Responsible sourcing: when sustainability becomes good business

Most people know IKEA. Fewer people know Ingka Group, the largest IKEA retailer, operating IKEA stores and sales channels across many markets.

A recent exchange with Raphael Guillard brought an Ingka Group article to my attention, and I would like to thank him for sharing it. What makes this example particularly interesting is that responsible sourcing is presented not as a communication topic, but as a business decision.

The article, based on an episode of Ingka Group’s Screw It podcast, highlights electric deliveries, partnerships with social enterprises, and the business models that make these sustainability choices possible. It shows how responsible sourcing can help reduce exposure to cost volatility, strengthen operational resilience, improve customer service, and create measurable social impact.

What I find particularly relevant is that sustainability is not treated as a separate initiative, disconnected from company priorities. On the contrary, it appears as a concrete lever for performance, risk management, and long-term value creation.

Sustainability as risk management

Ingka Group started moving away from diesel deliveries several years ago, at a time when electric trucks, charging infrastructure, and scalable zero-emission delivery models were still developing.

This transition required investment, testing, local adaptation, and internal conviction. It also required procurement and operational teams to work through practical questions: supplier readiness, infrastructure, cost models, service quality, and market differences.

Today, this early move illustrates an important point for procurement teams: sustainable procurement is not only about reporting, regulation, or brand image. It is also about anticipating risks before they become operational or financial constraints.

Companies that remain highly dependent on fossil fuels are more exposed to cost volatility and transition risks. By developing zero-emission delivery models, businesses can reduce dependency, protect operational continuity, and strengthen resilience.

A decision that may seem more complex, or even more expensive, in the short term can become highly strategic when it helps secure the business over the long term.

Local solutions, global ambition

Another important lesson from Ingka’s approach is the combination of global ambition and local implementation.

Electric cargo bikes, boats on the Seine in Paris, electric three-wheelers in India and Australia, and many other local solutions show that responsible sourcing cannot rely on one universal model.

It requires adaptation to local infrastructure, geography, supplier maturity, customer expectations, and operational constraints.

This is precisely where procurement has a central role to play.

Procurement teams are often the bridge between strategy and execution. They understand supplier markets, cost structures, operational needs, contractual models, and implementation risks. When they are properly equipped, they can turn sustainability ambitions into practical sourcing decisions.

From environmental impact to social value

The article is also interesting because it does not limit responsible sourcing to decarbonisation. It connects environmental transition with social impact.

This is where the reference to Professor Muhammad Yunus and social business is particularly relevant. The underlying idea is simple but powerful: business can be designed to solve social or environmental problems while remaining economically sustainable.

For procurement, this perspective is useful because it challenges the idea that social impact belongs only to philanthropy, donations, or volunteering. Social impact can also be integrated into core business models, supplier relationships, and service delivery.

In other words, responsible sourcing should not be confused with charity. It is about identifying business models that work for the company, the customer, and the social enterprise.

Social enterprises as business partners

The examples highlighted in the article are particularly concrete.

In Paris, IKEA France worked with Carton Plein, a social enterprise supporting people experiencing homelessness or exclusion. Through activities such as cardboard reuse, collection, and bike-based logistics, Carton Plein contributed to a micro-hub model in central Paris linked to customer collection services.

This example connects several procurement priorities at once: urban logistics, circularity, local employment, customer convenience, and social inclusion.

In Switzerland, IKEA contracted BAND and VEBO, two social enterprises creating employment opportunities for people with disabilities, to provide kitchen installation and repair services for IKEA customers.

From a procurement perspective, this is particularly interesting because these organisations are not treated as a side initiative. They are integrated into the supply chain as service providers, contributing to capacity, lead time reduction, and customer service.

This is the type of shift sustainable procurement should enable: moving from social impact as an additional consideration to social impact as part of the operating model.

What procurement leaders can take from this example

For me, this example highlights four important lessons.

First, start before the pressure becomes unavoidable. Waiting for regulation, price shocks, or customer expectations to intensify often makes the transition more expensive and more difficult.

Second, test small, but design for scale. Pilots are useful when they are connected to a broader ambition, supported by governance, and assessed through clear business criteria.

Third, adapt procurement processes to new types of suppliers. Social enterprises, SMEs, and inclusive businesses may not always fit traditional corporate procurement models. They may require more time, more support, or different onboarding processes.

But they can also bring agility, innovation, proximity, and measurable impact.

Fourth, build the business case in procurement language. Cost, risk, resilience, service quality, supplier performance, and customer experience remain essential. Sustainability becomes stronger when it is connected to these decision factors.

From intention to implementation

This Ingka example illustrates what sustainable procurement should increasingly become: not a side initiative, but a structured approach to better business decisions.

Responsible sourcing is not only about choosing “greener” or “more ethical” suppliers. It is about understanding how procurement decisions shape long-term business performance, supplier ecosystems, and social and environmental impact.

The challenge for many organisations is no longer to understand why sustainable procurement matters. The challenge is to assess where they stand today, identify the right priorities, and move from ambition to implementation.

This is exactly why Transformative Procurement Change supports organisations in assessing and strengthening their sustainable procurement maturity.

Because responsible sourcing is not only the right thing to do.

When it is anticipated, structured, and scaled, it can also become very good business.

Read the Ingka Group article here