Business Sustainability Report: TNS Model, IKEA Case Study Analysis

This report analyzes the application of the Natural Step (TNS) framework to business sustainability, using IKEA as a case study. It begins with an overview of the TNS framework, including its four system conditions, backcasting methodology, and the TNS funnel, explaining how these concepts support scientific principles of sustainability. The report then delves into IKEA's sustainability actions, such as its use of LED solutions, sustainable sourcing of raw materials, and commitments to renewable energy. It connects these actions to the TNS model, specifically highlighting the four system conditions and the A-B-C-D process for sustainability implementation. Furthermore, the report addresses the impact of IKEA's activities on planetary boundaries, focusing on climate change and resource regeneration. It concludes by discussing the benefits of IKEA's sustainability approach, including increased stakeholder interest and contributions. The report draws on several academic sources to support its analysis, providing a comprehensive understanding of sustainable business practices.

Sustainability in
business
Prepared by:

Elements of TNS Framework
• Four Systems Conditions
• Backcasting
• TNS Funnel
Four System Condition
1. Substances extracted from Earth’s crust
cannot increase into the biosphere
systematically
2. Society produced substances cannot
increase in the biosphere systematically
3. Physical base of the nature’s productivity
and diversity should not be consistently
degenerate
4. For meeting the earlier three system
conditions, use of resources for meeting the
needs of human should be fair and efficient

Continued..
Backcasting
It determines the product, service or organization’s needs; stakeholders
identification; analyze the prevailing situations; develop future scenarios and
identification and implementation of strategies, is applied on numerous purposes
such as planning, decision-makings, scenarios, innovation.
TNS Funnel
It is 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.
Eswarlal & Vallesi (2014)

A-B-C-D process for sustainability implementation
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. Müller & Pfleger (2014)
Creating vision and strategic plan: 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.

IKEA’s sustainability actions
• Usage of LED solutions for lighting across its premises and other business units
into under the U.S. Environmental Protection Agency’s Green Lights Program
• Acquiring raw materials like cotton and timber through sustainable resources.
• Fat packaging and use of chlorine-free paper in catalogue and advertising flyers
• Working towards 100% renewable energy and create energy equivalent to its
operational consumption
• Providing economical solutions for achieving effectiveness in the use of scarce
natural resources like water and energy besides solutions for renewable energy
and waste sorting.
• Working towards the implementation of its newer commitments towards
environmental policies.
Chabrak (2015)

IKEA’s relation with TNS model
• Four system condition: human resources are used besides
resource regeneration while meeting customer demands
• A-B-C-D process sustainability implementation: It build
awareness in the society, identifies impact of its operation,
develops vision and strategic plan and take actions
accordingly.

Planetary boundary addressed
• 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.
• Resource regeneration will help to promote environmental
sustainability.
• Initial investment is higher, but the long-term benefits will make the
investment negligible.
• It will increase stakeholders interests and contributions in IKEA’s
sustainability approach

References
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
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
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