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IKEA Group Sustainability Report FY14 0 2 CONTENTS Contents IKEA Group Sustainability Report FY14 0 2 CONTENTS Contents 0 3 INTRODUCTION 04. ABOUT THE IKEA GROUP 06. A MESSAGE FROM PETER 07. A MESSAGE FROM STEVE 08. THE YEAR IN BRIEF PAGE 11 Read about how 09. THE IKEA PEOPLE & PLANET POSITIVE STRATEGY we are inspiring and enabling people to live a more sustainable 1 1 A MORE SUSTAINABLE LIFE AT HOME life at home. 13. PRODUCTS AND SOLUTIONS 19. ENGAGING CUSTOMERS 21. CO-WORKER ENGAGEMENT PAGE 79 2 3 RESOURCE AND ENERGY INDEPENDENCE Learn about how we work with our suppliers to maintain high 25. RESPONSIBLE SOURCING standards for workers and the 37. MORE SUSTAINABLE PRODUCTS environment. 43. MORE SUSTAINABLE BUILDINGS AND TRANSPORT 62. ENERGY AND WATER IN OUR SUPPLY CHAIN PAGE 107 43 The complete overview of progress See how we are transforming our 7 0 A BETTER LIFE FOR PEOPLE AND COMMUNITIES towards the goals in our People & business by investing in renewable 73. A BETTER EVERYDAY LIFE AT WORK Planet Positive strategy. energy, reducing waste and cutting energy use and CO2 in our supply 79. BETTER LIVES FOR WORKERS chain. 88. SUPPORTING HUMAN RIGHTS 92. LASTING CHANGES FOR COMMUNITIES 9 6 GOVERNANCE AND ETHICS 97. HOW WE WORK PAGE 92 98. SUSTAINABILITY GOVERNANCE AND MANAGEMENT Find out how the IKEA Foundation 102. BUSINESS ETHICS creates lasting change for millions 102. PUBLIC POLICY of children in the world’s poorest 105. ABOUT OUR REPORTING communities. 1 0 7 PERFORMANCE AGAINST TARGETS CONTENTS > INTRODUCTION > A MORE SUSTAINABLE LIFE AT HOME > RESOURCE AND ENERGY INDEPENDENCE > A BETTER LIFE FOR PEOPLE AND COMMUNITIES > GOVERNANCE AND ETHICS > PERFORMANCE AGAINST TARGETS > About the IKEA Group > A message from Peter > A message from Steve > The year in brief > People & Planet Positive Strategy 0 3 Introduction At IKEA, sustainability is central to our business. Over seven decades, our company has grown from small beginnings in the woods of southern Sweden WREHLQJDPDMRUJOREDOUHWDLOHU%XWWKHLQÀXHQFH of our Småland origins remains strong – a region where the people have a reputation for working hard, being innovative and making the best use of their limited resources. In this report, you’ll read about how we’re building on many years of working with social and environmental issues to ensure we have a positive impact on people and the planet. CONTENTS > INTRODUCTION > A MORE SUSTAINABLE LIFE AT HOME > RESOURCE AND ENERGY INDEPENDENCE > A BETTER LIFE FOR PEOPLE AND COMMUNITIES > GOVERNANCE AND ETHICS > PERFORMANCE AGAINST TARGETS > About the IKEA Group > A message from Peter > A message from Steve > The year in brief > People & Planet Positive Strategy 0 4 INTRODUCTION 716 million Store visits About the IKEA Group In FY14, IKEA Group store visits increased 4.7% over FY13. The IKEA Group has operations in 42 countries 270 million visits to our 14 Shopping As of 31 August 2014, we had a total of Centres in Russia. 315 stores in 27 countries; 27 Trading 6HUYLFH2I¿FHVLQFRXQWULHV Distribution Centres and 13 Customer 315 1.5 billion Distribution Centres in 17 countries; IKEA Group stores 44 IKEA Industry production units in In FY14, the IKEA Group opened 12 Visits to IKEA.com 11 countries. In total, we have 1,002 new stores in 10 countries. As of IKEA.com had more than 1.5 suppliers, including external suppliers. August 31, 2014, the IKEA Group billion visits during FY14, up had 315 stores in 27 countries. 15% from FY13. FY04 FY13 FY14 179 303 315 €28.7 billion Number of IKEA Group stores Total sales FY14 Total sales increased by 5.9% in 1 local currencies to €28.7 billion. 1,002 Suppliers Translated into Euros, sales In FY14, the IKEA Group had increased by 3.0%. 1,002 home furnishing suppliers in 51 countries. FY04 FY13 FY14 12.8 27.9 28.7 Billions of Euros 147,000 Total co-workers Europe: 114,000; Americas: 19,000; Asia & Australia: 14,000; Russia (included in Europe total): 12,000. 1Includes IKEA Industry which accounts 41% for 12% of the total production with 44 76% 2 Wood from more production units in 11 countries. More Cotton from more sustainable sources for cotton are: sustainable sources3 Better Cotton, cotton grown to other sustainable sources2 sustainability standards in the US and We’re on track to reach 50% cotton from farmers working towards More sustainable cotton production by 2017. This is in addition the Better Cotton Initiative standards. uses less water, chemical fertilisers to the requirement that all 3 More sustainable sources for wood are: and pesticides, while increasing suppliers meet our IWAY )RUHVW6WHZDUGVKLS&RXQFLOFHUWL¿HG SUR¿WPDUJLQVIRUIDUPHUV or recycled. Forestry Standard. CONTENTS > INTRODUCTION > A MORE SUSTAINABLE LIFE AT HOME > RESOURCE AND ENERGY INDEPENDENCE > A BETTER LIFE FOR PEOPLE AND COMMUNITIES > GOVERNANCE AND ETHICS > PERFORMANCE AGAINST TARGETS > About the IKEA Group > A message from Peter > A message from Steve > The year in brief > People & Planet Positive Strategy 0 5 INTRODUCTION Forest