4 IKEA Corporate and Social Responsibilty Key facts about IKEA135,000 co-workers worldwide.303 stores in 33 countries.1380 Suppliers in 54 countries.49 factories in 11 countries.38 distribution centres in 16 countries.Last year our stores had 522 million visitors.450 million hits on our websites.Last year IKEA Group sales €21 billionUK & IRL has 19 stores & 10,000 co-workers.
5 IKEA Corporate and Social Responsibilty Corporate Sustainability Direction -IKEA’s business shall have an overall positive impact on people and environment.IKEA Social & Environmental StrategyIt’s not about branding… we will encourage people to act, initiate, drive, and take responsibility and reward for sustainability, as a foundation for business tomorrow.
6 How will we achieve this? All our products will be made of renewable, recycled or recyclable materials.Set clear goals and Sustainability Performance Indicators (SPI)Secure sustainable supply set-ups for production and distributionMinimise our carbon footprintWe will offer solutions and know-how that enables our customers to live a sustainable life at home.
7 Standards and Guidelines for our Suppliers. Our supply chainStandards and Guidelines for our Suppliers.The IKEA Way on Purchasing Home Furnishing Products(IWAY) Internal & external auditsKey requirements:Traceability of raw materialsSafe working conditionsNo child labourMeasure impact on the local environmentAvoid hazardous chemicalsReduce energy usageFor more info:
8 Product Design Considerations Only approved materials & sourcesAvoid use of hazardous chemicalsMinimise wastage of materialMinimum amount of packagingFit on a Euro pallet to maximise transport efficiencyConsider end of life treatment
9 Materials: Wood is an excellent choice We want to be sure that timber comes from responsibly managed forestsIKEA employs 17 professional foresters to verify timber is from a sustainable source & to teach best practice methodsAt present IKEA sourcesFSC timber and works withWWF to stop illegal loggingWood is used in 50% of IKEA products
10 Sustainable Cotton Production Cooperation with WWF – Better Cotton InitiativeFarmer Field SchoolsEfficient use of resources: reduce water & chemical usageSafer for people and the environment
11 IKEA Goes RenewableAim: to reduce energy consumption, improve our total energy efficiency by 25% (on 2005 figures) and use renewable energy in 100% of IKEA stores & facilities.Examples include wind, geothermal, biomass and solar panel installationsAt present IKEA UK & IE have reached the 25% reduction target.Today 47% of IKEA stores & facilities use renewable energy
12 All actions must be in the best interest of the child. Prevent child labourThe IKEA Way on Preventing Child LabourEmphasis on preventive measuresUnannounced inspectionsCooperating with our partners UNICEF and Save the Children (IKEA is UNICEF’s largest corporate donor)IKEA’s target is to invest $180m in the IWAY on Preventing Child Labour by 2015All actions must be in the best interest of the child.
13 Reducing Transport Emissions Flatpack design to reduce ‘air’Modern vehiclesEmission targetsMeasure CO2 outputCleaner fuelsFuel-efficient driving techniquesHybrid company carsBike to Work SchemeSubsidise bus tickets
14 Sustainability Indicators… All stores & factories to use wind generated electricityInstallation of geothermal/solar panelsUse of biomass burners for heating & hot waterRainwater harvesting at IKEA facilities & stores90% recycle rate each month25% energy reduction on 2005 figures75% recovery rate for damaged & returned products100% of timber from sustainable sources15% of co-workers travel to work by walk, bike, bus, rail
15 Communication – The Never Ending List To raise environmental awareness amongst co-workers, customers and visitorsGives product information on the source of materials or tips for reducing energy or wastage at homeSize of graphics vary from wallpaper to A4sTransport NoticeboardSunnan & Soft Toy Campaign
17 IKEA Dublin Opened July 27th 2009 31,500m2 floorspace 1850 car parking spaces400 employees500 seat customer restaurantNo. of visitors per day 5,000 – 15,000I millionth customer on Oct. 20th 2009Range of green technology features
18 Dublin’s Green Technology Wood chipper & burner: provides hot water for the store & heating of loading bay. Chip timber from broken pallets.Rainwater recycling: Collected from roof, treated using non chemical technique (UV) & then use for toilets. 8 week supply of water storageGround source heating: Saves 40% of energy costs by using soil temperature for heating/cooling. Largest system in Ireland bores 90m deep.
19 Recycling - Dublin 90% target each month Monthly reports to Head OfficeWaste Fractions: Cardboard, wood, plastic film, metal, hard plastic, glass & ceramics, plastic banding, paper, textiles,WEEE, energy saving bulbs, batteries, polystyrene, food,cooking oil & landfillTreatments: reuse, recycle or recovery incl. compostingCustomer Recycle Points for packaging & WEEE incl.batteries & energy saving bulbs
20 Results to DateMajor savings made on waste management & energy costsDublin meeting 90% recycle rate since opening, cost neutral operationEnergy consumption reduced by 20% since store openingdue to BMS management, installation of ESB (CFLs) & staff awareness45% of co-workers use public transport or car share toget to workCo-workers trained on environment issues at induction & eLearningGreen Group established
21 Local Social Initiatives Woodland Scheme: IKEA Family card, 5 acres of woodland per yearTree Council of IrelandRediscovery Centre: furniture & textile recyclingBallymun Women’s Refuge & CrècheTemple Street Children’s HospitalLiberties Recycling: Clothes Bank in Recycle PointAisling Group – Ballymun after school programmeSchool tours