1. Olle Blidholm, IKEA, Sweden
8th European Forum on Eco-Innovation,Bilbao, Spain April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises
Greening the Supply Chain
Olle Blidholm
Development Manager,
Group Staff Sustainability, IKEA
Olle Blidholm, IKEA, Sweden

2. FACTS ABOUT IKEA 123.000 co-workers 267 stores in 25 countries
21,5 billion Euro sales
co-workers
267 stores in 25 countries
1 220 Suppliers in 55 countries
46 factories in 10 countries
39 distribution centres in countries
Increasing presence through expansion is an important part of realising our vision and reaching the many people. On August 31, 2009, the IKEA Group had 267 stores in 25 countries.
Another 34 stores in 16 countries/territories were run and operated by franchisees outside the IKEA Group, making the total number of IKEA stores worldwide 301.

3. SALES AT A GLANCE Top five sales countries Germany 16% USA 11%
France 10%
UK 7%
Italy 7%
If we break down the total Group sales by region, Europe with its many IKEA stores accounted for 80 percent of sales, North America for 15 percent and Asia together with Australia for 5 percent.
Our five largest sales markets are Germany, the US, France, UK and Italy. Italy surpassed Sweden for the first time in 2009.
Sales by region
Asia & Australia 5%
North America 15%
Europe 80%

4. PURCHASING AT A GLANCE Top five purchasing countries China 20%
Poland 18%
Italy 8%
Germany 6%
Sweden 5%
IKEA strives for long-term cooperation with our suppliers. Our cooperation secures efficient production and continuous development helps us create a low price range. Our product range is purchased from 1,220 suppliers in 55 countries.
Europe remains our most important purchasing region with 67 percent, while Asian countries account for 30 percent and North America for 3 percent.
Our five largest purchasing markets are China, Poland, Italy, Germany and Sweden.
Purchasing by region
North America 3%
Asia 30%
1,220 suppliers in 55 countries
Europe 67%

5. OUR SOURCING MODEL
Global purchasing organisation working in material dimensions
Local purchasing offices and close co-operation with suppliers
Aiming for long-term relationships with suppliers sharing our values
Code of Conduct launched the year 2000

8. SUSTAINABILITY IN IKEA
One of four cornerstones in our long-term corporate strategy for 2015
Aim to take a holistic approach
Innovation and new smart solutions is key - new products/solutions - logistics - manufacturing - raw materials

9. SUSTAINABILITY PRIORITIES
Offer a range of products that are more sustainable
Have a leading role in a low carbon society and strive to be overall climate positive
Turn waste into resources
Take social responsibility

10. DEVELOPING SUPPLIERS Basic demands Development
IWAY, our Code of Conduct - environment - working conditions - social conditions - forestry
Supplier energy efficiency project
Water
Innovation platform for suppliers

11. Climate Positive Opportunities for Suppliers
WWF CLIMATE PROJECTS
Climate Positive Opportunities for Suppliers
Main Goals
Goal 1. Identify and analyze the most important barriers that obstruct change
Goal 2. Define strategies to open opportunities
Goal 3. Create an action plan based on the defined strategies
Goal 4. Create a Supplier Innovation Platform

12. THE IKEA INNOVATION PLATFORM
Suppliers
IKEA units: Stores, DCs, Swedwood
IKEA Coordinator
The IKEA Global Innovation Platform
Plastics Innovation Partnership
General Climate Innovation Partnership
Supported by WWF
Textiles Innovation Partnership
Mattresses Innovation Partnership
The IKEA Global Innovation Initiative (TIGII) will establish a platform that can serve as an instrument for identifying relevant climate solutions from innovation clusters globally. The platform will also include a solid process for the evaluation, financing, implementation and diffusion – within IKEA units and to e.g. suppliers – of innovative climate solutions.
WWF can support IKEA in the establishment of TIGII, identifying relevant stakeholders in each region and initiate the process under each partnership. Should this prove to be successful and valuable to IKEA, the TIGII should be assigned permanent resources and managed by an IKEA coordinator as the interface between IKEA units, its suppliers and the innovation partners.
Best Available
Technology
Emerging solutions
Tailored solutions
Emerging solutions
Tailored solutions
BAT
Emerging solutions
Tailored solutions
Emerging solutions
Tailored solutions
BAT
BAT

13. CONCLUSIONS Sustainability is core business for IKEA
We aim to take a holistic approach
We work to fully integrate sustainability in all our business strategies
Innovation is a crucial part in this - Green living - Logistics - Manufacturing - Raw materials

14. WHAT DO WE WANT? Clearer and tougher rules
A solid climate agreement that prevents harmful trade barriers
A comprehensive approach to cross boundary rail traffic
Clear long-term rules and subsidies for renewable energy
Various incentives promoting the development of new innovations and resource efficient technologies

15. Olle Blidholm, IKEA, Sweden
8th European Forum on Eco-Innovation,Bilbao, Spain April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises
Olle Blidholm
Development Manager,
Group Staff Sustainability, IKEA
Tel
Olle Blidholm, IKEA, Sweden