Olle Blidholm
Development Manager,
Group Staff Sustainability,
IKEA
olle.blidholm@ikea.com
Tel 0732-320 105
© Inter IKEA Systems B. V. 2000
FACTS ABOUT IKEA
• 21,5 billion Euro sales
• 123 000 co-workers
• 267 stores in 25 countries
• 1 220 Suppliers in 55 countries
• 46 factories in 10 countries
• 39 distribution centres in 17
countries
SALES AT A GLANCE
Top five sales countries
Sales by region
Asia & Australia 5%
North America 15%
Europe 80%
Germany
USA
France
UK
Italy
16%
11%
10%
7%
7%
PURCHASING AT A GLANCE
Top five purchasing
countries
Purchasing by region
China
Poland
Italy
Germany
Sweden
20%
18%
8%
6%
5%
North America 3%
Asia 30%
Europe 67%
1,220 suppliers in 55
countries
SUSTAINABILITY IN IKEA
• One of four cornerstones in the long-term strategy
• Five new corporate sustainability priorities (draft)
1. Offer a range of products that are more sustainable
2. Have a leading role in a low carbon society
3. Turn waste into resources
4. Reduce our water footprint
5. Take social responsibility
• Key words
- Holistic approach
- Full integration
OUR SOCIAL RESPONSIBILITY
Two main areas:
1. IWAY – the demands we put on our suppliers
2. IKEA Social Initiative
IWAY – Our Code of Conduct
The IKEA Way on Purchasing Home Furnishing Products
In the best interest of…
...the child
…the worker
…the environment
Scope of IWAY
• Social & Working Conditions
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Fire protection
Workers health & safety
Working hours and overtime compensation
Child labour, Forced & bonded labour
Discrimination, harassment, abuse
Freedom of association
• Environment
– Emissions to air, water and ground
– Use of chemicals
– Handling of waste
• Wooden Merchandise
– Routines for procurement of wood
– No wood from Intact Natural Forests or
High Conservation Value Forests
Auditing in 3 levels
Audits per year
3. Third party auditors
- PwC, KPMG, ITS
- external verification
2. IKEA Compliance & Monitoring group
50
100
- internal calibration & training
1. Local IKEA auditors
- the base for all our work
Success requires sharp auditing processes and
strong business integration!
1300
Some examples
Working hours
IWAY Compliance and Monitoring Group
IKEA Group Sustainability
NOK – Chapter 1, IWAY Question 1.5
.
The Sample Testing records for IKEA products
indicated samples were selected from on-line
production and sent to the factory lab on April 11,
2010. However, attendance records showed the
QC worker was off duty on this day.
Hazardous waste
IWAY Compliance and Monitoring Group
IKEA Group Sustainability
NOK – Chapter 5, IWAY Question 5.5
Waste chemical containers were stored
directly on ground and without any water-proof
cover outside the product warehouse.
Hazardous waste
IWAY Compliance and Monitoring Group
IKEA Group Sustainability
NOK – Chapter 5, IWAY Question 5.5
Waste light tubes were found broken in the non
hazardous waste storage area and outside the
product warehouse.
Waste dyeing chemical was
found in the non-hazardous
waste storage area.
Workers safety
IWAY Compliance and Monitoring Group
IKEA Group Sustainability
NOK – Chapter 7, IWAY Question 7.8
The eye wash station in
the chemical warehouse
was found with low water
pressure even the water
tap were turned
maximally which would
result ineffective aid upon
emergency.
Chemicals
Environment
Workers safety
Chapter 6.5 Emergency exits
Locked emergency exit
Workers safety
Workers safety
Workers safety
Forestry
Chapter 16.7 – Incoming Wood Register
IWAY Compliance and Monitoring Group
IKEA Group Sustainability
The supplier do not maintain an Incoming Wood
Register with origin of wood data for each
shipment received!
Workers safety!
Key success factors
• Specific and clear demands towards the suppliers
• Competent people (auditors, various experts)
• Local presence (language, culture)
• Business integration
IKEA Social
Initiative
– a tool to make a
difference for the
most important
people in the
world - children
Strategic and long-term partnership with the two leading
global organisations for children's rights, with knowledge
and resources to reach out to the many children, and those
most in need
Our way of making a difference for the many
children – our three commitments to children
CHILDREN’S
RIGHTS IN
SOUTH ASIA
• A healthy start
in life
• Education & Protection
• Empowering
women
CAMPAIGNS
WITH IKEA’s
CUSTOMERS
• ”1 euro is a fortune"
campaign.
Proceeds to better
school projects.
• Donation of Sunnan
lamps. 1 lamp sold
in IKEA stores
– 1 lamp donated.
EMERGENCY
RELIEF
• Financial support and
in-kind donations in
emergency situations
• In-kind donations
IKEA Social Initiative
funded programmes
around the world
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A broad range of UNICEF actions reach out to 80
million children and 10 million women in 18
states in India, 2007-12
• Providing vitamin
supplements and
immunisation
• Advocating for
breastfeeding
• Nutritious food
Ensure water safety and
better sanitation, e.g.
learning about basic
hygiene
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Adressing the root causes of child labour benefiting
10 million children in 20,000 villages in India and
Pakistan with UNICEF and Save the Children
• Ensure access to quality
education
• Provide child-friendly
teaching methods
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Enhance social, economic and political
empowerment of 50,000 women in 500 villages
in Uttar Pradesh, India
• Make women
entrepreneurs
• Equip them with
business skills
• Facilitate access to
micro-credit loans
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cu paigns
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Short-term, partly funded educational projects
in Asia, Africa and Central & Eastern Europe
“1 euro is a fortune”
campaign
In FY10 we raised €7.1
million
Since 2003 we have
raised €23.8 million
FY11 goal:
€10 million
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right ion
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Since the start in 2003, 8 million children got a
better life, through over 50 projects in close to 40
countries
SUNNAN campaign
One lamp sold in
IKEA stores, one lamp
donated by IKEA Social
Initiative to UNICEF &
Save the Children
FY 11 goal:
selling 1 million lamps
(= donating 1 million)
100 million children benefit from current IKEA
Social Initiative projects
Summary
In IKEA we realise that
• We have a social responsibility
- and we are willing to take this responsibility
• It is a ”Never Ending Job”
• Many challenges are still remaining