© Inter IKEA Systems B. V. 2000

Social and Environmental AffairsThomas Bergmark

© Inter IKEA Systems B. V. 2000

• 14,6 billion Euro salesFY 2005

• 90.000 co-workers

• 216 stores in 33countries

• 1500 Suppliers in 55countries

• 32 factories in 9countries

• 27 distribution centresin 16 countries

© Inter IKEA Systems B. V. 2000

…is to create a better everyday life for the many people

Our Vision….

© Inter IKEA Systems B. V. 2000

“Sustainability Direction”;

“IKEA’s business shall have an overall positive impact on people & the environment”

In a consumer society with growing & internationalbusiness;

© Inter IKEA Systems B. V. 2000

“Focus Areas” FY 06-09 • Products & materials• Suppliers• Energy & Transport• Buildings & infrastructure• Community involvement• Leadership & Competence

© Inter IKEA Systems B. V. 2000

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”

© Inter IKEA Systems B. V. 2000

The IKEA supplier world...

© Inter IKEA Systems B. V. 2000

Differs a lot…...

© Inter IKEA Systems B. V. 2000

IWAY consists of...

• Our Code of Conduct - “IWAY” “The IKEA Way on Purchasing Home Furnishing Products”

• Based on UN and ILO decl & conv

• IWAY Standard – specifying requirements

• IWAY evaluation checklist – 90 criteria’s

• Business responsibility, since Sept 2000

• IWAY Council – CEO is Chairman

© Inter IKEA Systems B. V. 2000

IWAY Standard - 17 areas•.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

© Inter IKEA Systems B. V. 2000

43 Trading Service Offices• 80 auditors performing IWAY audits

• developing suppliers

•.

.

© Inter IKEA Systems B. V. 2000

Internal & External Verification audits

A. Trading Service OfficesB. Compliance team C. 3rd parties - PWC, KPMG and ITS

© Inter IKEA Systems B. V. 2000

Difficult issues remains to be solved……..

§Local legislation§Working hours §Overtime payment§Wastewater treatment§Hazardous waste§Chemicals

In August 2005 the average supplier fulfils 90% of our requirements…..”the 90 criteria’s”

© Inter IKEA Systems B. V. 2000

How IKEA can contribute to this UNEP meeting……

• We have been working with Social & Environmental actions since 15 years

• We have a substantial experience from the field

• We are actively working with the UN Global Compact “Ten Principles”

• We are profitable and growing and S&E actions is one of the success factors

© Inter IKEA Systems B. V. 2000

Social & Environmental Report F.Y.2004 on

www.IKEA-group.IKEA.com

© Inter IKEA Systems B. V. 2000

Conclusions

• Our Vision, Culture & Values - the foundation• Sustainability Direction and S&E Strategy• Clear requirements & tools for improvement• Participating is a win-win situation• S&E actions is core to our business success

© Inter IKEA Systems B. V. 2000

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

www.IKEA-group.IKEA.com