© Inter IKEA Systems B.V. 2024
IKEA
Sustainability
Report FY23
2 - IKEA SUSTAINABILITY REPORT FY23
In this report
Introduction
Introduction letter Page 3
The IKEA business in FY23 Page 4
FY23 sustainability highlights Page 5
The IKEA sustainability strategy Page 6
FY23 global trends and challenges Page 7
Healthy & sustainable living Page 8
FY23 summary of progress Page 9
FY23 key activities Page 10
Our circularity agenda Page 15
FY23 summary of progress Page 17
FY23 key activities Page 18
Our climate agenda Page 22
FY23 summary of progress Page 25
FY23 key activities Page 27
Regenerating resources, protecting ecosystems, and improving biodiversity Page 30
FY23 summary of progress Page 31
FY23 key activities Page 32
Fair & equal Page 46
FY23 summary of progress Page 47
FY23 key activities Page 48
IWAY – the IKEA supplier code of conduct Page 55
Stakeholder engagement Page 57
Sustainability governance Page 58
SDG index Page 59
About this report
This report summarises our performance compared to
the IKEA sustainability strategy, People & Planet Positive,
during FY23. It covers the entire IKEA value chain and
franchise system and provides an update on activities
and the ongoing work to measure progress. The IKEA
Sustainability Report is issued by Inter IKEA Group.
1
(FY23), which runs from 1 September 2022 to 31 August
2023. Percentages in this report may not total 100% due
update historical data for accuracy on an annual basis.
These changes are updates to external reference data,
improved calculation methodologies and data quality.
performed by all companies operating within the IKEA
franchise system. “We” in this report refers to the IKEA
business. The IKEA value chain encompasses more than
the IKEA business and includes sourcing and extracting
raw materials, manufacturing, transporting of products,
retail activities in stores, customer travel to stores,
product use in customers’ homes and product end-of-life.
To ensure the long-term growth and development of the
IKEA business, we use a franchise system. This provides
test and explore new markets and ideas. Together, we
continue to develop the IKEA Brand.
1
Inter IKEA Group consists of Inter IKEA Holding B.V. and all its
subsidiaries. An overview of Inter IKEA Group can be found here.
3 - IKEA SUSTAINABILITY REPORT FY23
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
FY23 has been another year of challenges
for people around the world, as well as
for the IKEA business. We all experienced
the eects of ination and a higher cost
of living, geopolitical conicts, climate
change and the accelerating loss of
nature. In times like these, we try to be
both realists and optimists, and let IKEA
values, culture, and spirit lead the way.
We would like to give a big thanks to all
our colleagues, suppliers and partners
for your support and hard work.
FY23 also marked 80 years since Ingvar Kamprad
founded IKEA in 1943. Ever since then, we have had
the privilege of being part of people’s homes and
lives.
Overall, IKEA stores welcomed 860 million visitors
in FY23, and sales amounted to EUR 47.6 billion, an
increase of 6.6% compared to FY22. Both store sales
and online sales continued to grow in value despite
the continued challenge of lower sales quantities.
Looking ahead, we’re focusing on our three main
accessible and more sustainable.
Today, achieving our IKEA vision of creating a better
everyday life for the many people means acting here
and now to contribute to limiting climate change,
reversing nature loss and reducing inequality.
In FY23, the IKEA climate footprint was estimated to
be 24.1 million tonnes CO eq, down 12% from FY22
and 22% compared to the baseline year, FY16. The
FY23 reduction was due mainly to lower production
volumes but was also a result of increased renewable
electricity use in both retail and production, as well
IKEA lighting range. Last year, however, we also saw
a slight increase in the use of coal in production,
presenting a challenge to address in FY24.
A milestone that will impact our future footprint
is the introduction of bio-based glue in one of our
board factories. Today, 5% of the climate footprint for
the total IKEA value chain is connected to the use of
glue in board materials.
Our circularity agenda, which includes using more
recycled materials, is crucial for lowering our climate
footprint. While some materials, like ceramics, are
challenging to recycle. One breakthrough from FY23
was the SILVERSIDA product series. It represents our
waste to make new tableware. SILVERSIDA products
are made from 65-70% factory waste materials.
recycled materials. The share of recycled content in
our particleboard was 30%, compared with 0.3% for
enabling the use of more than 50% recycled wood in
VOXTORP kitchen front in high-gloss white using the
development of rigorous action plans that allowed us
to strengthen our climate goals in line with the 1.5°C
target and the SBTi Net-Zero standard. Our new goals
involve halving greenhouse gas emissions from the
IKEA value chain in absolute terms by FY30 compared
to FY16, and striving for a 90% reduction by FY50. Any
remaining emissions will be neutralised within the
reach net-zero emissions. Our previous goal for FY30
was a 15% reduction. Our new goals were submitted
to SBTi in mid-November 2023 and are currently
pending approval. To further support change, the
IKEA business was present at COP28, joining in the
call to phase out fossil fuels, halt deforestation, and
address the root causes of air pollution.
The IKEA business has long promoted responsible
sourcing within our business. We have steered
market transformation for key raw materials
and continue to use innovative approaches to
forest management, protection, restoration, and
regeneration. During the year, we continued the
work of understanding our impact and dependency
on biodiversity across our value chain using the
Science Based Targets Networks (SBTN) as guidance.
In FY23, we took a big step by launching an
transparency by publicly sharing the origins of the
wood used in IKEA products.
Additionally, we are progressing the work to secure
our readiness for the Corporate Sustainability
Reporting Directive (CSRD) by 2026. Last year, we
conducted a double materiality assessment to
inform our work. Looking ahead, we are preparing to
adjust our reporting in alignment with global and EU
initiatives like the CSRD.
In a challenging business environment, our
commitment to playing our full part in contributing
to a fair and equal society is more important than
ever. One way is to provide and support decent
and meaningful work. In FY23, we extended our
responsible wage practices framework – an approach
to putting equal focus on equality at work, pay
principles, competence, dialogue and a living wage
– to IKEA franchisees. As a next step, we will initiate
pilots among suppliers. We also continued our
partnerships with social businesses. In FY23, we had
a total of 12 partnerships with over 11,000 people
from vulnerable and marginalised groups now
employed in IKEA production.
As our work continues, we stay optimistic.
Sustainability is an integrated part of our business,
and our long-term commitment to making
many will continue to guide us for the next 80 years.
Taking action here and now to pave the way for another 80 years
INTRODUCTION LETTER
Jon Abrahamsson Ring
Inter IKEA Group
Pär Stenmark
Chief
Inter IKEA Group
4 - IKEA SUSTAINABILITY REPORT FY23
The IKEA business in FY23
The IKEA franchise system
231,000 co-workers in FY22
With around 800 home furnishing suppliers in more
than 50 markets and over 150 global food suppliers
Over 1,600 new products launched in FY23
(An increase of 4.6% compared to FY22)
219,000
IKEA co-workers
~1,500
IKEA suppliers and partners
1
9,500
products in the IKEA range
3.8 billion
visits to IKEA websites
860 million
visits to IKEA stores
1
We work with approximately 1,500 suppliers for home furnishing, transport, logistics and distribution services, components, and food.
2
Excluding sales taxes, including sales of IKEA products, food and services by IKEA franchisees.
3
We measure produced volumes in cubic metres (m
3
).
Ingka Group
31 markets
Al-Futtaim
4 markets
Dairy Farm
4 markets
Miklatorg
4 markets
Ikano Group
5 markets
Sarton
3 markets
Al-Homaizi
3 markets
House Market
3 markets
Al-Sulaiman
2 markets
Falabella
1 market
MAPA
1 market
Northern Birch
1 market
IKEA franchiseesInter IKEA Group
IKEA
product
suppliers
IKEA
service
providers
IKEA of Sweden
develops and designs the
overall IKEA product range
IKEA Marketing &
Communication
develops and designs
communication content
IKEA Industry
a strategic IKEA manufacturer
IKEA Supply
sources and distributes
the IKEA product range
Inter IKEA Systems
owner of the IKEA Concept
and worldwide franchisor
47.6 billion
IKEA retail sales (in EUR)
2
Sales in value increased, while sales in volume
and number of products sold in FY23 decreased
467 stores in 62 markets
14 new IKEA stores
71 new customer meeting points (1 closed, 1 relocated)
.
A decrease of 11.6% compared to FY22
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
5 - IKEA SUSTAINABILITY REPORT FY23
Implementing the use of new bio-
based glue, beginning with the IKEA
step towards our goal to reduce
greenhouse gas emissions from glue
by 30% by FY30.
Page 27
FY23 sustainability highlights
Strengthening the IKEA climate
goals and actions to align with
the 1.5°C target trajectory.
This includes at least halving the IKEA value
chain greenhouse gas emissions in absolute
terms by FY30¹ (compared with FY16) and
reaching net zero by latest FY50. Our new
goals are currently pending approval by SBTi.
Page 23
1.5C°
Decreasing our climate
footprint, in absolute
terms compared to our
FY16 baseline, by 6.9
million tonnes of CO2 eq
– a reduction of 22%.
Page 24
-22%
Reducing the amount of plastic
packaging of consumer goods by
approximately 47% and reducing total
plastic packaging (including consumer
packs, multipacks, unit loads, and
handling materials) by approximately 44%
compared with the baseline year FY21.
Page 20
Supporting nearly 3,000 asylum
seekers and refugees from 2019
to 2023 through the Skills for
Employment programme in IKEA
retail,
2
inside or outside IKEA.
Page 54
Introducing the plant-based hot dog
in 14 markets, adding more plant-
Page 13
Taking an important step towards our
FY30 commitment to provide and
support living wages by sharing our
Responsible Wage Practices framework
across the IKEA business.
Page 50
Launching an initiative to fast-
track biodiversity assessments
in FSC-certied forests to better
measure impacts at-scale and improve
biodiversity outcomes.
Page 36
Rolling out an energy-saving
awareness campaign across 21 IKEA
markets globally, emphasising small,
reduce energy consumption.
Page 10
Increasing the share of renewable
electricity – from 75% to 77% for retail,
86% to 90% for logistics services, and
63% to 71% for production – compared
to FY22.
Page 27
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
1
Our previous goal for FY30 was a 15% reduction.
2
In retail markets operated by the franchisee, Ingka Group.
ceramic production waste
to make the new tableware
range, SILVERSIDA.
Page 20
6 - IKEA SUSTAINABILITY REPORT FY23
The IKEA sustainability strategy
High-level material topics Key challenges IKEA focus areas & commitments
Human rights
Decent work
Social impact
Health & wellbeing
Life at home & work impact
Climate footprint
Material use
Sourcing impact
Production impact
Logistics impact
Operations impact
Unsustainable consumption
Healthy & sustainable living
• Inspiring and enabling people to live
healthier, more sustainable lives
• Promoting circular and sustainable
consumption
• Creating a movement in society around
better everyday living
Climate change
Circular & climate
• Transforming into a circular business
• Becoming climate positive
• Regenerating resources, protecting
ecosystems, and improving biodiversity
Inequality
Fair & equal
• Being a responsible business and
contributing to resilient societies
• Providing and supporting decent and
meaningful work across the IKEA value chain
• Being an equal, diverse and inclusive
business
The purpose of our sustainability
strategy, People & Planet Positive, is
to inspire, activate and lead us in our
decision-making and goal-setting in
order to achieve the changes we want
to see in the world, as well as the
entire IKEA ecosystem.
The strategy is structured based on material
topics (see diagram, right). These are considered
the most important sustainability issues on
which the IKEA business can have an impact.
When we developed the strategy, we looked at
what stakeholders expect from us and where
they could see us making the biggest positive
changes. As an outcome, we clustered the
challenges – unsustainable consumption,
climate change, and inequality – linked to the
IKEA focus areas and commitments: Healthy
& sustainable living, Circular & climate, and
Fair & equal. The UN Sustainable Development
Goals (SDGs) and the requirements stemming
from sustainability legislation have also played
a role in the development of our sustainability
strategy.
The IKEA People & Planet Positive strategy
describes the sustainability agenda and
ambition for everyone in the IKEA franchise
system and value chain. Each company
working under the IKEA Brand sets its
own strategic goals to contribute to the
common ambitions and commitments. Our
sustainability ambitions and commitments for
2030 are in line with the SDGs.
On 5 January 2023, the Corporate
Sustainability Reporting Directive (CSRD)
entered into force, and then on 31 July 2023,
the European Commission adopted the
European Sustainability Reporting Standards
agenda. This year, we continued our work to
Double Materiality Assessment (DMA), which
we will disclose in upcoming sustainability
reports. We have also started an ongoing
assessment to identify and close the gaps for
reporting under the ESRSs.
together with partners and striving to balance
securing both economic growth and positive
social impact with environmental protection
and regeneration.
Healthy & sustainable living - Our circularity agenda - Our climate agenda - Regenerating resources - Fair & equal - IWAY
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
7 - IKEA SUSTAINABILITY REPORT FY23
FY23 global trends and challenges
Our sustainability strategy is continuously
reviewed to secure alignment with
the total IKEA strategic landscape and
external developments. We receive and
review ongoing input from stakeholders,
sustainability council meetings, regulatory
and legislative developments and our
partners. This supports us in identifying
and addressing trends within major global
challenges, revising our plans, and raising
ambition levels wherever possible.
on nature and prioritising actions to take in a
stepwise manner. We are currently assessing
our impact and dependency on nature across
the IKEA value chain and welcome the Business
for Nature campaign “It’s Now for Nature” to
encourage business action on protecting and
restoring nature.
