Per Stoltz WCEF2019: Circularity in our day-to-day lives
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The World Circular Economy Forum presents the world’s best circular economy solutions and gathers together the most recognised experts and decision makers in the field. The event is organised by the Finnish Innovation Fund Sitra. Read more: www.wcef2019.com
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Per Stoltz WCEF2019: Circularity in our day-to-day lives
- 2. Our world is rapidly changing ©InterIKEAsystemsB.V.2018
- 3. ©InterIKEAsystemsB.V.2015-2018©InterIKEAsystemsB.V.2015-2018 To create a better everyday life for the many people.
- 4. What is Circular IKEAThree focus areas
- 5. What is Circular IKEAHEALTHY & SUSTAINABLE LIVING By 2030 our ambition is to inspire and enable more than 1 billion people to live a better life within the limits of the planet ©InterIKEAsystemsB.V.2018
- 7. IKEA of Sweden AB CIRCULAR IKEA A BETTER LIFE WITHIN THE LIMITS OF ONE PLANET ©InterIKEAsystemsB.V.2019
- 8. ©InterIKEAsystemsB.V.2015-2018 IKEA of Sweden AB Resource Scarcity
- 9. IKEA of Sweden AB Changing customer behaviours ©InterIKEAsystemsB.V.2019
- 10. Designing to reuse, repurpose, repair, and recycle ©InterIKEAsystemsB.V.2019
- 12. IKEA of Sweden AB Enabling and engaging with customers in new ways ©InterIKEAsystemsB.V.2019
- 13. People want an emotional connection People are awakening to their influence People want to be part of the change People don’t want to be wasteful ©InterIKEAsystemsB.V.2019
- 14. RENT SHARE BUY NEW BUY 2ND HAND +++ + RE-SELL IN STORE + ONLINE COLLABORATION ACQUIRE: CIRCULAR IKEA: ©InterIKEAsystemsB.V.2019
- 15. CIRCULAR IKEA: CARE REPAIR UPGRADE ADAPT +++ + SPARE PARTS + GUARANTEE REPAIR + IKEA FAMILY WS + CARE PRODUCTS CARE FOR: ©InterIKEAsystemsB.V.2019
- 16. CIRCULAR IKEA: DONATE RETURN SELL RECYCLE +++ + RECOVERY AREA + AS-IS CORNER + REPACKAGING MACHINE + SOCIAL ENTREPRENEURS – SEWING SERVICE + BALERS + REMOVAL SERVICE PASS ON: ©InterIKEAsystemsB.V.2019
- 17. Ingka Group will test the desirability, feasibility and viability of furniture as a service in 30 IKEA markets during 2020 ©InterIKEAsystemsB.V.2019
- 18. IKEA of Sweden AB 100% CIRCULAR PRODUCTS BY 2030 BY 2030 ALL MATERIALS USED ARE RENEWABLE OR RECYCLED NEW WAYS FOR CUSTOMERS TO: ACQUIRE, CARE FOR, PASS ON PRODUCTS TAKING THE LEAD AND JOINING FORCES WITH OTHERS ©InterIKEASystemsB.V.2018 ©InterIKEAsystemsB.V.2015-2018 Our commitments for the future:
- 19. Most things remain to be done – glorious future! ©InterIKEAsystemsB.V.2019
Editor's Notes
- The IKEA sustainability strategy – People & Planet Positive – was launched in 2012 with ambitious goals to transform the IKEA business, the industries in the IKEA value chain and life at home for people all across the world. We have made significant progress since then, but our rapidly changing world calls for even more ambitious goals and urgent action.
- Our world is changing rapidly. To create a better everyday life for the many, and to ensure the success of IKEA into the future, we must take on the challenges that face us, together.
- We want to create an IKEA business model that is sustainable. Our vision, to create a better everyday life for the many people, is our inspiration. We must transform our way of working – from linear to circular, from only using to also regenerating resources. As a business reliant on natural resources and people, it will also mean that we can secure the future of our business, our value chain and the livelihoods of the millions of people that contribute to it.
- The three focus areas we have identified are: Healthy and sustainable living, a movement to inspire and enable millions to live a better more sustainable life Circular and climate positive, transforming the IKEA business and working towards a climate positive way of working Fair and equal, ensuring diversity, being inclusive. Providing and advocating for meaningful work and a living wage. Fair and equal, ensuring diversity, being inclusive. Providing and advocating for meaningful work and a living wage.
- Inspire and enable more than 1 billion people to live a better everyday life within the limits of the planet By 2030, we will inspire and enable people to make healthier and more sustainable choices by offering knowledge, ideas and new affordable solutions. We will, together with others, define what sustainable consumption means for IKEA. We will develop all products using the IKEA democratic design approach and circular design principles. We will work together with others to prolong the life of products and materials and thereby promote a sharing and circular economy. Sustainability cannot be a luxury for a few! We will make healthy and sustainable living a desirable choice that is affordable, attractive and accessible for as many people as possible.
- We are fully committed to transform the IKEA business and our way of working from linear to circular, and this is part of The IKEA sustainability strategy – People & Planet Positive – which was first launched in 2012 with ambitious goals to transform the IKEA business, the industries in our value chain and life at home for people all across the world. We have made significant progress since then, but our rapidly changing world calls for even more ambitious goals and urgent action.
