Thursday, June 3, 2010

COMPANY REPORT / IKEA

IKEA Increasing Engagement for More Sustainable Cotton
IKEA, the world‘s largest home furnishing retailer, in its 2009 Sustainability Report "The Never Ending Job" drives home its commitment to using sustainable cotton and lays out is strategic approach to Cotton Challenges. According to the report, "Cotton is one of our most important raw materials, and we want the cotton used in our products to be produced in a sustainable manner. We have increased our engagement in a number of activities deep into a long and complex supply chain in order to speed up results and move closer to sustainable cotton cultivation and processing."

IKEA and WWF started cooperating to improve cotton farming practices in India and Pakistan in 2005 by giving farmers access to hands-on training and support. Initially, 450 farmers joined the IKEA and WWF projects, and IKEA now estimates that around 60,000 farmers will implement better farming practises in 2010.

"We believe this will lead to significant improvements in mainstream cotton farming in several cotton producing states in both countries, and drastically increase available volumes of cotton grown in a more sustainable manner," says the report.

2009 WWF estimates show that farmers on average have reduced the use of chemical pesticides by 50 percent, while water consumption has also been halved and the use of chemical fertilisers has been cut by 30 percent. At the same time, farmers’ average earnings have increased by approximately 40 percent.

According to the report, In 2008, the IKEA and WWF projects generated 34,000 tonnes of cotton grown in a more sustainable manner, and IKEA suppliers bought 12,500 tonnes for use in IKEA products. In 2009, the total available volume was 150,000 tonnes and IKEA suppliers bought 23,000 tonnes (the target was 50,000 tonnes).

The report says that "Our long-term goal is to source all cotton used in IKEA products from more sustainable cotton production. The availability of sufficient volumes will determine how quickly we can achieve this goal. In the meantime, IKEA will step-by-step increase the overall share of this more sustainable cotton across the range rather than focusing on individual products."

IKEA wants to influence mainstream cotton producers to move towards a more sustainable production, and believes that the best way to achieve lasting positive change is to cooperate with others.

"We have decided to begin by addressing the challenges in India and Pakistan, which are two of our most important cotton sourcing countries, with large cultivation areas and need for environmental and social improvements. However, IKEA is at the end of a long and complex supply chain. Achieving major change in mainstream cotton production will take time, and requires cooperation with many parties including other international companies, NGOs, governments and authorities."

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