Addressing the ongoing climate crisis
We have already begun seeing worse impacts
of climate change on communities around
the world. In the six years from 2016 to 2021,
UNICEF reported that 43.1 million children were
displaced due to weather-related disasters.
1
Combating climate change is a critical
global challenge. The IKEA business remains
committed to the Paris Agreement to limit
global warming to 1.5°C and to contribute by
leading with actions, facts and science-based
goals.
!
Protecting human rights
Upholding human rights is an imperative for
building resilient and just societies worldwide.
Due to the accelerating inequality, global
geopolitical unrest and the devastating impacts
of environmental emergencies on the most
vulnerable, there is increasing demand for
companies to respond to human rights issues
across their value chains. Companies are
and address any adverse impacts. Regulatory
developments such as the EU Corporate
Sustainability Due Diligence Directive (CSDDD)
are accentuating the role of companies in
taking responsibility for human rights issues.
The IKEA business is committed to contributing
to a fair and equal society by respecting and
promoting human rights across the IKEA value
chain and contributing to resilient societies.
!
Making healthy and sustainable living
aordable
Findings from the Globescan 2023 Healthy
and Sustainable Living consumer research
programme show that healthy and sustainable
living is considered too expensive.
2
The
increased cost of living remains a challenge
for many people globally, emphasising the
need for companies to make healthy and
accessible to all.
!
Transforming food systems
The global food system is increasingly in the
– nature and biodiversity loss, climate change,
land and soil degradation, humanitarian
changes to the way we farm, source food and
eat can play an important role in addressing
these challenges around the world. We must
act to protect, conserve, and restore nature
– including halting and reversing the loss of
forests – and other important ecosystems to
measurable progress. We aim to play our part
in contributing to food systems and agricultural
practices that deliver progress for people,
nature and climate.
!
Safeguarding and restoring natural systems
As climate change and other environmental
crises worsen, preserving and restoring nature
stands out as a critical challenge. Following
the adoption of the historic Kunming-Montreal
Global Biodiversity Framework in 2022,
governments and organisations worldwide
are now tasked with meeting 23 targets for
2030 and four key goals by 2050 in order to
restore biodiversity and nature and give the
world a chance to mitigate some of the worst
the Science Based Target Network (SBTN)
to set science-based targets for nature,
guiding companies in assessing their impact
!
Geopolitical tensions and conict
These challenges are set against the
backdrop of continuous destabilising and
crises, which have the potential to divert
the attention of governments away
from addressing climate change and
biodiversity loss. Another trend is the rise,
in many countries, of governing powers
and legislation. It is more important than
ever that businesses keep the momentum
going, showing the strong will of the
private sector to address these challenges
with urgency.
!
Healthy & sustainable living - Our circularity agenda - Our climate agenda - Regenerating resources - Fair & equal - IWAY
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
1
UNICEF, "Weather-related disasters led to 43.1 million displacements of children over six years" 2023.
2
GlobeScan, "Healthy & Sustainable Living Report", 2023.
8 - IKEA SUSTAINABILITY REPORT FY23
Healthy & sustainable living
Our ambition for 2030
is to inspire and enable
more than 1 billion people
to live a better everyday
life within the boundaries
of the planet.
Healthy & sustainable living - Our circularity agenda - Our climate agenda - Regenerating resources - Fair & equal - IWAY
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
9 - IKEA SUSTAINABILITY REPORT FY23
FY23 summary of progressCommitments and goals
During the year, there were
more than 4.6 billion visits to
IKEA retail through our stores
and websites. We know we
have a big opportunity and
responsibility to make a positive
dierence through our home
furnishing and food oers and
by sharing our knowledge.
Our work to inspire and enable healthy
reduce their environmental footprint at
home: air, energy, water, food, and waste.
In FY23, we broadened our product and
Today, four out of ten IKEA store
visitors live in water-scarce regions. We
continue to design products that help
reduce daily water consumption in the
home. BROGRUND tap is an example
of a product that enables customers to
consume less water as well as less energy.
The integrated cold start function avoids
the unnecessary use of hot water for daily
features a small aerator, reducing water
We’re a founding member of the 50L
Home Coalition, a global action-oriented
initiative focused on developing and
scaling innovations in water and energy
use in the home. In FY23, the coalition
scarcity.
Research shows that two of the top
circular behaviours people engage in are
repairing broken items and avoiding the
purchase of home items due to aspects
of quality or fashion.
1
Read more about
how we are working to transform into a
circular business (page 15).
We continue to work on enabling and
inspiring consumers to shift towards more
sustainable behaviours. Part of this work
the life of products and raise awareness
through communication campaigns like
our global "saving energy campaign".
Read more about our energy saving
services (page 10).
As a large provider of food, the IKEA
business also has a responsibility to
provide healthier and more sustainable
food choices. During the year, we
continued the work of expanding and
introducing new products such as the
plant-based hot dog (page 13).
Inspiring and enabling people to live healthier,
more sustainable lives
We will develop and promote products, services and home furnishing
solutions that inspire and enable people to reduce their impact on
the environment and/or improve their health. We will raise awareness
and share knowledge on how to live a healthier, more sustainable
reduction, healthy and sustainable food, and improving indoor air
quality.
Promoting circular and sustainable consumption
have circular capabilities, a low environmental impact, and be made
of renewable and/or recycled materials. We will also make it easier to
acquire, care for and pass on IKEA products in circular ways.
Creating a movement in society around better everyday living
We will work to make healthy and sustainable living the standard
practice by inspiring and enabling more sustainable behaviours
in society. This includes, for example, how we use marketing and
communication to shape demand. By advocating for policies and
regulations that support a healthier, more sustainable society, we
1
GlobeScan and IKEA, “Healthy & Sustainable Living Global Consumer Insights”, 2023.
Healthy & sustainable living - Our circularity agenda - Our climate agenda - Regenerating resources - Fair & equal - IWAY
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
10 - IKEA SUSTAINABILITY REPORT FY23
FY23 key activities
We continue our work to enable people to be
Bringing renewable energy to customers
IKEA Energy Services
1
aims to make it easier for
IKEA customers to use and produce renewable
energy at home and to reduce their reliance on
energy generated from fossil fuels. Through
include home solar solutions for self-generated
renewable electricity, renewable energy
heat pumps to reduce home energy usage for
heating and cooling.
Expanding our energy-ecient bulbs oer
We continue to develop and grow the range of
the selection of both style and function to enable a
reduction of electricity consumption in homes.
Launching an energy saving campaign
In FY23, a campaign was developed and launched
across 21 markets to raise awareness of energy-
saving actions at home. The campaign highlighted
products from the IKEA range that can reduce
energy use, such as bulbs and energy-saving
appliances, as well as more general ways to create
Energy
Home solar services, including solar panels
and where suitable a battery storage
system or electric vehicle charging points,
This service enables customers to produce
their own energy. In FY23, we extended
our home solar service to customers in
California, USA working with a leading solar
technology and energy services provider.
Working together with Polarpumpen
customers to buy quality heat pumps at
energy to heat and cool their homes. Heat
pumps can reduce household electricity
consumption, depending on the heating or
year, about 2,500 households in Sweden
IKEA is gathering information and
insights from the heat pump service
possibility of expanding into other markets
in the future.
Exploring solar-powered light through design
Together with the social business Little Sun, the
IKEA business created a collection designed to
raise awareness around the need for alternative
energy solutions. Launched in March 2023,
SAMMANLÄNKAD consists of two sun-powered
the comfort of home settings, fostering dialogue
about its viability as an alternative energy source.
Little Sun is an organisation dedicated to
giving more people access to solar energy in
communities without regular access to electricity,
primarily in Sub-Saharan Africa.
Enabling awareness of indoor air quality
at home
We enabled customers to monitor the air
quality in their homes by launching the
VINDSTYRKA air quality sensor.
Air
solutions to enable people to purify the air at
home is an example of how the IKEA business
indoor air quality.
Read more about how we’re working to create
cleaner indoor air quality.
An air purier designed for the home
launched globally.
Healthy & sustainable living - Our circularity agenda - Our climate agenda - Regenerating resources - Fair & equal - IWAY
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
1
IKEA Energy Services is a business unit within Ingka Group.
11 - IKEA SUSTAINABILITY REPORT FY23
Water
By continuing to develop and improve the
enabling and inspiring customers to decrease
their water consumption while potentially
contributing to energy savings. The water that
runs through the taps and showers we sell
makes up 16% of the total water use across the
IKEA value chain.
Read more about saving water at home. For
information about water in our supply chain,
see page 33.
Creating a water recycling shower
solution
The IKEA business continues to invest
in the development of a water recycling
shower solution, which focuses on cleaning
shower water in a closed-loop system.
The innovative solution aims to save up to
80% of water and reduce energy use by up
to 70% compared to average showers. In
addition, we are working on establishing
standards and requirements related
to compliance and testing. Together
established water and energy labelling
scheme for taps and showers in Europe
– we are investing in the development of
criteria for the water recycling shower
solution system. This involves working with
to develop requirements and standards
to support market acceptance and secure
function and safety. In FY23, there has
been increased focus on collaborating with
industry peers and competitors to establish
new standards for this product type, both
on a European and international level.
Accelerating collaboration eorts -
50L Home Coalition
with water metering devices. Together
with pilot sponsors within the coalition, we
installed part of the homes with our best-
in-class water-saving solutions to evaluate
the potential new water-use habits of the
families that live in them. Read more about
the initiative to accelerate water innovation
in cities here.
Raising awareness through design
In order to inspire more sustainable shower
in FY23 as a commercial pilot. The pilot was
launched in Spain due to the country’s water
scarcity and in Denmark due to the high cost
of water in Copenhagen. The product displays
shower duration, litres of water consumed
awareness to water usage in real-time.
Integrating water-saving technology into
products and designing products that inspire
and enable water-ecient living
The LILLREVET hand shower features a pressure-
– an improvement over the regular VOXNAN hand
shower, which consumes 8 litres per minute.¹
to enable households to reduce their water use. It
was made available in all IKEA markets starting in
October 2022. The mist nozzle enables customers
to reduce bathroom tap water consumption by
0.25 litres per minute in mist mode and up to 1.9
litres in spray mode.
1
Healthy & sustainable living - Our circularity agenda - Our climate agenda - Regenerating resources - Fair & equal - IWAY
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
12 - IKEA SUSTAINABILITY REPORT FY23
Food
Last year, around 700 million customers
restaurants, bistros and Swedish food markets.
Throughout FY23, we continued our work to
improve and expand our plant-based food
selection. We also continued to work to support
a dietary shift towards healthier options.
Research shows there’s still a great opportunity
to continue increasing the amount of plant-
as 41% of meat-eaters said they would switch to
plant-based alternatives if they tasted good and
weren’t more expensive.
1
Adding more plant-based meals to our oer
We continue to work towards our goal that 50%
will be plant-based
2
by 2025. Based on
estimates shared from 31 IKEA retail markets,
3
were plant-based.
The food business at IKEA is undergoing a
transformative change. This transformation has
impacted both people and systems, which we
rely upon for reporting purposes. As a result,
based on the best available information given
these ongoing developments.
1
GlobeScan and IKEA, “Healthy & Sustainable Living Global Consumer Insights”, 2023.
2
Meals contain up to 10% animal-produced ingredients, such as dairy, eggs and honey.
3
Operated by Ingka Group.
Supporting a dietary shift towards plant-
based options
We recognise the importance of shifting diets
toward more plant-based foods as being a key
step in addressing the challenges in the global
food system.
Some markets have taken additional steps to
increase customer appetite for plant-based
food and thereby grow the plant-based food
sales share compared to traditional meat
dishes. IKEA Japan, for example, provided
enhanced education to co-workers on the
local suppliers to develop local plant-based
dishes. Since FY22, plantball sales have steadily
increased across the country.
Healthy & sustainable living - Our circularity agenda - Our climate agenda - Regenerating resources - Fair & equal - IWAY
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
13 - IKEA SUSTAINABILITY REPORT FY23
Working to make plant-based food
aordable and accessible
based food at the same or a lower
price than the animal protein-based
alternatives in more than 30 markets.
1
This includes veggie balls, plant balls,
veggie hot dogs, and plant-based soft ice.
plant-based food.
Today, the plant ball is available in 55 out
of 62 IKEA markets (close to 90%). Our
aim is to make the plant ball accessible in
all markets.
Launching a plant-based hot dog
The hot dog has been an iconic part of the
IKEA shopping experience for over 40 years.
Now, we have developed a plant-based
hot dog as the latest innovative addition
to the family of plant-based products that
customers to choose plant-based products
price compared to animal protein-based
options.
The plant-based hot dog was well received
by customers in the 14 IKEA markets across
Europe, where it launched in FY23. We plan
to introduce the plant-based hot dog to
eight additional European markets, with
expansion to the Australia and US markets
in FY24.
