Social and Environmental Affairs
Thomas Bergmark
© Inter IKEA Systems B. V. 2000
• 14,6 billion Euro sales
FY 2005
• 90.000 co-workers
• 216 stores in 33
countries
• 1500 Suppliers in 55
countries
• 32 factories in 9
countries
• 27 distribution centres
in 16 countries
© 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
“Sustainability Direction”;
In a consumer society with growing & international
business;
“IKEA’s business shall have an overall positive
impact on people & the environment”
© Inter IKEA Systems B. V. 2000
“Focus Areas” FY 06-09
 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
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”
• Based on UN and ILO decl & conv
• IWAY Standard – specifying requirements
• IWAY evaluation checklist – 90 criteria’s
• Business responsibility, since Sept 2000
• IWAY Council – CEO is Chairman
© 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
43 Trading Service Offices
• 80 auditors performing IWAY audits
• developing suppliers
•
.
.
© Inter IKEA Systems B. V. 2000
Internal & External
Verification audits
A. Trading Service Offices
B. Compliance team
C. 3rd parties - PWC, KPMG and ITS
© Inter IKEA Systems B. V. 2000
Difficult issues remains to
be solved……..
Local legislation
Working hours
Overtime payment
Wastewater treatment
Hazardous waste
Chemicals
In August 2005 the average supplier fulfils 90% of our
requirements…..”the 90 criteria’s”
© Inter IKEA Systems B. V. 2000
How IKEA can contribute to this
UNEP meeting……
•
•
•
•
We have been working
with Social &
Environmental actions
since 15 years
We have a substantial
experience from the
field
We are actively working
with the UN Global
Compact “Ten
Principles”
We are profitable and
growing and S&E
actions is one of the
success factors
© Inter IKEA Systems B. V. 2000
Benefits to IKEA by participating
• We can highlight the
challenges we are
facing
• We need partnerships
to solve several
difficult issues
• We can learn a lot
from other
stakeholders
• We can contribute to
and influence the
development
© Inter IKEA Systems B. V. 2000
Social & Environmental
Report F.Y.2004 on
www.IKEA-group.IKEA.com
© Inter IKEA Systems B. V. 2000
Conclusions
•
•
•
•
•
Our Vision, Culture & Values - the foundation
Sustainability Direction and S&E Strategy
Clear requirements & tools for improvement
Participating is a win-win situation
S&E actions is core to our business success
© 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