IKEA’s People & Planet Positive Strategy: Redefining Sustainable Retail

Driving environmental responsibility and social impact across a global retail ecosystem.

As one of the world’s largest home furnishings retailers, IKEA operates at a scale that significantly influences environmental and social outcomes. Recognizing this responsibility, IKEA introduced its People & Planet Positive strategy to ensure that growth aligns with sustainability and ethical practices.

The strategy reflects IKEA’s long-term vision of creating a better everyday life for the many people, balancing affordability with environmental stewardship and social responsibility.

The People & Planet Positive strategy is built around three core objectives. First, to become climate-positive by reducing more greenhouse gas emissions than the IKEA value chain emits. Second, to use resources responsibly by transitioning to renewable and recycled materials. Third, to support fair labor practices and community wellbeing throughout its supply chain. These objectives position sustainability as a business enabler rather than a cost center.

IKEA has invested heavily in renewable energy, including wind and solar projects, to power its operations. Sustainable sourcing policies ensure that wood, cotton, and other materials meet strict environmental and social standards.

Supplier audits and capacity-building programs promote fair wages, safe working conditions, and ethical labor practices. IKEA also designs products with circularity in mind, emphasizing durability, repairability, and recyclability.

Community engagement initiatives support social inclusion, refugee employment, and local development projects in regions where IKEA operates.

The strategy has delivered measurable results, including significant reductions in carbon emissions and increased use of renewable energy across operations. Supply chain transparency and compliance have improved, benefiting workers and suppliers alike.

Customers have gained access to more sustainable products at affordable prices, contributing to broader consumer adoption of responsible consumption practices.

IKEA’s People & Planet Positive strategy demonstrates how large-scale retail can be a powerful force for sustainable development. By embedding responsibility into every aspect of its business, IKEA sets a global benchmark for responsible retail leadership.