IKEA deploys IBM Envizi ESG Suite

Sustainability platform implemented across global Ikano Group companies

The challenge

Co-ordinating ESG action across a multi-national enterprise

Just like IKEA, sustainability is a fundamental driver of business strategy for Ikano Group, and the Group has a challenging set of defined environmental, social and governance (ESG) ambitions.

In fact they had already charted a plan to achieve ESG targets in line with EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) requirements, so the challenge was on to harness the required data from 6 diverse businesses spread across 3 continents.

IKEA deploys IBM Envizi ESG Suite

Whilst the plan has Ikano Group on track to release its first CSRD-compliant report in 2026 (data from FY 2025), they are acutely aware of the scale of the processes around data gathering, data tracking, and reporting.

The complexity of operational variations, data sources and reporting considerations requires a comprehensive approach, and Ikano Group’s commitment to transparency and granular reporting demanded a solution that provides detailed, audit-ready data across the full range of ESG parameters.

“Without a solid system, CSRD reporting would be complicated and much less efficient, as well as resource and time-consuming.”

Iliane González Martín – CSRD Project Manager | Ikano Group.

The stakes are high for all businesses, where failure to comply with the CSRD reporting requirements can mean reputational damage, loss of customer trust and financial penalties.

In addition to Ikano Group, all six subsidiaries—Ikano Bank, Ikano Bostad, Ikano Industry, Ikano Insight, Ikano Insurance and Ikano Retail —recognised the need for an ESG reporting and data management solution to support work towards their individual sustainability targets.

 

Two examples from the world of IKEA where sustainability is always paramount:

Ikano Retail is one of IKEA’s 12 franchisees across the world and still owned by IKEA founders, the Kamprad family, running operations across Singapore, Malaysia, Thailand, Mexico and the Philippines.

 

In these markets IKEA has ambitious targets for 2025, including sourcing 50% of its energy from solar farms on its rooftops or from local suppliers, increasing to 75% the share of deliveries made through electric or other sustainable transport, and reducing food waste in its restaurants by 60% compared to its 2018 baseline.

Ikano Industry, is a crucial part of the IKEA supply chain, a major manufacturer and supplier of mattresses and related products with operations in Mexico and Poland.

 

Its equally ambitious targets include recycling the same number of mattresses as they produce, using 100% renewable electricity, reducing greenhouse gas emissions by 50% compared to 2020, decreasing waste by 15% compared to 2020, and ensuring that 20% of their mattress foam is renewable or recycled.

The solution

Deploying ESG expertise, integrated software and planned processes

Ikano Group found the answer very close to home! Ikano Insight, is an IBM Business Partner specialising in ESG and sustainability. We help all businesses capture, consolidate and analyse ESG data to meet reporting requirements and provide the insights they need to achieve their ESG goals.

Ikano Insight delivers these outcomes through a combination of consulting, software and software implementation services.  When it comes to supporting customers to meet CSRD reporting requirements, our software of choice is the IBM® Envizi™ ESG Suite.

Together we established data baselines, mapped ESRS requirements and defined hierarchies for both data gathering and reporting processes within Envizi. We also utilised Envizi’s automation feature to streamline data capture, enabling Ikano Group to integrate strategic ESG KPIs into operations and decision-making while focusing on driving impact. With the ESG data foundation in place and the data mapping complete, all companies could use Envizi’s data governance and workflow, and align responses to the embedded ESRS framework as required by the CSRD regulation.

To meet the wide range of reporting and performance tracking requirements, Group companies use Envizi virtual accounts capability, where each business is established as a virtual location with dedicated accounts for ESRS reporting. As the platform is rolled out for each business, they are set up as separate groups featuring their own customised hierarchies and location-specific accounts.

 

Ikano’s preparation for CSRD is extensive, and included the following key tasks, managed by Ikano Insight:

Ikano Group 7 companies IBM Envizi ESG Suite deployment

Double-materiality assessment

to identify the most significant topics to address, both for the group and for the individual entities under it, from impact materiality and finance materiality perspectives.

