IKEA greens its supply chain in India

March 11, 2015
IIP’s partnership with IKEA is paying off with its Green Vendor Development Program, which is generating millions of liters in water savings.

Water conservation becomes a key issue for industry when just getting enough water means a 50km truck drive. Add a polluted water supply and outdated machinery, and the environmental impact is substantial.

Inspired by IKEA’s People and Planet Positive Strategy, Jansons, an IKEA textiles supplier, has partnered with IIP and the National Productivity Council (NPC) to reduce its impact on the environment and increase cost-effectiveness.

As part of their Green Vendor Development Program, IIP and NPC undertook a detailed energy and water audit, conducted discussions with employees, and developed action plans for resource efficiency that included efficient practices for running factory motors, recycling wastewater for printing, and a dyeing process that reduces water consumption.

The program is paying off. Mr Thirukumar, Managing Director of Jansons Industries, is very happy with the results: “With support from IKEA…and the commitment of our employees, so far we have saved over 285 MWh of energy, and 69 million liters of water.”

For an area with scarcity of water and energy, this is good news indeed. The project demonstrates the potential for further improving the textile industry. IKEA estimates potential savings of more than USD 300 million in energy, water and resource costs over the next five years if initiatives are taken up by other South Asian suppliers.

IIP-India’s Director, Somnath Bhattacharjee, says the program has been so successful that IIP is also looking at replicating the program in other sectors.

Read more about IIP’s involvement with IKEA on page 66 of their sustainability report.