IKEA Pty Ltd 2025 Annual Report and Action Plan
This document presents the Annual Report and Action Plan for IKEA Pty Ltd, submitted to the Australian Packaging Covenant Organisation (APCO).
The Australian Packaging Covenant Organisation (APCO) is a co-regulatory not-for-profit organisation dedicated to advancing a circular economy for packaging in Australia. APCO's objective is to create a packaging value chain that minimizes packaging waste in landfills and maximizes the value of materials, energy, and labor within the Australian economy.
APCO Brand Owner Members are required annually to submit an APCO Annual Report and an APCO Action Plan. This report details IKEA Pty Ltd's overall performance and commitments towards its packaging sustainability journey, as well as any additional information provided by the Member.
Overall Performance
The organization's reporting period was September 2023 - August 2024. The overall performance level is indicated by the following levels:
- 1 Getting Started: Beginning the packaging sustainability journey.
- 2 Good Progress: Made initial steps in the packaging sustainability journey.
- 3 Advanced: Taken tangible actions in the packaging sustainability journey.
- 4 Leading: Made significant progress in the packaging sustainability journey.
- 5 Beyond Best Practice: Achieved the highest performance level with substantial progress in the packaging sustainability journey.
APCO Action Plan Commitments
The following outlines IKEA Pty Ltd's commitments across various Packaging Sustainability Framework criteria:
Criteria 1: Governance & Strategy
This criteria focuses on integrating packaging sustainability into business strategies.
- Develop a strategy with goals and targets for packaging sustainability, addressing the Sustainable Packaging Guidelines (SPGs) or equivalent.
- Commit to achieving the 2025 National Packaging Targets within the strategy.
- Ensure executive or board review of the strategy and its integration into business processes.
- Regularly communicate and promote packaging sustainability objectives and targets internally.
- Engage with external stakeholders regarding the environmental impacts of packaging.
- Participate in initiatives promoting packaging sustainability externally.
Criteria 2: Design & Procurement
This criteria assesses actions taken to ensure sustainability principles are considered in packaging design and procurement, utilizing the Sustainable Packaging Guidelines (SPGs).
- Review 50% of packaging against the SPGs or equivalent.
- Improve data accuracy for packaging reviews using SPGs or equivalent.
- Incorporate SPGs or equivalent into procurement processes.
- Consider the following Sustainable Packaging Principles in packaging reviews:
- Design for recovery
- Optimise material efficiency
- Eliminate hazardous materials
- Use of renewable materials
- Use recycled materials
- Design for transport efficiency
- Provide consumer information on environmental sustainability
- Optimize 10% of packaging for material efficiency.
- Improve data accuracy for packaging material efficiency.
Criteria 3: Recycled Content
This criteria evaluates efforts to increase or optimize the use of recycled materials in packaging.
- Develop a policy or procedure for purchasing products and/or packaging made from recycled materials.
- Utilize recycled content in:
- Our products
- Primary packaging for selling products
- Secondary packaging for selling products
- Tertiary packaging for selling products
- Other purchased items (e.g., office stationery, suppliers)
- Ensure 40% of packaging uses some level of recycled material.
- Improve data accuracy regarding the use of recycled materials.
Criteria 4: Recoverability
This criteria addresses actions to improve packaging recovery at end-of-life and increase the use of reusable packaging.
- Aim for 99% of packaging components to be recoverable at end-of-life.
- Investigate opportunities for reusable packaging.
- Ensure 20% of packaging components are reusable.
- Improve data accuracy regarding reuse.
Criteria 5: Disposal Labelling
This criteria assesses the extent to which packaging is labelled to guide consumers on end-of-life disposal.
- Improve data accuracy regarding labelling.
Criteria 6: On-site Waste
This criteria measures progress in diverting on-site solid waste from landfill.
- Aim for 78% of on-site waste to be diverted from landfill.
- Implement recycling programs for the following materials:
- Paper/cardboard
- Soft plastics
- Rigid plastics
- Timber
- Textiles
- Metals
Criteria 7: Problematic Materials
This criteria evaluates the phasing out of problematic and unnecessary single-use plastic packaging and litter prevention/reduction.
- Help reduce litter by:
- Conducting regular clean-ups
- Participating in Business Clean Up Day
- Delivering a litter education campaign
- Phase out problematic and unnecessary single-use plastic items.
Contact Information:
Address: Suite 1402, Level 14, 55 Clarence Street, Sydney, NSW, 2000
Email: apco@apco.org.au
