The Savills Blog

Interview with Ana Barbosa, Head of Sustainability, IKEA Portugal

1.“Having a positive and lasting impact on people's lives and the planet” is IKEA's motto. How does the company perform this commitment on a daily basis?

Sustainability is not a brand-new issue for IKEA. For us, it is a fundamental theme across all business areas. Our ambition is to create a better and more sustainable everyday life for the many and inspire people to adopt better habits for the planet with solutions that meet our customers’ needs in the present, without compromising future generations. We also try to make our customers aware that more sustainable habits can help us to reduce the monthly expenses on energy, water and food, for example. This is why sustainability is strategically embedded in every dimension of the business, from the design, production and transport of our products, through our commercial strategy, to our operations, with ambitious goals for reducing our carbon footprint, including the transformation into a circular business, with a positive impact on people.

In the energy sector, in Portugal we do not use fossil fuels in our daily operations, and all the electricity we use is renewable, with around 20% being supplied by self-consumption from photovoltaic panels placed in our shops. In addition, we have major investments in renewable energies, with the objective of attaining a value of 100% of renewable energy throughout the value chain.

In addition, we cannot forget that sustainability also has a social pillar; besides having a strategy to support the most vulnerable groups of the population, especially about the right to decent housing, we also work on the topics of equality, diversity and inclusion, reflected in concrete results such as gender parity in leadership positions, equal salaries and in employability projects for refugees or other vulnerable groups.

2.Your goal is to inspire one billion people around the world to live healthier and more sustainable lives at home by 2030. How have you faced this challenge and what initiatives have you promoted in this regard?

Our ambition of having a positive impact on people and in the planet is very challenging, and we realize that we cannot do this alone. On the other hand, our customers tell us they want to change their habits, but sometimes they don't know how to do it; they don't have access to clear information; they are unaware of the impact of their actions and they cannot afford to pay more for more sustainable products or solutions. In this context, we believe IKEA has a key role to play in influencing people’s life at home by providing affordable, functional, beautiful solutions; also, and at the same time, more sustainable ones.

Our suggestions range from offering products made from renewable or recycled materials, products that save electricity or water, to products that are alternatives to disposables or even multifunctional products that can live several lives. When it comes to extending the life of products, we also offer services that allow this. There’s the example of the 2nd life or the spare parts services.

We continually work to improve our operations by avoiding waste, and by re-using returned, second life or display products, forwarding them to our circular area where they can be sold and given a new life. In the almost 400 stores around the world, in the last year, we managed to give a second life to 40 million products, 30 million of which were resold through the Circular Area and the packaging of more than 9 million products was recovered, so that those products could return to the shop stock.

We believe that, doing this, we can contribute to a world with less waste and help people to make more sustainable choices in their homes.

3.In your opinion, can the sustainability factor dictate the success of a brand?

This decade is decisive. We are in a state of climate urgency (reinforced by the latest IPCC report) and most people are concerned about this issue, expecting action and leadership from big companies. Which means IKEA, as well as other big brands, have the responsibility and the opportunity to do more and act sooner, such as investments in renewable energy, innovating and testing new materials or services. In this way, we present solutions to our customers and contribute to a growing business now and in the future. A good example is the reduction in absolute value of IKEA’s carbon footprint, which includes the entire value chain. Since 2016 this footprint has decreased by 12%, while the business has grown by around 20%, demonstrating that it is possible to decouple business growth from growth in its CO2 footprint.

4.What are the big challenges about applying sustainable practices in the sector?

One of the great challenges in the sector is circularity, namely in the existence of infrastructures that allow closing the life cycle of products. But we know that the preconditions exist and that consumers are more demanding with brands and increasingly interested in circularity and in the second-hand market, which can boost progress in this area.

On the other hand, it is also necessary to accelerate processes for more equity and inclusion, which make our communities develop more fairly, and which allows us to soften impacts on the most vulnerable people on economic, environmental or other crises.

We are seeing, through our employees and in the labour market in general, how relevant it is to be a company with values and steps taken in the area of diversity and inclusion to attract and retain talent. We know that by promoting diversity, we will have a wider range of talents in our organization and it will be a competitive advantage that will contribute to the development of people and the business.

5. Is the consumer today more demanding when it comes to seeking and purchasing sustainably produced products?

Yes, more and more. Consumers are more and more aware of the seriousness of climate change and they are looking, in that sense, for more alternatives and sustainable solutions. And, what we also sense, is that people know they need to change habits and want to change habits, but don’t know where to start. And that's where IKEA is also looking to take an active role. By inspiring change, by showing how small, simple actions in everyday life can have a big collective impact on the planet. We also want to show that being sustainable doesn't mean to spend more and that it can even help to save money at the end of the month, be it by saving energy, water or reducing food waste, as I have already mentioned.

For example, at IKEA, all showerheads and taps are water and energy efficient. This is achieved thanks to a device that reduces the water flow. Although less water comes out, you won't notice any difference in pressure. This saves a significant amount of water and energy compared to a showerhead or taps without a flow restrictor.

6.For you, being “Beyond Green” is...?

I think it is to continue to inspire most people to think and act about the future of the planet. Little by little, and with small actions, we can in fact reduce our impact on the climate and I believe that, as a professional in the field, but also as a conscientious citizen, I also have the responsibility and the opportunity to influence the people around me to take the first (or the next) step.

But it is also to remember the social dimension as an integral part of sustainability. Without humanism and social justice, we cannot have a sustainable future; on the contrary, we will have the most vulnerable groups permanently victims of crises and inequalities. Sometimes, it is enough to start in our neighbourhood, in our building or in our children's schools, to find ways to make a difference.

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