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IKEA Australia Sustainability Report FY10-FY11
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Page 1: F Y 10 - F - IKEA...Report 2011 on . This is the first Sustainability Report for IKEA Australia and we welcome any feedback or enquiries you may have. You can contact us at info.sustainability.au@IKEA.com

IKEA Australia Sustainability Report FY10-FY11

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Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 © Inter IKEA Systems B.V. 2012

SuStAInAbILItY MAnAgER StAtEMEntAs an IKEA co-worker, your everyday contributions can make a big difference to the environment and the community that you work and live in. I am one of about 1,700 IKEA co-workers in Australia, and 130,000 globally. Imagine the difference we could make, if every single one of us made a few simple efforts to be more sustainable, everyday. Even small steps make a big difference when we all take them together.

Sustainability is a long-term priority for IKEA Australia and this Report summarises our journey through FY10/11. Like any journey it’s had some twists and turns and a few bumps along the way. We are aware that we will make mistakes, however we will learn from these mistakes. We still have many more improvements to make and we will to continue to share our progress

We have a bright future ahead of us in Australia, one that will see us become a more sustainable business, day by day. This is just the beginning of our journey and many things remain to be done.

COuntRY MAnAgER StAtEMEntAt IKEA, we want to create a better everyday life for the many people. We aim to do this by providing well designed, functional and sustainable home furnishing products at prices so low that as many people as possible can afford them.

Sustainability isn’t new to IKEA; it started with the flatpack and has evolved into our constant desire to make more from less. What if we treated waste, water or energy like a commodity? How much value would we place on reducing our consumption? Acting sustainably not only saves us money, but helps the environment too! Our responsibilities to people include our co-workers, they are our most valuable resource and we know that when they grow, IKEA also grows.

As a leader of a business with intentions to expand in the Australian market, I believe we have a responsibility to care for the environment and communities in which we operate. Not a day goes by that I don’t see tremendous opportunities to do better business, and while I am pleased with our success to date, I’m incredibly excited about the future ahead of us.

Thank you for letting us share some of our progress with you through this Report.

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© Inter IKEA Systems B.V. 2012

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Jump straight to page 9 to dig into the details about our sustainability performance and activities.

HIgHLIgHtS FY10 - FY11

We improved the energy efficiency of our stores, so

8.2% less energy was consumed per m3 of goods sold in FY11 compared to FY10.

We were awarded Most Sustainable business 2010 by the City of Canada Bay for IKEA Homebush.

We achieved an 80%

reduction in waste transport during FY11 as a result of investing $1.5 million in waste equipment upgrades.

We donated $223,309 to partner charities, local schools, other organisations and projects in FY11.

We used 5% less water in our stores, per m3 of goods sold, in FY11 compared to FY09, mostly due to the installation of more water efficient dishwashers, toilets and taps.

We produced 509 giga joules of renewable energy by installing solar hot water in FY11.

We gave primary care giving

co-workers 26 weeks of fully paid parental leave as our parental leave policy further improved to become the most generous in the retail industry.

We emitted 420 tonnes less CO2 from our store operations in FY11 compared to FY10.

David Hood, Country Manager, IKEA Australia

Annie Chandler, Sustainability Manager, IKEA Australia

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Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 © Inter IKEA Systems B.V. 2012

OuR FInAnCES

IKEA AuSTRALIA: AT A GLANCE

WHERE WE AREDuring FY11, IKEA Pty Ltd operated three stores on the Australian east coast. At the beginning of FY12, we opened two new stores; IKEA Springvale in Melbourne and IKEA Tempe in Sydney. IKEA Pty Ltd also includes our national office (referred to as the Service Office) and Customer Service Centre.

the IKEA range consists of approximately 9,500 products.

WHO WE ARE

FY10 (31 Aug 2010)

FY11 (31 Aug 2011)

total equity 103.7 21% 146.6 22%

Long-term liabilities 125.2 114.6

Other non-current liabilities 33.3 50.3

total non-current liabilities 158.5 25% 164.8 17%

Short term-liabilities 138 228.1

Other payables 91.7 121.3

total current liabilities 229.7 7% 349.4 8%

tOtAL EQuItY & LIAbILItIES 491.9 47% 660.9 53%

Equity & Liabilities (millions of $)

2010 506.0 M

2011 523.7 M

NET SALES

2010 924

2011 1,638

NuMBER OF CO-WORKERS

NuMBER OF STORES

2010 3

2011 3

CATALOGuES PRINTED

2010 3.6 M

2011 3.6 M

STORE vISITS

2010 4.9 M

2011 5 M

WEBSITE vISITS

2010 9.2 M

2011 14.9 M

IKEA FAMILY MEMBERS

2011 490,000

Logan

Service Office

Tempe

Homebush

SpringvaleRichmond

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Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 © Inter IKEA Systems B.V. 2012

gOvERnAnCEIKEA Pty Ltd has a unitary board structure. the legal board of IKEA Pty Ltd comprises five directors. three of these, including the Chair of the board, are non-executive directors and two are executive directors. We define an executive as a member of the executive group (known as the Country Management group), who holds a position of direct influence on operational policies and strategies. Our Country Management group, which reports to our legal board, has 11 executive members. In each of our eight decision groups, one or more executive members are represented.

The Sustainability Manager, who reports directly to the Country Manager, is responsible for our sustainability agenda. The Sustainability Manager works with the rest of the Country Management Group to ensure that sustainability is an integral part of the business plan and daily business operations of IKEA Australia.

IKEA group

IntER IKEA Systems b.v.

IKEA Staff

Functions

Range StrategyProduct

DevelopmentSupply Chain

IKEA IndustryRetail

FRANCHISOR

FRANCHISEE

Store

Store

Store

Store

Store

Retail companies

in other countries

IKEA Pty. Ltd

IKEA Australia

WHO OWnS uS the IKEA group of companies includes; Range Strategy, Product Development and Supply Chain, Retail companies and Industrial groups.

In 2011, the IKEA Group operated in 41 countries with 29 trading offices in 25 countries. The remaining 16 countries are home to Distribution Centres and 11 Customer Distribution Centres. The IKEA Group also had 1,026 home furnishing suppliers in 53 countries in 2011.

Inter IKEA Systems B.v. in the Netherlands is the owner of the IKEA Concept and the franchisor of all IKEA stores worldwide. The IKEA Group franchises the IKEA concept from Inter IKEA Systems B.v. and owns several retail companies around the world that act as IKEA franchisees in their respective markets, including IKEA Pty Ltd.

IKEA Pty Ltd (in this Report generally referred to as IKEA Australia), is a privately held company headquartered in Sydney that owns and operates the stores on the Australian east coast.

For more details on the ownership structure of the IKEA Group, please go to Welcome Inside 2011 on www.IKEA.com.au

© Inter IKEA Systems B.V. 2012

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AbOut tHIS REPORt

SCOPE AND BOuNDARIESthis Report describes IKEA Australia’s sustainability activities and performance during financial years 2010 (FY10, i.e. from 1 September 2009 to 31 August 2010) and 2011 (FY11, i.e. from 1 September 2010 to 31 August 2011). Any numerical data refers to the situation within our organisation at the last day of each respective financial year, unless stated otherwise.

