Brand CasesIKEA's Energy Savings Program Raises Suppliers' Efficiency

Publication Date:2019-09-19

To  confront resource scarcity and global climate change, IKEA formulated a sustainable development strategy, "People & Planet Positive."

IKEA launched the "Supplier Goes Renewable" project, a pilot in efficient use of energy and resources, in 2014. The project cooperates with high energy-consuming supplier representatives to explore efficient use of energy and use of viable clean energy technologies, and then shares best practices with more suppliers, increasing the overall energy efficiency of IKEA’s supply chain. Between 2014 and 2016, twelve of IKEA China’s suppliers participated in two rounds of the program.

For the duration of the project, IKEA set up an energy project team that searched for specialist energy technology providers and offered repayment of environmental technology services fees. At the same time, the team carried out an evaluation of energy use for the suppliers participating in the project, worked with these suppliers to explore their potential, identified and perfected their energy improvement schemes and promoted their implementation, and improved their energy saving systems in general.

As of 2017, the twelve suppliers on average saved 45.41 million kWh of electricity per year. The total energy savings of the project accounted for about 5.3% of the total energy consumption of the pilot suppliers. The suppliers also saved 42,695 tons of CO2emissions as well as 28,000 tons of freshwater.

The two-round pilot project included the following new technologies and success stories: improving air compressor compression to reduce dripping of water, power optimization and harmonization of distribution stations and transformers, replacement of workshop lights with LED lamps, power and water sub-metering, and installation of efficient motors and variable frequency drives.

Energy savings and carbon dioxide emissions reductions are some of the most important indicators that IKEA has pushed its suppliers toward more sustainable development. IKEA will continue to encourage its suppliers to participate in its sustainable development index assessment, and promote energy savings and CO2emissions reduction through a variety of projects. Through these efforts, IPE will fulfill its corporate social responsibility, implement its "People & Planet Positive" sustainable development strategyand have a positive influence on our planet’s environment.  

 (The above content was provided to IPE by the brand, who is responsible for the accuracy of the data.)