8th European Forum on Eco-Innovation,Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Olle Blidholm, IKEA, Sweden

Greening the Supply Chain

Olle Blidholm

Development Manager,

Group Staff Sustainability, IKEA

FACTS ABOUT IKEA

• 21,5 billion Euro sales

• 123.000 co-workers

• 267 stores in 25 countries

• 1 220 Suppliers in 55 countries

• 46 factories in 10 countries

• 39 distribution centres in 17 countries

SALES AT A GLANCE

Sales by region

Asia & Australia 5%

North America 15%

Europe 80%

Germany 16%USA 11%France 10%UK 7%Italy 7%

Top five sales countries

PURCHASING AT A GLANCE

Purchasing by region

North America 3%

Asia 30%

Europe 67%

Top five purchasing countries

China 20%Poland 18%Italy 8%Germany 6%Sweden 5%

1,220 suppliers in 55 countries

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

© Inter IKEA Systems B. V. 2000

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

SUSTAINABILITY PRIORITIES

1. Offer a range of products that are more sustainable

2. Have a leading role in a low carbon society and strive to be overall climate positive

3. Turn waste into resources

4. Take social responsibility

DEVELOPING SUPPLIERS

• IWAY, our Code of Conduct- environment- working conditions- social conditions- forestry

• Supplier energy efficiency project

• Water

• Innovation platform for suppliers

Basic demands Development

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

Climate Positive Opportunities for Suppliers

WWF CLIMATE PROJECTS

THE IKEA INNOVATION PLATFORM

PlasticsInnovationPartnership

TextilesInnovationPartnership

MattressesInnovationPartnership

General ClimateInnovationPartnership

Best Available Technology Emerging

solutionsTailoredsolutions

BATEmergingsolutions

Tailoredsolutions BAT

Emergingsolutions

Tailoredsolutions

BATEmergingsolutions

Tailoredsolutions

IKEA units: Stores,DCs, Swedwood

Suppliers IKEA

The IKEA Global Innovation Platform

IKEACoordinator

Supported by WWF

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

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

8th European Forum on Eco-Innovation,Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Olle Blidholm, IKEA, Sweden

Olle Blidholm

Development Manager,

Group Staff Sustainability, IKEA

Tel +46 732 320 105

olle.blidholm@ikea.com