Developing a plant-based hot dog to
match the classic IKEA hot dog texture
was a challenge. We aimed for a sensory
experience similar to animal protein-based
hot dogs. Our plant-based version – made
from rice protein, onion, apple, salt and
1
Ingka Group is the largest IKEA franchisee.
2
all our foods this way, we can better work toward making our food healthier.
Supporting a dietary shift toward
healthier options
In FY23, we launched guiding principles for
healthy and nutritious food for children. The
principles set out to safeguard and create
clarity in terms of how we work with food
dedicated to and developed for children. The
principles also include responsible practices
They will function as an important extension
(IFNPS)
2
and will provide robust and
knowledge-based direction to future product
development and goal setting.
With the guiding principles established,
we will now focus on developing and
meet them, like our plant-based pieces,
SLAGVERK.
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We continue our work to develop and promote
products, services and home furnishing
solutions that inspire and enable people to
handle and minimise waste at home.
Waste
Striving to oer inspiring sorting
solutions
In FY23, we launched the LÖVKVAST
bin with a lid, which is designed to
enable recycling habits. The design
allows customers to secure two bags
simultaneously for separately keeping
wet and dry waste in a single location.
Introducing a deposit system for food containers in Germany
In FY23, IKEA Germany partnered with RECUP and REBOWL to not
the preferred option for IKEA customers. The reusable packaging
provides customers with the opportunity to buy their drinks and
take-away food from the IKEA Bistro in a RECUP cup and REBOWL
bowl. The cups and bowls can be reused or returned for a refund
either on-site at the IKEA store or in any of the 12,000 partnered retail
locations across Germany. This saves both resources (single-use cups
and packaging) and operational costs.
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Our circularity agenda
Our ambition is to be a
circular business by 2030.
We are committed to design
all of our products with
circular capabilities. We aim
to use only renewable or
recycled materials and to
provide new solutions for
our customers to prolong
the life of products and
materials.
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in a more circular economy – from idea and the sourcing
working to eliminate waste, circulate products and materials
and move away from the use of virgin non-renewable
materials. We’re also developing more services and products
to enable customers to participate in the circular economy
and are continuously working to improve our social and
environmental impact at every stage of the value chain.
We create products using the IKEA Democratic Design
principles of form, function, quality, sustainability and low
price and by applying our Circular Design principles in the
design phase. Our design thinking considers many aspects
– like choosing the most suitable materials, always aiming to
do more with less, and optimising manufacturing methods
the life of products by designing with circularity in mind and
easier to reuse, refurbish, remanufacture and recycle.
We recognise that the IKEA value chain doesn’t exist in
connected to an infrastructure in society that enables the
growing circular economy. The IKEA value chain impacts
people, livelihoods, ecosystems, biodiversity and the climate.
That’s why we strive to take a full value chain approach
and work in partnership with franchisees, suppliers, NGOs,
governments, other businesses and organisations to minimise
our negative impact on people and the planet.
IKEA value chain to become circular
Remanufacture
(third party)
Refurbish & resell
(third party)
Resell
Recycle
Recycle
(third party)
Recycled raw materials (third party)
Virgin materials (renewable and non-renewable)
IKEA retail
& other operations
Customer travel
& home deliveries
Product
transport
Production
Product use in
customers' homes
Collection and
handling at
product end-of-life
1
OUTSIDE THE IKEA
VALUE CHAIN
WITHIN THE IKEA
VALUE CHAIN
Refurbish
Reuse
Remanufacture
Materials & ingredients
1
A majority of the collected products at end-of
Our ambition is to completely eliminate this.
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Circularity is key to addressing
global challenges such
as climate change and
biodiversity loss.
By promoting the principles of "Reduce,
Reuse, and Recycle", circularity
emphasises the importance of reducing
waste and extending the lifespan
of products. This means that fewer
resources are needed to produce new
products, reducing the carbon footprint
associated with manufacturing,
transportation, and disposal.
In FY23, we continued to make progress
towards our commitments:
•
the use of recycled materials in our
products, such as:
- Piloting a small-scale recycled
down and feather initiative.
- Increasing the share of recycled
plastic in relevant product ranges
and moving towards post-
consumer recycled plastic.
• Further increasing the availability of
spare parts for customers to prolong
the life of IKEA products.
• Continuing our engagement
and leadership role in European
standardisation work on furniture
circularity.
FY23 summary of progressCommitments and goals
• We will aim to design every product from the very
beginning to be reused, refurbished, remanufactured and
eventually – after all other possibilities have been explored
– recycled, by applying our circular product design
principles during the product development process.
• We aim to only use renewable or recycled materials by
materials.
• We will turn waste into resources, aiming to send zero
• We will develop circular solutions for existing and new
customers to acquire, care for, and pass on products.
• We will take the lead and join forces with others through
advocacy, collaboration, and business partnerships.
Over the past few years, we have been
taking several important steps to
transform into a circular business. In
FY19, we released the Circular Product
Design Guide, a publicly available
guide to designing products with
circular capabilities. Since its release,
over 9,500 IKEA products have been
assessed based on the guide. In FY21,
we launched our easy-to-use online
ordering solution to make it easier for
customers to order extra assembly
parts. We have also made progress in
in line with our commitment to using
only renewable or recycled materials,
and we continued to engage with
policymakers and other partners to
advance the transformation towards
a circular economy through advocacy
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Aiming to design all
products with circular
capabilities
Guided by the Circular Product Design
Principles, we strive to design products
from the very beginning to be reused,
refurbished, remanufactured and/or
recycled to extend their lifespan as long
as possible. Products are also material
banks for the future, meaning they can be
taken apart and recycled when they are no
longer functioning.
FY23 key activities
Piloting a start-up for recycling
down and feathers
This year, we piloted a new
initiative in Belgium, Germany
and the Netherlands that
encourages our customers to
down and feathers, that are no
longer being used, for recycling
into GULKAVLE pillows and
FJÄLLBRÄCKA duvets.
longer is to enable customers to care for
their products throughout the time they
own them.
Maintaining large furniture pieces with
textile surfaces can be challenging.
In FY23, we introduced several big
furniture pieces with removable and
machine washable fabric covers, such
as the KLEPPSTAD bed frame, PERSBOL
armchair, SAGESUND upholstered bed and
STRANDMON slipcover. By introducing
more products with removable and
washable fabric covers, we make it easier
for customers to care for and maintain
their products.
Making it easy to
maintain furniture
through product design
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Increasing the availability of spare parts
to prolong the life of products
During FY23, we provided 23.2 million
assembly parts
1
(FY22: 21.5 million) to
enable our customers to prolong the life
of products. We also continued working on
solutions to provide furniture spare parts
2
customers.
Developing circular solutions for existing and new customers
to acquire, care for, and pass on products
We want to encourage and enable our
customers to acquire, care for, and pass on
their products in circular ways by providing
convenient solutions.
Aiming to only use renewable or recycled materials by adapting
and nding new sources and developing new materials
Renewable and recyclable materials are key
to becoming a circular business. We continue
our work to optimise the use of materials for
our home furnishing solutions, aiming to use
only responsibly sourced renewable or recycled
materials. Read more about our secondary raw
materials (recycled) on page 42.
The amount of materials used in the IKEA range is
based on estimations for most types of materials.
materials continue to only be available for wood
and paper. Therefore, there are no updates to the
56% of the materials we sourced were renewable
and 17% were recycled. Read more about recycled
materials on page 42.
Examples of increasing the share of
recycled plastic
H
of sorting bins designed to meet waste sorting
needs, was launched in 2020. Products in
transition to being made from recycled sources.
To date, IKEA plastic products produced in
Europe contain at least 70% recycled content,
where more than half of it comes from post-
consumer sources such as household plastic
waste. The same journey is ongoing in the
other production regions, resulting in lowering
the CO on a material level by approximately
60% compared to if entirely made from fossil
virgin plastic.
UPPDATERA
Moving from recycled polythylene
terephthalate (PET) to recycled polypropylene
(PP) in our UPPDATERA products (consisting of
multi-use plastic boxes) lowered CO emissions
on a material level by approximately 12%. The
lower emissions of PP are mainly driven by the
lower energy consumption of recycling plastic
than for PET. Additionally, this change provided
Read more about the climate footprint of
materials in the IKEA Climate Report FY23.
1
assembly instructions of products with a series number. Assembly parts can be ordered and delivered for free through an online tool on the IKEA website.
2
Furniture spare parts are replaceable parts of furniture which are not assembly parts, for instance, back and seat cushions, upholstered covers, armrests
door fronts, drawer parts, panels, bed slats, shelves, tabletops and legs, handles, etc.
Giving old or unwanted furniture
a second life
Through Buyback & Resell, customers
in 28 markets can bring back IKEA
furniture to one of our stores and receive
a voucher to spend in-store or online. A
majority of returned items are resold via
our As-Is areas. Any items not resold are
recycled or donated to local community
projects. Over 211,600 customers used
the service in FY23 (FY22: 105,000) and
gave 430,000 (FY22: 230,000) items a
second life.
Despite our Buyback service, we know
that many people still dispose of furniture
that is in good condition and could be
reused. In Norway, we are trialing a new
partnership with the municipality of Oslo
to create a dedicated collection point for
unwanted IKEA furniture at the Haraldrud
municipal recycling centre. Returned IKEA
furniture will be checked, cleaned and
resold in our As-Is areas. We hope this
will improve convenience for customers
and increase the amount of good quality
IKEA furniture that we can resell.
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Preventing products and materials from
becoming waste and turning waste that cannot
be avoided into resources are key to a circular
economy. By taking a holistic approach that
involves product design, production, supply
chain management and customer engagement,
we aim to turn waste into resources and send
Textile to textile initiative
In FY23, IKEA Taiwan collaborated with
range development to repurpose curtains
by using their fabric to create tote bags. As
part of this initiative, a collaboration was
established with the Taiwanese Industrial
Development Administration and the
textile recycling.
Waste performance at IKEA Industry
This year, we’ve continued working with our
Five Main Fractions methodology – where
all production units analyse their situation
volume, the most hazardous one, mixed
fraction, the most expensive, and fractions
up a plan on how to act, test and evaluate
ways to minimise, reuse, recycle or send
waste to energy recovery. After testing
and evaluation, a scaling-up project will be
evaluated the year after. In FY23, 9 units out
of 21 (FY22: 9) successfully achieved the goal
A focus point and challenge for IKEA Industry
for ash from bio-boilers and glue water
from production processes. We will conduct
additional testing on these topics in FY24.
Halving food waste in line with the SDGs
In June 2023, the World Resources Institute
(WRI) recognised the IKEA business for
halving food waste (compared to the FY17
baseline, in meal preparation at IKEA
restaurants) in line with the Sustainable
Development Goal (SDG) 12.3,
1
setting an
example for other companies.
Using ceramic production waste
to make new tableware
Making ceramics from waste materials has
long been a big challenge in the ceramics
industry. Together with one of our suppliers,
we are now producing brand new ceramics for
the SILVERSIDA tableware range from scrap
materials. Launched in FY23, the SILVERSIDA
of how we are successfully using ceramic
production waste to make new tableware.
SILVERSIDA products are made up of 65-70%
internal factory waste. This innovation will
open up future possibilities for developing
material, which would otherwise end up in a
Turning waste into resources, aiming to send zero waste to landll
From BLANDA to BÄRFIS
One of the ways we aim to prevent waste
generation is through product design. For
example, products in our range such as the
BÄRFIS over the door hook rack are made
bamboo bowl.
1
World Resources Institute, "IKEA Becomes First Global Company to Halve Food Waste", 2023.
Phasing out plastic packaging
In FY21, we set a new goal to phase
out single-use plastic in our consumer
packaging by 2028, and by FY25 launch
all new products in our home furnishing
range without plastic packaging. At the
time, less than 10% of the total annual
volume of packaging material consisted
result, compared to FY21, we have reduced
the amount of plastic packaging used for
consumer goods by approximately 47%
and in total packaging (including consumer
packs, multipacks, unit loads, and handling
materials) by approximately 44%.
Some key movements that enable the
reduction include a move towards paper
pallets, paper-based materials replacing
plastic bags and wrappers, solid paper
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Taking the lead and joining forces with others through
advocacy, collaboration, and business partnerships
Our commitment to sharing knowledge and
working together with others to advance the
transformation towards the circular economy
While we continue to learn more about our own
business capabilities within these areas, we also
engage in open dialogue with policymakers and
other partners.
A common theme that has arisen through our
numerous advocacy engagements is the need
for a more harmonised approach to regulation.
This includes enabling more consistent trade
and customs practices, an aligned language, and
setting a stable foundation for all stakeholders
across the global economy.
Engaging and leading in European
standardisation work for furniture
circularity
The leadership to set new circular
economy standards for the furniture
industry continues under CEN Technical
committee (TC207-WG10) – furniture
circularity. In FY23, this European
Standardisation Committee appointed
an IKEA representative as the convenor
to lead the work on evolving new
methodologies for circular product design
strategies.
Circularity - Evaluation method for dis/
re-assembly capability) was approved by
European National Members in October
2024. Additionally, the committee has
agreed on and started working on three
new projects as potential future standards
for the subjects around repairability/
refurbishment, product lifetime/durability,
and remanufacturing.