As IKEA Tempe and IKEA Springvale were opened in FY12, activities and performance relating to these stores are not included in the Report with the exception of a few relevant areas that are clearly indicated in the Report.

This Report does not include information about the IKEA stores in Western Australia or South Australia as they are not owned or operated by IKEA Pty Ltd.

The Report also refers briefly to the sustainability work carried out by IKEA on a global level, this information is clearly identified.

For more details about the global sustainability work of IKEA, please see the IKEA Global Sustainability Report 2011 on www.IKEA.com.au.

This is the first Sustainability Report for IKEA Australia and we welcome any feedback or enquiries you may have. You can contact us at [email protected]

Finance & Administration

Retail Logistics

Customer Relations Projects

Sustainability Property & Expansion

Marketing IKEA Food

SalesCommunication

& Interior Design

Legal board

Executive groupCountry

Management group

Functional groups

Service Office

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Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 © Inter IKEA Systems B.V. 2012

SuStAInAbILItY IS At tHE CORE OF EvERYtHIng WE DOAt IKEA our vision is “to create a better everyday life for the many people”. Our business idea supporting this vision is that we shall offer a wide range of well-designed, functional home furnishing products at prices so lo that as many people as possible will be able to afford them.

Low prices are the cornerstone of the IKEA vision and our business - but not at any price. At the IKEA Group, we believe that taking responsibility for people and the environment is a prerequisite for doing good business.

Sustainability is at the core of what we do. IKEA low prices must never be achieved at the expense of people or the environment. That is our first condition for doing good business. Our customers must always feel that the products they buy are safe to use and responsibly sourced. IKEA products must be manufactured under acceptable working conditions by suppliers who take responsibility for the environment. We do not accept child labour. The IKEA Group supports sustainable forestry and our long-term goal is to source all wood in the IKEA range from forests certified as responsibly managed.

In this Report, you will discover examples of how we integrate sustainability into every step of the IKEA value chain. By seeing our performance and initiatives during the past two years, and what we are aiming to achieve in the future, you will also see the effects of our commitment to sustainability.

SuStAInAbILItY At IKEA

Wherever we are, we act with respect to exert a positive impact on people and on the limited resources of our planet to ensure long-term profitability.

© Inter IKEA Systems B.V. 2012

HOW DID WE DECIDE WHAt’S In tHIS REPORt? As a leading home furnishing company, IKEA Australia has the privilege and the responsibility to influence environmental, social and economic conditions in many areas. these include the environmental impact of our operations, employment and conditions in our local communities. We’ve chosen the contents of this Report to show the areas in which our operations play a significant role in influencing environmental, social and economic conditions, highlighting areas where we have taken, or plan to take, specific initiatives.

We have then prioritised these areas by evaluating our stakeholder groups’ key concerns, identified through surveys and dialogues. The stakeholder groups include; our customers, co-workers and other people who may be interested in sustainability. We have focused on these stakeholder groups as they combine an interest in our organisational performance with limited knowledge of our sustainability commitment.

The Global Reporting Initiative (GRI) G3 Sustainability Reporting guidelines have been used during the development of this Report. We are reporting based on a self-declared application level of “C”. The Report covers the performance indicators that we find the most material according to the GRI guidelines of defining content.

We have sourced statistical data from existing recording systems within our organisation. In cases where relevant data was not available, conclusions have been reached by combining data from other sources such as supplier data and survey results. We have clearly indicated where any assumptions have been made in relation to the data. When a specific performance indicator is not reported to its full extent, it is due to a lack of ability to derive reliable data and these cases are marked accordingly.

We have also chosen to include some data that is not included in the GRI Indicator protocol as we believe this presents a more complete picture of IKEA Australia as an organisation and shows our commitment to sustainability.

SuppliersWe co-operate closely with the suppliers of our home furnishing and food range, as well as product transport and distribution, as it is important they understand and comply with our requirements and codes of conduct.

We maintain an ongoing dialogue with our suppliers of water, energy and waste management solutions, as their services are directly linked to our ambitions of reducing the environmental footprint of our stores and offices.

Co-workers With our co-workers being our most important resource, we stay in touch with our co-workers through regular co-worker perception surveys, focus groups and other forms of discussion.

AcademiaWe engage with academic institutions as we believe that sharing our experiences as well as learning from others within the field is beneficial for all parties in our attempt to contribute to a more sustainable future.

ConsumersWe invest significant effort and resources to ensure an ongoing dialogue with our customers, as they have the most direct contact with our organisation and products. We take continuous measures to improve our understanding of our customers and general consumers in the market, and their perception and expectations of IKEA, through various market studies.

MediaWe are happy to share our approach and standpoint on sustainability issues with the public. This includes being open to media exposure and to enquiries aimed at our organisation.

government & Legislation We keep ourselves updated on laws and regulations, and are responsive to government requests.

CompetitorsIn our aim to take environmental and social responsibility, we co-operate with other corporations within the industry to join efforts, share knowledge and learn from best practice.

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StAKEHOLDERSthis Report has been written for everyone who has an interest in IKEA Australia’s performance and activities related to sustainability.

As a leading home furnishing company, IKEA Australia has a wide variety of stakeholders who, in different ways, have an interest in, or are affected by our operations. We work to understand our stakeholders and what matters to them, through research, surveys and ongoing dialogue. We believe that by building and maintaining strong relationships and engaging in open discussions with our stakeholders, we can find solutions together that benefit our mutual and ongoing commitment to sustainability.

Civil Society

ngOsAs a company committed to giving back to the community, we have established a close relationship with several Non-Governmental Organisations and charities at both a local and national level.

Advocacy groups We are responsive to advocacy groups and strive to develop meaningful relationships with a collaborative approach. We believe it is important to stay in touch with local authorities and residents in the areas in which we operate. This means we also have an ongoing dialogue with local interest groups and councils in the communities where our stores are located, particularly in markets where we plan to open new stores.

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PRODUCT1GLOBALIn offering low prices we must never compromise the quality or safety of IKEA products. Get a glimpse into how designers, product developers and technicians consider a product's safety, quality and environmental aspects, from the initial design stage throughout its life cycle, on page 12.

GLOBALIKEA products must be manufactured under acceptable working conditions by suppliers who take responsibility for the environment. Read about IWAY, the IKEA code of conduct on page 16.

3 SUPPLIERS

TRANSPORTLOCALWe encourage our co-workers to arrange virtual meetings before travelling long distances to meet, and we are looking into ways to enable and encourage our co-workers to choose more sustainable ways of getting to work. See how much the estimated amount of emissions per co-worker has decreased on page 20.

GLOBALIKEA is on a constant hunt to eliminate unnecessary air in the trucks and ships that transport our products. For some examples of innovative ways in which this is being done, turn to page 18.

