What: As Ikea pushes more environmental projects, it still faces problems in supply chains.

Why it is important: Ikea is one of the most advanced when it comes to tracing their raw materials, but even they are having difficulties ensuring wood is correctly sourced. This proves that a truly traceable supply chain is more difficult to achieve than meets the eye.

Ikea argues that wood is a sustainable and renewable material that is far better to use than plastics or metal. Others will claim that Ikea fuels disposable consumption by producing cheap furniture.

Either way, ensuring wood is sourced sustainably is not easy to decipher. Timber suppliers can have permits for certain areas, but then illegally log in neighbouring forests. Another issue is the misuse of sanitary felling, where all trees in an area are cut down to protect them from disease or after a calamity such as wind damage.

Ikea tries to protect its wood supply chain through audits, wood procurement plans from suppliers, and through a certification by Forest Stewardship Council. Even with these protocols in place, somehow illegal wood entered the supply chain in Russia.

Ikea shows the challenge of sustainability for companies