IKEA lamps offer an unlikely lesson in climate change action

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When IKEA decided to phase out sales of all light sources other than LEDs in 2011, the prohibitively high cost of the bulbs might have led some to take a dim view of the move.

“The LED decision was, to be honest, a bit of a leap of faith,” Ingka Group (IKEA) CEO Jesper Brodin tells Bloomberg TV’s Francine Lacqua on Leaders with Lacqua Goes Green, explaining the energy-efficient bulbs cost around 20 euros each at the time, compared with less than a euro today. “When the decision was made it looked really bad from a business perspective.”

Ten years later, LEDs make up 100 percent of lightbulb sales at IKEA and early adoption of the technology turned out to be an “amazing business opportunity”, according to Brodin.

It’s an anecdote that could offer business leaders a lesson in taking action to halt global warming.

Hailed as the ‘decisive decade’ for climate change, the 2020s will usher in many changes for businesses, customers and workforces, as companies recalibrate their operations to reduce carbon footprints and align with the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.

“There has to probably be a leap of faith here,” says Brodin, who is overseeing IKEA’s ambition to become carbon neutral by 2030. “If you want to have all the answers, time won’t allow for this - it’ll slow us down too much.”

Generating optimism

Zurich Insurance Group (Zurich) is optimistic that, by working together, the world can achieve the goals set out by the Paris Agreement. That’s why, in addition to setting out its own climate commitment, Zurich is supporting its customers, employees, and the communities in which they live and work, take action for a 1.5°C future.

“Optimism is a more effective motivator than fear or pessimism,” says Linda Freiner, Group Head of Sustainability at Zurich. “If you want to mobilize people for climate action, you need to show them they can make a difference.”

To do that, Zurich is creating a range of innovative insurance solutions and services. This includes usage-based car insurance in the UK that rewards customers for driving less, as well as Climate Resilience, which proactively help businesses identify, assess, mitigate and adapt to current and future climate change risks.

“We’re committed to providing the best solutions to our customers to help them make more sustainable choices,” says Freiner.

Zurich is also investing in nature. Together with non-profit Instituto Terra, the insurer agreed in 2020 to sponsor an eight-year reforestation project in Brazil to convert barren farmland back into native forest that’s rich in plant and animal life.

How soon is now?

Global greenhouse gas emissions, a major driver of climate change, must peak as soon as possible to achieve a climate-neutral world by 2050 and to cap future temperature rises at 1.5°C, according to the United Nations.

With the effects of climate change becoming more apparent across the globe, IKEA’s chief says the moment for action is now.

“Time is clearly ticking here,” says Brodin. “We think the coming decade is the decade where we need to put solutions in place.”

Zurich is proud to sponsor Leaders with Lacqua Goes Green to help shine a spotlight on the opportunities and challenges of climate change - the greatest risk we face today.

The series examines how business and political leaders plan to combat climate change and create a more sustainable society.

Further information

Read about Zurich’s climate commitment
Zurich’s Sustainability Report 2020

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