business news in context, analysis with attitude

The Dallas Morning News has a story about how Swedish retailer Ikea "is nearly doubling its U.S. forestland portfolio," purchasing a combined 60,000 acres in Texas and Oklahoma.

According to the story, Ikea's parent company already owned 64,000 acres of US forestland; it now owns more than 500,000 acres around the world.

The News writes that Ikea "began buying plots of forestland around 2015 at a time when timber prices were expected to rise worldwide. The intention has been for IKEA to develop a sustainable source of wood for its furniture for years to come. Though it’s run into some controversy with conservationists in other countries, IKEA has touted its practices as part of its effort to become self-sustaining and a responsible steward of the environment."

“We are pleased to continue our forestland acquisitions in the U.S, as we see a good match between what the market has to offer and our high standards related to responsible forest management," said Krister Mattsson, managing director of Ikea's parent company.

The story notes that Ikea, which has 374 stores in 30 countries, has committed "to becoming 'climate positive' under goals detailed in the Paris Climate Agreement. It even issued a statement recently to its employees saying it 'remains committed' to the Paris Agreement, despite the U.S. issuing a formal request to withdraw."
KC's View:
Add another company to the list of those that remain committed to the Paris agreement. Walmart is the most recent to make that statement; others that have said so include Apple, eBay, Gap Inc., Google, Intel, Microsoft, and Nike … not to mention a fair number of communities and educational institutions.

I think if you're going to make stuff out of wood, it makes sense to develop a sustainable source. Which is what Ikea seems to be doing, understanding that if it is to have a sustainable business model, it needs to play a role on every curve of the circle of life.