4

LOCALWe continuously make invest- ments and improvements, both in equipment and processes, in order to minimise the environmental impact of our store operations. Find examples of how on page 21.

STORE5

MATERIALSGLOBALIKEA believes in using the fewest resources to make the best possible products, without having a negative impact on their functionality or appearance. Learn more about the IKEA approach to responsible forestry, better cotton and our principle of making more from less, on page 14.

WASTE8

LOCALDespite an increase in sales, the amount of packaging for our home furnishing products has decreased by 1,990 tonnes! The proportion of waste going to landfill has also decreased. Turn to page 28 for more details on our waste production.

ENERGY6

LOCALSolar energy is used to heat the majority of hot water in our stores. Learn more about that and about our investments in systems to ensure more efficient use of air- conditioning and lighting, on page 22.

WATER7

LOCALBy installing water tanks at IKEA Logan, we now make use of rain water. Read about how different initiatives have improved our efficiency in consuming town water on page 26.

CO-WORKERSLOCALOur co-workers are our most valuable resource. That is why we value diversity, offer generous benefits, invest in competence development and in understanding how co- workers perceive their work- place. Learn more about IKEA Australia as an employer on page 30.

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LOCALIKEA Australia is committed to being a good neighbour in the community. Our focus is to support a good environment for children to learn and develop, as well as comfortable, safe and sustainable homes for local residents. Read about our partnerships and projects with a variety of local organisations and schools on page 34.

GLOBALThe IKEA Foundation aims to improve opportunities for children and youth in developing countries. Find out how the IKEA Soft Toys campaign and the SUNNAN campaign have raised millions of Euro to benefit this cause, on page 34.

COMMUNITY

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© Inter IKEA Systems B.V. 2012

Our aim is to take social and environmental responsibility in every stage of the IKEA value chain.

Come on a journey with us and discover how sustainability is integrated in the product development stage, through the supply chain, throughout our store operations and in giving back to the community.

SuStAInAbILItY IS At tHE CORE OF EvERYtHIng WE DO

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Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 © Inter IKEA Systems B.V. 2012

SIGNUM cable trunking

Find out more about our quality and safety requirements on www.IKEA.com.au or in the Global Sustainability Report 2011.

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Find out more about the IKEA approach to more sustainable products on www.IKEA.com.au or in the Global Sustainability Report 2011.

When developing products, we first decide on the price tag the item will have when sold in IKEA stores. However, in offering low prices we must never compromise the quality or safety of IKEA products. Designers, product developers and technicians must consider a product’s safety, quality and environmental aspects, from the initial design stage and throughout its life cycle.

SAvIng On EvERYtHIng but gOOD IDEASWe are constantly trying to do everything a little better, more simply, efficiently and cost-effectively. The revised design of SIgnuM cable trunking is just one example that shows how this can improve product functionality as well as reduce environmental impact. By increasing the distance between the metal threads, we more than halved the amount of material used. The new design is lighter too and makes it even easier to keep your electric and computer cables organised. Nearly twice as many SIGNUM can now fit onto a pallet, which reduces greenhouse gas emissions from transport. Lower material and handling costs mean that our customers enjoy a reduced price too!

QuALItY & SAFEtYWhere applicable, IKEA applies the strictest health, safety and environmental requirements of any specific retail market to all our retail markets.

Each year thousands of tests are carried out on IKEA products during the development stage. Even more tests are conducted during production.

We also ensure that banned chemicals such as formaldehyde and phthalates don’t exceed IKEA requirements. IKEA has a third-party accredited test laboratory that is certified each year by external auditors and third-party accredited test laboratories that perform random tests. IKEA requires suppliers to have certified product testing done by third party auditors.

SAFE IN OuR HANDSWho thinks about safety when having lots of fun? not kids, they’ve got more important things to do – so it’s our responsibility to see the hidden dangers.

All our children’s toys are designed and tested to the highest possible safety requirements around the world to ensure playtime is a happy time for everyone. Each product undergoes risk assessments during product development and production stage. The purpose of risk assessments is to detect and eliminate potential hazards and to ensure the product is safe to use. Toys for kids under three years old will not have parts small enough to choke on. And because kids are always putting things in their mouths, toys must not contain harmful levels of toxic chemicals. What’s more, we ensure that all children’s products are made from material that, if exposed to fire, will not ignite and flare up. Toys must not have sharp edges or points that could cut or puncture a child’s skin and if there are large moveable parts to a toy, they must be designed to prevent fingers from being jammed or a child from getting stuck.

SEWN EYESWe only use sewn eyes and details – never plastic eyes that can fall off.

Externally fixed plastic eyes can cause suffocation if they fall off. We know from research that children pay particular attention to the eyes in the faces of toys, so we also make sure our soft toys have expressive eyes with distinct contrasts that not only make small children happy, but also stimulate the development of their eyesight.

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Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 © Inter IKEA Systems B.V. 2012© Inter IKEA Systems B.V. 2012

Find out more about the IKEA approach to sourcing of raw materials on www.IKEA.com.au or in the Global Sustainability Report 2011.

MORE FROM LESSIKEA believes in using the fewest resources to make the best possible products, without negatively affecting their functionality or appearance. We work towards using as many renewable and recyclable materials as we can. Wherever possible, waste from one manufacturing process should be used in the production of other items.

bEttER COttOnCotton is one of the most important raw materials for IKEA, and we work actively to promote better cotton growing methods. We want the cotton used in IKEA products to be produced in a sustainable manner, taking in to consideration both people and the environment.

IKEA is a founding member of the Better Cotton Initiative (BCI). BCI aims to promote measurable improvements in the key environmental and social impacts of cotton cultivation worldwide to make it more sustainable. Leading participants are international companies, NGOs and the united Nations Environment Programme.

Find out more about the Better Cotton Initiative on www.IKEA.com.au or in the Global Sustainability Report 2011.

RESPOnSIbLE FOREStRY Wood is an excellent material from a quality and environmental perspective, as long as it is legally produced and comes from responsibly managed forests. Our wood has not been harvested from Intact natural Forests (InF) or other geographically identified High Conservation Value Forests (HCVF), unless it is certified as responsibly managed.

The IKEA Group’s forestry specialists are working in the field in our key wood-sourcing regions. These forestry specialists support business development towards the long-term goal of sourcing all wood used in the IKEA range from forests certified as responsibly managed, and help the IKEA trading service offices to trace the wood back to its origins.

The IKEA Group participates in a number of forestry projects with external organisations in order to contribute to the development of responsible forestry practices and policies in countries where we work. The IKEA Group’s forestry projects focus on responsible management practices, building capacity for third party certification, combating illegal logging and forestry research and education.

Find out more about the IKEA forestry requirements on www.IKEA.com.au or in the Global Sustainability Report 2011.

