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Explore more sustainable IKEA full value chain promotion circular business model in limited resources

release date: Source: IKEA procurement and logistics East Asia

in the post epidemic era, people continue to pay more attention to the environment and sustainable lifestyle. In recent years, IKEA is committed to exploring more sustainability in limited resources, building circular and climate friendly businesses, and creating an Ikea with less waste and recycling of limited resources

take the recycling of waste cardboard as an opportunity to explore solutions for recycled materials

recently, IKEA held a "journey of recycled materials". Through the recycling journey of a piece of waste cardboard, IKEA introduced its applications in recycled materials, recycled product design and green transportation

"we hope to help customers realize their home needs and dreams without excessive consumption of resources." Chen Hui, President of IKEA Purchasing and logistics East Asia, said, "it is very important for us to move towards a circular business model. While trying to reduce the waste generated by its own operations, IKEA is also exploring more solutions to turn waste back into usable resources in IKEA's value chain."

IKEA's retail malls in Chinese Mainland produce about 18000 tons of waste cardboard every year. Generally speaking, 1 ton of waste paperboard can produce 0.83 tons of new product packaging after recycling, which can avoid 21 trees being cut down and save 40 tons of water and 600 kwh of electricity. If the waste cardboard produced in shopping malls is recycled, 15% of the current product packaging demand of IKEA shopping malls can be met

as early as 2018, IKEA launched the recycling cardboard project. The waste cardboard from shopping malls was directly transported to the paper mill responsible for the packaging of IKEA products, forming a closed loop for the recycling of waste cardboard. It has overcome various challenges, including the geographical dispersion of waste paperboard, the space limitations of garbage room, and new working methods. More than 30 IKEA shopping malls across the country have started the recycling cardboard project. High quality cardboard is recycled as raw materials, ensuring the environmental protection and firmness of IKEA's product packaging, while reducing environmental pollution and tree cutting, forming a complete closed loop

from design to after-sales, the recycling business runs through IKEA's whole value chain

in fact, the waste cardboard recycling project is only one of the epitomes of IKEA's promotion of the recycling business model. For IKEA, recycling business means that the original linear mode of "acquisition, manufacturing and disposal" is adjusted to the recycling mode of reuse and renovation. If seamless copper pipes are used, they should be connected to the host, remanufactured and recycled, so as to prolong the service life of products and materials

IKEA's circular concept runs through the beginning of product design. In order to fully understand the availability of recycled materials worldwide, IKEA's design team analyzed 97 materials and identified key materials in the fields of wood, plastics, paper, metals and textiles, giving priority to giving full play to the maximum recycling capacity in these fields. Now 60% of IKEA's products are produced based on renewable materials

this konishut chandelier with a price of only 299 is made of bamboo. The biggest challenge of using natural materials for industrial production is the consistency of materials. Traditional practices will process and bleach raw materials in large quantities, which eventually leads to a very low utilization rate of raw materials (because most of the materials with inconsistent appearance and uneven color are discarded). However, at the beginning of the design of this product, the inconsistency of natural materials was regarded as an advantage. By randomly combining the amount of plastic used in automobiles in developed countries as an important symbol to measure the level of automobile design and manufacturing, bamboo strips of different colors were woven to create beautiful patterns. Each lamp is unique, which maximizes the value of manual production

100 billion PET bottles are consumed worldwide every year, of which 1/3 will be recycled, but the remaining 2/3 will be turned into waste, or directly thrown into the sea or landfilled. It is unsustainable for the whole earth. Plastics are petroleum products. This natural resource will eventually run out, and a PET bottle will take thousands of years to decompose. IKEA and a supplier came up with the idea of making pet bottles into plastic films. The film is then wrapped around a Particleboard Made from recycled wood. Finally, it was made into kungsbacka kongbarka kitchen cabinet door, which brought many pet bottles back to life and extended their service life. About 25 500 ml PET bottles are used for each kitchen cabinet door

about the design for reproduction, this DOMA water bottle with a price of only 7.9 is a good example. After completing the transportation of goods, the packaging of products completes its mission and is discarded by users. The body of DOMA water bottle is made of recycled plastic packaging film. Citizens can also check at any time, and many materials can be recycled

at the same time, IKEA is also building a recyclable value chain. The whole process from raw materials to production, transportation, sales, service and return will be considered in the circular value chain. For example, IKEA hopes to reduce its total carbon emissions by 15% by 2030 through biodiesel, hydrogen energy applications, electric heavy trucks and multimodal transport

work together with partners to create a circular business model

with the proposal of the concept of circular IKEA, IKEA has increased the accuracy four times up its value chain, extended to suppliers, raw material procurement, and down to channel links and consumers, and worked with more partners and industry platforms to promote the transformation of circular business

for example, in this "journey of recycled materials", IKEA joined hands with its partners Nine Dragons Paper and mayingsen packaging to jointly promote the recycling of waste cardboard, turn waste into resources, and realize full value chain management. Zhang Yian, general manager of Nine Dragons Paper Dongguan base, said: "the original intention of cooperating with IKEA is that we understand that Ikea will achieve the great goal of renewable and recyclable raw materials by 2030, which is consistent with the green papermaking concept that nine dragons is constantly practicing. The two sides hit it off immediately and hope to achieve more sustainable development through our cooperation."

based on the Chinese market, continue to promote the "2030 cycle IKEA strategy"

at present, China is the only market with a complete IKEA value chain except Sweden, involving product design, testing, production, procurement, warehousing and distribution, retail, shopping centers, digital innovation and other fields. As one of the key markets of IKEA in the world, China is also an important base for IKEA to implement the "2030 cycle IKEA strategy". IKEA's goal is to adopt the new circular design principle to design all products by 2030, using all renewable and recycled materials. Achieve climate friendly and 100% circular economy while developing business; Create a positive social impact for everyone in IKEA's value chain

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