1. Social and Environmental Affairs
Thomas Bergmark
IKEA Group

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

3. 19,8 billion Euro sales FY 2007
co-workers
260 stores in countries
1350 Suppliers in countries
38 factories in countries
42 distribution centres in 16 countries

4. “Focus Areas” - also beyond 2009…...
Products & materials
Suppliers
Energy & Transport
Buildings & infrastructure
Community involvement
Leadership & Competence

5. 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”

6. Is it possible to source at competitive prices while living up to its customers demands on taking social and environmental responsibility?

7. Purchasing Purchasing FY 07 By region Top 5 purchase countries
North America 3%
Asia 33%
Top 5 purchase countries
China 22%
Poland 16%
Italy 8%
Sweden 6%
Germany 6%
Europe 64%

8. The IKEA supplier world...

9. Differs a lot…...

10. IWAY consists of... Social-, Working- and Environmental conditions
Our Code of Conduct - “IWAY” “The IKEA Way on Purchasing Home Furnishing Products”
Social-, Working- and Environmental conditions
IWAY Standard
IWAY evaluation checklist – 90 criteria’s
Requirements on all 1350 IKEA Suppliers
Sub-suppliers to sign and acknowledge the requirements

11. 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

12. . . Trading Service Offices 100 IKEA auditors performing IWAY audits
developing suppliers . .

13. Internal & External Verification audits
1. Trading Service Offices
2. Compliance team
3. PWC, KPMG and ITS
All suppliers are covered
Selected Sub-suppliers as well

14. Sub Suppliers
Unannounced child labour audits in India and Pakistan by 3rd party
“High risk” strategy

15. IWAY fulfillment rates 2007

16. Dilemmas
Local legislation
Working hours?
Minimum or living wages?
Overtime payment

17. Social & Environmental Responsibility
Report F.Y.2006 on
Report 2006
Social & Environmental
Responsibility

18. Conclusions Our Vision is the foundation
S&E Strategy with suppliers in focus
Clear requirements in our CoC
Auditing of suppliers and sub-suppliers
We put a lot of IKEA resources on this
No quick fix! Also dilemmas!

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