“Waste of resources is one of the greatest diseases of mankind”Ingvar Kamprad, founder of IKEA

WASTE KNOT!In the 1990’s IKEA revolutionised the furniture industry by introducing NORDEN tables. This was the first time anyone had made furniture from the knotty crown of the birch tree, making use of the entire tree trunk. Previously, this wood was either burnt as firewood or ground up to make chipboard.

NORDEN Table

LOOSING SLEEP OvER THE ENvIRONMENT? You can rest easy because gOSA SYREN pillows are filled with microfibre made from 100% recycled PEt drink bottles.

GOSA SyREN Pillow

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nOtE: As the only sustainable mainstream material, wood has two other very important advantages. One; it stores carbon for life – approximately half the dry weight of wood is carbon, absorbed from the atmosphere by a growing tree. Two; substituting wood for more carbon intensive materials (e.g. steel, aluminium, plastics) reduces greenhouse emissions associated with their production.

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IWAY – tHE IKEA CODE OF COnDuCtIKEA products must be manufactured under acceptable working conditions by suppliers who take responsibility for people and the environment. the best way of influencing and contributing to positive development is to maintain close, long-term relationships with our suppliers. by supporting suppliers we aim to motivate them to take more responsibility for people and the environment.

The IKEA Way of Purchasing Home Furnishing Products (IWAY) is the IKEA code of conduct. It defines what suppliers can expect from IKEA and specifies what IKEA requires from its suppliers. It is based on international conventions and declarations and includes provisions based on the united Nations universal Declaration of Human Rights (1948), the International Labour Organisation Declaration on Fundamental Principles and Rights at Work (1998), and the Rio Declaration on Environment and Development (1992).

IWAY covers working conditions, the prevention of child labour, the environment, responsible forestry management and more. Suppliers are responsible for communicating the content of the IKEA code of conduct to co-workers and sub-contractors and ensuring that all required measures are implemented at their own operations.

Our practice is to work side-by-side with our suppliers on the factory floor so we have a better understanding of their production conditions. Designers, product developers and purchasers often work on site in factories. This gives us the opportunity to influence supplier practices and support them in developing the competence, skills and knowledge to lead their own social and environmental initiatives.

WHERE DO YOuR bEAnS COME FROM?by offering a fully traceable chocolate bar, IKEA became the first retailer in the world to introduce UTZ Certified cocoa. Each bar of our CHOKLAD MORK 70% (dark chocolate 70%) can be traced back all the way to the cocoa bean plantations. If you would like to find out where your chocolate bar came from, simply visit www.utzcertified.org/IKEA, enter the code on the wrapper and you’ll see where the beans originated and the farmers behind your tasty treat!

UTZ CERTIFIED is an independent non-profit organisation, that sets social and environmental standards for sustainable growing and distribution of cocoa, coffee and tea. Since 2008, all coffee sold and served at IKEA is also UTZ certified.

Choklad Mork 70%

Find out more about IWAY on www.IKEA.com.au and in the Global Sustainability Report 2011.

© Inter IKEA Systems B.V. 2012

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FY10 FY11

CO2 emissions CO2 emissions / m3

transported goods CO2 emissions CO2 emissions / m3

transported goods

12,611 0.47 15,367 0.51

In Fy11, the method of measuring and reporting on CO2 emissions was revised to ensure more precise estimations, which explains the increase in estimated CO2 emissions/m3 transported goods in Fy11 compared to Fy10. Data on the emissions from transport of waste is not available.

CO2 emissions from transport of home furnishing products to IKEA Australia (tonnes)

Apart from being one of our biggest sellers, EKtORP sofa also used to be one of our biggest packages. by folding the back and armrests inwards, the sofa now takes up half as much space, is easier for customers to load on to their vehicles, and helps to remove 7,477 trucks from the roads and to reduce the annual carbon dioxide emissions by 4,700 tonnes. As a result, the cost has dropped significantly, savings that have been passed on to our customers as a lower price!

EKTORP sofa

tRAnSPORtIng PRODuCtS

THE FLATPACK – THE HERO OF A DISTRIBuTION REvOLuTION IKEA designs furniture so that it can be packed unassembled. the concept was born in the 1950’s after one of the first IKEA co-workers removed the legs of the LÖVET table so that it would fit into a car.

An idea of genius, it proved to not only save space, but also reduce transport costs and emissions. It’s not only good for the environment but good for you too as savings are also passed on to our customers as substantially lower prices. The flatpack and self assembly is now an essential part of IKEA and eliminating unnecessary “air space” during transport has become a mantra within our organisation.

Find out more about transport of products and the work to phase out wooden pallets in the Global Sustainability Report 2011 or www.IKEA.com.au

TRANSPORTING PRODuCTS – NOT AIR At IKEA we are constantly on the hunt to detect air – air that can be eliminated from our packages and trucks. After all, we want to transport products, and the less air that comes with it, the less of an environmental impact our transport will have.

The filling rate measures to what percentage the trucks and containers are actually filled with products. In our mission to improve the filling rate, IKEA is currently phasing out wooden pallets and turning to more sustainable alternatives such as paper pallets and loading ledges.

IKEA Tempe and IKEA Springvale are among the first IKEA stores in the world to no longer handle wooden pallets. IKEA Homebush, IKEA Richmond and IKEA Logan stores are preparing to join them during FY12.

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© Inter IKEA Systems B.V. 2012

IKEA trolley with flatpack furniture

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FY10 FY11

CO2 emissions CO2 emissions / co-worker

CO2 emissions CO2 emissions / co-worker

1,507 1.63 2,221 1.36

The data is based on information from our primary domestic airline travel partner, who provides us with most of our domestic airline travel. The airline travel conducted by other companies is estimated to constitute 0.25% of the total domestic travel, and this assumption has been taken into consideration in estimating the total CO2 emissions. The emissions from pool cars in Fy10 are estimated based on emissions in Fy11.

CO2 emissions from business travel (tonnes)

tRAnSPORtIng CO-WORKERS

BuSINESS TRAvEL Our travel policy states the environmental impact of business travel must be considered when planning business meetings, deciding on the location and who needs to attend.

virtual meetings are preferred, but when travelling is absolutely necessary, all our co-workers must follow principles that ensure travel efficiency and include a strong preference for public transport whenever possible.

CO-WORKERS COMMuTING TO WORK throughout the years we have conducted surveys to track how co-workers commute. Our research shows the factors that influence the mode of transport choice are related to practicality, the availability of alternatives, time-efficiency and convenience.

Due to the location and working hours of our stores, public transport is not always a practical or possible option. This is reflected in the fact that the majority of our co-workers travel to work by car. Comparing results from different stores, we found a strong relation between the availability of well-developed public transport and the proportion of co-workers using it. Overall, 25% of our co-workers use what we define as more sustainable transport modes including public transport, cycling and walking. We are looking at ways to enable and encourage more co-workers to choose more sustainable commuting options. In FY11, the estimated emissions from co-workers commuting to work decreased by 5.3%.

