Circular Business Models: Case Study IKEA

 

Presentation with Matej Hargas: Circular IKEA – connecting the beginning and the end.

On Wednesday, the 11th of June, we had the chance to listen to the Country Sustainability Manager for IKEA Austria – Matej Hargas.

Matej Hargas joined the IKEA company 12 years ago and took the position as the Sustainability Manager for Austria about 2 years ago.

Sustainability cannot be expensive.

The presentation started with a few hard facts about the IKEA company to give the audience an overview about the current state and the future plans of the firm – which wants to take action on responsible behavior in sustainable, global economy through improved recycling and circular economy. More than 70% of the energy that the company needs, comes from renewable energy sources – most of them from offshore wind turbines. Matej Hargas also explained that 100% of the used cotton and about 77% of the wood are coming from certificated sources. Until 2020 they want to raise this number also to 100% by using their own industrial waste. Moreover we got the information that IKEA plans to offer solar panels in Austria that are already available in Belgium, Poland and Switzerland.

“From Linear Supply Chain To Circular Supply Chain”

Matej Hargas explained that IKEA spends a lot of effort in generating new initiatives for their circular economy model to ensure an extended product life, since a lot of IKEA products that can be found in landfills are still in good condition. The firm started to rethink the design of their products to make them easier to recycle – e.g. they use their own plastic waste to create new plastic goods. IKEA tried to find ways to motivate their customers to participate in their circular business model.

New Project – “IKEA Second Life”

IKEA Second Life is a new project that offers the customers the possibility to resell their used IKEA products instead of throwing them away. All you need to do is to send IKEA a few pictures of the product you want to sell and they will send you an offer in the next few days. With this project IKEA establishes some kid of a second hand market to extend the life cycle of their products.

Finally Matej Hargas also gave us a quick insight into the future plans to deepen their activities in the circular economy business realm such as repair and maintenance services and renting instead of selling.

We will eagerly keep following IKEAs initiatives to become a more circular business.

Take a picture of the product you want to sell and they will send you an offer in the next few days. With this project IKEA establishes some kind of a second hand market to extend the life cycle of their products.

Finally Matej Hargas also gave us a quick insight into the future plans to deepen their activities in the circular economy business realm such as repair and maintenance services and renting instead of selling.

We will eagerly keep following IKEAs initiatives to become a more circular business.