IKEA A PRESENTATION ON SUSTAINABILITY

IKEA Corporate and Social responsibility

IKEA Corporate and Social Responsibilty Our Vision To create a better everyday life for the many people © Inter IKEA Systems B.V. 2000.

IKEA Corporate and Social Responsibilty Key facts about IKEA 135,000 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 billion UK & IRL has 19 stores & 10,000 co-workers.

IKEA Corporate and Social Responsibilty Corporate Sustainability Direction - IKEA’s business shall have an overall positive impact on people and environment. IKEA Social & Environmental Strategy It’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.

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 distribution Minimise our carbon footprint We will offer solutions and know-how that enables our customers to live a sustainable life at home.

Standards and Guidelines for our Suppliers. Our supply chain Standards and Guidelines for our Suppliers. The IKEA Way on Purchasing Home Furnishing Products (IWAY) Internal & external audits Key requirements: Traceability of raw materials Safe working conditions No child labour Measure impact on the local environment Avoid hazardous chemicals Reduce energy usage For more info: http://www.ikea.com/ms/en_IE/about_ikea/our_responsibility/iway/index.html

Product Design Considerations Only approved materials & sources Avoid use of hazardous chemicals Minimise wastage of material Minimum amount of packaging Fit on a Euro pallet to maximise transport efficiency Consider end of life treatment

Materials: Wood is an excellent choice We want to be sure that timber comes from responsibly managed forests IKEA employs 17 professional foresters to verify timber is from a sustainable source & to teach best practice methods At present IKEA sources FSC timber and works with WWF to stop illegal logging Wood is used in 50% of IKEA products

Sustainable Cotton Production Cooperation with WWF – Better Cotton Initiative Farmer Field Schools Efficient use of resources: reduce water & chemical usage Safer for people and the environment

IKEA Goes Renewable Aim: 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 installations At present IKEA UK & IE have reached the 25% reduction target. Today 47% of IKEA stores & facilities use renewable energy

All actions must be in the best interest of the child. Prevent child labour The IKEA Way on Preventing Child Labour Emphasis on preventive measures Unannounced inspections Cooperating 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 2015 All actions must be in the best interest of the child.

Reducing Transport Emissions Flatpack design to reduce ‘air’ Modern vehicles Emission targets Measure CO2 output Cleaner fuels Fuel-efficient driving techniques Hybrid company cars Bike to Work Scheme Subsidise bus tickets

Sustainability Indicators… All stores & factories to use wind generated electricity Installation of geothermal/solar panels Use of biomass burners for heating & hot water Rainwater harvesting at IKEA facilities & stores 90% recycle rate each month 25% energy reduction on 2005 figures 75% recovery rate for damaged & returned products 100% of timber from sustainable sources 15% of co-workers travel to work by walk, bike, bus, rail

Communication – The Never Ending List To raise environmental awareness amongst co-workers, customers and visitors Gives product information on the source of materials or tips for reducing energy or wastage at home Size of graphics vary from wallpaper to A4s Transport Noticeboard Sunnan & Soft Toy Campaign

Examples of NEL

IKEA Dublin Opened July 27th 2009 31,500m2 floorspace 1850 car parking spaces 400 employees 500 seat customer restaurant No. of visitors per day 5,000 – 15,000 I millionth customer on Oct. 20th 2009 Range of green technology features

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 storage Ground source heating: Saves 40% of energy costs by using soil temperature for heating/cooling. Largest system in Ireland - 258 bores 90m deep.

Recycling - Dublin 90% target each month Monthly reports to Head Office Waste Fractions: Cardboard, wood, plastic film, metal, hard plastic, glass & ceramics, plastic banding, paper, textiles, WEEE, energy saving bulbs, batteries, polystyrene, food, cooking oil & landfill Treatments: reuse, recycle or recovery incl. composting Customer Recycle Points for packaging & WEEE incl. batteries & energy saving bulbs

Results to Date Major savings made on waste management & energy costs Dublin meeting 90% recycle rate since opening, cost neutral operation Energy consumption reduced by 20% since store opening due to BMS management, installation of ESB (CFLs) & staff awareness 45% of co-workers use public transport or car share to get to work Co-workers trained on environment issues at induction & eLearning Green Group established

Local Social Initiatives Woodland Scheme: IKEA Family card, 5 acres of woodland per year Tree Council of Ireland Rediscovery Centre: furniture & textile recycling Ballymun Women’s Refuge & Crèche Temple Street Children’s Hospital Liberties Recycling: Clothes Bank in Recycle Point Aisling Group – Ballymun after school programme School tours

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