IKEA Designing Sustainable Lifestyles: Embedding Climate Action and Wellbeing in Business Strategy
This week is UN Sustainable Development Goals (SDG) Week, a global reminder of the collective responsibility to shape a fairer, healthier, and more sustainable future. For many organisations, the SDGs still feel like a distant framework. But for IKEA, they are woven into the very DNA of the business.
Founded on the belief that home should be a better place for everyone, IKEA has spent decades democratising design. Today, their mission extends further: to make sustainable living accessible, affordable, and desirable for the many, not the few. At a time when the world faces both climate crisis and wellbeing challenges, IKEA demonstrates that business strategy can (and should) serve both people and planet.
Embedding Sustainability into Everyday Life
IKEA is not only a retailer of furniture; it is a designer of lifestyles. From the flat-pack concept that reduces transport emissions, to products that help households save water and energy, sustainability is not an add-on; it is embedded at every stage.
Some of their most impactful actions include:
- LED revolution: IKEA was one of the first major retailers to switch entirely to LED lighting, making low-energy bulbs the affordable norm.
- Circular design principles: Furniture is now increasingly built to be repaired, reused, or recycled. Their goal is for all products to be designed using only renewable or recycled materials by 2030.
- Buy Back & Resell programme: Customers can return unwanted furniture to be refurbished and resold, diverting thousands of items from landfill.
- Sustainable supply chain: IKEA partners with suppliers on responsible forestry, sourcing cotton through the Better Cotton Initiative, and ensuring traceability in raw materials.
These initiatives make sustainability tangible, showing customers how simple design choices at home can have a big impact on the planet.
People & Planet Positive Strategy
IKEA’s sustainability ambition is encapsulated in its People & Planet Positive strategy. At its heart is a bold goal: to become climate positive by 2030, reducing more greenhouse gas emissions than the IKEA value chain emits.
But what makes this approach stand out is the equal emphasis on people. The strategy explicitly recognises that sustainability without wellbeing is incomplete. It is about creating conditions where both societies and individuals can thrive.
For employees, this means:
- Fair & equal work: IKEA was one of the first global retailers to commit to a living wage, not just minimum wage, across markets. They continue to drive gender equality in leadership roles.
- Health & wellbeing : Support spans flexible working, safe environments, family policies, and mental health initiatives.
- Skills for the future: IKEA invests heavily in employee training, including green skills, digital capabilities, and lifelong learning, preparing staff for a fast-changing economy.
This dual focus ensures climate action is not pursued at the expense of people, but in service of them.
Climate Action through Culture Change
IKEA recognises that corporate climate action alone will not solve the challenge. What is needed is systemic culture change, both within organisations and across society.
Their approach includes:
- RE100 membership: Committing to source 100% renewable electricity across operations worldwide. As of 2023, 75% of their energy use already came from renewables.
- Massive renewable investment: IKEA has invested over €3.5 billion in wind and solar parks, making them one of the largest corporate renewable energy owners globally.
- Advocacy and partnerships: Working with policymakers, NGOs, and industry coalitions to accelerate progress towards the SDGs. They advocate for stricter climate legislation and support communities in transition.
- Customer engagement: Inspiring millions of households to adopt greener habits, from recycling more effectively to switching to plant-based eating.
The impact of this cultural influence cannot be underestimated. With 700+ million store visitors annually and billions engaging with the brand online, IKEA has the reach to make sustainability mainstream.
The Wellbeing Connection
What sets IKEA apart from many corporate sustainability agendas is its recognition that environmental action and human wellbeing are deeply connected.
For customers, this shows up in simple, accessible ways:
- Healthier food: IKEA has committed to making 50% of main meals in their restaurants plant-based by 2025, with affordable options like the now-iconic plant ball.
- Designing calm: Their products are increasingly focused on creating homes that support rest, mindfulness, and family connection, acknowledging the mental health crisis as part of the wellbeing agenda.
- Inclusive communities: Many local IKEA stores support community initiatives, from donating to food banks to providing skills workshops, ensuring sustainability delivers social as well as environmental impact.
For employees, the link between wellbeing and sustainability is just as strong. Purpose-driven work, access to green skills training, and health-first policies combine to make IKEA a company where sustainability also enhances happiness and resilience.
Lessons for Other Organisations
IKEA’s journey offers valuable lessons for leaders seeking to align with the SDGs:
- Accessibility is key – making sustainable living affordable and easy removes the barriers to adoption.
- Culture eats strategy – embed sustainability in everyday actions, not just annual reports. Everyone from executives to shop floor employees, must understand their role.
- Connect to wellbeing – environmental action resonates most when tied to human benefit, from healthier meals to safer workplaces.
- Think in systems – collaborate across industries, governments, and communities to scale solutions.
- Lead with purpose, not PR – IKEA’s success is built on consistency and authenticity, not tokenistic campaigns.
Why It Matters During SDG Week
The SDGs are not abstract aspirations; they are urgent imperatives. From climate resilience to gender equality, they define the blueprint for the future of business and society. IKEA shows that embedding the SDGs into strategy is not only possible but profitable, driving innovation, strengthening resilience, and engaging employees.
As organisations gather during SDG Week to share progress, IKEA serves as a case study in how to act with courage, scale, and authenticity. Their example proves that when climate action and wellbeing unite, the impact is transformational.
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Want more of this? Read last week’s spotlight on HSBC’s Culture of Care.