Stewardship 100% Council™FHUWL¿HGSDSHU The IKEA Catalogue is now the largest 75% print production ever to be printed on of all lighting 100% FSC™FHUWL¿HGSDSHUPLOOLRQ products sold in copies of the IKEA catalogue were FY14 were LED or printed in 32 languages. LED compatible. million IKEA Industry IKEA Industry manufactures wood-based 46 app visits furniture and boards. It’s part of the The IKEA catalogue app was IKEA Group and its role is to develop and opened 46 million times. manage production capacities. In total, IKEA Industry has 20,100 co-workers in 44 production units located at 36 sites in 11 countries. €104 million Donated by IKEA Foundation €1.46 billion The IKEA Foundation donates to projects that work to protect children from child IKEA Food turnover labour, provide a better life for refugee IKEA Food is comprised of the children, and empower girls and women. IKEA Restaurant, IKEA Bistro, PLOOLRQFKLOGUHQZLOOEHQH¿WIURP IKEA Swedish Food Market and current IKEA Foundation-funded the IKEA co-worker restaurant. programmes by FY15. 224 Wind turbines We have now committed to own and operate 224 wind turbines around the world, up from 137 in FY13. And there are 700,000 solar panels installed on our buildings worldwide. 9,500 products The IKEA range consists of about 9,500 products. Every year we renew our range, launching about 2,000 new products. We have 15 in-house designers and 75 external designers via contracts. CONTENTS > INTRODUCTION > A MORE SUSTAINABLE LIFE AT HOME > RESOURCE AND ENERGY INDEPENDENCE > A BETTER LIFE FOR PEOPLE AND COMMUNITIES > GOVERNANCE AND ETHICS > PERFORMANCE AGAINST TARGETS > About the IKEA Group > A message from Peter > A message from Steve > The year in brief > People & Planet Positive Strategy 0 6 INTRODUCTION A message from Peter IKEA is about creating a better everyday must be well designed, functional, good quality life for the many people. That’s our mission and be affordable for the many, not a luxury and starting point. Last year we had about for the few. 716 million visits to our stores. While that We are guided by the principle of ‘demo- might sound like a lot, with over seven billion cratic design’, which incorporates these four people on the planet, most people have not elements along with sustainability. It has to be had the opportunity to visit IKEA. about better, affordable products that improve If we are to continue to grow and be people’s everyday lives, for example home successful in the long term, it is essential solar systems that can enable a family in the that we work within the limits of the planet. UK to cut their electricity bill by half. This is why sustainability is an integral part We want to make IKEA completely sustain- of our business strategy. We have decided able which is why we go all-in with 100% that rather than simply reducing the harm- targets, for example for LED lighting in our ful impact of our business, we will go further. range, key raw materials and renewable We want to make a positive difference for energy. When you go all-in, it creates transfor- our customers, co-workers, suppliers and the mational change. planet. I’m very proud of our People & Planet 6RPHPD\¿QGJRLQJDOOLQDOLWWOHELWVFDU\ Positive strategy. The thinking around it is well DW¿UVWEXWWKHVFDOHRIWKHFKDOOHQJHVIDFLQJ anchored in everything we do, whether it’s society demands bold action. When I partici- developing products, selecting materials or pated in the People’s Climate March in New planning our investments. And great things York in September, it was clear that action is are happening as a consequence. what the many people want from businesses While we have achieved a lot, we still have and government leaders. It was powerful to a long way to go. As we move forward we will see so many different people come together – share our plans, successes and challenges. parents, kids, grandparents, business leaders, And by collaborating with other businesses actors and politicians. People are asking and organisations, we can learn from one all leaders to demonstrate real action and another and have a greater impact. move forward. We know that our customers want to live That’s why companies have a very important more sustainably at home and this is an area role to play. We are determined to grow our ZKHUHZHFDQPDNHDVLJQL¿FDQWGLIIHUHQFH business by becoming people and planet posi- We also know that people won’t accept com- tive, and always acting in a responsible way. promise, which is why ‘sustainable’ products Peter Agnefjäll President and CEO, IKEA Group CONTENTS > INTRODUCTION > A MORE SUSTAINABLE LIFE AT HOME > RESOURCE AND ENERGY INDEPENDENCE > A BETTER LIFE FOR PEOPLE AND COMMUNITIES > GOVERNANCE AND ETHICS > PERFORMANCE AGAINST TARGETS > About the IKEA Group > A message from Peter > A message from Steve > The year in brief > People & Planet Positive Strategy 0 7 INTRODUCTION A message from Steve Many challenges shape society and the We have made huge savings in energy, for world of business today.
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