30% Carbon Footprint Reduction for the World's Largest Print Run, using big data

Overview

Project: Revolutionizing the IKEA Catalogue production with Big Data and Sustainability
Duration: 3 Years
Key Results:

• Massive Sustainability Gains: The big-data tools led to significant gains in energy, waste, water, and more, starting from the first year and increasing annually: Reduced global carbon footprint from production by 30% in 3 years, saving 484 GWh of energy in the global supply chain.

• Ahead of Schedule: The original goal was for the catalogue to be 100% FSC-certified by 2016. This was achieved one year ahead of schedule.

• Industry-Wide Impact: Due to the catalogue's print volume, the project has had a ripple effect, positively impacting the world's entire print industry and adjacent sectors.

Challenge

The objective was to elevate sustainability across IKEA's global paper and print supply chains through the integration of innovative ESG data dashboard into the purchasers-suppliers negotiation and decision making processes. The ambition stretched beyond merely achieving a 100% FSC-certified print run for its 217-million-copy catalogue, to significantly diminishing the catalogue's carbon footprint, energy consumption, and water and air emissions on a global scale, while managing an extensive array of data from a myriad of suppliers to augment sustainability performance.

Approach

• Devised sophisticated big data tools to decipher and scrutinize supply chain data, unlocking actionable insights to improve the purchasers-suppliers negotiation and decision making processes.

• Fostered robust engagements with suppliers to enhance sustainability performance, establishing a collaborative platform for continuous improvement.

Solution

In partnership with Except Integrated Sustainability, I spearheaded the development of innovative big-data dashboards for purchasers and suppliers. These tools affected the entire life cycle of the catalogue and, by extension, a significant portion of the world's industrial print, paper and pulp production sites.

1. Big Data Dashboards: The dashboards processed 10000 of data points each year, making performance opportunities instantly visible and actionable for both purchasers and suppliers.

2. More Sustainable Procurement: IKEA and Except worked diligently to improve the procurement of paper and print, using ESG data and analytics to inform purchasing decisions and to further optimize the negotiation and decision making processes.

3. Self-Learning Supply Chain: The project evolved into the world's largest sustainability-driven "Self-Learning" Supply Chain, with a cost/benefit ratio of over 200 for energy savings alone.

"These dashboards strengthen the interactive, collaborative dynamic with all stakeholders, from suppliers to the decision makers. As a big player, IKEA has the leverage to drive a transition toward greater sustainability in our paper and print supply chain. This project helped us push sustainability up on the agenda of our suppliers and make it an integral part of purchasers-suppliers negotiations, away from just discussions between sustainability specialists. That is where the magic happens, and it's far beyond what we expected or imagined."

Conclusion

The project sets a new standard in corporate sustainability, proving that with the right decision making tools and partnerships, it's possible to achieve ambitious environmental goals while also making data-driven, cost-effective decisions. The IKEA catalogue transition serves as a benchmark for integrating big data and sustainability to optimize global supply chains.

Impacts

• Achieved 100% FSC certification one year ahead of schedule

• Reduced global carbon footprint by 30%

• Saved 484 GWh of energy

"The IKEA catalogue transition project serves as a benchmark in corporate sustainability, proving that it's possible to align business goals with environmental stewardship."

Teams

Matthieu Leroy, Sustainability Specialist, Media Production at Inter IKEA Systems - Strategic Integrator:

• Developed and orchestrated the sustainability strategy, the ESG data and analytics reporting and external auditing processes

• Spearheaded a seamless ESG data gathering RFI process and ESG data integration in the dashboard development process with the multi-disciplinary team

• Analyzed carbon footprint, energy consumption data, out of +120 points of social and environmental data points from each potential production site

• Ensured the quality and usability of the purchaser and suppliers' ESG dashboards, enabling a seamless ESG data integration into the purchasers supply chain optimisation software (TradeExtension)

EXCEPT Integrated Sustainability:

• Developed and implemented big-data dashboards enabling sustainable decision-making for purchasers and suppliers

• Provided interactive storytelling tools promoting stakeholder engagement

• Assisted in transforming the supply chain into a self-learning system

Deloitte:

• Audited the ESG data from potential paper and print production sites

TradeExtension:

• Integrated +10000 ESG data into their supply chain optimization software for the annual RFI and RFQ processes

WWF:

• Supported the initiative to achieve FSC certification, promoting responsible paper sourcing.

Preferred by Nature (formerly NEPCON):

• Audited the FSC certification process and labelled the 2015 IKEA catalogue, ensuring compliance with FSC standards

Sources

• IKEA - how environmentally friendly is the IKEA catalogue?

• Except Integrated Sustainability - Intuitive Dashboards Enable Sustainable Decision Making

• Except Integrated Sustainability - Interactive Story Telling Tools Promote Stakeholder Engagement

• Except Integrated Sustainability - Revolution of the IKEA Paper Supply-Chain

• WWF - World's largest print run now carries FSC label

• Preferred by Nature - How to orchestrate the world’s largest FSC print run