Home furnishings and accessories
Ten stores with additional 2 pick up locations across Australia in 2018.
Company Ownership
Ikea Pty Ltd
AUS
INGKA Holding BV
owns 100% of Ikea Pty Ltd
NLD
Furniture
Ikea was founded in Sweden by Ingvar Kamprad in 1943, but has since relocated its headquarters to the Netherlands. Holding company that controls 315 of the 360 outlets of IKEA.
Stichting INGKA Foundation
owns 100% of INGKA Holding BV
NLD
Foundation
Founded in 1982 my IKEA founder Ingvar Kamprad. One of the largest charitable foundations in the world. The IKEA Group of companies is owned by the Stichting INGKA Foundation, whose funds can only be used for reinvesting into the IKEA group, or donated for charitable purposes through the Stichting IKEA Foundation.
Company Assessment
(Last updated Oct 2024)
Praise
Criticism
Information
Ikea Pty Ltd
Praise
Criticism
Information
3/5 for packaging performance
This company received a packaging performance level of 3 (Advanced) in its 2024 APCO Annual Report. Australian Packaging Covenant Organisation (APCO) is a not-for-profit organisation leading the development of a circular economy for packaging in Australia. Each year, APCO Members are required to submit an APCO Annual Report and Action Plan, which includes an overall performance level from 1 (Getting Started) to 5 (Beyond Best Practice).
Source: APCO
(2024)
Banksia Sustainability Award 2020
This company won the Large Business Award at the 2020 Banksia Sustainability Awards. "The IKEA furniture Buy Back service incentivizes customers to upcycle old IKEA goods instead of throwing them away."
Source: Banksia Foundation
(2020)
2015 CHOICE Shonky Award
Named and shamed in the 2015 CHOICE Shonky Awards for advertising non-leather furniture in the leather furniture section of Ikea's Australian website.
Source: Choice
(2015)
MSC certified products
This company sells products which are certified by the Marine Stewardship Council.
Source: MSC
(2024)
Renewable energy use
Greenpeace's Reenergise campaign ranks Australia's biggest electricity using companies on their commitments and actions regarding renewable energy use. This company has committed to powering their operations by 100% renewable electricity by 2030, and invested in on-site solar. However they have not signed a power purchase agreement (PPA) to buy power from a wind or solar project.
Source: Greenpeace
(2021)
Cage-free eggs commitment
This company is listed on the RSPCA Australia website as 'cage-free and proud', signifying a commitment to source 100% cage-free eggs. Essentially cage-free means barn laid, which is better than cage eggs, but still much worse than free-range or organic eggs when it comes to animal welfare.
Source: RSPCA Australia
(2024)
Good Egg Award 2013
The RSPCA Good Egg Awards acknowledge major companies that make the switch to cage-free eggs. Ikea Australia was awarded a Good Egg Award in the Retail category in 2013 for their commitment to commence sourcing only cage-free eggs for use in its cafes.
Source: RSPCA Australia
(2013)
Sustainability claims
This company has sustainability claims on its website under the headings Social Impact, "A sustainable everyday" and Climate and Environment.
Source: company website
(2023)
Mattress recycling program
Ikea Australia has partnered with Soft Landing, a social enterprise which rescues mattresses destined for the dump and breaks them down into their component parts for recycling, creating green jobs for long term unemployed and disadvantaged people.
Source: company website
(2023)
INGKA Holding BV
Praise
Criticism
Information
CDP Climate Change Score of A
In 2022, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of A.
Source: CDP
(2022)
Climate policy engagement
This company appears on InfluenceMap's 2021 A-List of Climate Policy Engagement, which identifies 15 corporate leaders advocating for ambitious climate policy across a range of sectors and regions. To qualify, a company must exhibit sufficient support for ambitious climate policy, strategic levels of engagement with climate policy, and leadership in its sector. Links to industry associations egregiously opposing climate policy can disqualify a company from the list. Only 4% of companies evaluated make the A-List.
Source: Influence Map
(2021)
Palm oil rating - WAZA
The PalmOil Scan app, produced by the World Association of Zoos and Aquariums (WAZA), rates companies on their commitment to sourcing sustainable palm oil. Companies are scored on their use of certified sustainable palm oil (CSPO), commitment to sourcing CSPO, on-the-ground conservation action, and membership to the RSPO. Companies can earn a rating of Excellent, Good, Poor or No Commitment. This company is rated "Excellent" (retrieved 18 Nov 2023).
Source: WAZA
(2023)
A- in toxic chemical ranking
In 2021 the Mind the Store campaign ranked 50 of the largest retailers in North America on their efforts to eliminate toxic chemicals from consumer products. This company received a grade of A-.
