Social and Environmental Affairs

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Social and Environmental Affairs Thomas Bergmark
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• 14,6 billion Euro sales FY 2005
• 90.000 co-workers
• 216 stores in 33 countries
• 1500 Suppliers in 55 countries
• 32 factories in 9 countries
• 27 distribution centres in 16 countries

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Our Vision.
is to create a better everyday life for the
many people
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Sustainability Direction
In a consumer society with growing
international business
IKEAs business shall have an overall positive
impact on people the environment
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Focus Areas FY 06-09

• Products materials
• Suppliers
• Energy Transport
• Buildings infrastructure
• Community involvement
• Leadership Competence

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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
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The IKEA supplier world...
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Differs a lot...
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• 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 criterias
• Business responsibility, since Sept 2000
• IWAY Council CEO is Chairman

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• 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

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• 43 Trading Service Offices
• 80 auditors performing IWAY audits
• developing suppliers

.
.

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Internal External Verification
audits
A. Trading Service Offices B. Compliance team C.
3rd parties - PWC, KPMG and ITS
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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 criterias
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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 SE actions is
  one of the success factors

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Benefits to IKEA by participating

• We can highlight the challenges we are facing
• We need partnerships to solve several difficult
  issues
• We can learn a lot from other stakeholders
• We can contribute to and influence the
  development

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Social Environmental Report
F.Y.2004 on www.IKEA-group.IKEA.com
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Conclusions

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

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WE CAN MAKE A DIFFERENCE!! - by doing business in
a responsible way.
www.IKEA-group.IKEA.com