Continuing to support the ongoing work
of the EU Green Deal
As policymakers advance the roll-out of
the EU Circular Economy Action Plan, we
fact- and experience-based insights and
contributions.
During FY23, we welcomed the legislative
proposal for an Ecodesign for Sustainable
on the most important design elements
to drive circularity, and we supported
the inclusion of products such as textiles,
furniture, and mattresses in the forthcoming
EU rules. We also advocated the importance
of certain incentives and preconditions for
circular development, such as incentives
that enable more reuse and repair, setting a
market for secondary raw materials.
Together with the European Furniture
Industries Confederation (EFIC) and
EuroCommerce, we advanced the debate
within a broader industry context, aiming
at contributing to progress in areas such as
ecodesign criteria and the digital product
passport.
Renewing our collaboration with the Ellen
McArthur Foundation
We renewed our partnership agreement
with the Ellen McArthur Foundation – a
creating a circular economy – in FY23. We
will continue working together to accelerate
the transformation to circular economy,
as well as actively share our learnings and
experiences along the way.
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Our climate agenda
By FY30, we are committed to
becoming climate positive by
reducing more greenhouse
gas (GHG) emissions than the
IKEA value chain emits, while
growing the IKEA business.
This will be achieved without
This is how we contribute
to limiting the global
temperature increase to 1.5°C
by the end of the century.
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Commitments and goals
1
2
Reducing the IKEA climate
footprint in line with 1.5°C
Reducing more emissions than
the IKEA value chain emits
Contributing to additional
reductions in society
2
3
1
Excluding production, product transport, co-worker commuting and
business travel.
2
value chain emissions to be aligned with the 1.5°C target and will
reduction goal.
Going beyond IKEA
We will contribute to additional reductions in
society by taking an extended responsibility for
the climate footprint of our customers, suppliers
and in our sourcing areas – not just the part
which we can account for in the IKEA climate
footprint. A strategic goal for this will be set once
the guidance for “removing and storing carbon”
is ready and when the framework for going
beyond has been developed by SBTi. We are
already taking actions that we know will have a
positive contribution, even though a goal has not
yet been set.
root causes of our climate footprint within
our own value chain or in connection to our
customers, suppliers, and sourcing areas. We will
reach net-zero emissions.
Drastically reducing GHG emissions across
the IKEA value chain, in absolute terms
The overall goal is, by FY30, to reduce the
absolute GHG emissions from the IKEA value
chain by at least 50% compared to FY16
(previous goal was a 15% reduction). By FY50
at the latest, we will reduce the absolute GHG
emissions from the IKEA value chain by at least
90% compared to FY16.
As a result of our new net-zero goals, we have
either updated or set new goals for most parts
of our value chain.
1
For materials, we have
set the goal to at least halve our emissions
by FY30 compared to FY16 baseline. For
food ingredients, we have updated our FY30
goal from -25% to -50% emissions reduction
compared to FY16. For product use at home,
we have set our FY30 goal to -70% emissions
reduction compared to FY16. We have also set a
FY30 goal for reduced emissions from product
end-of-life by 30% compared to FY16.
During FY23, we aligned our strategic
climate goals with the 1.5°C trajectory
and the Net-Zero Standard by Science
Based Targets initiative (SBTi). We
submitted our goals to SBTi mid-
November 2023 and validation is
currently pending.
Our main priority is drastically reducing
greenhouse gas emissions across the IKEA
value chain. Any remaining emissions will be
neutralised – reaching net-zero emissions by
FY50 at the latest – by removing and storing
carbon from the atmosphere through better
forest and agricultural management practices
within the IKEA value chain. Additionally, we
will go beyond net zero and go beyond IKEA by
contributing to additional reductions in society.
Read more about our work on climate change,
including a detailed breakdown of our climate
footprint in the IKEA Climate Report FY23.
1
2
3
Removing and storing carbon from the
atmosphere through forestry, agriculture
and products within our value chain
Storing carbon in trees and agricultural crops
used for materials, food, and fuels removes
CO from the atmosphere. If the land is also
responsibly managed, it has the potential to
reduce climate impact. In contrast to carbon
the IKEA value chain and are part of how we
responsibly source materials for the IKEA range.
A strategic goal will be set once the Land Sector
and Removals Guidance by GHG Protocol is
since the establishment of the Forestry, Agriculture
and Land (FLAG) target setting standard by SBTi
established in September 2022. Even though a goal
know will make a positive contribution.
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IKEA climate footprint
FY23FY16 Goal FY30 compared to baseline (FY16)
FY30: 15.5
FY16: 31.0
1
Baseline
FY22: 27.2
1
-12% (vs FY16)
FY23: 24.1 -22% (vs FY16)
-50% (vs FY16)
Materials
IKEA retail & other
operations
Product use at home
Customer travel &
home deliveries
Product transport &
logistics services
Food ingredients
Production
Product end-of-life
Co-worker commuting
& business travel
Other
2
.
Performance vs. baseline FY16 (million tonnes CO eq)
Climate footprint at each stage of the IKEA value chain (million tonnes CO eq)
FY16 Baseline0.86
FY23
-0.3% (vs FY16)0.86
-50%
Goal FY30 compared to FY16
FY16 Baseline
3.5
FY23
-32% (vs FY16)
2.4
-80%
Goal FY30 compared to FY16
FY17 Baseline (FY17, due to incomplete FY16 data)
1.4
FY23
-28% (vs FY17)1.0
Goal FY30: -70% in relative terms compared to FY17
-27% (vs FY16)
0.58
FY16
FY23 0.42
Baseline
Goal FY30 compared to FY16
-80%
FY16
FY23
Baseline
+18% (vs FY16)
Goal: No goal as these climate footprints are currently not actively addressed, but will come as the agenda develops
0.31
0.36
FY16
FY23
Baseline
-10% (vs FY16)
Goal FY30: -50% in relative terms compared to FY16
0.50
0.45
FY16
Baseline
12.1
FY23
-7% (vs FY16)
11.2
-50%
Goal FY30 compared to FY16
FY16
FY23
Baseline
-12% (vs FY16)
1.7
1.5
-30%
Goal FY30 compared to FY16
FY16
FY23
Baseline
-5% (vs FY16)
2.1
2.0
-30%
Goal FY30 compared to FY16
FY16
FY23
Baseline
-52% (vs FY16)
8.0
3.8
Goal FY30 compared to FY16
-70%
Goal FY30
Reduce by at least 50% in absolute terms compared to
baseline FY16. Our previous goal for FY30 was a 15%
reduction. Our new goals were submitted to SBTi in mid-
November 2023 and are currently pending approval.
In FY23, the total IKEA climate footprint decreased by 3.2 million
tonnes of CO
eq in absolute terms compared to FY22 – a
reduction of 12%. The reduction in FY23 was attributed to the
continued increase in renewable electricity use at both retail and
range and lower production volumes.
1
2
Includes the climate footprints of capital goods, materials connected to retail equipment and
co-worker clothing, and waste generated in IKEA operations.
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FY23 summary of progress
1. Drastically reducing GHG emissions across the IKEA value chain, in absolute terms
In FY23, the IKEA climate footprint is estimated to be
24.1 million tonnes CO eq in absolute terms, which
is a decrease of 12% compared to FY22 and 22%
compared to baseline FY16. The reduction in FY23 was
attributed to the continued increase in renewable
electricity use at both retail and production units,
and lower production volumes. Due to an overstock
situation at the beginning of the year, our produced
volume declined in FY23. We came into FY23 with
challenges that were lagging from an unpredictable
business climate, supply chain constraints and high
In IKEA retail & other operations, the share of
renewable energy increased from 63% in FY22 to
69% in FY23, with the share of renewable electricity
increasing from 75% to 77%.
In production, the renewable electricity share
increased from 63% in FY22 to 71% in FY23, while
close-down of our production facilities in Russia and
an increase in on-site coal consumption at some of
our suppliers. A total of 142 additional factories or
suppliers achieved 100% renewable electricity in FY23,
bringing the total to 408, which constitutes 37% of our
direct suppliers.¹
For product transport, the share of alternative fuels,
such as biogas and electricity, increased from 6% to
10%. For logistics service units, such as warehouses,
the renewable electricity share increased from 86% to
90%.
Product use at home represents the second-largest
portion of the IKEA climate footprint, and since the
baseline FY16, greenhouse gas emissions have more
than halved. Compared to FY22, we saw an emissions
reduction of 13% in FY23. The reduction is attributed
Watt) of the lighting range, as well as a 3% reduction
in sales quantity (pieces). External factors such as
improvements in the renewable energy share for
electricity grids in our retail markets also contributed
to 4% of the emissions reduction.
Materials used in IKEA products account for the
largest part of our climate footprint. The footprint
of materials (including the share of recycled or
renewable materials) is mainly based on estimations.
While lower production volumes in FY23 did contribute
partly to the decline in the material footprint, we also
had several material developments during the year.
Read more in the IKEA Climate Report FY23.
1
Includes home furnishing, components and media print suppliers but excludes
food suppliers.
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The IKEA climate footprint in both absolute and relative terms
FY16 FY21 FY22 FY23
Climate footprint (upstream) per m
3
produced volume incl. food, indexed vs. baseline FY16
(million tonnes CO eq per million produced m
3
)
Climate footprint (downstream) per sold volume, indexed vs. baseline FY16
(million tonnes CO eq per million sold volume m
3
)
Climate footprint of the total IKEA value chain both upstream and downstream
(million tonnes CO eq)
110%
100%
90%
80%
70%
60%
50%
0.48
0.45
0.44
0.48
31.0
28.7
27.2
24.1
0.26
0.25
0.26
0.36
While our absolute footprint was down in
FY23 by 12%, our relative footprint grew by
9% upstream (produced volume) and 2%
downstream (sold volume), compared with FY22.
Our upstream supply chain includes materials,
food ingredients, production, product transport
and logistics services and downstream includes
IKEA retail, co-worker commuting and business
travel, customer travel and home deliveries,
product use at home and product end-of-life.
Our calculation methodology for production
uses a spend-based allocation (share of EUR
purchased) for supplier factory emissions, which
determines the IKEA share of GHG emissions,
so the increase of relative emissions in FY23 can
That is, more GHG emissions were allocated to
the IKEA business even if our actual production
at supplier factories was comparable to previous
years.
In addition, the climate footprint of material, the
largest portion of our footprint, is largely based
on estimations which today do not account for
the business such as the introduction of more
recycled and renewable materials. As a result of
the digitalisation of data collection, we aim to
provide more accurate data in the FY24 report.
As a part of our net-zero goal setting, we launched
a comprehensive business consequence analysis to
identify the actions needed to halve emissions by FY30
compared to our FY16 baseline. These action plans will
provide the foundation for our continued reduction of
overall emissions and should reverse the increase in
relative emissions we saw in FY23.
27 - IKEA SUSTAINABILITY REPORT FY23
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FY23 key activities across the IKEA value chain to drastically reduce GHG emissions
Increasing the renewable electricity
share in production
The share of renewable electricity for
production increased from 63% in FY22
achieved in China, India and Vietnam.
These movements were supported by
our renewable electricity programme
for suppliers, which is now active in 13
supplier markets.
Halving emissions from product use at
home
Emissions from product use at home
includes the electricity consumption of
lighting, home electronics and appliances
and the burning of candles. Compared
to the FY16 baseline, we have managed
to more than halve these emissions. This
means that an estimated 4 million tonnes
CO eq less will be emitted over the lifespan
of our products sold in FY23 compared to
FY16. The main drivers of this reduction
years, as well as an increase in renewable
electricity in electricity grids in the
markets where our customers live and
use our products. This is considered when
estimating the climate footprint of product
use at home.
Moving towards 100% renewable
energy in IKEA retail & other operations
The share of renewable energy consumed
in IKEA retail & other operations, which
includes our stores and other customer
meeting points, increased from 63% in
FY22 to 69% in FY23. This was mainly
driven by an increase in renewable
heating in Germany (+37 percentage
points), followed by Lithuania (+18
percentage points) and the Czech
Republic (+16 percentage points), which
increased the overall share of renewable
heating from 22% in FY22 to 32% in FY23.
At the same time, the share of renewable
electricity increased marginally from 75%
in FY22 to 77% in FY23.
Introducing bio-based glue into the IKEA
range
in the work to reduce the climate footprint
from glue by 30% by FY30. As glue in board
materials represents 5% of the total climate
footprint within the IKEA value chain, such
our climate footprint.
Towards the phase-out of coal- and fossil
oil-based fuels in production
After a decrease from 11% in FY16 to 7% in
FY22 (in terms of kWh), the share of coal-
and fossil oil-based fuels increased to 9%
in FY23. Our GHG calculation methodology
uses a spend-based allocation (share of EUR
purchased) for supplier factory emissions,
which determines the IKEA share of GHG
emissions. In FY23, there was a greater
allocation of coal use to the IKEA business –
an increase which is largely attributable to
Our remaining suppliers who use coal
on-site have committed roadmaps and
deployment plans to secure the complete
substitution of coal with renewable energy.
