University Report: BSNS7730 Sustainability in Business - IKEA

This report analyzes IKEA's sustainability practices, focusing on the application of the Natural Step (TNS) framework and its scientific principles. It examines the four system conditions of TNS, backcasting, and the ideological TNS funnel. The report explores how IKEA integrates sustainability into its business model, including its actions related to renewable energy, resource regeneration, and sustainable sourcing. Furthermore, the report connects IKEA's actions to the planetary boundaries model, specifically focusing on climate change, and suggests strategies for reducing the company's environmental impact, such as investing in renewable energy sources and promoting resource regeneration. The report also highlights the similarities and differences between natural and business systems and the impact of business activities on environmental degradation. The report concludes by emphasizing the importance of sustainability in business and how IKEA's actions contribute to reducing its carbon footprint and promoting environmental sustainability.

Running head: SUSTAINABILITY IN BUSINESS
BSNS7730 Sustainability in Business
Assignment 1
Student Name:
Student Id:
University Name
0

SUSTAINABILITY IN BUSINESS
Contents
Discussion........................................................................................................................................2
References........................................................................................................................................6

SUSTAINABILITY IN BUSINESS
Discussion
1. The scientific principles of sustainability gives base to the structure of natural step (TNS),
having focus on the origination of the relationship between cause and effect besides
integrating broader environment and socio-economic system in its thinking. According to
Alexius & Furusten (2019), this framework has been designed correspondingly to the
actions and conduct that are direct for working towards the achieving sustainability.
Discussed briefly below are the elements of the TNS framework:
Four System Conditions: popularly known as the sustainability principles, was put forward by
scientists globally. It contributes in specifying the elementary circumstances required to fulfil for
achieving and maintaining sustainability. The four conditions are:
1. Substances extracted from Earth’s crust cannot increase into the biosphere
systematically, it means that one cannot extract fossil fuels, metals, and other minerals from the
Earth’s crust at a rate faster than they are re-deposited.
2. Society produced substances cannot increase in the biosphere systematically, which
means that people should not produce substances should not at a rate faster than they break down
in nature.
3. Physical base of the nature’s productivity and diversity should not be consistently
degenerate, it means that the ecosystems cannot be harvested or manipulated by people that
decline their capacity to produce, or risks the natural diversity of life forms.
4. For meeting the earlier three system conditions, use of resources for meeting the needs of
human should be fair and efficient, it means that the basic needs of humans should be met with
methods that are resource-efficient besides equitable distribution of resources.
The first three conditions are related with how humans correlate with the earth while the fourth
condition emphasizes on achieving sustainability across the worldwide community.
Backcasting: according to Eswarlal & Vallesi (2014), this process, which contributes to
determine the product, service or organization’s needs; stakeholders identification; analyse the
prevailing situations; develop future scenarios and identification and implementation of

SUSTAINABILITY IN BUSINESS
strategies, is applied on numerous purposes such as planning, decision-makings, scenarios,
innovation.
The ideological TNS funnel: it is described as a theoretical interpretation of the resources
availability and utility. It significantly contributes illustrating that with rising population and
resource demand or increased use of resources, it is likely that the availability of resources will
decline thus, confining the freedom owing to individuals and organizations having lesser scope
for moving. However, by achieving sustainable demand and supply to a certain extent this can be
averted.
In the existing report the part of TNS selected revolves around the A-B-C-D process, which
assists to effectively implement sustainability by
Building awareness and comprehension: organizations are aligned with common
understanding in relation to sustainability.
Baseline Mapping: materials and energy flow are assessed by materials and energy flow besides
affecting the society by making use of the four step condition discussed in the earlier section.
Creating vision and strategic plan: according to Müller & Pfleger (2014), for achieving
sustainable society organizations develop long-term vision followed by facilitating a strategy
from this point of view in order to attain sustainability and look backwards. Backcasting is been
used by this step of A-B-C-D process with intent of recognizing step by step solution for
bringing organizations from their prevailing condition towards a sustainable situation.
Down to action: actions are implemented by the organizations in the final step of this process
and backcasting process used for evaluating the decisions constantly thereby, encouraging that
they attain the vision that was created in the initial stage.
Mentioned below are the similarities between natural system and business system:
 Various sub-systems like land, water, living things and air comprises the natural
system while business system consists of different subsystems such as marketing,
production, human-resource etc.

SUSTAINABILITY IN BUSINESS
 The natural system’s effective functioning depends largely on the relation and co-
ordination of its various sub-systems. On the other hand, the effectual work of
business system relies heavily on coordination and relation amidst its numerous sub-
systems.
The primary difference amidst the natural system and business system revolves around the fact
that the former system is not man-made whereas the later system is made by humans with intent
of meeting the organization objectives. According to Green, et al., (2017), the impact of different
actions taken by organizations largely can be seen in the form of environment degradation and
resources depletion. It has been observed that for carrying out their everyday business activities
numerous natural resources are used by the organizations. This has eventually resulted into the
degradation of the environment through increase pollution, toxic level and a key cause behind
climate change. Most organizations fail in adopting a sustainability approach to perform their
activities further resulting into negatively impacting the natural system.
2. For promoting sustainability in its business various actions have been adopted by IKEA,
some of these actions focus on translating the overall usage of lighting across its premises
and other business units into LED solutions that are more energy efficient U.S.
Environmental Protection Agency’s Green Lights Program. According to Chabrak
(2015), the company also sources raw materials like cotton and timber through more
sustainable resources, flat packaging and use of chlorine-free paper in catalogue and
advertising flyers besides working towards the achievement of 100% renewable energy
and create energy equivalent to its operational consumption. Moreover, economical
products and solutions are also provided for achieving effectiveness in the use of scarce
natural resources like water and energy besides solutions for renewable energy and waste
sorting. IKEA is also working towards the implementation of its newer commitments
towards environmental policies. According to Reichart & Larson (2008), IKEA’s
environmental programs actions are linked with the four functions of TNS framework
based on rudimentary scientific principles that one can neither create nor destroy matter
and energy, and closed systems like the Earth gravitate towards destruction over time.
Recognizing the business opportunities in both short and long-term sustainability, an

