© In te r IK E A S y s te m s B .V . 2 0 1 1
r IK E A S y s te m s B .V . 2 0 1 1
Vision & business idea.
To create a better everyday life for the many people.
Offer a wide range of well-designed, functional home
furnishing products at prices so low that as many people as
possible will be able to afford them.
© In te r IK E A S y s te m s B .V . 2 0 1 1
Sustainability Direction 2015
Sustainability Direction 2015
Offer a
Offer a
range of products
range of products
that
that
are more sustainable
are more sustainable
Take a leading role in a
Take a leading role in a
low carbon
low carbon
society
society
Take
Take
social
social
responsibility
responsibility
Turn
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© In te r IK E A S y s te m s B .V . 2 0 1 1
Sustainability at IKEA:
an
integrated
part of
our business.
”
Wherever we are, we
act with respect to
exert a
positive
impact on people and
Sustainability at IKEA:
an
integrated
part of
our business.
”
Wherever we are, we
act with respect to
exert a
positive
r IK E A S y s te m s B .V . 2 0 1 1
…
…
throughout the value chain
throughout the value chain
Raw materials
Idea
End of life
Product use IKEA stores
Marketing Distribution Manufacturing
Sustainability Direction
© In te r IK E A S y s te m s B .V . 2 0 1 1
r IK E A S y s te m s B .V . 2 0 1 1
How do we COLLABORATE WITH SUPPLIERS?
-
Long term relationship
- Social and environmental standard: IWAY
- Requirements on row materials (wood, cotton)
- Social cooperation (kids)
- Transfer of tecnology: reduce water and
energy consumption at supplier level
© In te r IK E A S y s te m s B .V . 2 0 1 1
IKEA has established its view on
working environment, child labour and
environmental issues in a document:
The IKEA Way on Purchasing
IWAY standard is based on
ILO
and UN conventions or other
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IWAY
1 GENERAL CONDITIONS AND LEGAL COMPLIANCE 2 ENVIRONMENT – AIR, NOISE AND WATER POLLUTION 3 GROUND CONTAMINATION
4 CHEMICALS
5 HAZARDOUS AND NON-HAZARDOUS WASTE 6 FIRE PREVENTION
7 WORKER HEALTH & SAFETY 8 HOUSING FACILITIES
9 WAGES, BENEFITS & WORKING HOURS 10 CHILD LABOUR
11 FORCED AND BONDED LABOUR 12 DISCRIMINATION
13 FREEDOM OF ASSOCIATION
14 HARASSMENT, ABUSE AND DISCIPLINARY ACTIONS 15 CONTINUOUS IMPROVEMENTS
16 ROUTINES FOR PROCUREMENT OF WOOD, BAMBOO & RATTAN 17 FULFILMENT OF IKEA AND LEGAL FORESTRY DEMANDS
© In te r IK E A S y s te m s B .V . 2 0 1 1
IWAY
IWAY
: IKEA
: IKEA
’
’
s social and
s social and
environmental standard for suppliers
environmental standard for suppliers
12 years with IWAY has resulted in more
12 years with IWAY has resulted in more
than
than
165,000
165,000
improvements
improvements
Now also for suppliers of FOOD, Logistics
Now also for suppliers of FOOD, Logistics
and
and
store operations
store operations
(cleaning,
(cleaning,
© In te r IK E A S y s te m s B .V . 2 0 1 0
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© In te r IK E A S y s te m s B .V . 2 0 1 1
BETTER Cotton
Water & chemical management
By 2015
• we will save 10,2
trillion liters of water
• and save 9 million
Kg of pesticides and
265 million Kg of
agro chemicals
Results so far;
Reduction of pesticides 50%
Reduction of use of water resources 50% Reduction of use of chemical fertilisers 30% 78% more cost effective
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BETTER COTTON
© In te r IK E A S y s te m s B .V . 2 0 1 1
Forestry progress
• IWAY approved 97,2%
• FSC from 7 to 16,2%
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Our view on child labour.
We do not accept child labour. We support the rights of the child.
© In te r IK E A S y s te m s B .V . 2 0 1 1 Definition.
What is child labour?
Work performed by children, which interferes with a child’s right to healthy growth and
development and denies him or her the right to quality education.
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Child labour in reality.
• 250 million working
children 5-14 years of age.
• 120 million working
full-time.
• Approx. 5% within export
© In te r IK E A S y s te m s B .V . 2 0 1 1
Causes of child labour.
• Poverty.
• Indebtedness of families. • Poor quality education. • Adult illiteracy.
• Cultural and personal
attitudes.
•Willingness to exploit cheap,
docile labour.
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Aid through trade.
Trade assists development. The best way we can help is through active business
co-operation.
Our presence gives us the possibility to put demands on our suppliers.
© In te r IK E A S y s te m s B .V . 2 0 1 1
Our key point.
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Follow-up and monitoring.
Regular visits by IKEA co-workers.
Random, unannounced inspections by independent external auditing
companies in India and Pakistan. A 100% guarantee is impossible.
© In te r IK E A S y s te m s B .V . 2 0 1 1
Supplier Energy Efficiency Project
(SEEP)
The aim is to increase efficiency significantly, which is expected to have a positive impact on total purchase cost, too.
SEEP is to be understood as "umbrella" project to all other initiatives and projects with similar intention.
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Thanks
Thanks