28 - IKEA SUSTAINABILITY REPORT FY23
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2. Removing and storing carbon from the atmosphere through
forestry, agriculture, and products within the IKEA value chain
Above is a simplied model illustrating an example of removing and storing carbon through the establishment of
fast-growing tree plantations plus restoration of natural forests on degraded land, including the eect of prolonging
the carbon storage through wood-based products and recycling.
DECADES
Natural forests
When logged, CO2 remains stored in products
made from wood (
Forest plantations grow
faster than natural forests,
as described below, and can
remove carbon from the
atmosphere at a higher pace.
REMOVED AND STORED CARBON
Increasing the level
of removed and
stored carbon
During FY23, we continued our contribution to
the work of the GHG Protocol in developing their
Land Sector and Removals Guidance. The guidance
will secure principles on how to account for and
report GHG emissions and carbon removals and
storage connected to land use and products made
with renewable materials. Throughout the project,
the IKEA business has been part of the Advisory
Committee and Technical Working Groups. During
FY23, we also contributed by conducting pilots in the
IKEA supply chain during the public consultation and
piloting phases.
The guidance provides the accounting principles for
the target setting standard by the Science Based
Targets initiative (SBTi) on land-based emissions and
removals from Forest, Land and Agriculture (FLAG) –
work that we have also contributed to.
The guidance is now expected to be completed
during the summer of 2024. Once the guidance
has been completed, we will set a strategic goal
for removing and storing carbon through forestry,
agriculture and products as part of our climate
carbon removals and storage by FY30 and how we
will neutralise any remaining GHG emissions after
reducing them by at least 90% by FY50 at the latest.
While our goal is pending, we’re still taking action
to improve carbon removals and storage. One
carbon removal and storage programme. As a part
engagement to work with smallholder farmers in
for the climate and income for the farmers in this
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3. Going beyond IKEA by taking an extended responsibility for customers and suppliers
In FY21, our methodology to measure
to measure and follow up across the IKEA business
in a consistent way. Addressing this is a prerequisite
already actively working with actions that are part of
the agenda.
To secure that the actions are part of the IKEA
business transformation, all actions and activities
for are connected to the IKEA
value chain. This means that they are either part
of the IKEA range, supplier base or sourcing area.
The impact of initiatives will not
contribute towards our emission reduction goals in
our net-zero commitment and therefore should not
Therefore, any contribution must be within one of
the following three areas:
Resource use at home
Solutions enabling the generation of renewable
1
It also includes solutions to improve the
when used as intended. One example is the recently
1
2
This excludes lighting, appliances, taps, showers and circular services or solutions since they are already accounted for as GHG emissions in the IKEA climate footprint. Any improvement of these is accounted for in the IKEA climate footprint (drastically reducing GHG emissions) instead of .
customers to save up to 95% of water used in taps
at home.
2
Renewable energy for suppliers
Actions by the IKEA business to convert our supplier
partners to 100% renewable energy for their entire
factory or operations, not just the IKEA share of their
business.
Improving forestry and agriculture in IKEA
sourcing areas
Actions by the IKEA business to improve forestry or
agricultural practices for the total surroundings/
landscape where we source raw materials. The
possibility of following up on this impact will be
enabled through the Land Sector and Removals
Guidance by GHG Protocol. To avoid overestimating
contribution occurring each year instead of adding
up the total GHG emissions avoided since baseline
FY16.
climate footprint reporting are now ready,
remains to be done. The
contribution from suppliers will be followed up
on in the FY24 Climate Report.
available in 11 IKEA markets.
1
The total avoided
emissions through the renewable electricity it
generated was approximately 0.10 million tonnes
CO eq (-55% compared to FY22). This is calculated
which the renewable electricity from home solar
lifetime of the home solar panels, similar to how
the climate footprint for product use at home is
calculated for lighting and appliances.
FY16 FY22 FY23
0.10
0.23
0.09
30 - IKEA SUSTAINABILITY REPORT FY23
Regenerating resources, protecting
ecosystems, and improving biodiversity
Our ambition for 2030 is to regenerate resources
while growing
1
the IKEA business. We aim to only
use responsibly sourced renewable or recycled
impact by regenerating resources, protecting
ecosystems and improving biodiversity. This also
means working to identify, prevent, mitigate,
and address any potential negative impact on
people linked to our business activities. We are
dependent on materials and ingredients for our
with less.
1
The term "growing" in this context refers to the link between business growth and increased consumption of raw materials.
without a proportional rise in the volume of material resources we use.
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31 - IKEA SUSTAINABILITY REPORT FY23
In FY23, we continued to work across
and map supply chains and secure best
practices for the responsible sourcing
of materials used in our products.
We’re striving to always take a holistic
perspective when it comes to avoiding
and decreasing negative impacts from
our supply chains on both people and the
planet.
Progress within our four material blocks
during FY23 includes:
• Forestry (wood): Together with
the Forest Stewardship Council
®
(FSC
®
), we’re working to gain a better
forests impact biodiversity (page 35).
• Agriculture: We are developing IWAY
requirements that we will use to guide
agricultural raw materials. Currently,
we are piloting projects as part of our
regenerative agriculture across our
value chain and have become active
members of One Planet Business for
Biodiversity (OP2B) (page 38).
• Inorganics: We completed pilot
mappings of prioritised IKEA supply
chains back to their source for
inorganic raw materials (page 41).
• Secondary raw materials (recycled):
We’re supporting the development of
a standard that promotes responsible
waste management practices. We
joined The Circulate Initiative (TCI)
forum in support of the TCI Responsible
Sourcing Initiative, which aims to
improve human rights across recycled
plastic value chains in ways that can
be measured, managed, and are
compliant with regulations (page 42).
Working to responsibly source raw
materials is a continuous and long-term
endeavour. Collaborating with suppliers,
policymakers, governments, industry
partners, NGOs, experts and other
brands fosters context for change and
improvement in our supply chains.
FY23 summary of progressCommitments and goals
• Continue to secure and develop responsible sourcing standards
for raw materials that include environmental, social and animal
welfare criteria.
• Continue to source wood from more sustainable sources,
promoting responsible forest management to eliminate forest
degradation and deforestation and going beyond our supply
chain. Using innovative approaches to forest management,
protection, restoration and regeneration.
• Lead regenerative projects on degraded land, deforested areas
and agriculturally cultivated areas.
• Become good water stewards by leading and developing water
stewardship programmes. Leading regenerative projects to
focusing on leading projects to clean plastic pollutants from
oceans.
• Continue to source wood, cotton, food, and other raw materials
from more sustainable sources (supported by credible external
sustainability standards and systems).
• Providing and promoting services, solutions, inspiration
products and materials. Inviting and enabling customers and
other partners to be part of the solution by making it easy to
acquire, care for, and pass on products.
1
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32 - IKEA SUSTAINABILITY REPORT FY23
FY23 key activities
The world is experiencing a biodiversity
crisis.
1
The human-caused loss of species,
ecosystems and genetic diversity is one
of the greatest challenges of our time.
The IKEA business impacts and depends
on biodiversity mostly through the direct
and indirect use of land, sea, freshwater
and raw materials.
During FY23, we continued the work of
understanding our impact and dependency on
biodiversity across our value chain according to the
Science Based Targets Network (SBTN) guidance.
As a SBTN Corporate Engagement Program
participant, we’ve had the opportunity to use
some of the methods and tools prior to their wider
release and to provide feedback on their feasibility.
Based on the publicly released guidance, we will
reassess our impact work to align with the improved
methodology.
We are continuously evaluating various methods,
including the Taskforce for Nature-related Financial
Disclosures (TNFD) framework, to increase the
transparency of our reporting on nature-related
dependencies, impacts, risks, and opportunities.
Biodiversity
1
Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), "Global Assessment Report on Biodiversity and Ecosystem Services", 2019
Continued advocacy for biodiversity
regulations and reporting
We participated in the European Business and
Biodiversity Forum in June 2023, hosted by
WWF-France, which discussed the next steps
for both the private and public sectors. The
focus of the forum was on how the changing
regulatory context is making it mandatory for
companies to pay attention to and accelerate
the biodiversity agenda, including increasingly
complex reporting requirements. The IKEA
business shares the concerns voiced during
the forum.
Insights from research on a unique 25-year
forest restoration programme
Launched in 1998, the Sow a Seed project
in Sabah, Borneo, aimed to restore 18,500
hectares of rainforest degraded by logging
research, supported by IKEA funding. In FY23
concluding that biodiversity improvements in
the area.
Key lessons learned include the creation of a
valuable natural resource, the adaptability of
tree species selection, the impact of planted
trees in disturbed areas, the importance of
tree diversity for broader biodiversity and the
potential of genetic variation in native trees
for reforestation. Read more about research
by the Swedish University of Agricultural
Sciences (SLU) related to Sow a Seed.
Reviving nature through the establishment
of biodiversity parks in India
In FY23, WWF-India, with the support of the
IKEA business, developed three biodiversity
ecosystems through regenerative agriculture
practices. These parks host habitats for
supporting the conservation of biodiversity
in the area. Restoring cotton ecosystems
not only supports pollinators, but also local
communities by improving conditions for
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33 - IKEA SUSTAINABILITY REPORT FY23
Water stewardship
1
IWAY, the IKEA supplier code of conduct.
Our ambition is to be good water
stewards and contribute to increasing
the availability of clean water in our
own operations and the rest of the
value chain, by 2030. We’re working
to use water as eciently as possible
and reduce industrial euents to
minimise environmental damage.
1
Our strategic focus areas consider where we
impact: improving water quality and increasing
water availability throughout our value
chain, enabling reduced water consumption
in the home, demonstrating leadership and
collaborating with others in water stewardship
ambitions.
Identifying river basins most connected to
our supply chains
As global frameworks and methodologies are
under development, the IKEA business has
adopted – the WWF recommended – Contextual
Target Setting (CTS) methodology. To build
basins most connected to our supply chains
based on current and projected (2030) water
scarcity. In FY24, we will set and accelerate
action towards targets.
Partnering with WWF in India and Türkiye
As part of the WWF and IKEA partnership,
we are not only working to improve water
management and tackle water challenges
across the IKEA value chain but also
advancing conservation beyond. In FY23,
we advanced work connected to river basin
projects in India and Türkiye:
INDIA
As a part of the collective action programme
in the Noyyal Bhavani river basin, the
as a pilot wetland restoration initiative in
collaboration with the local government.
Together with the local community, the
restoration project aims to restore the native
shola forest, grassland and swamp over
Extensive mapping of the animals and plant
species that live in the lake was conducted
to establish a baseline for the removal and
replacement of invasive species with native
ones. Based on the mapping, a detailed
action plan has been submitted to the State
for approval. It is expected that full-scale
implementation of the restoration work will
be initiated by 2024.
TÜRKIYE
In Soke, a key cotton-growing region in the
Buyuk Menderes Basin, WWF and the IKEA
business (together with other partners) are
piloting the implementation of regenerative
agriculture. The pilot, which started on 7.9
hectares of Better Cotton farms in 2020, is now
in its third year. Some achievements observed
include; improved soil health, enhanced
biodiversity, increased crop diversity (from two
sequestration. This pilot aims to test global
know-how in regenerative cotton farming.
The knowledge gained will help scale the
implementation to more hectares of farms.
FY21
FY23
FY22
Water use across the value chain
(billion m
0.71
Materials (74% – 0.45)
Product use at home (16% – 0.10)
Food ingredients (5% – 0.03)
IKEA retail & other operations (1% – 0.007)
Production (3% – 0.02)
0.61
0.72
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Photo provided by WWF
34 - IKEA SUSTAINABILITY REPORT FY23
Joining the Open Call to Accelerate Action
on Water
In March 2023, the IKEA business participated
in the UN Water Conference. At this historic
years), we joined the
Call to Action on Water. We have committed to;
• Improving water resilience in water basins
where we operate
• Implementing resilient water management
practices for both water quantity and
quality in our supply chains
• Joining others to make a positive water
impact in at least 100 vulnerable global
water basins by 2030, focusing on the
most stressed basins in our operations and
supply chains
Our plan to achieve these commitments
includes target setting, working with and
supporting suppliers throughout the IKEA value
chain and continuing our work with WWF on
vulnerable water basins.
Increasing water recycling in our textile
supply chain
One textile supplier in China has installed
a reverse osmosis and evaporator facility.
The overall recycling rate has increased
from 74% in FY22 to 96% in FY23, resulting
in four million m
3
of recycled water
being used in the facility. The increased
recycling contributes to a 21% reduction in
freshwater use compared to FY22.
Flood and drought risk assessment at
IKEA Industry Poland sites
were assessed, and nature-based actions
to become more resilient were proposed. A
rain was constructed at the Manufacturing
Development Centre in Zbaszyn – a good
example of a nature-based solution.
The assessment will continue, and more
solutions will be proposed at other IKEA
Industry sites during FY24.
Building a oating platform to clean water
in Pakistan
In FY23, WWF and the IKEA business, through
our partnership to restore biodiversity in
cotton-growing regions, created a small
species. The platform is used to clean water
for a small village in Khanewal, Punjab,
Pakistan.
The platform improved the village’s local
water source – a pond that was a source of
diseases and pests such as mosquitoes with
wastewater coming from the village. The
water, removing pollutants and microbes.