SUSTAINABILITY IN BUSINESS
environmental policy has been designed by IKEA by making use of the system
conditions backed by an action plan.
Aligning with its approach of incorporating sustainable measures into the business operations,
utilization of renewable energy sources, generating energy equivalent to its consumption,
sourcing raw materials from sustainable sources, production of nature friendly products and
meeting customers demand at the same is ensured by IKEA. Furthermore, reflections of TNS’s
A-B-C-D model can also be seen on its actions with reference to sustainability implementation.
According to Cosmo & Yang (2017), the different stages that are involved sustainability
implementation in this model have been adopted at IKEA by focusing on building awareness and
understanding about sustainability amidst society and its stakeholders, baseline mapping
involves evaluating the effect of its business operations, creating vision and strategic plan for the
promotion and implementation of its sustainability plan and finally taking actions for promoting
sustainability. The effects of IKEA’s actions are perceived sustainable owing to their
contributions in promoting sustainability besides reducing the adverse impacts of its business
operations on the environment. IKEA’s initiatives have helped the company to lessen its carbon
footprint, by sticking with sustainability principles decrease effect on planetary boundary of
climate change.
3. Climate change has been selected as the planetary boundary in this report since IKEA’s
business activities and operations might be affecting the climate thus, contributing
towards rapidly increasing climate change. For lessening its impact on climate change
the company needs to switch towards incorporating the utility of renewable energy
sources across its operational functions besides resources regeneration it uses for
productions. By adopting these actions IKEA can make visible contributions in lessening
its impact on climate change. This will happen because use of renewable energy will
empower the retailer in preserving the long-established energy sources which contribute
in climate change owing to their emissions. Meanwhile, resource regeneration will help
to promote environmental sustainability. According to Furlan, Lopes de, Kannan &
Chiappetta Jabbour (2017), for executing these actions making adequate investments in
areas developing renewable energy sources is needed besides designing strategies for

SUSTAINABILITY IN BUSINESS
resource generation through alliances with non-profit organization working towards
similar cause. Although initial investment will be relatively higher, but taking into
account the long-term benefits it will reap, the investment will become negligible. IKEA
for implementing the actions focusing on lessening its impact on climate change will
encourage staffs in overseeing the actions adopted for sustainability promotion thereby,
increasing their interests and contributions in the company’s approach towards
sustainability. Furthermore, these actions will be satisfying the customers’ demand of
buying from a sustainable and environment friendly brand. Additionally, IKEA’s
suppliers will also get encouragement in supplying raw materials processed through
sustainable resources for establishing long-term business relations with the brand.
References
Alexius, S., & Furusten, S. (2019). Enabling sustainable transformation: Hybrid organizations in
early phases of path generation. Journal of Business Ethics, , 1-17. Retrieved from
http://dx.doi.org/10.1007/s10551-018-04098-0
Chabrak, N. (2015). Promoting corporate social responsibility and sustainability: A model of
integrity. Society and Business Review, 10(3), 280-305. Retrieved from
https://search.proquest.com/docview/1733112852?accountid=30552
Cosmo, D. E., & Yang, K. (2017). A further strategic move to sustainability-A case study on
IKEA. Journal of Strategic Innovation and Sustainability, 12(2), 39-47. Retrieved from
https://search.proquest.com/docview/1990802127?accountid=30552
Eswarlal, V. K., & Vallesi, M. (2014). Different stages of business sustainability: A visual
metaphor. Management Research, 12(3), 308-325. Retrieved from
https://search.proquest.com/docview/1655513604?accountid=30552
Furlan, M. A., Lopes de, S. J., Kannan, D., & Chiappetta Jabbour, C. J. (2017). Contingency
theory, climate change, and low-carbon operations management. Supply Chain
Management, 22(3), 223-236. Retrieved from
https://search.proquest.com/docview/1926837771?accountid=30552

SUSTAINABILITY IN BUSINESS
Green, J. M., H., Cranston, G. R., Sutherland, W. J., Tranter, H. R., Bell, S. J., & Vira, B. (2017).
Research priorities for managing the impacts and dependencies of business upon food,
energy, water and the environment. Sustainability Science, 12(2), 319-331. Retrieved
from http://dx.doi.org/10.1007/s11625-016-0402-4
Müller, A., & Pfleger, R. (2014). Business transformation towards sustainability. Business
Research, 7(2), 313-350. Retrieved from http://dx.doi.org/10.1007/s40685-014-0011-y
Reichart, J., & Larson, A. (2008). IKEA and the Natural Step. Retrieved from
https://www.researchgate.net/publication/228145455_IKEA_and_the_Natural_Step