Ikea Sustainability

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Ikea Eco Score

3.5 / 5.0

Advanced Sustainability

March 2, 2024

About Ikea

Netherlands

Ikea Sustainability Rating is 3.5

This means Ikea are in line with average compared to other companies in the Multiline and Specialty Retailers & Distributors.

Industry positioning

Ikea
Industry averange
5
4
3
2
1
0
Overall
Environmental
Social
Governance

Ikea positioning within the Multiline and Specialty Retailers & Distributors

Ikea Sustainability Rating Breakdown:

Ikea Overall Sustainability Rating is 3.5 out of 5.0

Ikea Environmental Rating is 4.4 out of 5.0

Ikea has an environmental rating score of 4.4, focusing in the following areas:

  • Climate risk (8.1): This score reflects Ikea understanding and management of climate-related risks that could impact their operations. A score of 8.1 suggests an excellent awareness and management of these risks.
  • Greenhouse Gas (GHG) Emissions (6.3): This score measures the emissions of greenhouse gases produced by Ikea and their efforts to reduce these emissions. A score of 6.3 indicates a strong effort is being put toward reducing emissions of greenhouse gases.
  • Energy Management (8.9): This score demonstrates the effective management of energy consumption. s. A score of 8.9 indicates an excellent effort towards using sustainable energy sources.
  • Land Use and Biodiversity (9.0): This score indicates how Ikea considers the impact of its operations on land use and biodiversity. A score of 9.0 suggests an excellent level of commitment to minimising negative impacts.
  • Materials Sourcing (9.2): Reflecting the sustainability and ethical considerations in sourcing materials for their products, a score of 9.2 suggests an excellent effort in responsible sourcing of materials.
  • Pollution Prevention and Management (9.4): This score represents the policies and impact of Ikea that aim to prevent and minimise pollution. Ikea has an excellent pollution prevention and management score.
  • Waste Hazards and Management (9.2): A score of 9.2 assesses how Ikea handles waste and hazardous materials. This indicates an excellent waste management strategies and minimization of hazardous waste are in practice.
  • Environmental Certifications (8.8): A score of 8.8 reflects an excellent commitment to obtaining environmental certifications, demonstrating adherence to recognized standards and practices in environmental stewardship.
  • Environmental Opportunities (9.8): A score of 9.8 indicates that Ikea is excellent at identifying and taking advantage of opportunities to benefit the environment, potentially through innovative practices or sustainable growth strategies.
  • Environmental Compliance (8.3): A score of 8.3 rates the level of compliance with environmental regulations and standards, indicating strong adherence to legal and ethical norms in environmental matters.

Ikea Social Rating is 2.8 out of 5.0

Ikea has an overall social score of 2.8, which can be broken down into various components, reflecting the company's performance in relation to social challenges:

  • Social-related Certifications (7.5): This score indicates a strong level of certifications related to social issues.
  • Community Engagement (8.8): This score assesses a company’s involvement in and contribution to local communities. A score of 8.8 indicates Ikea have a strong commitment to community engagement.
  • Corporate Philanthropy (8.8): A score of 8.8 suggests Ikea make a significant contributions to philanthropic causes, demonstrating their measure of commitment to social responsibility through charitable endeavours.
  • Data Privacy (3.8): This score is a measure of how vulnerable Ikea is to breaches related to personal and customer data. 3.8 indicates low Ikea Data Privacy protection policies.
  • Products and Services (5.0): This score reflects the social impact of products and services provided by Ikea, indicating that they are designed and delivered with a reasonable consideration for social responsibility.
  • Health and Safety (4.6): The health and safety score reflects a reasonable robustness of the measures in place at Ikea to protect the well-being of its employees and customers.
  • Human Rights Abuses (4.9): This score reflects moderate risk of Ikea involvement in or exposure to human rights abuses in company operations.
  • Labour Relations (5.8): This score reflects the company's relationship with its workforce, including aspects like union relations and employee treatment. A score of 5.8 indicates a reasonable level of performance in this area.
  • Product Quality Management (3.8): This score reflects the quality and safety of current and future products and services provided by Ikea. A 3.8 indicates a weak standard in managing product quality.
  • Supplier Engagement (8.5): This score assesses how Ikea engages with its suppliers on social issues. A score of 8.5 suggests an excellent level of engagement and collaboration with suppliers in managing social risks.

Ikea Governance Rating is 3.4 out of 5.0

Ikea has an overall governance score of 3.4, which encompasses various aspects of its corporate governance practices and structures:

  • Business Resilience and Sustainability (9.5): This score reflects the capacity of Ikea to sustain its operations over the long term and adapt to business challenges. 9.5 suggests an excellent strategies for resilience and sustainability in the business model of Ikea.
  • Corporate Compliance Behaviours (3.8): This score assesses adherence to laws, regulations, and internal policies. 3.8 shows a weak Ikea Corporate Compliance Behaviours.
  • Governance-related Certifications (7.5): A score of 7.5 in this category reflects a strong level of accountability and adherence to governance-related certifications.
  • Business Ethics (4.6): This score evaluates ethical conduct in business operations. A score of 4.6 indicates a decent standard of ethics.
  • Business Transparency (8.8): This indicates the level of transparency in the business operations and disclosures of Ikea, suggesting a great communication with stakeholders and clear reporting of activities and financial information.

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