The cleaned water is now being used for
growing cotton, which supports the lives
and livelihoods of nearly 5,000 people in the
village. This nature-based solution is low-cost
and low-maintenance, and its scalability is
currently being explored.
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35 - IKEA SUSTAINABILITY REPORT FY23
Wood is the material most used in the
IKEA range.
1
It's part of the IKEA identity
and our Swedish heritage and includes
particle board, breboard, paper-based
products and solid wood.
management the norm across the world, going
beyond the wood sourced for the IKEA business;
halting deforestation and reforesting degraded
landscapes; and driving innovation to use wood in
smarter ways. Read more about our forest agenda.
In FY23, to increase the accuracy of our wood
consumption data across our home furnishing
products and indirect material use (e.g., packaging),
we reviewed and updated our calculation method.
Many parts of the wood industry have become more
technological advancements in wood processing,
since our initial calculation method was developed.
Until now, our wood consumption was calculated
amount of residue material from the sawmill
manufacturing process – for example wood chips,
sometimes used by other supply chains outside of
volumes.
To become more accurate in our reporting, from
FY23 onwards we will continue to share the total
provide a more substantial breakdown separating
our virgin wood consumption from our recycled
wood consumption as well as an estimated volume
of the residues from the sawmill manufacturing
process. With this breakdown, our total virgin wood
consumption is reduced as residual wood material
is now excluded and calculated as consumed within
the sourcing market. The updated calculation
method is based on information reported by our
suppliers, the best available data for our business
type and commonly approved conversion factors.
Within our commitment to drive innovation to use
wood in even smarter ways, we have set a goal for
at least a third of the wood in the IKEA range to be
recycled wood by 2030. In FY23, 17% of our wood-
based range was made of recycled wood material
(FY22: 15%).
In FY23, 97.8% (FY22: 99,9%) of our total wood used
or recycled.
3
A slight decrease occurred due to our
decision in FY22 to no longer accept wood from
Russia and Belarus. This meant that a few suppliers
wood used still met our IWAY forestry minimum
requirements.
Europe remained the main wood-sourcing region for
materials used in IKEA home furnishing products,
with over 80% of all wood use in IKEA products
coming from this continent.
IKEA wood processing volume
(million m Round Wood Equivalent (RWE))
FY23
Wood (forestry)
1
Based on purchasing value.
² To measure our wood consumption with one relevant unit, we
our products and calculate back to cubic metres of roundwood
equivalent (m
3
RWE). Roundwood equivalent (RWE) is a measure
of the volume of logs (roundwood) used in the making of wood-
based products.
3
We consider a goal to be fully reached when we achieve
at every given point in time.
16.8 million m
Markets which supply the most virgin wood for
IKEA products
6%
Germany
4%
Czech Republic
4%
Romania
16%
Others
9%
China
10%
Lithuania
10%
Sweden
32%
Poland
3%
Vietnam
3%
Slovakia
3%
Latvia
Europe
84%
Asia
13%
Oceania
1%
Africa
0.002%
South
America
2%
North
America
0.4%
Virgin wood material in products (10.5 million m)
Wood residue byproduct from sawmill (1 million m)
Recycled wood material in products (2.3 million m)
Total wood processing
gure for home furnishing
products (13.8 million m)
Indirect material
(3 million m)
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36 - IKEA SUSTAINABILITY REPORT FY23
Understanding the impact of FSC forest
management on biodiversity
At COP15, where the Kunming-Montreal
Global Biodiversity Framework (GBF) was
adopted, the IKEA business, together with
FSC, WWF, and other leading companies,
participated in the launch of an initiative
to fast-track biodiversity assessments in
. The initiative builds
on learnings from earlier work to quantify
the impact of FSC (the Value and Impact
Analysis (VIA) initiative in 2014).
In FY23, the initiative worked on evaluating
how currently available data reported by
the biodiversity impact of FSC Forest
Management. This initiative will support
their biodiversity impacts in line with the
Kunming-Montreal Global Biodiversity
Framework agreed on at COP15.
This initiative represents a big step
towards strengthening the FSC global
of its biodiversity impact, which can be a
positive change at scale for the entire forest
management sector.
FSC in Poland
The wellbeing of the world’s forests is
a primary focus for the IKEA business.
Therefore, the decision in Poland in
FY23, to discontinue participation in the
most credible global forest management
deeply concerned.
The IKEA business plays an active role in
assisting a continuous and constructive
to support a positive solution.
Expansion of the WWF and IKEA forest
partnership to Brazil and Colombia
During FY23, the IKEA business and WWF
continued our long-standing partnership,
where forests have been in focus. Working side-
by-side for over 20 years, covering 19 locations,
our global partnership has been instrumental
in driving responsible forest management,
increasing transparency across wood supply
chains and protecting ecosystems. We are,
America – Brazil and Colombia. For the projects
in South America, the plans were developed
to focus on community forest management,
landscape conservation and recovery activities.
Additionally, we are starting a new pilot project
on landscape restoration in Thailand.
Global consumer insights on the forestry
sector
As one of the leading wood users in the
retail sector, we strive to use our size and
even transform, the forestry industry. We
asked GlobeScan to conduct foundational
research amongst consumers and experts
into how the forestry sector and wood
sourcing are currently perceived and
understood.
The results of the 8,000 consumers
surveyed across eight of our markets
demonstrate that over 80% are very or
somewhat concerned about the state
of the world’s forests. It shows that the
responsible sourcing of wood is important
to consumers, and 75% would prefer to
buy from a company known for its forest
The results demonstrate the need for
greater engagement towards consumers
on issues and products, as well as the
management and using wood. We will
share the research in FY24.
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37 - IKEA SUSTAINABILITY REPORT FY23
Launching a rst-of-its-kind rattan species
DNA identication database
Rattan can be a useful renewable forest
resource in many applications. Historically, it
has not been possible for the wider industry
of rattan used in supply chains and over-
harvesting of rattan from forests in Vietnam
and Indonesia can threaten biodiversity and
ecosystems by contributing to the potential
extinction of some rattan species. Therefore,
in 2019, the IKEA business together with
the Royal Botanic Gardens, Kew, in the UK,
partnered around research on rattan species
In FY23, as a result of the partnership, Kew
Gardens launched a
available DNA database of all rattan species.
The database includes a new test protocol,
species, enabling companies to gain deeper
knowledge of rattan supply chains and
to act to protect threatened species. This
development supports the IKEA business in
increasing traceability which is a step towards
ensuring no threatened species are sourced.
By launching this database and sharing all
the tools for free, the aim is to inspire other
companies to use it to increase the traceability
of their rattan supply chains as well.
Contributing to the development of EUDR
deforestation legislation
The IKEA business has long promoted
responsible sourcing within our business.
We have steered market transformation with
respect to key raw materials and continue
to use innovative approaches to forest
management, protection, restoration, and
regeneration. The wood used in IKEA products
is sourced from responsibly managed forests,
which do not contribute to deforestation.
We fully support the European Union’s goal to
minimise the EU’s contribution to deforestation
and forest degradation. We urge a risk-based
approach based on mandatory due diligence
processes, including reporting and risk
mitigation measures dependent on the market
conditions. To supplement the due diligence
schemes should be a recognised tool.
We are committed to no deforestation and
no forest degradation across our primary
deforestation-linked commodities (soy, palm
and sugarcane), with a target date of 31
December 2025.
1
During FY23, we remained an active participant
in the EU Commission Expert Group/Multi-
Stakeholder Platform on Protecting and
Restoring the World’s Forests – including the
EU Timber Regulation and the Forest Law
Enforcement, Governance, and Trade (FLEGT)
regulation – by providing fact- and experience-
based insights and contributions to the
development of legislation.
Implementation of responsible sourcing
along forest material supply chains
During FY23, together with our business
partners, we secured the robust requirements
outlined in our supplier code of conduct,
The implementation follows a stepwise
end of 2022 when supply chains connected to
mapped with IWAY Must requirements and
Starting on 1 January 2023, we began the
second step of implementation, focusing on
sub-contractors by the end of 2023.
Implementing responsible sourcing along
forest material supply chains is not an easy
task for the stakeholders involved, including
sub-contractors. Mapping the supply chains
was among the most challenging activities
some sub-contractors were asked to disclose
this type of information.
Despite these challenges – or perhaps because
such as a greater understanding from our
sub-contractors on responsible sourcing,
transparency and traceability. Thousands of
sub-contractors handling forest-based material
have been mapped along supply chains all the
way to the forest roadside. Most supply chains
are relatively short, reaching only to second-
tier sub-contractors. However, a few reported
1
Commodities and products in the scope of the European Union
Deforestation-free Regulation (EUDR) will have to meet the
corresponding timelines.
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Agriculture
Agricultural raw materials are used
throughout the IKEA oer. They include
perennials such as coee, tea and
palm oil, as well as annual crops such
as cotton and animal-based products.
Cotton is the main agricultural material
for the IKEA business.
Agriculture practices have wide-ranging impacts
on water usage, pollution and conservation, nature
and biodiversity, CO emissions and sequestration,
animal welfare, and the lives of people and
communities connected to the cultivation of
agricultural materials.
In FY23, we started developing requirements for the
new Agriculture Section in IWAY, the IKEA supplier
code of conduct (page 55). This is an important step
1
Through the
requirements, we aim to take a holistic and coherent
approach to responsible sourcing of agriculture raw
materials addressing human rights, environmental
impacts, including the risks of deforestation, and
animal welfare across the total value chain.
We are also preparing a transition from single
raw material focused to wider landscape focused
action plans. Although we will continue to work on
in the more holistic scope that the IKEA business has
in biodiversity, land and water use, climate, people
and communities.
the same farm landscapes over a longer period
landscape restoration and community wellbeing.
During this process, as we continue to incorporate
additional markets and their local supply chains,
we are learning where we have more direct control
with others. Because we operate as a franchise
system, which allows for both global and unique
of all products sourced or sold. A systematic
approach and common requirements for our food
supply chains will help us to increase visibility and
insight into operations, including the handling of
animals.
Food ingredients in this report represent
approximately half of the total food ingredients
sourced for the IKEA food business (supplied by
IKEA Food Supply AG). For the remaining ~50%,
the gaps and how to ensure more comprehensive
reporting in the future.
1
Cotton
Since FY15, the IKEA business only uses virgin
recycled cotton.
In FY23, the total volume of cotton in IKEA
products, including non-virgin cotton,
was 109,000 tonnes (FY22 144,100 tonnes).
Around 80% of our virgin cotton came from
smallholder farmers, and around 20% from
large land-holding farmers. We continue
to emphasise physical segregation and
mitigation, and the promotion of circular
the environmental and social impacts of our
cotton supply chains. Read more about our
view on cotton.
Cotton is one of the key focus areas in the
long-term global partnership between the
IKEA business and WWF.
ANNUAL CROPS
Country of origin for cotton
Fresh/virgin cotton
*
Others: Australia, Greece, Israel,
Kazakhstan, Kyrgyzstan, South Africa, Spain
24%
Pakistan
17%
Brazil
14%
India
18%
China
10%
USA
5%
Ivory Coast
4%
Türkiye
1%
Burkina Faso
3%
Cameroon
1%
Others
*
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Integrating climate responsiveness into
agriculture practices in Pakistan
Freshwater is a scarce natural resource
in Pakistan. Close to 90% of available
freshwater is used for agriculture. With
measures taken through the WWF and IKEA
partnership project and the adoption of
climate-smart agriculture practices, farmers
have documented savings of 24% in crop-
water productivity.
1
Through technology and
improved sowing techniques, 535 hectares
of agricultural land have saved 791,908
m of farm water and reduced nearly 24%
in greenhouse gas emissions (GHG) per
warming temperatures, project farmers have
used agricultural land unsuitable for cotton
production to grow indigenous plants.
PERENNIALS
Palm oil
In FY23, 99.9% of the palm oil used was
Roundtable on Sustainable Palm Oil
• Candles: 15,170,000 kg (100% RSPO
• Food: IKEA Food Supply AG (IFSAG):²
• Total: 15,904,890 kg
Coee
In FY23, we used 100% Rainforest
Cocoa
In FY23, we used 100% Rainforest Alliance-
Tea
1
Crop water productivity is the total crop yield divided by total
amount of water used to raise the crop.
Economic empowerment for communities
in cotton landscapes of Pakistan
In order to build resilience to the impacts of
climate change in cotton landscapes, WWF
and the IKEA business have been actively
engaging with communities, and particularly
women, in acquiring alternative skills – such
as embroidery, bee farming, micro-nurseries
and kitchen gardening – that can support
establishing small businesses while also
increasing resilience to climate change.
increase in family income, on average, in the
communities where this applies.
ANNUAL CROPS (CONTINUATION)
2
This percentage is based on food ingredients supplied by IKEA Food Supply AG, which represents approximately half of the total food ingredients sourced
for the IKEA food business. For the remaining ~50%, we continue to build a better understanding of the gaps and how to be more comprehensive for future
reporting.
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Seafood
In FY23, 100% of the seafood volume² was
Aquaculture Stewardship Council (ASC)- or
(2022: 98%, 2020: 91.2%, 2019: 93.7%, 2018:
91%).
