1. Social and Environmental Affairs
Thomas Bergmark

2. 14,6 billion Euro sales FY 2005
co-workers
216 stores in countries
1500 Suppliers in countries
32 factories in 9 countries
27 distribution centres in 16 countries

3. Our Vision….
…is to create a better everyday life for the many people

4. “Sustainability Direction”;
In a consumer society with growing & international
business;
“IKEA’s business shall have an overall positive impact on people & the environment”

5. “Focus Areas” FY 06-09 Products & materials Suppliers
Energy & Transport
Buildings & infrastructure
Community involvement
Leadership & Competence

6. Suppliers
“IKEA shall secure good Social, Working
and Environmental conditions at its suppliers,
and increase the suppliers’ own capability and
motivation to implement and maintain our
demands”

7. The IKEA supplier world...

8. Differs a lot…...

9. IWAY consists of... Based on UN and ILO decl & conv
Our Code of Conduct - “IWAY” “The IKEA Way on Purchasing Home Furnishing Products”
Based on UN and ILO decl & conv
IWAY Standard – specifying requirements
IWAY evaluation checklist – 90 criteria’s
Business responsibility, since Sept 2000
IWAY Council – CEO is Chairman

10. IWAY Standard - 17 areas .Emissions to air and water, Noise
.General Legal Compliance
.Emissions to air and water, Noise
.Ground Contamination
.Chemicals
.Hazardous and Non-Hazardous Waste
.Fire Safety
.Worker Safety
.Provided Housing Facilities
.Wages, benefits and Working Hours
.Child Labour
.Forced & Bonded Labour
.Discrimination
.Freedom of Association
.Harassment and Abuse / Disciplinary Practises
Continuous Improvements
.Routines for procurement of wood, bamboo and rattan
Fulfilment of IKEA and legal forestry demands

11. . . 43 Trading Service Offices 80 auditors performing IWAY audits
developing suppliers . .

12. Internal & External Verification audits
A. Trading Service Offices
B. Compliance team
C. 3rd parties - PWC, KPMG and ITS

13. Difficult issues remains to be solved……..
Local legislation
Working hours
Overtime payment
Wastewater treatment
Hazardous waste
Chemicals
In August 2005 the average supplier fulfils 90% of our
requirements…..”the 90 criteria’s”

14. How IKEA can contribute to this UNEP meeting……
We have been working with Social & Environmental actions since 15 years
We have a substantial experience from the field
We are actively working with the UN Global Compact “Ten Principles”
We are profitable and growing and S&E actions is one of the success factors

15. Benefits to IKEA by participating
We can highlight the challenges we are facing
We need partnerships to solve several difficult issues
We can learn a lot from other stakeholders
We can contribute to and influence the development

16. Social & Environmental
Report F.Y.2004 on

17. Conclusions Our Vision, Culture & Values - the foundation
Sustainability Direction and S&E Strategy
Clear requirements & tools for improvement
Participating is a win-win situation
S&E actions is core to our business success

18. WE CAN MAKE A DIFFERENCE!!
- by doing business in a responsible way….