Source: Mind the Store
(2021)
Palm oil scorecard - WWF
The 2024 WWF Palm Oil Buyers Scorecard evaluates the progress and performance of 285 major retailers and manufacturer companies, focusing on actions companies have taken to ensure their own palm oil supply chain is sustainable and free of deforestation, natural ecosystem conversion, and human rights abuse. This company is rated 'well on path' with a score of 16.85 out of a possible total of 24.
Source: WWF Palm Oil Scorecard
(2024)
Materials sourcing
The Material Change Index (MCI) is a voluntary benchmark that tracks the apparel and textiles sector's progress toward more sustainable materials sourcing (cotton, polyester, nylon, manmade cellulosics, wool, down and leather), as well as alignment with global efforts like the Sustainable Development Goals and the transition to a circular economy. This company is identified as one of 54 "Leading" companies.
Source: Textile Exchange
(2022)
Using illegal timber
In 2020 Earthsight's 18-month-long investigation found that Ikea is selling beech chairs made from wood which was illegally felled in Ukraine's forests. Tens of thousands of chairs made from illegal wood are being sold at Ikea stores across the globe each year. This illegal harvesting is being enabled by the corrupt state-owned forestry enterprises which run most of Ukraine's forests. Ikea is the largest consumer of wood in the world. Earthsight estimates Ikea uses one tree every second.
Source: earthsight
(2020)
Forced labour in China
The Chinese government has facilitated the mass transfer of Uyghur and other ethnic minority citizens from the far west region of Xinjiang to factories across the country. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of international brands. The 2021 Laundering Cotton report investigates how forced-labour-produced cotton and cotton-based goods from the Uyghur Region wend their way into international supply chains of well-known international clothing brands, including brands owned by this company.
32.8% in Forest 500 Rankings
Forest 500 identifies the 350 companies and 150 financial institutions with the greatest exposure to tropical deforestation risk, and annually assesses them on the strength and implementation of their deforestation and human rights commitments. This company received a score of 32.8%.
Source: Forest 500
(2023)
D- grade in Plastic Promises Scorecard
As You Sow's 2024 Plastic Promises Scorecard measures the corporate ambition and action of 225 large companies across six industries on six core pillars of plastic packaging pollution prevention: 1) Recyclability, 2) Reduction, 3) Recycled Content, 4) Recovery, 5) Reuse, and 6) Producer Responsibility. This company received a grade of D-.
Source: As You Sow
(2024)
6/20 in Social Benchmark
The 2024 Social Benchmark assesses the world's 2,000 most influential companies on their responsibility in meeting society's fundamental expectations towards three measurement areas: respecting human rights, providing decent work, and acting ethically. This company was assessed in 2024 and received a score of 6/20. The average score was an alarmingly low 4.6/20 and the highest score was 15.5/20.
Chicken welfare in Europe
The Pecking Order reports by World Animal Protection assess the commitments and progress of global fast-food brands with regards to chicken welfare in their supply chains. Companies get points for what is in their policies, how quickly they plan to improve and how they are reporting on progress. The Pecking Order 2023 assesses chicken welfare in six individual countries in Europe: France, Germany, Italy, Poland, Romania and Spain. Ikea rated "poor" in all 6 countries except Poland, where it rated "getting started".
Source: World Animal Protection
(2023)
Tier 5 in farm animal welfare rankings
The Business Benchmark on Farm Animal Welfare (BBFAW) 2023 Report ranks global food companies on their farm animal welfare policies, practices and performance. This company appeared in tier 5, "On the business agenda but limited evidence of implementation", with tier 1 being the best, and tier 6 the worst.
Source: BBFAW
(2023)
Tax avoidance
This company scores Ethical Consumer's worst rating for the likely use of tax avoidance strategies, and has at least two high risk subsidiaries in tax havens.
Source: Ethical Consumer
(2022)
17.9% in Nature Benchmark
The Nature Benchmark ranks 816 companies across 20 industries on their efforts to protect our environment and its biodiversity. Companies were assessed in three phases between 2022 and 2024 using three measurement areas: governance and strategy; social inclusion and community impact; and ecosystems and biodiversity. This company was assessed in 2024 and is ranked #303/816, with a total score of 17.9/100.
Soy scorecard 2016 - WWF
The WWF Soy Scorecard 2016 rates companies on their use of responsible soy, grown without damaging the environment and harming people. This company failed to respond to requests for information.
