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Ikea criticised for not using sustainable wood

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Ikea has come under heavy criticism for failing to use sustainable forestry for making its wooden furniture.

The Swedish company has been found to have cleared old-growth forests in the north of Russia in Karelia through its wholly-owned subsidiary Swedwood.

Roughly 60 per cent of Ikea's products contain wood in some form, so it is vital for the company to keep up a good image when it comes to sourcing its products. Unfortunately, the recent investigative report released by Swedish public service television suggests that the firm is not always careful when it comes to logging.

Olga Ilina, head of the forest department of the NGO SPOK, the Karelia Regional Nature Conservancy, told IPS: "We have a (limited) amount of old-growth forest in the north of Russian Karelia with high conservation value. Ikea says they don't operate in old-growth forests but it is not true."

As consumers become increasingly aware of the importance of sustainable forestry, business demand will most likely grow in order to maintain reputations. Investors can benefit from this by looking into new plantations that will reach maturity in a decade or so.


Extpub | by Dr. Radut