IKEA replaces Russia, Belarus with wooden provides from EU international locations – EURACTIV.com


IKEA is utilizing extra wooden from Sweden and the Baltics to make up for not sourcing it from Russia and Belarus which the corporate has shunned as a result of Moscow’s battle in Ukraine, its wooden provide boss stated in an interview.

The world’s largest furnishings model – one of many world’s high wooden customers – used 20 million cubic metres of wooden in its merchandise, packaging and communication materials within the 12 months via August 2022.

“We’ve managed to interchange these (Russia and Belarus) volumes in different international locations on a extremely popular wooden market,” Ulf Johansson, International Wooden Provide and Forestry Supervisor at model proprietor Inter IKEA, advised Reuters.

Sweden, the Baltics, Poland and Germany are amongst international locations the place IKEA’s wooden sourcing has elevated on account of the battle in Ukraine, he stated, including that a few of the options could be long-term and others short-term.

Russia and Belarus have been IKEA’s fifth and sixth largest wooden suppliers earlier than the battle, accounting for six% and 5% respectively of its provides, the corporate’s web site stated.

The corporate on Thursday launched a map on its web site exhibiting the origin of all its wooden to satisfy prospects’ calls for for extra transparency.

Poland, adopted by Lithuania and Sweden have been the three largest suppliers within the 12 months via August 2022.

IKEA says it makes use of solely Forest Stewardship Council (FSC) licensed or recycled wooden. It banned suppliers from utilizing Russian and Belarusian wooden after FSC suspended its certification within the two international locations as a result of invasion.

IKEA shops in Russia have been closed since March, whereas IKEA owned purchasing malls stay open. Inter IKEA’s 4 factories within the nation are closed and up on the market.

Johansson stated IKEA is now the midst of a evaluation of its long-term wooden provide technique, when it comes to alternate options to Russia but in addition in mild of growth plans for South America the place it opened its first retailer in 2022.

“Now it additionally appears to be like just like the uncooked materials market goes down a bit so it’s perhaps a bit of simpler state of affairs proper now,” he stated.

Wooden costs are easing after surging previously few years, partly in response to elevated demand for packaging throughout the pandemic as folks shopped on-line.

IKEA has lately been shopping for and managing forests in plenty of international locations via its funding car IKEA Investments, from which it’d use wooden and wooden merchandise sooner or later.

Whereas IKEA says managing forests responsibly will assist mitigate local weather change, it doesn’t but embrace that enterprise in its general goal to be local weather constructive by 2030 as a result of difficulties measuring carbon seize and storage.

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