Sustainability in Business Report: Analysis of IKEA's Practices

This report examines sustainability in business, utilizing the TNS framework and the A-B-C-D process to analyze IKEA's sustainability strategy. The report begins by defining the TNS framework, its four system conditions, and the backcasting method. It then explores the similarities and differences between natural and business systems, highlighting the environmental impact of business activities. The report then delves into IKEA's sustainability initiatives, including its commitment to renewable energy, sustainable sourcing, and climate action. It connects these actions to the TNS model's four functions and the A-B-C-D process. The report assesses the impact of IKEA's actions, considering them sustainable and beneficial. Finally, it identifies climate change as a relevant planetary boundary and suggests actions IKEA can take to reduce its impact, such as investing in renewable energy and resource regeneration. The report emphasizes the importance of staff motivation, customer satisfaction, and supplier engagement in implementing these actions.

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Running head: SUSTAINABILITY IN BUSINESS

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Discussion
1. As stated by Agarchand & Laishram (2017) the natural step framework of TNS is based
on scientific principles of sustainability as it is focuses on inception of cause-effect
relationship and also integrates wider environment and socio-economic system in its
thinking. TNS framework is designed accordingly to direct activities and conduct and it
works towards attaining sustainability. TNS framework consists of following elements:
Four System Conditions- four system conditions also termed as principles of sustainability were
proposed by scientists worldwide and specify fundamental conditions which need to be fulfilled
if sustainability is to be attained and maintained. The four conditions are:
“In sustainable society, nature is not subject to systematically increasing …
 … concentrations of substances extracted from earth crust.
 … concentrations of substances produced by society.
 … degradation by physical means.
 … human needs worldwide.”
The first three conditions link to how human beings correspond with planet and last condition is
about attaining worldwide sustainable community.
Backcasting- The process of backcasting is used for various purposes which include planning,
decision making, scenarios, innovation. The process of backcasting
 Helps in identifying needs of product, service or organization.
 Helps in identifying stakeholders
 Helps in analysing current situations and conditions
 Helps in developing future scenarios
 Helps in identifying and implementing strategies
The ideological TNS funnel- As stated by Fomina & Apenko (2019) TNS funnel is conceptual
illustration of availability and usage of resources. TNS funnel helps to illustrate that as
population and demand of resources rises or population and resource use enhances, resources

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which are available will decrease and freedom will be confined. This is because individuals and
business organizations will have less scope to move, nonetheless there is a point when an extent
of sustainable demand and supply is attained.
The part of TNS which is being chosen in current report is A-B-C-D process. The A-B-C-D
process of TNS which helps in implementing sustainability in an effective manner is as follows:
Awareness building and understanding- The business organizations are aligned with common
understanding regarding sustainability.
Baseline Mapping- Business organizations assess their materials and energy flow and impact
society by using four step condition.
Creating and vision and strategic plan- A long term vision is developed in organization to attain
sustainable society. A strategy is facilitated from perspective to have attained sustainability and
looking backwards. This step of A-B-C-D process utilises backcasting and recognises step by
step solution to bring an organization from existing situation to sustainable situation.
Down to action- In last step of this process, organizations implement actions. The process of
backcasting is utilised to continuously assess decisions to encourage that organizations achieve
vision which was developed by them during first stage of process.
The similarities between natural system and business system are:
 The natural system is composed of various sub-systems such as land, water, living
things and air while business system is composed of various subsystems such as
marketing, production, human-resource sub-system etc.
 The effective functioning of natural system is based on relation and co-ordination of
various sub-systems of natural system. While effective functioning of business
system is dependent on co-ordination and relation between various sub-systems of
business system.
The main point of difference between natural system and business system is that natural system
is not man-made whereas business system is man-made so as to meet objectives of business
organization.

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Business activities largely impact natural system in form of degradation of environment and
depletion of resources. In order to carry out their day to day activities, business organizations
utilizes various naturally occurring resources which degrades environment by increasing level of
pollution, by increasing toxic level and by contributing towards climate change. It is mostly
observed that activities carried out by major organization lack an approach of sustainability
which impacts natural system in negative manner.
2. According to IKEA Sustainability Strategy (2018) actions adopted by IKEA to promote
sustainability in business includes switching their total lighting utility to energy efficient
LED solutions, sourcing all cotton utilised in their products from more sustainable
sources, working to attain 100% renewable energy and accordingly creating as much
energy as is consumed in their operations, sourcing all wood required from sustainable
sources, providing affordable products and solutions for water efficaciousness, energy
efficaciousness, renewable energy and waste sorting solutions as well as implementing
new commitments which adds up to $1 billion for climate action.
As stated by Winnard, Adcroft, Lee & Skipp (2014) actions taken by IKEA is related to TNS
model element of four functions which states that in sustainable community the nature is not
subjected to systematic increase in concentrations of substances extracted from earth crust,
substances originated by society, substances degraded by physical means or by human need.
Similarly as IKEA has adopted sustainability in its business operations it ensures that it uses
renewable sources of energy, produces as much energy as it consumes, sources products from
sustainable sources, designs products which are affordable in nature and promotes sustainability
and at the same time helps to meet demand of customers. Therefore it can be stated that actions
taken by IKEA relates to TNS model. The action taken by IKEA is also related to A-B-C-D
model of TNS regarding implementation of sustainability. In ABCD model various stages which
are involved in implementing sustainability includes awareness building and understanding,
baseline mapping, creating vison and strategic plan and down to action. In IKEA too, first step
involved in implementing sustainability is to build awareness among society and its stakeholders
regarding sustainability, second step is analysing impact of current business operations, third step
involves creating a vison and strategic plan to implement and promote sustainability and lastly
taking actions to promote sustainability.

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As opined by Alon & Vidovic (2015) impact of actions taken by IKEA can be considered as
sustainable as it helped in promotion of sustainability and also helped in minimization of
negative impacts of business operations. The actions which are taken IKEA also helps in
reducing carbon foot print on environment, helps to achieve positive outcomes for triple bottom
line of sustainability, reduces impact on planetary boundary of climate change by abiding with
principles of sustainability. Therefore actions implemented by IKEA can be termed as
sustainable measures.
3. The chosen planetary boundary which has been chosen for current report is climate change as
business activities and operations of IKEA tend to affect climate and eventually contribute to
climate change in environment. The actions which IKEA can take to reduce its impact on climate
change is use of renewable sources of energy for all day to day business operations and
regeneration of resources which are required by IKEA.
As stated by Bran, Radulescu & Ioan (2015) above mentioned actions can be helpful for IKEA in
reducing its impact on climate change as by using renewable sources of energy, IKEA will be
able to conserve traditional sources of energy which mainly contributes towards climate change
because of emissions associated with it. The regeneration of resources by IKEA which are
required will help in promoting environmental sustainability which will in turn help in reducing
its impact on climate change.
As opined by Thomson & El-Haram (2014) in order to implement above mentioned actions,
IKEA needs to invest on development of renewable sources of energy and also undertake
strategies to generate resources by partnering with other organizations such as NGOs. Though
initial cost of investment will be high for IKEA in order to implement actions, but considering
benefits associated with implementation of activities in long run, the initial investment appears to
be negligible.
In order to implement actions to reduce impact on climate change, staffs of IKEA will be
encouraged and motivated to see the actions adopted regarding promotion of sustainability. This
will make staffs remain eager to contribute to sustainability approach of IKEA. The actions
implemented will also satisfy requirements of customers regarding purchase of green and
sustainable products and they will be more attached to products of IKEA. The actions

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implemented will also encourage suppliers of IKEA to supply sustainable raw to ensure
continuity of orders from the company.

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