FY10 FY11

CO2 emissions CO2 emissions / co-worker

CO2 emissions CO2 emissions / co-worker

326.7 0.354 549.7 0.335

Emissions are estimated based on data on co-workers’ residential addresses and average distance to the store; survey results on co-workers’ transport modes; statistics on average fuel consumption of personal motor vehicles in Australia; statistics on proportion of fuel type consumption in Australia; and estimations of average emissions from different types of public transport. For the estimations of emissions from cars and motorcycles, an emissions calculator provided by the Australian Government has been used.

CO2 emissions from co-workers commuting to work (tonnes)

© Inter IKEA Systems B.V. 2012

LOOKING AHEADIn FY12 and FY13, we expect to improve our energy and water consumption efficiency by implementing a system in which each store is responsible for reporting their consumption and developing action plans for further improvements. We will emphasise encouraging responsible managers to identify areas of opportunity, replace less efficient equipment and implement best practice.

We will continue to invest in technology that supports the control of more efficient energy consumption, as well as developing our competence in this area.

We will continue to investigate the possibility of using solar panels to move towards using 100% renewable energy in our stores in the future.

We will take more responsibility for what we sell by creating awareness with our customers about which products they can return to the store for recycling.

We will improve our recycling rate at all locations by identifying new products that can be recycled. We will continue to focus on sorting and separating at the source, reducing our costs and keeping trucks off the road.

Sustainability is at the core of everything we do, and for IKEA Australia, everything we do revolves around our stores. they are central to our business – where our business ideas become a reality and where we meet our customers every day.

At all IKEA Australia stores we can see a direct relation between visitor numbers, water and energy consumption and waste generation. For example, approximately 25% of a store’s water consumption can be directly attributed to customer restrooms, closely followed by dishwashing in our food business. Longer store trading hours means we use more energy to light the car parks, run air-conditioning, and keep our store lights on. With this in mind, we are proud of our trends relating to water, energy and waste. We realise it takes a great team in-store to keep these things in control, and they are doing an excellent job. While we know we still have a long way to go to reach our FY15 goals, we are on track!

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DIRECt EnERgYThroughout FY10/11, we committed to various investments in order to improve the energy efficiency of our buildings.

Thanks to these investments, we reduced the total energy consumption in our stores in FY11 compared to FY10, despite increased customer numbers. Relative to the amount of goods sold, the energy consumption has decreased by 8.2%. These investments mark the beginning of a journey towards a 100% renewable future in the Australian market.

total direct energy consumption (giga joules)

FY09 FY10 FY11

Homebush 637 474 371

Logan 694 228 663

Richmond 2,018 2,068 2,355

Total IKEA Australia 3,349 2,770 3,389

FY09 FY10 FY11

Homebush 626 464 186

Logan 677 210 468

Richmond 2,009 2,059 2,189

Total IKEA Australia 3,312 2,733 2,843

Gas is used for hot water and heating (excluding IKEA Logan which has no heating).

Renewable energy produced from solar panels (giga joules)*

FY11 Goal FY12

Homebush 175 175

Logan 178 178

Richmond 156 156

Total IKEA Australia 509 509

* We have installed an encapsulated tube system for heating water. These figures are extrapolated based on the number of months the tubes have been in use in each store. We are currently producing at maximum capacity for why we expect the same production rate during Fy12.

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Electricity consumption (giga joules) FY09 FY10 FY11

Homebush 16,289 17,703 17,569

Logan 18,177 18,039 17,863

Richmond 15,687 16,426 15,675

Total IKEA Australia 50,153 52,168 51,107

All our electricity is derived from coal (non-renewable sources).

2009 = 509 2010 = 509

TOTAL IKEA AuSTRALIA

ALL STORESAt IKEA Logan, IKEA Springvale and IKEA tempe, we have installed energy efficient cooling systems, an investment of an extra $7.5 million over and above what it would have cost us to simply comply with statutory requirements and install the cheapest system to do the same job.

We have invested in computer based systems to more efficiently manage our energy use and ensure that lights and air-conditioning are automatically controlled or switched off when not needed.

We are using solar energy to supply the majority of hot water in most stores. All domestic hot water is heated by the sun. When there’s no sunshine, the water is heated by a low energy heating element.

In the retail areas throughout the stores, all 50W spotlights have been replaced by 20W spotlights. this reduced the electricity consumption from lighting in the commercial areas by over 60%.

these are some of the things we have done to reduce our energy consumption:

© Inter IKEA Systems B.V. 2012

gas consumption (giga joules)

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use up to 80% less energy than traditional bulbs

Last for around 20 years (given that you use your bulb for an average of 3 hours a day)

Are 100% mercury free, unlike other low energy bulbs

total energy consumption (giga joules)

FY09 FY10 FY11

Homebush 16,925 18,177 17,940

Logan 18,871 18,267 18,526

Richmond 17,705 18,495 18,029

Total IKEA Australia 53,502 54,939 54,495

Total energy consumption/m3 goods sold (Mega joules)

FY09 FY10 FY11

Homebush 147 162 151

Logan 250 262 242

Richmond 193 194 173

Total IKEA Australia 189 198 182

FY09 FY10 FY11

Homebush 56.9 63.4 59.3

Logan 97.1 104.0 93.8

Richmond 69.6 70.4 61.5

Total IKEA Australia 71.8 76.0 68.9

total CO2 emissions from store operations (M tonnes)

FY09 FY10 FY11

Homebush 6.6 7.1 7.1

Logan 7.3 7.2 7.2

Richmond 6.4 6.7 6.4

Total IKEA Australia 20.3 21.1 20.7

* Emissions from consumption of gas, diesel fuel and electricity. Estimations of emissions are based on information from suppliers.

gOIng gREEnThroughout FY10/11, IKEA Australia has defined a minimum standard for what we call a “green store”.

The criteria that a green store must meet include:

• Rainwater harvesting

• using solar hot water

• Saving water with push button taps and water efficient toilets

• Controlling energy consumption with well-managed technology systems

• Fitting low energy lights throughout the store

• Employing movement sensors in meeting rooms and natural light sensors

This standard was defined throughout the construction stage of IKEA Tempe and IKEA Springvale and was implemented wherever possible. Significant investments have been, and are being made to ensure that where possible, these criteria are also met in our existing stores.

At IKEA, we have replaced all traditional incandescent bulbs with low energy bulbs. the latest addition to our low energy bulb range are LEDARE, which are based on LED technology. LED bulbs:

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2009 = 71.8 2010 = 76.0 2011 = 68.9

TOTAL IKEA AuSTRALIA

total CO2 emissions from store operations /m3 goods sold (g)

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WAtERWAtER

We believe water is one of Australia’s most important natural resources. Although using water doesn’t cost us a large amount of money today, in the long-term water consumption will significantly affect our environment.

Our tank capacity at IKEA Logan reached 1.1 million litres following the installation of additional tanks in FY10/11. This is just one example of how we are working to minimise our demand on reticulated water.

