Social and Environmental Affairs
Thomas Bergmark
IKEA Group
© Inter IKEA Systems B. V. 2000
Our Vision….
…is to create a
better everyday life
for the many people
© Inter IKEA Systems B. V. 2000
• 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
© Inter IKEA Systems B. V. 2000
“Focus Areas” - also beyond 2009…...
 Products & materials
 Suppliers
 Energy & Transport
 Buildings & infrastructure
 Community involvement
 Leadership & Competence
© Inter IKEA Systems B. V. 2000
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”
© Inter IKEA Systems B. V. 2000
Is it possible to
source at
competitive prices
while living up to
its customers
demands on
taking social and
environmental
responsibility?
© Inter IKEA Systems B. V. 2000
Purchasing
Purchasing FY 07
By region
North America 3%
Asia 33%
Top 5 purchase countries
China
Poland
Italy
Sweden
Germany
22%
16%
8%
6%
6%
Europe 64%
© Inter IKEA Systems B. V. 2000
The IKEA supplier world...
© Inter IKEA Systems B. V. 2000
Differs a lot…...
© Inter IKEA Systems B. V. 2000
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
© Inter IKEA Systems B. V. 2000
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
© Inter IKEA Systems B. V. 2000
Trading Service Offices
• 100 IKEA auditors performing IWAY audits
• developing suppliers
•
.
.
© Inter IKEA Systems B. V. 2000
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
© Inter IKEA Systems B. V. 2000
Sub Suppliers
• Unannounced child labour audits in
India and Pakistan by 3rd party
• “High risk” strategy
© Inter IKEA Systems B. V. 2000
IWAY fulfillment rates 2007
Average IWAY fulfilment
100%
90%
Europe
80%
Asia
Americas
70%
Total
60%
50%
March
2004
March
2005
March
2006
Dec
2006
May
2007
Sept
© Inter IKEA Systems B. V. 2000
Social & Environmental
Report F.Y.2006 on
www.IKEA-group.IKEA.com
Report 2006
Social & Environmental
Responsibility
© Inter IKEA Systems B. V. 2000
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!
© Inter IKEA Systems B. V. 2000
WE CAN MAKE A DIFFERENCE!!
- by doing business in a responsible way….
www.IKEA-group.IKEA.com
© Inter IKEA Systems B. V. 2000