Source: WWF Soy Scorecard 2016
(2016)
Workers rights in China
This 2016 investigative report by China Labour Watch reveals labor abuses in five Chinese cookware factories. One or more of these factories supply this company. Labor abuses include low wages, excessive overtime,, dangerous work environments and humiliating living conditions. [Listed under Information due to age of report]
Source: China Labor Watch
(2016)
Sweatshop Hall of Shame 2010
Named in the International Labor Rights Forum's "Sweatshop Hall of Shame 2010", which highlights apparel and textile companies that use sweatshops in their global production. [Listed under Information due to age or report]
Failure to sign International Accord
This company has been called out by the Clean Clothes Campaign (CCC) for not signing the International Accord for Health and Safety in the Textile & Garment Industry. All of the brands that have not yet signed the Accord continue to put workers' lives at risk and CCC urge them to sign on as soon as possible.
Source: Clean Clothes Campaign
(2023)
Climate action commitments
As listed on the We Mean Business website, this company has committed to the following climate action initiatives: adopt a science-based emissions reduction target; commit to 100% renewable power; responsible corporate engagement in climate policy; commit to electric vehicles.
Source: We Mean Business
(2021)
Animal Welfare awards
Compassion in World Farming is a UK-based organisation which works with the European food industry to encourage and reward commitment, transparency, performance and innovation in the field of animal welfare. This company has won a number of awards since 2008.
Use of non-mulesed wool
Brands owned by this company are listed in Human Society International Australia's Better Wool Guide as using 100% non-mulesed wool from a robust certification scheme, or has a time-bound commitment to do so. Mulesing is the controversial practice of removing strips of the skin of a lamb's rear and is often done without pain relief. In Australia, the only country where mulesing still occurs, an estimated 10 million merino lambs are subjected to mulesing each year - equivalent to 19 lambs per minute.
Source: HSI Australia
(2024)
Responsible Minerals Initiative member
This company is a member of the Responsible Minerals Initiative (formerly the Conflict-Free Sourcing Initiative), which helps companies address conflict minerals issues in their supply chains. The RMI provides information on conflict-free smelters and refiners, common tools to gather sourcing information, and forums for exchanging best practices on addressing conflict minerals. Membership is open to companies that use or transact in tantalum, tin, tungsten or gold (3TG). Founded in 2008 by members of the Electronic Industry Citizenship Coalition and the Global e-Sustainability Initiative.
Source: RMI
(2019)
GFTN participant
This company is a participant in WWF's Global Forest and Trade Network (GFTN), which seeks to mainstream the principles of responsible forest management and sustainable trade throughout the global forest products industry, by providing technical assistance and fostering linkages between committed companies. Independent forest certification is a key tool in this process.
Source: WWF
(2019)
Textile Exchange member
This company is a member of the Textile Exchange, a global non-profit that works closely with its members to drive textile industry transformation in preferred fibres, integrity and standards and responsible supply networks. They identify and share best practices regarding farming, materials, processing, traceability and product end-of-life in order to reduce the textile industry's impact on the world's water, soil and air, and the human population.
Source: Textile Exchange
(2019)
Leather Working Group member
This company is a member of the Leather Working Group, a multi-stakeholder group who's objective is to develop and maintain a protocol that assesses the compliance and environmental performance of tanners and promotes sustainable and appropriate environmental business practices within the leather industry.
Source: Leather Working Group
(2022)
Global Plastics Treaty endorsee
In 2022 after more than 170 nations backed a historic UN resolution to end plastic pollution, global businesses across the plastics value chain, financial institutions, and NGOs came together to announce a common vision for an effective and ambitious Global Treaty to End Plastic Pollution. The vision will form the basis for future policy engagements with governments through a newly launched Business Coalition for a Global Plastics Treaty which will be convened by the Ellen MacArthur Foundation and WWF. This company has endorsed the vision statement of the treaty.
Source: Global Plastics Treaty
(2023)
Ellen MacArthur Foundation strategic partner
This company is a strategic partner of the Ellen MacArthur Foundation, whose stated mission is to accelerate the transition to a circular economy. The Ellen MacArthur Foundation works with business, government and academia to build a framework for an economy that is restorative and regenerative by design.
Supply chain practices in China
The Green Supply Chain Corporate Information Transparency Index (CITI) evaluates consumer-facing companies that have a sizeable supply chain in China. The evaluation uses government supervision data and public information to assess the environmental management of their supply chains in China. This company received a score of 34.66/100 (retrieved 24 Nov 2023).
Source: IPE
(2023)
Stichting INGKA Foundation
No assessment data currently available for Stichting INGKA Foundation.
Company Details
Type:
Wholly-owned subsidiary
Revenue:
1.4 billion AUD
(2019)
Employees:
3,700
(2019)
Contact Details
Products / Brands
Ikea Australia
Ikea
Homewares Stores