Per Stoltz World Circular Economy Forum 2017 Helsinki Finland
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The document discusses IKEA's new circular approach which aims to prolong the life of products, use resources more smartly, and close the materials cycle. The key aspects of this approach are developing ranges with circular design in mind, meeting customers' needs for help with problems at home, and creating a circular supply chain where materials are recycled or reused.
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Per Stoltz World Circular Economy Forum 2017 Helsinki Finland
- 2. Moving upwards on the waste hierarchical staircase will decrease the negative environmental impact LANDFILL INCINERATION with/without energy recovery RECYCLE REUSE REDUCE WASTE HIERARCHY
- 3. A BETTER EVERYDAY LIFE FOR THE MANY PEOPLE
- 4. IT IS ABOUT PROLONGING LIFE OF PRODUCTS AND MATERIALS AND USING RESOURCES SMARTER ©InterIKEASystemsB.V.2016
- 5. When we close the circle, big things start to happen THE NEW APPROACH TO RANGE DEVELOPMENT THE NEW WAY TO MEET OUR CUSTOMERS THE NEW APPROACH TO OUR SUPPLY CHAIN ©InterIKEASystemsB.V.2016
- 7. PEOPLE SEE VALUE IN THINGS PEOPLE ARE TIRED OF THROWING AWAY PEOPLE HAVE PROBLEMS IN LIFE AT HOME AND WANT HELP ©InterIKEASystemsB.V.2016
- 9. CIRCULAR IKEA THROUGH DEMOCRATIC DESIGN ©InterIKEASystemsB.V.2016 QUALITY FUNCTION LOW PRICESUSTAINABILITY FORM
Editor's Notes
- MALIN: Please write the speaker notes Resource scarcity – raw material prices – many people – second hand reacing even more people. Convenience and needs many people
- Circular IKEA is about finding new innovative ways of designing, sourcing, producing and selling, while supporting our customers to get the most out of our products and showing them that we take responsibility for everything we produce. It all fits together. By connecting the end and the beginning of our products, we develop the business to be fit for growth by securing raw material for our production combined with commercial opportunities developed into relevant offers for our customers. Circular IKEA will be a growth driver.
- To do this we have identified three areas where we need a transformational change 1. Our offer, one part is how we design our products for longer life. The ingoing material, possibility to maintain, repair, reuse, restyle and recycle. The other part is the development of our range offer, new range areas for add on sales, spare part development, services etc.. 2. Our meeting with the customer and how we interact with our customer facilitating or providing solutions and service for care, repair, take back and resell. 3. A circular supply chain, developing capabilities both in sourcing, producing and logistics; how to take back, upgrade, use, produce from recycled materials, We decided to look into one thing that went across all areas and choose textiles as that had been identified as a material worth taking back.
- Our conclusions looking at home textiles for these few markets are that people see value in things – financial, functional and emotional. We see that people are tired of throwing away and don’t want to feel wasteful. People really have problems and ambitions with their things in life at home and they want help. We belive that if we want to be relevant in the future we need to look into these need and decide what role we want to play.
- We think that the key to make the change to a more circular business model is to design for circularity. 80% of a products impact on the planet is locked in the design phase and a shift is needed to create the preconditions for a longer product life. Our vision is that by 2030 all our products will have circular capabilities through all five dimensions of democratic design (function, quality, sustainability, low price and design). To IKEA this means making more durable products and products that can be reused, repurposed, repaired and resold. Designing for circularity also includes creating products that consists of more sustainable materials that are easy to separate and reuse.
- We also need to develop the way we source and produce to create capabilities for secondary sources. In other words, a circular supply chain. Meaning that we will design our supply chain network for circularity, taking into account the full journey from material to customer, through production, distribution, services, and back. Together with our partners we explore sustainable materials and solutions, we turn waste into resources and make more from less. We use renewable, sustainable, efficient and innovative technologies within our production and distribution, making the full journey from material to customer and back climate-smart.
- Made from IKEA own wrap packaging plastic