IKEA sold more than €1 billion ($1.13 billion) of sustainable products in 2014, a 58 percent increase over the previous year, according to the company’s new sustainability report.
These products enable people to save or generate energy, reduce water use, cut waste and live healthier lives, the company says.
The 2014 IKEA Group Sustainability Report, released Wednesday, shows its People & Planet Positive strategy is on track and delivering good results. The strong sustainability performance also comes alongside strong financial results, which show an increase in total sales to €28.7 billion ($32.1 billion), a 5.9 percent increase from last year.
In 2014, IKEA committed to own a further 87 wind turbines, bringing the total to 224, and installed 150,000 solar panels, increasing the total to 700,000 and taking the company a step closer to producing more renewable energy than the total energy it uses by 2020. By the end of 2015, IKEA aims to have invested and committed to invest €1.5 billion ($1.7 billion) in renewable energy projects. The company also saved €66 million ($74.5 million) through energy efficiency efforts in stores and warehouses since 2010, the report says.
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IKEA is one of the world’s largest buyers of FSC-certified wood in the retail sector, and 41 percent of its wood was FSC certified or recycled in 2014. All wood was sourced from suppliers that meet the IKEA forestry standard.
As much as 75 percent of all lighting products sold in 2014 were LED or compatible with LED bulbs, which use 85 percent less energy and last 20 times longer than incandescent bulbs. The entire IKEA lighting range will convert to LED by September 2015, the report says.
The share of cotton from more sustainable sources used in IKEA products reached 76 percent, meaning farmers use less chemicals and water, while increasing their earnings. IKEA is on track to reach its goal of 100 percent by the end of August 2015.
Last year, IKEA Foundation and Save the Children announced plans to expand a child rights program aimed at protecting children living in cotton communities in India. So far, the initiative has helped to protect more than 600,000 children, IKEA says. The $9.4 million expansion will extend the program’s reach to keep an additional 790,000 children out of cotton fields and in classrooms where they can learn, play, grow and develop. There are an estimated 12.6 million child laborers in India.