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Beyond Profit: IKEA’s Philanthropic Impact on Families and The Planet

In today’s business climate, it is not quite uncommon for brands to show social responsibility. But some do seem to be going the extra mile to give back to the community and bring about a positive change in the world. One such example is IKEA. 



Most of us know this brand for its affordable, ready-to-assemble furniture. Well, IKEA has also been involved in plenty of philanthropic work through the IKEA Foundation, the charitable arm of the INGKA Foundation, which owns the IKEA Group. 


In this edition of our #BeyondProfit series, we will shed light on the philanthropic contributions of IKEA and their impact on society. 


Without further ado, let’s get started! 


Commitment to Climate Action

Forget flatpack furniture for a moment. IKEA's got its sights set on something a bit more ambitious: saving the planet. Yes, this Swedish giant is on a quest to become ‘climate positive’ by 2030, which means they'll remove more greenhouse gasses from the atmosphere than their entire business generates. And this plan involves their entire supply chain. 



For IKEA, a key strategy is their shift to renewable energy. The company is transitioning its own operations and those of its suppliers to 100% renewable sources. They have invested in wind and solar farms, with 90% of their stores using rooftop solar panels. Moreover, they're working towards zero-emission transportation and encouraging suppliers to follow suit. 


The company also recognizes that their impact extends beyond their stores. They design products with energy efficiency in mind and even offer solar panels in some stores to help customers further reduce their carbon footprint.


IKEA is also a huge advocate of sustainability. They partner with organizations like WWF to encourage stricter environmental regulations and promote circular practices, like extending product lifespans and using recycled materials.


Empowering Vulnerable Communities

IKEA’s philanthropic actions reach well beyond environmental sustainability. This Swedish giant has been a long-time advocate of the welfare of children from all underprivileged communities. 



One of IKEA’s most impactful initiatives is its long-standing partnership with UNICEF and Save the Children, two renowned organizations working towards the overall development of vulnerable children. Their "Soft Toys for Education" campaign has raised over €88 million. These raised funds are utilized for the improvement of educational opportunities for children in over 46 countries. One can hardly imagine better schools, more qualified teachers, and essential learning materials paid for by a cuddly toy purchase. But fortunately, it works!  


On top of that, IKEA provides grants to UNICEF programs designed for early childhood development, child protection, and empowering adolescents. These programs address critical issues that many vulnerable children face, ensuring they have a safe and healthy environment to grow and thrive in. Going beyond financial aid, many IKEA stores host play areas where children can have fun in a safe space, regardless of their background.


Philanthropic Works in Africa and Asia

IKEA’s philanthropic efforts have had a significant social impact around the world, especially in Africa and Asia. Vulnerable communities in these regions have particularly drawn this brand's attention. 



Well, IKEA supports and funds organizations that provide quality education and safe learning environments in Africa and Asia. This includes building schools, improving teacher training, and providing educational resources in underprivileged communities. In addition to that, the company partners with NGOs to create better living conditions for children. This involves initiatives like providing shelters for refugees and internally displaced people, and improving sanitation facilities in schools and orphanages.


Besides, IKEA recognizes the importance of empowering young people. They support programs that equip them with vocational skills and entrepreneurship training, enabling them to secure jobs and build a brighter future.


By focusing on these core areas, IKEA aims to create a lasting positive impact on the lives of children, families, and communities across Africa and Asia. 


The IKEA Foundation

Founded in 1982, this philanthropic branch of IKEA combats poverty and climate change, empowering families and safeguarding the environment. They achieve their goals through strategic grantmaking, distributing roughly €200 million annually. Besides, they've committed an additional €1 billion to fast-track greenhouse gas reduction by 2025.



The IKEA Foundation prioritizes low-income countries. They support displaced communities, invest in quality education for children, and champion initiatives that unlock a brighter future.


Unlike some charitable organizations, the IKEA Foundation publishes a Grants Archive on their website, detailing their active grants and donations. This allows anyone to see where their funding goes and the impact it has. By focusing on long-term solutions and collaborating with over 140 partners, they strive to create lasting positive change for people and the planet.


Final Thoughts

And that brings us to the end of this edition of the #BeyondProfit series. IKEA has been making an impact on the world around us, especially when it comes to empowering underprivileged communities and combating the threat of climate change. And its philanthropic arm, the IKEA Foundation is at the forefront of this commendable movement. This story of a global brand making contributions to a greener planet and disadvantaged communities has something inspiring for small businesses and big corporations alike. 


Hope you found today’s piece amusing and informative. We have tons of content planned in this series and can’t wait to share it with you. Until next time, stay tuned!

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