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Social and Environmental Affairs Thomas Bergmark IKEA Group

Social and Environmental Affairs Thomas Bergmark IKEA Group. Our Vision…. …is to create a better everyday life for the many people. 19,8 billion Euro sales FY 2007 118.000 co-workers 260 stores in 39 countries 1350 Suppliers in 50 countries

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Social and Environmental Affairs Thomas Bergmark IKEA Group

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  1. Social and Environmental Affairs Thomas Bergmark IKEA Group

  2. Our Vision…. …is to create a better everyday life for the many people

  3. 19,8 billion Euro sales FY 2007 • 118.000 co-workers • 260 stores in 39 countries • 1350 Suppliers in 50 countries • 38 factories in 11 countries • 42 distribution centres in 16 countries

  4. “Focus Areas” - also beyond 2009…... • Products & materials • Suppliers • Energy & Transport • Buildings & infrastructure • Community involvement • Leadership & Competence

  5. 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”

  6. Is it possible to source at competitive prices while living up to its customers demands on taking social and environmental responsibility?

  7. Purchasing Purchasing FY 07 By region Top 5 purchase countries China 22% Poland 16% Italy 8% Sweden 6% Germany 6% North America 3% Asia 33% Europe 64%

  8. The IKEA supplier world...

  9. Differs a lot…...

  10. IWAY consists of... • Our Code of Conduct - “IWAY” “The IKEA Way on Purchasing Home Furnishing Products” • Social-, Working- and Environmental conditions • IWAY Standard • IWAY evaluation checklist – 90 criteria’s • Requirements on all 1350 IKEA Suppliers • Sub-suppliers to sign and acknowledge the requirements

  11. 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

  12. Trading Service Offices • 100 IKEA auditors performing IWAY audits • developing suppliers . .

  13. Internal & External Verification audits 1. Trading Service Offices 2. Compliance team 3. PWC, KPMG and ITS • All suppliers are covered • Selected Sub-suppliers as well

  14. Sub Suppliers • Unannounced child labour audits in India and Pakistan by 3rd party • “High risk” strategy

  15. IWAY fulfillment rates 2007

  16. Social & Environmental Report F.Y.2006 on www.IKEA-group.IKEA.com Report 2006 Social & Environmental Responsibility

  17. Conclusions • Our Vision is the foundation • S&E Strategy with suppliers in focus • Clear requirements in our CoC • Auditing of suppliers and sub-suppliers • We put a lot of IKEA resources on this • No quick fix! Also dilemmas!

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

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