Inter IKEA Systems B.V Page 1

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© In te r IK E A S y s te m s B .V . 2 0 1 1

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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.

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© 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

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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

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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

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© 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

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© 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

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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.

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© 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

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© 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.

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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.

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© 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

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