IKEA Launches Secondhand Marketplace to Cut Emissions
IKEA is making significant strides in reducing its environmental impact by launching a second-hand marketplace called IKEA Preowned.
The innovative platform encourages customers to buy and sell used IKEA furniture, aiming to tackle the challenging Scope 3 emissions—those produced by suppliers and customers—through a circular economy approach.
Initially launched in Madrid and Oslo, IKEA Preowned is set to expand globally, representing a bold step in the company's sustainability efforts.
Addressing downstream emissions
IKEA Preowned is designed to directly address category 12 of Scope 3 emissions: the end-of-life treatment of sold products.
By facilitating the resale of its furniture, IKEA is working to keep its products out of landfills, where they contribute to greenhouse gas emissions. The initiative not only helps reduce waste but aligns with IKEA’s commitment to sustainability.
Jesper Brodin, CEO of Ingka Group | IKEA, emphasised the importance of this effort, stating: "With the test we will get deeper insights in how we can meet people's dreams and needs in life at home, by making the IKEA range more accessible at an even lower price and as a part of our sustainability efforts."
Circular economy in action
- Category 1 (Purchased goods and services): By extending the lifespan of its products, IKEA aims to reduce the demand for new raw materials, thereby lowering the environmental impact of its supply chain.
- Category 4 (Upstream transportation and distribution): The reduction in the production of new items could lead to a decrease in emissions associated with shipping and distribution.
- Category 11 (Use of sold products): By promoting the reuse of furniture, IKEA is encouraging more efficient utilisation of products, which could further reduce emissions over the lifecycle of these items.
Potential impact on IKEA's business model
The introduction of the IKEA Preowned marketplace could have far-reaching implications for the company’s business strategy.
For one, it signals a potential shift from traditional brick-and-mortar retail to online platforms, which could help reduce Scope 1 and 2 emissions from retail operations.
Additionally, the focus on reselling used furniture may drive IKEA to design more durable products, facilitating multiple resales and reducing upstream Scope 3 emissions related to manufacturing.
The shift towards durability and resale also aligns with broader industry trends, as companies face increasing pressure to take responsibility for their products throughout their entire lifecycle.
By embracing this approach, IKEA is positioning itself as a leader in sustainable retail practices, which could encourage other companies to follow suit.
Industry-wide implications
IKEA’s entry into the secondhand furniture market represents a strategic move that could influence the entire retail industry.
As the market for pre owned goods continues to grow, IKEA’s commitment to sustainability through IKEA Preowned could set a new standard for reducing Scope 3 emissions.
The initiative not only aligns with global efforts to combat climate change but opens up new revenue streams for the company.
The success of IKEA Preowned could inspire other retailers to adopt similar models, prioritising sustainability and product longevity over short-term profits. In doing so, the industry as a whole could see a significant reduction in its overall carbon footprint, contributing to a more sustainable future.
Receive the next edition of Scope 3 Magazine by signing up for its newsletter.
As part of this portfolio, make sure you check out Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain LIVE.
Also check out our Sister Brand, Sustainability Magazine and sign up to its global conference series - Sustainability LIVE.
Scope 3 Magazine is a BizClik brand.
Featured Articles
Estonia, Latvia and Lithuania join the European grid, cutting ties with Russian energy, a move that boosts regional security and sustainability
TÜV SÜD: New battery regulations bring Scope 3 hurdles, requiring sustainable sourcing, digital traceability and design changes increasing compliance
Nissan is scaling up its use of green steel, reducing CO2 emissions in its supply chain as part of its goal to achieve carbon neutrality by 2050