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IKEA

OVERALL

Owned
NLD
Rating
Criticisms

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.

Company Ownership

INGKA Holding BV   NLD     website         
  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
INGKA Holding BV
Environment Palm oil scorecard - WWF
The WWF Palm Oil Buyers Scorecard 2019 assesses 173 companies on the commitments they have made, and the actions they have taken, to ensure that there is no destruction of nature including no deforestation along their supply chains; and support a responsible and sustainable palm oil industry beyond their own supply chain. This company is rated 'leading the way' with a score of 19 out of a possible total of 22.
Source: WWF Palm Oil Buyers Scorecard 2019 (2019)
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)
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 Labour 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 at least 83 well-known global brands in the technology, clothing and automotive sectors, including brands owned by this company.
Source: ITUC (2020)
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 (2018)
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 2024 (2016)
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; reduce short-lived climate pollutant emissions.
Source: We Mean Business (2017)
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)
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 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)
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 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 (2019)
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)
Environment Palm oil scorecard - Greenpeace
In 2016 Greenpeace published a report on the progress towards zero deforestation in the palm oil supply chains of several multinational companies. Companies were assessed on three criteria: responsible sourcing, transparency and industry reform. This company was rated as 'getting there'.
Source: Greenpeace (2016)
Environment 49% in Forest 500 Rankings
The Forest 500 identifies, ranks, and tracks the governments, companies and financial institutions worldwide that together could virtually eradicate tropical deforestation. Rankings are based on their public policies and commitments and potential impacts on tropical forests in the context of forest risk commodities (palm oil, soy, beef, leather, timber and paper). This company received a score of 49%.
Source: Forest 500 (2019)
Animals Tier 4 in farm animal welfare rankings
The 2019 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 4, "Making progress on implementation", with tier 1 being the best, and tier 6 the worst.
Source: BBFAW (2019)
Stichting INGKA Foundation
No assessment data currently available for Stichting INGKA Foundation

> About the Icons

Company Details

Revenue 37 billion euros in 2018
Employees 158,400 in 2018
Subsidiaries Ikea Pty Ltd 

Home furnishings and accessories

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

Contact Details

Address Leiden, Netherlands
Website www.ingka.com

Products / Brands

Ikea Australia
Ikea Homewares Stores


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