IKEA Implementing Sustainable Practices Mark Finnegan, Environment Specialist IKEA Ballymun mark.finnegan@ikea.com

Introduction

IKEA Sustainability Overview Sustainability?: a balance between social needs, environmental protection and economic growth IKEA Sustainability Direction: IKEA’s business should have an overall positive impact on people & the environment Sustainability Structure throughout the IKEA Group incl. procurement, logistics, food, property, manufacturing, forestry and retail – sustainability managers, specialists and co-ordinators.

IKEA Business Plan 2011 Sustainability is one of four key cornerstones in the IKEA business plan.

IKEA Sustainability Current Projects IKEA WAY: Social & environmental protection – code of standard IKEA Goes Renewable: Reducing CO2 & utilising green energy EMS Monitoring: Waste, energy, water, non-car transport, community support Never Ending List: Communication & raising awareness Local community & charity work Environment & Recovery Dept. – waste minimisation and waste management

IKEA Goes Renewable - Dublin Ground source heating/cooling system – 158 bores, 90m deep, 65% carbon reduction = energy savings for 300 homes No oil or gas connection Biomass Burner: 650kw – heat water & loading bay area = 24% carbon reduction Rainwater harvesting – UV treated & used for flushing toilets

IKEA Sustainability KPIs – 2011 Waste: 90% recycle rate Energy: 10% reduction on 2010 total (kwhs) Transport: 25% of employees use sustainable transport & 15% of customers 75% Recovery Index for damaged products/packaging, ex-display and customer returns

Sustainability results – Dublin 2010 Waste: 91% recycle rate 80 tonnes of customer WEEE & packaging take back Energy: 2010 (baseline year) buy green energy Transport: 47% of employees use sustainable transport & 8% of customers 71% Recovery Index Planted 5 acres of native woodland in Fingal – IKEA Family & Tree Council of Ireland 90% of employees completed sustainability training (excl. induction)

Future Sustainability Focus Offer a range of products that are more sustainable – Product Scorecard Take a lead role towards a low carbon society – IGR, customer electric vehicle chargers… Turn waste into a resource eg Closing the Loop project on furniture reuse Reduce our water footprint Take social responsibility

Thank You ‘Sustainability is our ultimate goal…We’re only at the beginning of our journey towards a sustainable IKEA range’ Thomas Bergmark ex-Sustainability Manager IKEA Group