Sustainability and social efforts keys in Ikea strategy
For home furnishing retailer Ikea, social responsibility carries increasing importance for its business expansion in China - not only for society and its consumers, but also the environment.
The Swedish group finished a campaign in February for its third consecutive year donating money for every soft toy it sells in China to help children.
Begun by the Swedish company in 2003 at its headquarters in Stockholm, the program has raised 6.9 million euros around the world for the UNICEF and Save the Children Fund to assist in children's education. In China, over 1 million yuan has been contributed to UNICEF.
The goal for 2008 is to raise another 4 million euros in nine countries, including China, for UNICEF's early childhood development projects in west China.
"The soft toy campaign represents an important part of the work we do to contribute to society in China. The toys will bring joy to the children they are bought for and will also generate funds to improve the lives of many migrant children in this country," says Ian Duffy, president of Ikea Pacific-Asia.
After doing business in the nation for 10 years, the home furnishing retailer now has stores in Beijing, Shanghai, Guangzhou and Chengdu. It plans to open new stores this year in Shenzhen, Nanjing and Dalian, and to continue opening at least one or two stores every year in the country.
While it is busy accelerating expansion in China, Ikea has kept an environmental focus in its social responsibility initiatives.
For Ikea environmental coordinator Jerry Yuan, a day in the Beijing store - the retailer's second-biggest in the world - is full of routine tasks, but all make a contribution.
From checking air quality before the store opens its doors, to inspecting the rubbish, ensuring the computers all shut down after work, to environmental training for all new employees, he is busy but satisfied in his chores.
The job is a local reflection of Ikea's recognition of the need for global energy conservation and environmental protection.
Along with 13 other members of a European retail round table, Ikea recently announced a commitment to energy efficiency and wider use of renewable energy.
They vow to reduce energy consumption per sq m of commercial space by at least 20 percent by 2020 and work to exceed a European Commission renewable energy target of 20 percent by that year.
"Climate change is a global problem and we want to take our part of the responsibility. Companies should not maximize profit at any price. By using renewable energy, we also control our costs," says Anders Dahlvig, president and CEO of Ikea Group.
According to Dahlvig, Ikea has a long-term goal for all its buildings to use 100 percent renewable energy and eliminate the use of fossil fuels.
Ikea's newly built facilities are designed to employ bio-fuels, geothermal heat, and solar or wind power, while existing buildings are being retrofitted where possible.
Ikea and the World Wildlife Fund have signed an agreement to cooperate in projects to reduce emissions of greenhouse gases generated by Ikea operations.
The partnership aims to increase energy efficiency and the use of renewable energy by Ikea suppliers and develop sustainable transportation. The project runs until the end of September 2009.
(China Daily 04/14/2008 page15)