Impacts, risks and opportunities (IRO) assessment

on the material topics and subtopics identified from the double-materiality assessment.

European sustainability reporting standards (ESRS) gap analysis

to identify existing strengths and areas for improvement, to help facilitate compliance with the disclosure requirements of the CSRD, and to lay down a solid foundation for continued advancement in its sustainability journey.

Detailed roadmaps and action plans

were created to address any gaps identified and to outline specific actions, responsibilities, timelines and priorities to ensure a concerted and comprehensive approach.

Climate transition plan design

to take targeted steps to decarbonize the group and individual businesses and achieve organizational climate goals in alignment with the Paris Agreement.

Configuration and implementation of the Envizi platform

to ensure a solid data collection and tracking, as well as a thorough reporting process.

Business strategy update

to integrate sustainability into all aspects of the business, both at the group and business level, by incorporating strategic directions, actions, targets and metrics (KPIs) derived from the material topics and the identified IROs.

EU taxonomy focus

on eligibility and alignment, further solidifying the group’s commitment to environmentally sustainable practices.

Comprehensive CSRD reporting manual creation

to provide clear guidance and maintain consistency in reporting across Ikano group and individual businesses.

The outcome

Complex processes now simplified across the enterprise to accelerate achievement

The biggest impact of the IBM Envizi platform implementation by Ikano Insight for all the Group businesses has been the simplification of complex data capture and reporting, allowing individual companies to focus on taking crucial action.

Currently, each Ikano business is finalising its platform configuration. To improve seamless adoption, training sessions are being conducted for platform administrators and users to effectively engage the platform. The Group already has 83 active users on the platform, with 15,685 data types to date being fed into the platform across all businesses, and more to come.

Reporting and disclosure processes have been streamlined, with automated data capture and data management, which will save thousands of hours over the next 12 months and beyond, with the Group now prepared to meet the demands of CSRD. With the ability to now trace data to source, change records, and provide direct auditor access, all businesses are truly becoming audit ready.

ESG Optimiser Scope 1,2 and 3 automated GHG calculations

3

continents

6

individual businesses

83

unique active users

15685

different data types

Reporting for CSRD was brand new, nobody had done it before, and trying to do this manually would take thousands of hours, with no feasible way of pulling the data together to pass an audit.
We could not have done it without the project management and implementation services of Ikano Insight, with so many things to put in place across such a broad organisation of diverse businesses.
Seeing reporting requirements as an opportunity rather than a requirement is key – it is a mindset shift, driven by an integrated business strategy that prioritises sustainability.

Reporting for CSRD was brand new, nobody had done it before, and trying to do this manually would take thousands of hours, with no feasible way of pulling the data together to pass an audit.

Peter Jones – Head of Sustainability | Ikano Insight

We could not have done it without the project management and implementation services of Ikano Insight, with so many things to put in place across such a broad organisation of diverse businesses.

Iliane González Martín – CSRD Project Manager | Ikano Group

Seeing reporting requirements as an opportunity rather than a requirement is key – it is a mindset shift, driven by an integrated business strategy that prioritises sustainability.

Simon Taylor – Head of Marketing | Ikano Insight.

Ikano Group’s strategy to distribute ESG actions and reporting across the entire organisation is a testament to the company’s commitment to integrating sustainability into the core of its business operations. Cross-functional collaboration has proven to be a crucial factor driving CSRD preparations forward, promoting efficiency and engagement across the group and individual businesses.

Ikano Group and their businesses now have full confidence in their underlying sustainability data foundation and accuracy of emissions calculations. The Envizi platform provides a reliable accounting system for their performance metrics: energy, water, materials and recycling data are now as robust and accessible as financial data. With a consolidated view of data across the businesses that was not previously possible, aggregated KPIs are tracked and managed for all businesses.

Integrated ESG Framework response templates

Would you like to see how ESG Optimiser, incorporating IBM Envizi ESG Suite– our fully integrated ESG data and analytics platform works?

Book a 30 minute demo, and chat with an ESG data expert

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