BSNS7730 Sustainability in Business: IKEA & Natural Step Model

This report examines the application of the Natural Step (TNS) framework to business sustainability, focusing on IKEA's sustainability initiatives. The TNS framework, based on scientific principles, guides actions towards sustainability by considering cause-effect relationships and incorporating environmental and socioeconomic systems. Key elements of the framework include four system conditions, backcasting, and the TNS funnel, which illustrates resource availability and use. The report details the TNS A-B-C-D process for implementing sustainability: awareness building, baseline mapping, creating a vision and strategic plan, and taking action. IKEA's activities, such as using LED lighting, sourcing sustainable cotton and wood, promoting renewable energy, and committing to climate action, are analyzed in relation to the TNS model and planetary boundaries. The report concludes by highlighting the potential for IKEA to further reduce its climate change impact through renewable energy use and resource regeneration, despite initial costs, ultimately improving stakeholder involvement and environmental sustainability. Desklib provides access to similar solved assignments and study tools.

The natural step framework of the TNS framework is based on the scientific
principles of sustainability as it is focuses on the beginning of cause-effect
relationship and it also incorporates the wider environment and the socio-
economic system in its thinking. The TNS framework is designed accordingly in
order to guide actions and behaviours and it works towards achieving
sustainability. (Satolo & Simon 2015).
Sustainability in Business
Elements of TNS Framework
• Four Systems Conditions
• Backcasting
• TNS Funnel Four System Condition
“In the sustainable society, nature is
not subject to systematically increasing
…
• … concentrations of substances
extracted from the earth crust.
• … concentrations of substances
produced by the society.
• … degradation by physical means.
and, in that society
• … human needs and met
worldwide.”
Backcasting
Helps in identifying the needs of the
product, service or the organization.
Helps in identifying stakeholders
Helps in analysing current situations
and conditions
Helps in developing future scenarios
Helps in identifying and implementing
strategies
TNS Funnel
TNS funnel is a conceptual representation of the availability of resources and the use
of resources. It helps in illustrating that as the population and resource demand
increases or population and resource use increases, the resources which are available
to us also decreases and the freedom becomes restricted. (Gong et al. 2018)
TNS A-B-C-D process of implementing sustainability
• Awareness building and understanding- The business organizations
are aligned with a common understanding regarding sustainability.
• Baseline Mapping- Business organizations assess their materials and
energy flow and the impact of the organization on the society by using
the four step condition.
• Creating and vision and strategic plan- A long term vision is
developed by the organization in sustainable community. A strategy
is developed from outlook of having attained sustainability and
looking backwards. This step of the A-B-C-D process uses
backcasting and identifies step by step solution in order to bring an
organization from the current condition to a sustainable condition.
• Down to action- In the last step of this process, organizations
implement actions. The process of backcasting is used to continuously
assess decisions in order to ensure that the organizations achieve the
vision which was created by them in the first stage of the process.
Sustainability Actions of IKEA
• Switching all lighting units to energy effective LED lighting
• Acquiring all cotton consumed in their products from more
sustainable sources
• Functioning towards 100% renewable energy and
accordingly producing as much energy as they consume in
their operations
• Sourcing all the wood required by the company from
sustainable sources
• Providing cost effective products and solutions for water
efficiency, energy efficiency, renewable energy and waste
sorting solutions
• Implementing new commitments which add up to $1 billion
for climate action.Relation of IKEA activities with TNS Model
• Four system condition- The company utilizes human resources and regenerates the
resources while meeting customer demands
• A-B-C-D process of implementing sustainability- 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- The action which IKEA could take in order to reduce its impact in
context of climate change is by using renewable sources of energy for all of its day
to day business operations and by regenerating the resources which are required by
the company.
• Will help in promoting environmental sustainability
• High initial costs but profitable for the company in the long run.
• Will improve the involvement of the stakeholders in the operations of the company.
References
• Gong, Y., Jia, F., Brown, S., & Koh, L. (2018). Supply chain
learning of sustainability in multi-tier supply
chains. International Journal of Operations &
Production Management, 38(4), 1061- 1090.
doi:http://dx.doi.org/10.1108/IJOPM- 05-2017-0306
• Satolo, E. G., & Simon, A. T. (2015). Critical analysis of
assessment methodologies for intraorganizational
sustainability. Management of Environmental
Quality, 26(2), 214-232. Retrieved from
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