Mean Business (2021)
Environment UTZ certification
This company sells UTZ certified coffee, promoting fair and sustainable coffee production. However this only represents a fraction of this company's total coffee sales. UTZ certification ensures the cocoa is sourced and produced sustainably on farms with safe working conditions. However unlike Fairtrade certification, UTZ does not offer a minimum or guaranteed price, and the environmental standards of UTZ Certified are far weaker than those of either Fairtrade or Rainforest Alliance.
Source: UTZ (2020)
Environment Global Plastics Treaty endorsee
In 2022 after more than 170 nations backed a historic UN resolution to end plastic pollution, global businesses across the plastics value chain, financial institutions, and NGOs came together to announce a common vision for an effective and ambitious Global Treaty to End Plastic Pollution. The vision will form the basis for future policy engagements with governments through a newly launched Business Coalition for a Global Plastics Treaty which will be convened by the Ellen MacArthur Foundation and WWF. This company has endorsed the vision statement of the treaty.
Source: Global Plastics Treaty (2022)
Animals Animal Welfare awards
Compassion in World Farming is a UK-based organisation which works with the European food industry to encourage and reward commitment, transparency, performance and innovation in the field of animal welfare. This company has won a number of awards since 2008.
Source: Compassion in World Farming (2013)
Business Ethics Circular Economy 100 member
This company is a member of the Circular Economy 100 (CE100) Network, a multi-stakeholder platform run by the Ellen MacArthur Foundation. The CE100 is the world's leading circular economy network, and facilitates market making by providing collaborative and pre-competitive opportunities which bring together business, innovators, cities and governments, universities, and thought leaders.
Source: Ellen MacArthur Foundation (2019)
Business Ethics Leather Working Group member
This company is a member of the Leather Working Group, a multi-stakeholder group who's objective is to develop and maintain a protocol that assesses the compliance and environmental performance of tanners and promotes sustainable and appropriate environmental business practices within the leather industry.
Source: Leather Working Group (2022)
Business Ethics Responsible Minerals Initiative member
This company is a member of the Responsible Minerals Initiative (formerly the Conflict-Free Sourcing Initiative), which helps companies address conflict minerals issues in their supply chains. The RMI provides information on conflict-free smelters and refiners, common tools to gather sourcing information, and forums for exchanging best practices on addressing conflict minerals. Membership is open to companies that use or transact in tantalum, tin, tungsten or gold (3TG). Founded in 2008 by members of the Electronic Industry Citizenship Coalition and the Global e-Sustainability Initiative.
Source: RMI (2019)
Business Ethics Textile Exchange member
This company is a member of the Textile Exchange, a global non-profit that works closely with its members to drive textile industry transformation in preferred fibres, integrity and standards and responsible supply networks. They identify and share best practices regarding farming, materials, processing, traceability and product end-of-life in order to reduce the textile industry's impact on the world's water, soil and air, and the human population.
Source: Textile Exchange (2019)
Business Ethics GFTN participant
This company is a participant in WWF's Global Forest and Trade Network (GFTN), which seeks to mainstream the principles of responsible forest management and sustainable trade throughout the global forest products industry, by providing technical assistance and fostering linkages between committed companies. Independent forest certification is a key tool in this process.
Source: WWF (2019)
Stichting INGKA Foundation
No assessment data currently available for Stichting INGKA Foundation

> About the Icons

Company Details

Type Wholly-owned subsidiary
Revenue 1.4 billion AUD (2019)
Employees 3,700 (2019)

Contact Details

Address 680 Princes Hwy, Tempe, NSW, 2044, Australia
Phone 02 8002 0400
Website www.ikea.com.au

Products / Brands

Ikea Australia
Ikea Homewares Stores


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