How much wood from Vietnam did IKEA use?
We require that suppliers use Forest Stewardship Council® (FSC®) certified or recycled wood in our home furnishing products. All information presented here is valid for Fiscal Year 2022 (FY22) with a reporting period from 1 September 2021 to 31 August 2022 and, unless otherwise specified, applies to virgin wood used in IKEA home furnishing products (excluding paper).
Vietnam is an important wood sourcing market for IKEA suppliers. It offers a high volume of dark coloured wood species originating from FSC-certified plantations, such as acacia, which are well suited to our outdoor furniture products.
A substantial share of managed forests in Vietnam, including commercial plantation forests, are taken care of by smallholders. The smallholders manage forests which are small in scale, low intensity and community forests. Due to these circumstances, they require tailor made approaches due to certain characteristics such as the size of land, internal governance models, and ownership or customary rights, in order to implement responsible forest management.
Key metrics
Amount of virgin wood used roundwood equivalent (RWE) sourced: 407,027 m3
Contribution to total IKEA virgin wood used for home furnishing products: 3%
Approximate proportion of Vietnam’s total harvest used by IKEA suppliers: 1%
Approximate proportion of Vietnam’s forests that are FSC-certified: 2%
Years in IKEA supply chain: 20+
Regions and types of forests
In FY22, virgin wood of Vietnamese origin used in IKEA products came from actively managed FSC-certified plantation forests in the northern and central coast regions.
Wood species
In FY22, the top species sourced from Vietnam for solid wood applications was acacia.
Concerns
The risk for illegal logging is higher in Vietnam, so we must be extra vigilant. However, we have learned over the years that working with value-driven, honest, hard-working people, wherever they are based, is rewarding and impactful - especially when working together to drive change. Sometimes this means that we work in markets facing challenges, and we will continue to do so when we see that we can help improve forest management and support the rights and needs of people who depend on forests.
Wherever our suppliers source wood from, to minimise the risk of wood entering our supply chain that does not meet our own requirements, including legal requirements, we require our suppliers to only source FSC-certified wood-based materials. Our suppliers are also required to collect evidence across the supply chain to demonstrate compliance and our experts on the ground regularly perform IWAY forestry and wood supply chain audits.
Recent developments/actions
For several decades we have worked alongside different partners in Vietnam to improve forest management. One example is our partnership with WWF. Over the last decade, WWF and IKEA have been working together to transform practices to support sustainable forest management. With the support of WWF and IKEA approximately 20,000 hectares of natural forests and plantations managed by cooperatives, plantation companies and communities have been certified according to the Forest Stewardship Council (FSC) standard. Read more about our work with WWF in Vietnam.
In 2020, Inter IKEA Group decided to invest EUR 100 million to develop and implement methods for removing carbon from the atmosphere through projects connected to reforestation, restoration of degraded forests and better forest management practices. After an initial phase to develop our approach, in FY22 we initiated our first investment and project in Vietnam. Through our project in the Thua Thien Hue province, IKEA has partnered with a local forestry cooperative supporting more than 1,000 smallholders and their families. We are focusing on building and sharing knowledge amongst the smallholders to improve existing management practices and improve their profit for them as land users, as we believe this will secure the permanence of the new land use system. Read more about the project here.
Following the success of an earlier phase of our partnership, IKEA continues to partner with the UN Food and Agriculture Organization’s (FAO) Forest and Farm Facility (FFF) in Vietnam. Our partnership focuses on supporting women, youths, and ethnic minorities. The programme is developing and spreading local and expert knowledge on how to extend the rotation of acacia forest plantations. Strengthening the capacity of forest and farm producer organisations stimulates diverse agroforestry systems in forest landscapes, enhancing local livelihoods, climate resilience and sustainable forest management. Visit the website for Forest and Farm Facility in Vietnam.