Sheep
Wool:
pilot project together with our New Zealand
wool partner. This pilot aims to ensure
integrity in calculating and reporting methods
that follow the established GHG protocol
and Science Based Targets initiative (SBTi)
guidelines for CO removal. But also, it has
enabled us to learn more about soil health
and biodiversity parameters that need to be
understood holistically. The results from the
to remove CO through our wool farms if
regenerative practices are implemented.
Animal welfare
The IKEA business is committed to ensuring
animal welfare across the IKEA value chain.
,
1
a further
development of the globally recognised
that goes beyond basic care.
During FY23, we have taken steps to
consolidate the IKEA standpoints and
merging the work driven by IKEA Food Better
Programmes with additional agricultural
criteria that will address animal welfare in all
IKEA supply chains. Internally, within the IKEA
business and together with suppliers and
Chicken
In FY23, 100% of the chicken volume² was
sourced according to third-party
that cover the majority of the IKEA animal
welfare requirements.
Pig
In FY23, 81.3% of the pork volume² was sourced
cover the majority of the IKEA animal welfare
requirements.
Cattle
Beef: In FY23, we developed pilots, together
with selected partners in the USA, for grass-fed
beef. These pilots will enable the IKEA business
to align and verify methods to calculate GHG
emissions and other key parameters that impact
ecosystems such as biodiversity, soil health,
water and community wellbeing.
Leather: Leather traceability and compliance
has been a top priority for many years
securing high standards of animal welfare
and environment in our leather supply chains.
Now, in addition to consolidating leather
requirements into the overall animal welfare
requirements, we have also taken the necessary
steps to ensure our readiness for the coming
European Union Deforestation-free Regulation
(EUDR) legislation on deforestation by 2025.
external experts, we are further developing the IWAY
Animal Welfare Section 6.1. We remain committed to
suppliers for the IKEA food business on chicken and
pork.
The IWAY Animal Welfare Section 6.1 is an important
enabler to advance animal welfare in the entire
IKEA value chain. The process of further developing
our approach to animal welfare, being present
in coalitions and monitoring data and reporting,
enables us to better understand how to facilitate
improvements in animal welfare in all our supply
chains.
ANIMAL BASED
1
The focus on providing animals with
optimal nutrition, health, behaviour and environment recognising how
all of these contribute to the good mental state of the animals.
2
This percentage is based on food ingredients supplied by IKEA Food
Supply AG, which represents approximately half of the total food
ingredients sourced for the IKEA food business. For the remaining ~50%,
we continue to build a better understanding of the gaps and how to be
more comprehensive for future reporting.
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41 - IKEA SUSTAINABILITY REPORT FY23
Inorganic raw materials are minerals
used in the production of metals,
glass, ceramics, chemicals
1
and
electronic components.
The IKEA business is a relatively small consumer
of inorganic materials. However, those that
we do use can be found in critical applications
like furniture, appliances, lighting, tableware,
rechargeable batteries.
We’re always looking at how to best use
resources to optimise materials for the right
purpose. For example, we only use stainless
steel for products in cooking and eating
functions or for use in wet rooms. We also use
high-strength steel in other functions, which
function and quality.
In FY23, we continued pilot mapping supply
chains back to their source for both inorganic
and secondary raw materials. Through this
in upstream sourcing. We are now using this
Inorganics
suppliers – what information we need from
them and how we can partner with other
practices and sources.
We are members of the Aluminium Stewardship
Initiative (ASI), contributing to their work
in aluminium supply chains. In FY23, we
collaborated with large steel- and aluminium-
programmes for recycled content and chain of
custody for aluminium smelters.
We are also members of the Responsible
Minerals Initiative (RMI) working towards social
economic development in mineral production
and sourcing.
We know some raw materials don’t currently
have a renewable substitute and that the
technology to recycle other raw materials
doesn’t exist yet. As this process takes time, we
continue to be committed to working towards
securing responsibly sourced virgin inorganic
materials while replacing them whenever
possible. We’re focused on replacing materials
that have the largest climate footprint.
1
Not including fossil-based chemicals.
Photo provided by Pact
Continued partnership with Pact on
improving working conditions of miners
During FY23, the IKEA business continued
building on the partnership with Pact, an
which started in 2020, aims to identify risks
and build knowledge about the sustainability
impacts of inorganic extraction and mining
to improve responsible sourcing and
minimise negative impacts on people and
planet. Together, we are working to support
small-scale miners in Rwanda with better
equipment for safer working conditions.
Collaborations for building a responsible
sourcing scheme for sand
Silicates and sands can be found in many
IKEA products such as worktops, drinking
and decorative glassware, tableware,
and furniture featuring glass. Since we
are reliant on silicates and sand, in FY23,
the IKEA business and the University of
in Australia, collaborated on a study aimed
and silicate sourcing practices.
In addition, in FY23, we participated in the
Organisation for Economic Co-operation and
Development (OECD) meeting to reach out
to other actors in silicate and sand supply
chains (with Pact also participating) to learn
about their experiences and practices. Our
goal is to open dialogues between mining
and downstream sectors on responsible
partners.
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Secondary raw materials (also called
recycled materials) are essential to
transforming into a circular business
(page 16). By continuously increasing
the share of recycled materials
in IKEA products, we also want to
contribute to a circular economy
where nothing is wasted and old
products become new resources.
The amount of materials used in the IKEA
range is based on estimations for most types of
amounts of materials continue to only be
available for wood and paper. The disclosed
climate footprint, therefore, is a conservative
improvements for material used in the IKEA
range. It also means that there is no update to
that 56% of the materials we sourced were
renewable and 17% were recycled. See the IKEA
Climate Report FY23 for more details.
Today, sourcing of recycled materials in scalable
amounts and suitable quality is a challenge.
However, one of the most critical challenges is in
protecting human rights in the informal waste
collection and sorting sectors.
During FY23, we continued to build up recycled
material supply chains. We see a big opportunity
Secondary raw materials (recycled)
Metal
Increasing the use of recycled steel
During FY23, our focus has been on
switching to steel manufacturers who
have the technical capabilities to use a
greater share of recycled content, which
also reduces the climate footprint in
production (see the IKEA Climate Report
FY23). We are selecting steel suppliers
that use electric furnaces rather
than burning coal. Electric furnace
technology allows the production of
steel with a higher share of recycled
materials. We have mapped metal
supply chains in Europe, China and
Vietnam and are testing products with a
high recycled-steel content in China.
Signicant increase in share of
recycled aluminium
Our ambition is to have at least 80%
recycled aluminium content in our
products by 2030. Working with
partners across the IKEA value chain,
such as waste sorting and smelters,
we have been able to accelerate that
journey. During FY23, we have made
recycled aluminium content in IKEA
products, up from 57% in FY22.
Participated in the Circulate Initiative
(TCI) forum on responsible waste
management in recycled plastics supply
chains
Today, there is no existing international
standard for responsible waste
to create such a standard. In May 2023, we
joined The Circulate Initiative (TCI) forum in
Bangalore, India, together with other major
brands, social entrepreneurs, commercial
recyclers and waste picker representatives.
We support the TCI Responsible Sourcing
Initiative, which aims to improve human
rights across recycled plastic value chains in
ways that can be measured, managed, and
are compliant with regulations.
In addition, we are part of the World
Business Council for Sustainable
Development and, since FY21, its Business
Commission to Tackle Inequality (BCTI). The
initiative aims to elevate business action
on inequality and bring together leading
businesses and other key stakeholders to
create a platform for collaboration and an
agenda for business action.
to work across categories within the IKEA
business and work closer to the recycled sector
to secure higher volumes and a wider variety of
materials.
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Textiles
Completed an in-depth risk assessment
of textile value chains
The global post-consumer textile recycling
sector is immature, which limits textiles as a
source of secondary raw materials at scale.
However, there is a big potential for the
IKEA business, together with other large
companies, to be a leader in developing the
recycled textiles sector.
In FY23, together with Article One, we
completed an in-depth risk assessment
of textile value chains, including recycled
materials. The objective was to identify
materials in the recovered materials
supply chain, discovering opportunities to
help strengthen risk mitigation and build
capabilities to assess human rights risks
in other IKEA recovered materials supply
chains.
In FY23, we explored new feedstock types
and streams as well as technologies to
accelerate textile-to-textile recycling and
continued to build new supply chains
utilising post-consumer textile products
such as quilts and pillows. We piloted
thermo-mechanical recycling of polyester
textile waste into yarns, and we partnered
with the social enterprise Saahas Zero
Waste in India to run a feasibility study for
the collection and sorting of domestic post-
consumer textile waste.
Wood
Share of recycled wood in particle board (%)
27%
27%
30%
FY21
FY23
FY30
FY22
80%
New recycled breboard technology
By 2030, at least one-third of the IKEA wood-based
range will be made from recycled wood. Fibreboard is
a key material for IKEA furniture, but one of the biggest
challenges is its recyclability. In FY23, the share of recycled
content in particle board we use was 30% and 0.3% in
In FY23, we developed a new technology that enables
technology in the production of IKEA products, which
is guiding us in developing new ways of working with
these materials. The process is used to produce the
the VOXTORP kitchen front in high gloss white with
We are in dialogue with partners to join us in scaling up
this technology and together moving the manufacturing
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Glass
Glass is fully recyclable and can be recycled
again and again. The amount of energy needed
to melt recycled glass is less than what is
needed to melt virgin raw materials to make
new products.
Some regions have a well-established and
post-consumer packaging glass (bottles and
jars). This is good for the sustainability of the
glass packaging industry, but because the
collected glass is used primarily in the bottle
industry, it limits access to recycled glass
for IKEA products and IKEA suppliers as a
feedstock. In other regions of the world, the
suppliers have more access to recycled glass.
We are continuously working to increase the
supply of recycled glass.
products that include a minimum of 50%
recycled glass. We are currently working on
collections with 100% recycled glass that we’re
planning to launch during 2024 in selected
markets.
Recycled glass to replace virgin quartz in
new worktop range LOCKEBO
In FY23, we launched a new worktop range
called LOCKEBO, which is made with recycled
glass. The glass composite material is the
same quality as virgin quartz and uses half
the energy in production compared to quartz
worktops. LOCKEBO worktops are made with
Glass packaging (wine bottles, glass jars
and containers), leftovers from car glass
manufacturers, glassware producers, as well
as broken car windows.
Continuing the work on our Sustainable
Packaging Project
In FY23, we made progress toward our goal
of all IKEA food packaging being made of
recyclable materials by 2025. This included
the launch of SKUB PET bottles made of
99% recycled content and initiating projects
to move from non-recyclable to recyclable
packaging for sauces and jams in IKEA
restaurants, as well as salmon and sausages
in IKEA restaurants and Swedish Food
Markets.
Renewed and extended work within the
informal waste collection sector
During FY23, together with IKEA Social
Entrepreneurship B.V., the IKEA business
renewed and extended development
projects working close with informal waste
collection networks. The aim of these
contributing to better working conditions,
stable livelihoods and reliable incomes. We
want to contribute to a just transition so
that workers aren’t left behind as the sector
becomes organised. Read more about IKEA
Social Entrepreneurship B.V. projects.
Plastics
Given the limited availability of recycled plastic waste
plastics for use in products. In parts of the world, a
maturing but largely informal waste sector exists.
formalised setups that could create a potential supply
chain for secondary plastics, both to better protect
the human rights of waste workers and reduce plastic
pollution.
For all plastics, not just packaging, we are focused on
four key movements:
• Increasing the share of recycled plastic moving
toward post-consumer recycled plastics.
•
solutions to use plastic material in the most
applications.
• Using plastic from renewable sources, such as bio-
based, in the relevant applications.
• Continuing to explore new materials and
technologies, such as carbon-captured technology
for plastic.
Sustainable food packaging
packaging by 2028. However, plastic packaging
might remain in some parts of the IKEA food
range where it is needed to secure quality and
food safety standards beyond 2028, in which case
it will come from renewable or recycled sources.
A second part of the objective is to move to
recyclable food packaging materials for 2025.
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Chemicals
Our ambition is that all chemicals
used in or for making IKEA products
should be safe throughout their
whole lifecycle. We advocate for
policies, strategies and regulations
for safer and more sustainable
chemicals, materials and products.
Read more about the IKEA chemical strategy.
Chemicals
Commitment to phase out PFAS without
harmful substitutions
PFAS are a large group of chemicals used in
various industrial and consumer applications
that are persistent and, therefore, do not
degrade during use and when spread in the
environment.
environmental concerns about PFAS
chemicals and acknowledge the special
attention needed due to their widespread
use and persistence in the environment.
The IKEA business is committed to phasing-
out PFAS while also avoiding any harmful
substitutions.
The IKEA business has been working to
phase out PFAS in our supply chain since
2009. For example, in 2015, we phased-
out PFAS in textiles. During FY23, we’ve
continued the work to identify further uses
of PFAS, to add additional restrictions and
phase-out plans. We are prioritising high-
volume applications and applications with
the largest environmental or health impacts.
As a part of our work to phase out
coated cookware that does not use
From 2025, this will also apply to non-stick
coated bakeware. During 2026, all cookware
and bakeware ranges will be non-PTFE.