- One reason why we need to transform IKEA into a circular set-up is due to resource scarcity. With a linear business model there is a gap of about 80 billion ton natural resources globally by 2050 according to the consultant company Accenture (Waste to Wealth 2015). In other words, there will be an availability constraint connected to our 2030 growth agenda. The other dimension is the material side. Globally we know that if we continue as of today TAKE, MAKE and WASTE approach we will lack 80 million ton of material globally by 2030. Looking at ourselves, we have projected that wood and textile will have a risk of availability constrains and cost increase, of course also the plastic and foam areas are effected due to our climate goals. All these facts show us what an opportunity it is for IKEA to become a circular company. In addition to this, resource scarcity will increase our costs. Thinking differently about how and what we source, we can continue to be a low cost company and offer products and services to reach more of the many people.
- The other reason why we need to change is that customer behaviors are changing. We are changing our relationship to things due to that we live in smaller spaces, we better understand the effect consuming has on the planet, meaning we value the things we have and are seeking more value in new products . We are becoming more mindful about our things. We also know that the majority of our customers feel bad about throwing things away and that hinders them today from refreshing and revitalizing their homes, they don’t know what to do with all their stuff. Here we can be the helper for people to renew their homes as they can feel good about themselves not throwing away their things. And they are very positive towards giving away, selling, fixing BUT it has to be convenient, ‘easy for me’… If only I could sit in my sofa and just beam the stuff out. I will come back to the changing customer behaviors later in this presentation.
- Seeing products as material banks for the future can only happen if we think about it before we design a product. Thinking about the future reuse, possibilities for repurposing, repair and recycling from the beginning, means we will enable a more efficient ways to bring products back into the supply chain, or enable them to live a much longer life in the customers’ homes. This is not a simple task however, and needs a structure approach to ensure that we gain maximum capabilities for circularity.
- We cannot rely on new materials for our future products. We need to think differently about what our products represent. If we apply the reuse, remanufacture, recycle thinking to our products, we start to see that our products are in fact material banks for the future. Through a circular business model, we will find ways to eliminate the final step in the traditional linear supply model (landfill and inceneration) and instead bring them back into our supply chain as a new material.
- To follow the circular business model also means that we will engage with our customers in new ways. We will continue to engage with customers beyond the first point of sale, by facilitating and offering new services and solutions make sustainably and circularity part of their daily lives. This means we will develop possibilities to resell, refurbish, care for, maintain and upgrade their products, giving them an extended life and keeping the values of these products for longer. Staying in tune with customer needs and dreams means will explore new possibilities to provide these solutions and services in way that is convenient for them, at the time when they need it and in a place close to where they are. We will focus on three areas in how and when we meet our customers: how they acquire products, how they restore value in their things, and how do they get rid of the things they no longer want.
- We learned that people do not want to be wasteful, people want an emotional connection, people are awakening to their influence and peolple want o be part of the change.
- When engaging with customers in new ways, we already have some initiatives. For aquiring some markets buy-back and re-sell IKEA furniture. Some markets have collarborations with online platforms.
- For life at home we already today offer spare parts and care products in all markets. In some markets we offer guarantee repair services and IKEA FAMILY seminars about how to upgrade and upcycle products.
- In the area of passing on and giving products a new life we work internally with our Recovery department that makes the most of products that have been damaged or for other reasons need a second chance and get sold in the As-Is corners in the stores. Recovery also works with repackaging and during FY18 more than 8 million pieces of furniture were repacked. Some stores work together with social entrepreneurs with offering sewing service. Balers are implemented in some stores to make handling of our cardboard and plastic waste recycled more efficiently.
- In 2020 we aim to run tests in all 30 Ingka Group markets to explore the viability desirability and feasibility of different approaches to the furniture as a service concept. We aim to understand if a full service experience subscription-based model, can make it possible for us to deliver affordable, convenient and sustainable offers. These tests support the IKEA ambition to become a circular and climate positive business by 2030. Testing furniture as a service supports the overall IKEA goal to become a fully circular and climate-positive business by 2030, by maximising the use of furniture through refurbishment, several lives, component re-use and material recycling. We don’t know what we will learn from these tests. We fully expect that the tests will come back with different business cases. But we dare to try because we believe these tests will unlock great potential for sustainable growth. Details: The tests can take many shapes. In some cases we might test how an offer will be presented towards customers, or test certain aspect of the solution like maintenance and care support or refurbishment processes, to verify feasibility and viability. In some cases we will test a full customer experience of the total offer. Tests are done in very small scale to begin with to learn as much as possible, building up to a test of the full customer journey. Working in this way with customers helps us confirm the business case and gather important feedback. This learning then enables us to develop solutions further and we hope to then work towards piloting and launching new offers at scale. What solutions are being tested will vary from market to market, based on customer needs. The tests are not pilots, meaning that they will not lead to immediate deployment at scale.
- By 2030, the IKEA ambition is to be circular - built on clean, renewable energy and regenerating resources - while growing the business. We have four main commitments to help us reach our ambition: offering circular products; using only renewable and recycled materials for our products; offering new ways for customers to acquire, care for and pass on products; as well as joining forces with others. We’re just at the beginning, but becoming a circular business is a huge opportunity to innovate and to find new ways to meet people’s needs and dreams at home within the limits of the planet.