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© Inter IKEA Systems B. V. 2000
Environment
Green Timber Products -
The IKEA View
Ulf Johansson
IKEA Trading South East Asia
© Inter IKEA Systems B. V. 2000
We shall offer a wide range of well-designed, functional homefurnishing products at prices so low that as many people as possible will be able to afford them.
The business idea
BASIC
© Inter IKEA Systems B. V. 2000
The IKEA Group of Companies
ORGANISATION
© Inter IKEA Systems B. V. 2000
SUPPLIER
PRODUCT DEVELOPMENT
PURCHASING
DISTRIBUTION
STORE
CUSTOMER
How we create low prices
BASIC
© Inter IKEA Systems B. V. 2000
Top five sales countries
Germany 22 %
United Kingdom 13 %
USA 12 %
France 8 %Sweden 8 %
Financial year 2000 (1 September 1999 - 31 August 2000) The IKEA Group of Companies.
NUMBERS & STUFF
© Inter IKEA Systems B. V. 2000
Purchasing per region
Financial year 2000 (1 September 1999 - 31 August 2000) The IKEA Group of Companies.
NUMBERS & STUFF
© Inter IKEA Systems B. V. 2000
Top five purchase countries
Sweden 16 %
China 10 %
Poland 9 %
Germany 7 %
Italy 7 %
Financial year 2000 (1 September 1999 - 31 August 2000) The IKEA Group of Companies.
NUMBERS & STUFF
© Inter IKEA Systems B. V. 2000
Environment
© Inter IKEA Systems B. V. 2000
Environment
0
2
4
6
8
10
1950 1970 1990 2010 2030 2050
billi
ons
of p
eopl
e
DEVELOPING
DEVELOPED
World Population Growth
Source: WRI
© Inter IKEA Systems B. V. 2000
Environment
This is what we have today...
Shortage of Natural Resources
…and this we would need if all people on earth consume on an European level!
© Inter IKEA Systems B. V. 2000
Environment
In 1970 there were 7 000 international companies - Today more than 50 000
The 500 biggest multinational companies = 70% of world trade
The turnover of the worlds 10 largest companies overrides the GNP of the worlds 100 smallest countries
Globalisation
© Inter IKEA Systems B. V. 2000
Environment
The Rise of a New Society...
...and The Anti Globalisation Trend!
© Inter IKEA Systems B. V. 2000
Environment
“At IKEA, we shall always strive to minimise damaging effects to the environment, which may result as a consequence of our activities.”
Environmental Policy
© Inter IKEA Systems B. V. 2000
Environment
Prioritised Environmental Issues FY 00-03
Products and Materials
Forestry
Suppliers
Goods Transports
Retail
© Inter IKEA Systems B. V. 2000
Environment
Forestry
• Wood is IKEA’s most important raw material
• Wood is goodRenewableRecyclableBiodegradable
Priorities
© Inter IKEA Systems B. V. 2000
Environment
Level 1
Entry levelNot from INF
Level 2
Minimum demandsKnown originLegislationNot protected areaNov. 1994 rule
Level 34WoodIKEA standardForest management in transition towardsLevel 4
Level 4Level 4 standardOfficial standardrecognised by IKEA
IKEA Solid Wood MerchandiseStaircase Model
© Inter IKEA Systems B. V. 2000
Draft map of Intact Natural Forests
in Canada produced by GFW
© Inter IKEA Systems B. V. 2000
Level 2 - Minimum requirements
• Origin must be known. • Compliance with national and regional forest legislation and other applicable laws.• Not originate from protected areas unless certified or felled in accordance with management prescriptions for the protected area• Not originate from plantations established after November 1994 by replacing intact natural forests.• High value tropical tree species must be certified and labelled (FSC).
© Inter IKEA Systems B. V. 2000
Environment
Level 1
Entry levelNot from INF
Level 2
Minimum demandsKnown originLegislationNot protected areaNov. 1994 rule
Level 34WoodIKEA standardForest management in transition towardsLevel 4
Level 4Level 4 standardOfficial standardrecognised by IKEA
IKEA Solid Wood MerchandiseStaircase Model
© Inter IKEA Systems B. V. 2000
Activities
•Forest Tracing System•Forest Experts•Forest Projects
© Inter IKEA Systems B. V. 2000
FSC Certification until April 2001
• 22.4 million hectares• 41 countries
– Europe: 69.1%– North America: 13.5%– Latin America: 9.9%– Africa: 4.4%– Asia Pacific: 3.0%
Source: FSC
© Inter IKEA Systems B. V. 2000
Forest Certification Scheme
• a standard including established performance levels that is co-operatively developed by a balanced group of environmental, economic and social stakeholders and verified by an independent third party
• chain of custody procedures
© Inter IKEA Systems B. V. 2000
Environment
0 10 20 30 40 50 60 70 80 90 100
Family
Friends
Environmental organisations
Doctor
Scientists
Trade unions
Religious Organisations
Media
Companies
Government
Percentage of people who said they “often” or “always” trusted X to tell them the truth about risks
Who Does People Trust?
Source: MORI Business & The Environment Study
© Inter IKEA Systems B. V. 2000
Labelling
• Normally only the IKEA logo• High value tropical tree species - FSC labelled
© Inter IKEA Systems B. V. 2000
Environment
We have just started
Most Things Remain
To Be Done!
