IKEA’s response to the Lacey Act: Due care systems for composite materials in China

Display Name: 
Adam Grant
World Resources Institute
Display Name: 
Sofie Beckham

The Forest Legality Alliance series of case studies is intended to show commercial buyers of wood and paper-based products, especially those who trade in species and/or source from places with a perceived risk of illegality, how their supply chains can conform with U.S. legal requirements on importing certain types of wood. They draw lessons from emerging best practices for managing risk in high-risk contexts to identify and highlight potential problem areas, as well as pragmatic opportunities for reducing the complexity of compliance.

This case study examines IKEA's efforts to exercise due care with regard to the wood inputs it buys from a very diverse and extremely complex supply stream in China. The brief gives background on IKEA's corporate purchasing and sustainability programs ("the IWAY system"), discusses the current state of legal requirements for wood producers in China, and explains how IKEA has adopted a risk-based approach to ensure that it is conducting due care for the purposes of the U.S. Lacey Act.