If every customer changed their taps at home to a more efficient model, imagine the water savings we could achieve together!

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Water consumption (m3)

These figures refer to the municipal water consumed for our store operations. IKEA Logan also consumes a smaller proportion of rainwater collected from their newly installed water tanks. In Fy11, we had no means of measuring the amount of rain water collected and consumed, however, we will implement a system to keep these records for Fy12.

* No reliable data due to an error in the measuring equipment

* No reliable data due to an error in the measuring equipment

FY09 FY10 FY11

Homebush 6,480 N/A* 9,509

Logan 8,637 9,346 6,028

Richmond 6,960 6,680 6,732

Total IKEA Australia 22,077 N/A* 22,269

A LITTLE GADGET THAT MAKES A BIG DIFFERENCEAll bathroom taps sold in IKEA stores now have an aerator, a little device built into the tap that mixes the water with air. this reduces the water consumption by 50% compared to traditional taps, while the water flow stays the same. This water flow is sufficient for normal household use, and so, our taps help prevent customers from consuming more water than necessary. using less water also means consuming less energy, which is good for both the environment and the customers’ wallet.

OLSKÄR TAP

FY09 FY10 FY11

Homebush 56.1 N/A* 80.0

Logan 114.5 134.1 78.6

Richmond 75.7 70.2 64.7

Total IKEA Australia 78.1 N/A* 74.3

Water consumption / m3 goods sold (mm3)

Examples of what we have done to reduce our water consumption:

ALL STORESWe invested in replacing all dishwashers in all our stores to more water efficient models.

IKEA HOMEBuSHIKEA Homebush won the City of Canada bay Most Sustainable business Award in 2010. Environmental initiatives included installing low-flow toilets and push button taps.

IKEA LOGANIKEA Logan installed extra water tanks with a capacity of 500,000 litres. by harvesting rainwater we have managed to reduce the reliance on town water. the rain water is used for the toilets and the air-conditioning cooling towers.

TOTAL IKEA AuSTRALIA

2009 = 78.1 2011 = 74.3

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WAStE WAStE

In all parts of our business, we work to eliminate or minimise waste production, wherever possible. this can involve small changes such as making sure we only put on our plate as much as we can eat, or big changes like developing new handling processes to reduce damage to products.

Where we cannot eliminate waste we ensure it is sorted into as many waste streams as possible, and work with a recycling partner to minimise landfill. Our ambition is to divert 95% of all waste from landfill. We know we still have a long way to go, however we believe that what we have achieved in FY10/11 has put us in a good position to reach our goal by FY15!

Disposal method

FY10 FY11

Recycling & energy recovery 49% 56%

Landfill 51% 44%

The disposal method has been determined by our waste disposal contractor. There is no data available on the break down of recycled waste and waste sorted for energy recovery.

Total waste production/m3 goods sold (kg)

FY09 FY10 FY11

Homebush 13.0 11.1 13.41

Logan 12.9 11.4 14.4

Richmond 18.7 13.5 13.1

Total IKEA Australia 14.8 12.0 13.5

total waste production (tonnes)

FY09 FY10 FY11

Homebush 1,504 1,249 1,595

Logan 970 795 1,104

Richmond 1,723 1,283 1,361

Total IKEA Australia 4,196 3,327 4,060

None of our waste is hazardous under Australian legislation.

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Amount of packaging material used for IKEA home furnishing products sold in Australia (tonnes)

2010 = 8,470 2011 = 6,480

© Inter IKEA Systems B.V. 2012

the amount of packaging used for the home furnishing products sold within IKEA Australia decreased significantly in FY11. Compared to the year before, we reduced the amount of packaging by 23%. this, despite the fact that we increased sales by 3.5%!

Some examples of what we have done to reduce our waste production:

ALL STORESIn FY11, we invested $1.5 million nationally in waste equipment upgrades. this resulted in an 80% reduction in waste transport, which helps us save money and reduce emissions.

IKEA LOGANWe realise that many mattresses could not be sold due to the plastic packaging being easily ripped and the mattresses dirtied. We flagged this and also provided recommendations that were later implemented globally. Mattresses are now supplied with more effective packaging that has dramatically reduced mattress waste.

IKEA RICHMONDWe have focused on educating co-workers in the store about how to prevent damage during transport and display. We monitor where damage happens and evaluate how each department can avoid practices that can damage products.

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CO-WORKERS CO-WORKERS

© Inter IKEA Systems B.V. 2012

IKEA co-workers are our most valuable resource.

We want co-workers that share our values to stay and grow with us, both as individuals and in their professional roles, so that together, we remain committed to creating better everyday lives for ourselves and our customers. This is why we emphasise safe and healthy working conditions, sound benefits and career development based on equal opportunities and strong values.

DIvERSITY We are convinced that IKEA becomes more creative and dynamic with a diverse workforce so we value co-workers with different backgrounds and experience.

IKEA Australia has a sound gender balance in our co-workers. In line with the average Australian retail business, we had a slight overrepresentation of females among our store team members during FY11, while there were more males than females in management positions. Recruiting for our new IKEA Springvale and IKEA Tempe stores, we realigned our recruitment strategy to ensure that we recruited co-workers who reflected our customer base. This resulted in recruiting a female store manager for IKEA Tempe and females for 57% of in-store management roles. In IKEA Springvale 48% of the managers in the store are female*. In IKEA Australia overall, 44% of the middle managers are female. *As of February 2010

We aim to provide greater opportunities for both women and men to successfully balance their career with family life and to be able to share the responsibilities of caring for their children. We offer some of the most generous parental leave provisions in Australia. All permanent co-workers, both female and male, with more than two years continuous service are entitled to paid parental leave for 26 weeks with full pay or 52 weeks on half pay. Compared to parental leave in Australia in general, and retail in particular, our parental leave scheme clearly demonstrates the priority IKEA places on work/life balance.

26 number of weeks of fully paid parental leave

NuMBER OF CO-WORKERS

BENEFITS SuPPORTING WORK / LIFE BALANCEIKEA seeks to be an employer of choice, so we aim to offer competitive and transparent compensation and benefits to attract, motivate and retain talented people who contribute to our ambition to become the leader in life at home. In addition to our generous parental leave plan, we offer all our co-workers, regardless of contract type, substantial additional benefits, including:

• Paid leave for volunteer service work in times of emergency, crisis or disaster in the local community, with up to two days per occasion and six days per anniversary year.

• A 24 hour free counselling service is available to all co-workers who wish to discuss and receive advice on any issues related to their work or personal life.

• The possibility of receiving leave of absence for travel or study linked to personal development.

• The possibility of financial support for further external education or training, including degrees and certificate courses.

DIvERSITY GENDER TOTAL

FEMALE = 53% MALE = 47%Number for 2011

At IKEA Australia we record co-worker

diversity age and gender. We do not have reliable

data of the proportion of ethnic or minority groups represented in our workforce, as in accordance with Australian law it is

voluntary for co-workers to specify their ethnicity.

