Australian Businesses Need To Step Up For Sustainability

Media release

24th March, 2010

Australian Businesses Need to Step up for Sustainability
New research sees Australians turning to corporate sector to lead the charge for social and environmental sustainability

New IKEA research has revealed that nine-in-ten Australians believe the corporate sector should be taking more responsibility for ensuring Australia's social and environmental sustainability. These figures are revealed as IKEA Australia launches its Never Ending List, the company's ongoing, global commitment to a more sustainable organisation, as well as the plans for Sydney's new Tempe store.

The Newspoll survey[1], commissioned by IKEA Australia, found that nine-in-ten Australians aged 18 to 64 believe companies and organisations should be doing more to protect the environment and over half feel they should be doing a lot more. According to IKEA Australia's Country Manager, David Hood, being socially and environmentally accountable isn't a matter of corporate responsibility, it makes good business sense.

"What this research shows is that Australians are demanding that businesses have a stronger stance on issues concerning sustainability. One in two Australians have been influenced to buy from a company they have heard positive things about in relation to its environmental or social practices. Likewise, over half of Australians say they have been influenced against buying from an organisation they'd heard negative things about.

"Consumers are becoming increasingly discerning when it comes to what they are buying and doing to promote environmentally-friendliness. There is no option any more: as retailers, we have to step up to the mark. It just makes sense," Mr Hood said.

IKEA's Never Ending List comprises nearly 100 business and product-related accomplishments and improvements aimed at areas where the company can make significant impact. These include everything from products and materials, to suppliers, energy and transport, and community involvement.

Mr Hood said, "IKEA recognises that until this point we have potentially been part of the problem. The Never Ending List is our commitment to contribute to the solution. This means that we will constantly review what we are doing and how we are doing it to ensure we have as little impact on the social and natural environments as possible.

"Whether the changes are small, such as using off cuts from quilts to stuff pillows or making bowls from natural resources like bamboo and banana fibre; to more significant changes including store design, waste management, increasing our commitment to our social partners UNICEF, Save the Children and WWF, or extending our flat pack offering, this never ending list is our long term commitment, both in Australia and across the world.

"For a global business like IKEA, acting local and not just thinking but acting global is one and the same thing."

Emeritus Professor Dexter Dunphy from the School of Management at Sydney's UTS, believes IKEA's Never Ending List initiative signals an important change in commitment by major retailers to sustainable manufacturing, marketing and distribution of well designed environmentally-friendly products.

"As individuals we often feel that there is little we can do to help create a more sustainable world for our children and grandchildren. As members of the workforce we can often help make our workplaces more sustainable. But all of us, as consumers, have much greater power by choosing to support companies that demonstrate genuine environmental and community leadership. We need to see each purchase we make as a potential vote for the coming consumer revolution," he said.

One of the first local initiatives in the Never Ending list is IKEA Australia's new Tempe store, which will boast a range of sustainable design features*, making it a leader amongst retail outlets. Located on Sydney's Princes Highway, the 37,000 m2 development is part of IKEA's long term national expansion plans, which will see a total of eight stores across Sydney, Melbourne and Brisbane by 2015.

For more information on IKEA's Never Ending List, visit www.ikea.com.au/neverendinglist.

- Ends -

On Wednesday March 24, IKEA Australia will be hosting a one-off event to present IKEA's global Never Ending List, discuss the goals and challenges facing the company as it moves towards becoming more sustainable and reveal the plans for Sydney's new Tempe store.

Speakers include Emeritus Professor Dexter Dunphy from the School of Management at Sydney's UTS, Sustainability Manager of the IKEA Group (Sweden), Stefano Brown, as well as IKEA Australia's Country Manager, David Hood.

It will be taking place at 9.30am at Doltone House, Darling Island. If you would like to attend, please contact Siobhan Waterhouse on [email protected]

[1] Research was conducted online amongst members of a permission-based panel of 1,246 Australians aged 18 64 years by Newspoll between January 29 and 31, 2010. Data was weighed to the latest population estimates sourced from the Australian Bureau of Statistics.


NOTES TO EDITORS:

About Sydney's new store (opening 2011)*

The new Tempe store is not only going to be the largest freestanding IKEA store in the Southern Hemipshere, but it will boast a range of sustainable design features, making it a leader amongst retail outlets.

Located on the Princes Highway in Tempe, the 37,000 m2 development will be 40 per cent bigger than the current Homebush store and Sydney's second store (the Homebush store will remain open). It will employ between approximately 500 people and the distance from entry to exit will be 2.5km the equivalent of doing the Bondi to Bronte coastal walk!

The Tempe store is part IKEA's long term national expansion plan, which will see a total of eight stores opening across Sydney, Melbourne and Brisbane by 2015.

The IKEA development is being built on the former Tempe tip site and includes restoration of a heritage building (former Penfolds warehouse, workshop and administration building). IKEA has invested significantly to regenerate the land and 95% of the materials generated from the demolition have been recycled.

Building Construction and Performance:

IKEA's aim is to achieve a 40% energy reduction and 60% water reduction in comparison to a typical bulky goods / retail development through the adoption of the following key sustainability strategies:

- Chilled beam air conditioning throughout the store, utilising chilled water recirculation from water storage tanks located on site. Building occupants will have a greater degree of comfort than experienced with general air conditioning systems.

- Recycling of all roof rainwater into harvesting tanks with a 500,000L capacity for irrigation usage, toilet flushing and replenishment of cooling tower water lost through evaporation and drift.

- In an effort to significantly reduce total store consumption, IKEA Tempe will have roof-top solar panels for heating water used in store and kitchen. Collectively, the new panels should offer an annual reduction in C02 emissions equivalent to planting 5760 trees, and enough energy to provide hot water to 24 homes.

Transport:

Increase in transport can impact the carbon emissions associated with a development of this size, We have great potential to create a big reduction in the overall emissions for the site, by implementing the following strategies.

- Bus shelters with seating and lighting located on the Princes Highway, adjacent to the new intersection.

- Locker and shower facilities, as well as secure bike storage, for co-workers that cycle to work

- Bus and van set down/pick up area for customer pooling and tours

- Preparation and maintenance of a Transport Access Guide (TAG) in accordance with the RTA Guidelines for employees and customers. The TAG will incorporate measures to encourage car pooling for employees.

Recycling and Waste Management:

- 80% diversion/recycling rate from all retail and food operations. This will include a consumer take-back service for Batteries and Light Bulbs.

- IKEA will recycle 95% of all materials produced during demolition of the Tempe site.

About IKEA

Customers around the world have embraced the IKEA concept since its inception over 50 years ago. IKEA is the world's largest home furnishings retailer with 285 stores in 36 countries/territories, employing more than 135,000 co-workers.

In 2008, a total of 565 million people visited IKEA stores globally, and almost 200 million copies of the annual IKEA catalogue were distributed in 52 editions and 27 languages. Last year, the turnover for all IKEA stores was 21.5 billion euros (approx AU$32.6 billion). For further information on IKEA, visit www.IKEA.com.au.


SOURCE: IKEA