Responsible sourcing: when sustainability becomes good business Lessons from Ingka Group

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 podcast episode to my attention, and I would like to thank him for sharing it. What makes this example particularly interesting is that responsible sourcing is not presented as a communication topic, but as a business decision.

The episode highlights electric deliveries, partnerships with social enterprises, and the business model that makes 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.

The transition required investment, testing, local adaptation and internal conviction.

Today, this early move has become a business advantage.

When companies remain highly dependent on fossil fuels, they are more exposed to cost volatility. Ingka’s progress on zero-emission home deliveries has helped reduce this exposure and 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 financial constraints.

A decision that may seem more complex, or even more expensive, in the short term can become highly strategic when it reduces dependency, protects operational continuity and strengthens business resilience.

Local solutions, global ambition

Another important lesson is the way Ingka combines a global ambition with local implementation.

Electric cargo bikes, boats on the Seine in Paris, electric three-wheelers in India and Australia, and 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 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 and contractual models. When they are properly equipped, they can turn sustainability ambitions into practical sourcing decisions.

From environmental impact to social value

The episode 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 is particularly relevant. His concept of social business is based on a simple but powerful idea: 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 is not 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 shared by Raphael Guillard 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.

This is particularly interesting from a procurement perspective 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 exactly 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, there are 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 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 are 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 or listen to the Ingka Group podcast episode here: [insert link]

Interested in assessing your sustainable procurement maturity? Discover the Sustainable Procurement Maturity Self-Assessment Tool by Transformative Procurement Change.

Read or listen to the Ingka Group podcast episode here

Interested in assessing your sustainable procurement maturity? Discover the Sustainable Procurement Maturity Self-Assessment Tool by Transformative Procurement Change.