As we upgraded our reporting system in Fy11, reliable data on diversity

during Fy10 is not available.

LOOKING AHEAD• By FY15, the index average in the annual co-worker

survey vOICE shall reach 750 or above, out of a maximum of 1,000.

• The perception of working for IKEA differs between managers and non-managers, with managers generally having a more positive perception. Our goal is that by FY15 at the latest, the gap shall be minimised to a maximum of 70 points difference between manager vOICE results and non-manager vOICE results.

• We will focus on engaging and empowering our co-workers, making it easier for our co-workers to do their jobs and ensuring that they are engaged, committed and satisfied with their role.

• We will focus on improving our internal communications about sustainability to increase the awareness of IKEA sustainability initiatives and direction.

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CO-WORKER TuRNOvER

2010 = 40%

2011 = 18%

CO-WORKER TuRNOvER In the last few years, despite a significant growth in the number of co-workers, our turnover has continuously decreased, both in absolute terms and as a proportion to the total workforce.

We see this as evidence that our efforts to create a good workplace environment have produced results, and we will continue to work to maintain and improve our position as an employer of choice.

2010 = 924

2011 = 1,638

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CO-WORKERS COMMuNITY

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Homebush Logan Richmond Service Office

Service Centre Goal FY15 Total IKEA

Australia

Total vOICE result (out of 1000) 663 719 666 716 552 750 681

vOICE total result

Homebush Logan Richmond Service Office

Service Centre

Total IKEA Australia

Are proud of working at IKEA and would gladly tell people about it 80% 84% 78% 85% 66% 80%

Would stay with IKEA even if they were offered a similar job with approximately the same pay and benefits at another company

72% 72% 71% 68% 68% 71%

Believe that they have good opportunities to develop and expand their competence within IKEA

59% 70% 66% 62% 45% 64%

vOICE general results

Homebush Logan Richmond Service Office

Service Centre

Total IKEA Australia

Are proud of the way IKEA works with sustainability 82% 83% 71% 77% 68% 78%

Feel responsible for minimizing the negative impact on the environment in their daily jobs

78% 78% 76% 68% 77% 76%

Agree that within their department, sustainability is a natural part in everyday work

68% 73% 62% 53% 67% 66%

Agree that within their department, they take concrete actions in line with the IKEA sustainability direction

63% 70% 57% 57% 56% 62%

vOICE sustainability result

gLObAL CuStOMER EngAgEMEnt ACtIvItIESIKEA believes that home is the most important place in the world, and that children are the most important people in the world.

The IKEA Foundation aims to improve opportunities for children and youth in developing countries by funding holistic long-term programmes that can create substantial, lasting change.

COMMunItY

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IKEA Foundation is a registered Dutch charity foundation. Total donations reached 65 million Euro in 2011, and currently funded programmes benefit an estimated 100 million children. Learn more about the IKEA Foundation on www.ikeafoundation.org or the IKEA Group Global Sustainability Report 2011.

LIStEnIng tO OuR CO-WORKERSEvery other year, we engage our co-workers in a survey called vOICE, to gather feedback on how IKEA co-workers view aspects of their employment at IKEA.

We ask our co-workers to complete the survey anonymously, so we can identify what motivates them and what we can do better.

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total IKEA Australia toys and books sold

2010 = 115,989

2011 = 117,662

FY10 FY11

IKEA Richmond 38,025 46,137

IKEA Logan 30,699 31,868

IKEA Homebush 47,265 39,657

SuNNAN LAMPS LIGHT uP CHILDREN’S LIvES We may take it for granted in Australia, but in many developing countries children struggle to read, write and do homework after dark due to lack of electricity.

SuNNAN desk lamp, equipped with a combination of solar cells and energy-saving LED technology, can shine for three hours when fully charged with sunlight. For every SuNNAN lamp sold in IKEA stores, the IKEA Foundation donates one SuNNAN lamp. The lamps are distributed by uNICEF and Save the Children to children in developing countries to help them play, read, write and study after dusk. Since the start of the project in June 2009, approximately one million SuNNAN lamps have been sold worldwide.

IKEA Australia significantly decreased the price of SUNNAN in FY11, which made us nearly triple the amount of lamps sold. In this way, our Australian customers contributed to 18,000 lamps being donated by the IKEA Foundation.

Money raised during the IKEA Soft toy campaign

COMMunItYCOMMunItY

© Inter IKEA Systems B.V. 2012

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233,000 EuROS RAISED THROuGH THE IKEA SOFT TOYS CAMPAIGN At the end of each year, during the holiday season, for every Soft toy sold in IKEA stores one Euro (approximately $1.30 Australian) is donated by the IKEA Foundation; split between Save the Children and unICEF, in support of educational programmes around the world.

Between the start of the Campaign in 2003 and the end of FY11, the IKEA Foundation had donated 35.2 million euro (approximately $42 million Australian) and contributed to improved education for approximately eight million children.

During FY10 and FY11, IKEA Australia alone raised a total of more than 233,000 Euro, which was donated by the IKEA Foundation. In some of our stores, the customers also had the opportunity to give twice at the exit of the stores, by donating their soft toys which were then passed on to children in need. In FY11, the IKEA Richmond store collected 81 soft toys for Save the Children Australia, while the IKEA Homebush store collected 283 soft toys that were delivered to Westmead Children’s Hospital in Sydney.

Amount of SunnAn lamps donated as a result of IKEA Australia sales (total IKEA Australia)

2010 = 6,090 2011 = 18,004

LOCAL COMMunItY InvOLvEMEntIKEA Australia wants to be a good neighbour and local community member, so we have formed partnerships with a range of local charities and schools. We focus our community support on projects that can help improve the environment in which children can achieve their potential through learning and development. We also support organisations and initiatives that contribute to comfortable, happy, safe and sustainable homes.

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COMMunItY

CO-WORKERS HELP CHILDREN RECEIvE AN EDuCATION IN CAMBODIA Education saves lives. When children go to school they are healthier, better-nourished and live longer, equipped with life skills to help break the cycle of poverty. Currently, only one in five Cambodian children has access to pre-school. to help, IKEA Australia is financially supporting unICEF to setup 150 community pre-schools giving children a better start in life. We encourage our co-workers to support this cause, by having a monthly donation of their choice withdrawn directly from their pay.

In FY11, we also recruited one IKEA Australia uNICEF Ambassador from each store as well as the Service Office. Over a two year period, these eight people will be promoting our partnership with uNICEF to their co-workers, and experience firsthand the results of our donations to uNICEF.

“I want to create more awareness around our iCare Workplace giving Programme and to show that even a dollar could make a difference. If every co-worker in IKEA Richmond donated one dollar each month, we could build a school by the end of the year! If all of us donated one dollar per week, there could be five schools! I want to create an attitude change by talking about where the money goes and that tangible results come out of these donations.”

