- So Inter IKEA group which you are part of is all about IKEA as a concept, and about your supply chain. What does that mean and what is the guiding force there?
I work for the Inter IKEA group, which owns the IKEA concept and is the worldwide IKEA franchisor. It is also where we design, develop and source our product range, including the food range in our restaurants and Swedish specialties shops. Today IKEA has 393 stores in 48 countries, and all of IKEA is led by the vision to contribute to a better life for more people.
- IKEA has been at the forefront of supply chain sustainability, from wood to seafood to cotton, and now in roundtables about rubber, beef, and other sectors. For many of us working on this for a while now, we talk about transforming more challenging industry sectors as the so-called ‘high hanging fruit’ – what has been IKEA’s experience with that?
I don’t think anyone working at the start of the certification movement in the 1990s would describe the challenges that they faced as the ‘low hanging fruit.’ Issues such as child labour, inequality and exploitative working conditions were not only difficult but there was no roadmap on how best to move forward. What we are all trying to do now is to take all of that work further into our supply chains and into industries that have not been as clearly in focus. There is also much more understanding of the complexity of the social aspects of sustainability. This demands that we work in a more holistic and inclusive way with all stakeholders. Transforming an industry will not be done by one actor alone and will take a multi-pronged approach to reach sustainable solutions for the people we want to reach.
For example, one of the areas we are trying to change is the recruitment and employment of migrant workers. Labour migration can have many benefits. It offers people the chance to earn money to support their families, and to transfer income and knowledge back home. It also brings many challenges, particularly the protection of workers from exploitation as they enter into complex recruitment processes. In the worst cases, people can find themselves in forced or bonded labour as they work to pay off debts from large recruitment fees or are forced to hand over their passport to recruiters.
Even with a clear approach and requirements of our own we knew the challenge spans international borders and involves many different stakeholders. Finding sustainable solutions was not something we could achieve alone. In 2016 we became a founder member of the Leadership Group for Responsible Recruitment (LGRR). This group of multinational companies and non-governmental organisations, convened by the Institute for Human Rights and Business, has the aim to eradicate worker fees over the coming decade: the “Employer Pays Principle.” We also know that one of the keys to this is finding good partners in the recruitment industry. We have supported the development of the International Recruitment Integrity System (IRIS) by the International Organization for Migration (IOM), a process also engaging with ISEAL. It is this type of holistic approach that we believe will be needed to successfully address these challenges
- The new ISEAL 2020 strategy has our members thinking about evolution so we can be better partners to companies and reach scale more quickly. What does evolution and innovation mean to IKEA now and what would you ask of the certification and standards movement?
I want to be clear, we include ourselves when we ask the question what needs to evolve. We too have our own code of conduct, IWAY, which in many ways mirrors the ways of working and the goals of ISEAL members. We are also asking what is the best way to have a greater impact, how can we be more open to partnership and collaboration? Members such as Forest Stewardship Council (FSC), Marine Stewardship Council (MSC), UTZ,Better Cotton Initiative (BCI) and others are our partners, and we have opportunities to be more collaborative with them.
In terms of ISEAL’s new strategy, there are several very important focus areas, such as getting better data and understanding the results of our actions. I think one thing we all have to do is ask ourselves, “for what purpose?” Is it just to prove the individual worth of the certification system? Or is it to highlight positives, to learn from the mistakes and also to share the challenges?
We need to ask how we can partner more with producers and communities so that we are truly providing value to them. In 2008, I was in Guatemala and Honduras and I stood on a hill with a group of farmers, the sun was going down, and one of them said to me that it would be great if someone would come and ask them what they needed from certification. They said that, at that time, they were just choosing a certification to get what they needed to make a sale. Of course, we have come a long way since then, and there are good examples in many sectors, but we have not fully cracked the code how to create the pull from producers.
I also think there is a strong opportunity for progressive advocacy from all of us. ISEAL as a place where the most credible certification systems come together can play a significant role.
- We do talk a lot about credibility at ISEAL, but we also know that the idea of trust and credibility is evolving. What does this idea of credibility mean to IKEA and how do you define it now?
When people say the idea of credibility is evolving, I push back on that. I don’t think the idea of credibility is evolving. It has always been about trust, “Do I believe you?” and “Do you do what you say you are going to do?” That is the core of credibility. But what is evolving are the components that define it. That is expanding, and I think that is very positive. It means that more people and stakeholders are part of the conversation and that we are reaching more communities. We all have to embrace this fact that it is a moving target, but if we continually challenge ourselves to innovate, be more transparent, and more inclusive, we will be credible, but we can never be complacent.
One challenge for all of us, is to be comfortable in saying that we don’t have all the answers and that we will make mistakes, but to show the clear path we are on. At IKEA we have historically wanted to do something before we talked about it. While that is a good principle, it is also critical to be part of the discussions around the current challenges and potential solutions. We also need to challenge ourselves to consider that others may have a better way, and might be able to go further faster.
- Any final advice you would say to companies new to working with certification?
We have to remember that standards and certification have been an extremely important part of the sustainability movement. The results that have been achieved are many and farther reaching than we would have imagined 20 years ago. But now it may be time to see certification systems slightly differently. We still often hear business talk in terms of reducing risk or protecting the brand. If we can change that into, how can we have a positive impact, it changes the way you approach the challenge and engage with others. Certification systems might be a place where companies can come together to drive change and amplify actions.
Perhaps we need to reframe how we talk about certification, not only about compliance to a standard, but as the way to support development. I would also like to see more companies becoming a part of the ISEAL community, as a great first step in taking a more engaged approach.
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Greg Priest is the Head of Sustainability Policy at the Inter IKEA Group. He has been a key figure in the development of IKEA Group sustainability strategy, “People and Planet Positive”. He leads the development, integration and compliance of sustainability approaches, policies and standards including the IKEA supplier code of conduct, IWAY. Greg is also responsible for Inter IKEA’s external engagement on sustainability and for developing partnerships to support the company’s social and environmental goals. Greg has been working in the sustainability area for the past 18 years, with both a consumer facing and supply chain focus. Greg will be the keynote speaker at the 8th annual Global Sustainability Standards Conference in Zurich from June 27-28.