PEOPLE & PLANET POSITIVE “Living up to stakeholder expectations” Nov 20th 2015 INTRODUCTIONS Steve Howard Chief Sustainability Officer, IKEA steve.howard@ikea.com Chris Coulter CEO, GlobeScan Inc. chris.coulter@GlobeScan.com AGENDA 1. Introductions 2. Context: Leadership, Trust and Engagement 3. IKEA's Approach: People & Planet Positive 4. Q&A STRATEGIC LANDSCAPE Business Integration – To create a better everyday life for the many people OUR VISION & BUSINESS IDEA To create a better everyday life for the many people. To offer a wide range of well-designed, functional home furnishing products at price so low that as many people as possible will be able to afford them. VOICE “I am proud of the way IKEA works with sustainability” FY14: 84% (FY11: 78%) Source: Retail VOICE FY14 4 CHANGE DRIVERS Inspire and enable millions of customers to live a more sustainable life at home Strive for resource and energy independence Take the lead in creating a better life for people and communities MORE SUSTAINABLE LIFE @ HOME • 4033 co-workers and 256 customers in FR & CH reached through engagement activities • Focus on healthier living LED – GOING ALL IN Our entire lighting range is now LED or compatible with LED bulbs, using 85% less energy. RESIDENTIAL SOLAR Offering turnkey PV systems with in-store advice service, enabling our customers to save up to 50% on their energy bills. Rolled out in UK, NL and CH as pilot. Further roll out planned. ENERGY INDEPENDENCE 224 wind turbines active 700,000 installed solar panels ENERGY EFFICIENCY Focus on: - New and existing stores & buildings - Home furnishing suppliers © Inter IKEA systems B.V. 2015 DEMOCRATIC DESIGN IKEA BUSINESS PLAN NOW - FY19 3 - focus areas: Design for circularity Resource chain Prolong product life IKEA BUSINESS PLAN NOW - FY19 © Inter IKEA systems B.V. 2015 CIRCULAR IKEA 100% Cotton and 50% wood from More Sustainable sources IKEA BUSINESS PLAN NOW - FY19 © Inter IKEA systems B.V. 2015 MORE SUSTAINABLE SOURCES Veggie ball launch and 100% certified seafood IKEA BUSINESS PLAN NOW - FY19 © Inter IKEA systems B.V. 2015 HEALTHY & SUSTAINABLE FOOD Creating transparency & traceability of the value chains. IKEA BUSINESS PLAN NOW - FY19 © Inter IKEA systems B.V. 2015 ANIMAL WELFARE Our minimum requirements for: - Home furnishing suppliers - Transport & Services Suppliers - Food suppliers - IKEA indirect materials and services - Retail suppliers - IKEA Catalogue suppliers IKEA BUSINESS PLAN NOW - FY19 © Inter IKEA systems B.V. 2015 EQUALITY AND JOBS IWAY – DECENT SUPPLIER CODE OF CONDUCT Ongoing pilots to secure ethical recruitment of migrant workers and living wage assessments in own operations and at suppliers. IKEA BUSINESS PLAN NOW - FY19 © Inter IKEA systems B.V. 2015 EQUALITY AND DECENT JOBS So far 6 partnerships established in India, Thailand, Indonesia, Sweden and Denmark. Focus on: • Work with handicrafts • Contribution to social change, poverty reduction and women’s IKEA BUSINESS PLAN NOW - FY19 empowerment © Inter IKEA systems B.V. 2015 SOCIAL ENTREPRENEURS IKEA FOUNDATION - Development of “Better Shelter” unit together with UNHCR - Good Cause Campaigns: Brighter Lives for Refugees and Soft toys for Education CLIMATE – COMMITMENTS, ADVOCACY & COALITION 20 THANK YOU! QUESTIONS? Q&A Steve Howard Chief Sustainability Officer, IKEA steve.howard@ikea.com Chris Coulter CEO, GlobeScan chris.coulter@GlobeScan.com