Success And Failures Of The Initiative

As mentioned previously regarding the initiatives made by IKEA complying to the UN Sustainable Development Goals, generally all initiatives taken are proven to be a success, but however there are several obstacles that they have faced. Affordable and clean energyAs stated in the report, energy is the biggest household expense for most people living in a cold climate countries. It is well known that it takes higher energy to warm a house than to cool it down. IKEA through its product development team has come up with several products that can help the customers to conserve energy and the same time reducing consumption. One of the products that significantly changed the energy consumption rate their LED light bulbs. Peterson Lai, company’s sustainability ambassador said that energy consumption reduced up to 25% after changing to their LED bulbs. He also added that IKEA aim to sell 500 million lightbulb in 5 years. This will result in saving energy that can power Paris and London annually. Having clean energy means to have the lowest CO2 emission level as possible. After all the initiatives taken to achieve this goal, IKEA can proudly announce that in Financial Year 16, they achieve the emissions level of only 17. 5kg CO2 per m3 of product sold in all of their centres.

This is lower compared to FY10, where they emitted 32. 8kg of CO2 per m3 of product sold. Moreover, IKEA has invested heavily in purchasing wind and solar power equipment in order to be less dependable to energy produced from fossil fuels. As the result, 71% of energy used in production section came from renewable energy sources such as wind turbines, solar panels, biomass and geothermal energy. However, there are few challenges when it comes to using renewable energy as it cannot be used on site. It has been a difficult task to store the energy and use it when the time comes. The best solution will be using portable lithium-ion cells with high storage capacity. This would enable IKEA to smooth out the supply and energy demand and at the same time provide flexibility to the grid. Decent work and economic growthThe idea of this goal is to promote sustained, inclusive and sustainable economic growth full and productive employment and decent work for all. This includes the elements of workers, working environment under a safe condition and also ensuring no discrimination between home-based and immigrant workers by following IKEA’s code of conduct. As an international company operating in countless countries, IKEA celebrates its workers diversity and cultural differences, and opens new opportunities for cultural changes and employment, but also presents challenges for integration and inclusion.

Human rights is something crucial for IKEA as its part of its codes, policies, and standards. This also provides guidance to suppliers and customers to comply with these rules in order to prevent any negative human rights impact associated to IKEA. When a risk of human right infringement is detected, IKEA will take action to remedy the problems, thus eliminating the problem even before it started. As for migrant and local workers in every country, IKEA has planned a detailed strategy for the benefits of their employees. Human resource department has gathered data about migrant and local workers across different parts of the business and collaborated with International Organisationfor Migration (IOM) to carry out further mapping projects and plan to revise IWAY and documentationand training to strengthen and clarify their requirements with respect to migrant and local workers.