"For more than 10 years, IKEA has been instrumental to unICEF’s work through strategic social investments, cause-related marketing and fundraising activities through our customers and employees. In 2011 IKEA Australia not only supported vital education programs in Cambodia, but also created a team of IKEA staff ambassadors who were then sent to the field to see the changes IKEA funds were making to children’s lives. unICEF is most grateful for IKEA’s deep commitment to social responsibility and their ongoing support in helping children access education across the globe."

10 CENTS CAN MAKE A DIFFERENCE In FY11, we introduced our IKEA FAMILY customer club to Australia.

Each time our customers swipe or scan their membership card, 10 cents is donated to charities that work with children and young people. Of these ten cents, 50% is distributed to uNICEF while the other 50% is donated to one of three local charity organisations, depending on which store the card is swiped or scanned. The customer can also ask for the entire donation to go to the local charity or to uNICEF.

Although we made donations to various community interest groups, we only began recording our donations in Fy11.

Amount donated through IKEA FAMILY card swipes in FY11 (AuD)

Berry Street 19,626

Young Care 27,705

Bear Cottage 24,152

uNICEF 69,218

Total 140,701

Norman Gillespie, Chief Executive UNICEF Australia

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© Inter IKEA Systems B.V. 2012

Sarah Angow, leader of the IKEA Richmond Sustainability Collective and IKEA Richmond UNICEF Ambassador

$4,853FY11 Donations from iCare Workplace giving

© UNICEF, Chandler

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Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 © Inter IKEA Systems B.V. 2012

“Youngcare is incredibly grateful for the support of IKEA Logan, its customers and FAMILY card members. Our work is only made possible by the combined support of the community, government and businesses, and thanks to the support of IKEA, we’ve been able to make a real difference in the lives of young Australians in desperate need. IKEA Logan has been able to directly assist our latest accommodation project located on the gold Coast, which will be home to seven young Australians with 24/7 care needs who right now, have very few options in where they live and how they receive care.”

- Marina Vit, youngcare CEO

A HELPING HAND TO THE QuEENSLAND FLOOD vICTIMS After the 2011 floods in the brisbane region, hundreds of homes were destroyed and many more significantly damaged.

The town of Theodore was flooded twice in December 2010/January 2011 and was the first Queensland town to be completely evacuated - during the second flood over Christmas. After assisting its own flood-affected co-workers, IKEA Logan wanted to help a town that would significantly benefit from donations. Theodore met all criteria - a town with families that needed help, a town with a positive attitude and a town that wasn’t necessarily the typical IKEA customer. And with such a small population (only 500 residents), IKEA could help almost everyone! Over four months, a two-person Theodore committee created 130 shopping lists, and the IKEA volunteers picked, processed, loaded, and unloaded many products to help the residents of Theodore make a new start. Twenty-three IKEA Logan co-workers and three trucks made the epic 566km trip to Theodore. Together, they donated a total of more than 1,000 hours of their time to pick, process, load and unload $80,000 worth of IKEA products to Theodore residents.

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GALLERY OF MODERN ART CHILDREN’S ART CENTRE IKEA Logan sponsors the gallery of Modern Art (goMA) Children’s Art exhibitions, that support young museum visitors’ creative sensibilities, enjoyment, awareness and understanding of the visual arts.

Through the sponsorship of IKEA, GoMA can make their innovative children’s program free to all children and enable as many as possible to access these activities.

PROvIDING THE STuDENTS OF MABEL PARK STATE SCHOOL WITH CAREER TOOLS With the help of IKEA Logan Human Resources co-workers, students at Marble Park are provided with individual scenarios to prepare for real life career situations.

Practice interviews are provided to year 10 and 11 students, for many these are their first experience of interview situations. IKEA Logan also provides career mentoring and coaching, as well as in store work experience opportunities.

LOGAN DONATIONS:

$46,121total FY11 donations of money and goods

LOgAn

YOuNGCARE thousands of young Australians with severe disabilities are currently living in aged care simply because there are few alternatives. Youngcare is an organisation working to provide choice in care and housing for young Australians who have round-the-clock care needs. their belief is that all young people deserve to live young lives, and that aged care is not appropriate for them. IKEA Logan shares this belief in the importance of the home, and recognises the strong impact that living space can have on people’s lives, especially for those who spend a lot of their time indoors. Every time our customers in the IKEA Logan store swipe their IKEA FAMILY card, they play a part in realising the Youngcare’s vision of enabling young Australians with high care needs to live the young lives they deserve.

RICHMOnD

RICHMOND DONATIONS:

$23,482total FY11 donations of money and goods

MELBOuRNE GIRLS’ COLLEGE“IKEA Richmond has been an invaluable community partner in the Melbourne girls’ College Sustainability Collective since it joined in 2010. the Sustainability Collective was established with the aim to improve the environmental awareness of the college and the community at large. IKEA have been central to the success of so many events run by the collective and were involved in the development, promotion and smooth running of several major events. the IKEA team are an inspiring group who attend regular meetings and are always able to give a unique perspective on an issue. their commitment to our collective has ensured the ongoing success of the group and have helped to show that first class sustainability practices can be achieved in a large, global organisation.”

PLANTING 600 TREES WITH CONCORD WEST PRIMARY SCHOOLAs part of the national tree Day, IKEA Homebush collaborated with their partner school Concord West Primary School and Canada bay Council in planting a total of approximately six hundred trees over FY10 and FY11 at the Kokoda track Memorial Walkway.

HOMEbuSH

HOMEBuSH DONATIONS:

$1,121total FY11 donations of money and goods

BEAR COTTAGEbear Cottage is a children’s hospice that helps families cope with an extremely challenging situation; caring for a child who has a life-limiting illness.

While staying at Bear Cottage, children receive state-of-the-art medical care in a welcoming and homely environment. With no recurrent government funding, Bear Cottage depends entirely on the generosity of the public and corporate donations. Through the IKEA FAMILY swipe donations, our customers contribute to providing a service that is desperately needed by everyday families facing the most tragic of circumstances. However, they also help in providing an uplifting and inspiring environment in which children can laugh and play, and where life is celebrated, lived to its fullest and fondly remembered.

BERRY STREET berry Street is victoria’s largest child and family welfare organisation.

They aim to help children and young people recover from the devastating impact of family violence, abuse and neglect, and to support parents in providing their children with a good childhood, which they believe is the foundation for a healthy society.

Berry Street provides education through their independent school campuses that cater for young people aged 12 to 18 years old, who have disengaged from mainstream education or who are at high risk of disengaging. IKEA Richmond donated products and co-worker time worth a total of nearly $5,000 for the Noble Park campus where nine co-workers rolled up their sleeves to re-decorate class rooms and create more inspirational learning environments for the students.

- Andrew Vance, Sustainability Coordinator and teacher, Melbourne Girls’ College

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© Inter IKEA Systems B.V. 2012Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11 Low cost – but not at any cost IKEA Australia Sustainability Report FY10-FY11

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IKEA Australia Sustainability Report FY10-FY11

© Inter IKEA Systems b.v. 2012


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