On track to phase out formaldehyde in
coatings on paper foils
We are on track to eliminate formaldehyde
from coating on paper foils in IKEA
products by mid-2024. All products that
are made from wood-based materials can
contain formaldehyde, which is common
in the natural environment. High levels
of formaldehyde can, however, lead to
will continue our decades-long work to
reduce formaldehyde emissions from all
to lower formaldehyde emissions and
are using a stepwise approach to reach
formaldehyde emission levels from wood-
based materials that are equal to, or lower
than, levels emitted by natural wood.
Consultation for the USA state of Maine
We continue to engage with regulators
to provide experience-based feedback
through government consultations on the
use and declaration of Products Containing
Substances (PFAS) chemicals. In FY23, the
IKEA business provided feedback to the USA
state of Maine in a response to the Chapter
90 Rule for PFAS, highlighting the need for
Advocating for better re and chemical safety
standards
furniture and mattresses. While the IKEA business
chemicals in our products, as described in the IKEA
chemical strategy, we always meet all local market
requirements.
retardants and hinder the chance to implement
innovative solutions.
There is growing research and a common
retardants have on people’s health and the
environment in the long term. Questions remain
materials for future use.
That’s why we are working with legislative bodies and
organisations to advocate for better chemical safety
example, we have contributed to the discussions on the
revision of the UK Furniture and Furnishing Fire Safety
Regulations, advocating for a change to the existing
safety, chemical safety and enabling a circular economy.
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Fair & equal
By 2030, our ambition
is to play our full part
in contributing to a
fair and equal society,
by respecting and
promoting human rights
across the value chain
and contributing to
resilient societies.
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FY23 summary of progressCommitments and goals
During FY23, our focus has been to create
clarity and connections between our
overall goals and commitments, and
develop the actions needed to get us
there.
IKEA touches the lives of millions around the world and
has long promised to stand by the side of the many
people. In FY23, building on more than 20 years of IWAY,
our supplier code of conduct (page 55), we worked on
developing an additional performance framework to
strengthen our impact and support the implementation
of our updated Fair & equal commitments. The
with the newly adopted Corporate Sustainability Due
Diligence Directive (CSDDD), which requires companies
to undertake due diligence on global operations
regarding human rights, labour laws and environmental
commitments (page 49).
Through internal and external interviews, research
on good practices, relevant standards and processes,
partnerships, strategic goals, KPIs and impact
measurement, we have been exploring priority topics to
incorporate into the framework.
We are committed to providing and supporting decent
and meaningful work for all workers across our
value chain. We have taken many actions to better
understand the needs of drivers and seafarers, and
working conditions in the coming years (page 49).
The responsible recruitment of migrant workers
continues to be a particularly critical area of focus.
During FY23, the IKEA business collaborated with the
International Organization for Migration (IOM) on
a project concerning the human rights of migrant
workers (page 51).
We also continued our work around responsible wage
practices, by introducing our methodology to all parts
of the business, including IKEA franchisees. We are now
assessing and identifying gaps related to responsible
wage practices and will develop a roadmap to close
them (page 50).
In FY23, we launched an updated People Strategy,
strengthening the equality, diversity and inclusion
(ED&I) direction and ambition across all IKEA
businesses. With "An Inclusive IKEA" as one of three
creating the preconditions for ED&I topics to drive our
people processes.
Being a responsible business and contributing to
resilient societies
• Respecting human rights and children’s rights by
operationalising the UN Guiding Principles on Business
and Human Rights and the Children’s Rights and
Business Principles, ensuring we address the most
critical human rights risks and impacts across our value
chain. We also commit to promoting human rights and
children’s rights in society.
• Ensuring ethical business practices, including
combating corruption, securing ethical handing of data
and digital technologies, complying with corporate tax
policies, and being transparent about taxes paid. Read
more in our Inter IKEA Group Tax Report FY23.
• Securing a strong approach in relation to climate,
health, political and social justice crises to secure the
safety, livelihoods and resilience of our co-workers and
partners across our value chain.
• Engaging with communities building on our role as a
home furnishing business and leader in life at home to
create a positive social impact.
Providing and supporting decent and meaningful work
across the IKEA value chain
• Providing living wages and income in IKEA operations
and supporting the same among our business partners
and in the wider sectors of which we are a part.
• Providing and supporting safe and healthy work,
labour rights, and social protection and striving
towards securing stable and predictable work for
everyone in the IKEA value chain. Securing a just
transition to a net-zero and circular economy with a
focus on enabling decent work through, for example,
upskilling and reskilling to meet future demands.
• Providing and promoting that everyone in the IKEA
value chain is empowered to play an active role in their
work. Everyone is free to join or form associations of
their choice (or to refrain from doing so) and bargain
collectively.
• Providing and promoting that everyone in the IKEA
value chain is recruited in a responsible way and free to
enter into and terminate employment.
Being an equal, diverse and inclusive business
• Embracing all dimensions of human diversity and
in which we operate. Actively working to prevent
discrimination and ensuring equality in opportunity
and treatment.
• Promoting accessible and inclusive workplaces, both in
structure and culture, where people can be themselves
and their voices are heard.
• Being a child-friendly business, securing child
safeguarding, family-friendly practices, and inclusion
and empowerment of children and youth.
• Securing a more inclusive and diverse IKEA value chain
by integrating social businesses, minority-owned
enterprises and small and medium-sized enterprises.
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48 - IKEA SUSTAINABILITY REPORT FY23
FY23 key activities
Being a responsible business
We have set a strategic commitment to
operationalise our contribution to resilient societies
and promote and respect human rights, in line with
the UN Guiding Principles on Business and Human
Rights (UNGPs) and the
Business Principles (CRBPs) by 2030.
Continuing our eorts to prevent and
address children's rights risks deeper in our
supply chains
The IKEA business, together with the Centre
for Child Rights and Business, is working to
create awareness on children’s rights and
risks, as well as to strengthen child protection
In FY22, we completed pilot projects to better
understand the risks and impact on children
materials are often harvested in the wild. We
developed child protection guidelines and
piloted child protection training for suppliers,
sub-suppliers collectors and harvesters.
During FY23, we supported the opening
of a child-friendly space in the village of
a sub-supplier for one of our key rattan
furniture suppliers in Indonesia. Young
children of rattan workers can now access
trained caregivers. This improves child safety
When the war began in 2022, we paused our
operations in Ukraine to prioritise the safety and
security of co-workers and partners. Since then,
we have been monitoring the situation, both from
a humanitarian and a business perspective. We
have remained in close dialogue with our business
partners in Ukraine with the long-term goal to
restart operations.
companies are expected to conduct heightened
human rights due diligence.
using a risk-based approach and take into account
our responsibilities under both human rights and
international humanitarian law.
After extensive evaluation, including risk
assessments, auditing, and conducting heightened
human rights due diligence and discussions, we
were able to restart operations with a few direct
partners in the southwestern region of Ukraine,
where the situation is most stable. We continue to
monitor and conduct further evaluations.
In addition to supporting our business partners
been supporting organisations such as UNHCR,
UNICEF, and Save the Children since the beginning
of the invasion, providing both monetary and in-
kind donations for children and their families.
During FY23, in close co-operation with UNHCR,
the IKEA business provided over 850,000 home
furnishing products from Ingka Group retail (with
an estimated retail value of EUR 9 million) to
support people who have been forced to leave their
homes.
WAR IN UKRAINE
Restarting supplier operations in Ukraine
in a stepwise approach with heightened
human rights due diligence
by ensuring children are not left unattended or
join their parents at the rattan processing site.
Farm workers who are parents have received
additional training on children’s rights. Youth in
the community have received life skills such as
training on children’s rights and basic literacy
skills on personal health.
During FY24, the Centre for Child Rights and
Business will continue the project in Indonesia
and in Vietnam. The IKEA business, together
with our suppliers, will use the knowledge
gained to create awareness deeper in our
supply chains.
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49 - IKEA SUSTAINABILITY REPORT FY23
Global survey of drivers’ working
conditions in the IKEA supply chain
For the second time, we conducted Drivers’
Voice – a global, anonymous survey of
truck drivers in the IKEA supply chain. From
IKEA distribution centres and stores to our
suppliers, the survey covered 90 locations
across 20 countries, capturing responses
from over 2000 truck drivers.
We found the majority of drivers view
their experience with IKEA driver facilities
positively. In comparison to the previous
survey, participants reported fewer delays
waiting for goods to be loaded.
Based on the feedback from Drivers’
Voice, we are now addressing potential
improvements at individual IKEA locations.
To tackle industry-wide challenges, we also
continue our work with the Responsible
Trucking Initiative – a collaboration with
other shippers and transport providers
committed to addressing social risks and
working conditions of truck drivers.
Improving road safety
Road safety is fundamental to IKEA supply
chain operations. We recognise our shared
responsibility to contribute towards the UN
Sustainability Development Goal of halving
the global number of deaths and injuries
from road crashes by 2030.
This year, together with one of our transport
sub-contractors, we piloted a road safety
management system in Vietnam to better
understand driving behaviour within IKEA
goods transport and engage drivers on road
safety topics.
In addition to improving drivers’ road
safety awareness, the project also involved
company leaders and led to the creation of
an internal road safety management system.
Through systematic engagement, we create
a foundation for reducing risks to drivers and
other road users.
Promoting human rights
Promoting human rights includes working
together with partners (page 57) and
contributing to public discussion with our
perspectives.
In April 2023, Inter IKEA Group joined more
than 40 other companies, businesses, and
Directive (CSDDD), promoting and respecting
human rights in line with international
standards of the UNGPs and the OECD
Guidelines for Multinational Enterprises.
In December 2023, the EU agreed to a position
to adopt the CSDDD marking, a breakthrough
for the critical issues of child labour, slavery,
labour exploitation, pollution, environmental
degradation and biodiversity loss.
Securing seafarers’ rights in the IKEA supply
chain
In FY23, to address the topic of seafarers’ rights
and wellbeing, we began to develop ocean
carrier requirements to ensure decent work for
seafarers on vessels and ships in the IKEA value
chain. The requirements are being developed in
collaboration with our ocean transport service
providers and other external stakeholders and
follow the Maritime Labor Convention and other
applicable maritime conventions.
These requirements will be applicable to ocean
transport service providers and will be introduced
to our business partners during FY24.
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Building our approach to ethical handling of
data and digital technologies
Data and digital technologies come with
increasing ethical, regulatory and human rights
considerations. We have committed to a human-
centric approach for our digital touchpoints and
data-driven processes and have been developing
this across the IKEA business in FY23.
We started to set requirements for the
and robotics for automation, began developing
features in our digital interfaces for people
guidelines for online personalisation. During
FY24, we will continue to learn, partner and
develop to ensure the ethical handling of data
and digital technologies.
50 - IKEA SUSTAINABILITY REPORT FY23
Decent and meaningful work
decent and meaningful work across the value chain.
IKEA Industry is the Inter IKEA owned strategic manufacturer that
produces IKEA home furnishing products. Health and safety is a
top priority to secure a safe workplace for the over 14,000 IKEA
Industry co-workers. Incident reporting is an important driver
in identifying improvements to prevent future accidents, and in
FY23, 14,400 incidents were reported (FY22: 13,000).
To support a safe working place, we closely monitor, record
and act on incidents
2
with the aim of decreasing the number of
accidents
3
year on year.
Our goal is for all co-workers to be safe at work and return home
safely every day. In FY23, we saw a decrease not only in reported
lost time accidents (LTA)
4
but in the frequency of these accidents
as well (FY22: 134, 4.4).
IKEA Industry striving to make workplaces safe, everyday
Responsible wage practices
Our journey to take a holistic approach to responsible
wage practices (RWP), putting equal focus on equality
at work, pay principles, competence, dialogue and a
living wage, continues across all IKEA businesses.
In FY23, RWP was introduced and began being
implemented in all parts of our business. The pace of
implementation is determined by various business
realities and local prerequisites.
A baseline assessment was completed in 31 IKEA retail
markets,
1
showing areas for improvement, including
competence development. Action plans are now in
systematic ways of working with RWP processes.
Other IKEA franchisees are in the exploration phase
and planning for RWP baseline assessments in FY24.
To better support the implementation of RWP into
various IKEA businesses and beyond, we have been
gathering and sharing learnings, both from internal
partners and from other companies, as well as
external parties like the Fair Wage Network and
WageIndicator Foundation.
We actively support the global movement towards
decent work and living wages and the ambition to
publish a global database on living wages.
IKEA INDUSTRY
123
134FY22
FY23
FY21
IKEA Industry
LTA – Lost time accident
*
trend
*
Accidents requiring a minimum of one day sick leave.
88
13.0
FY23
FY21
*
Unsafe conditions, unsafe acts and near misses that
could have led to an accident.
IKEA Industry
Reported incidents
*
(thousands)
FY22
56.3
14.4
2
An unsafe condition, unsafe behaviour or a near miss.
3
An occurrence resulting in damage or injury.
4
An on-the-job accident that results in an employee being absent from the workplace for a minimum of one full day work day.
5
Number of accidents reported per working hours.
4.4
FY23
FY21
IKEA Industry
LTAF – Lost time accident frequency
5
FY22
3.85
3.6
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1
All markets operated by the franchisee Ingka Group.
51 - IKEA SUSTAINABILITY REPORT FY23
Strengthening rights of migrant workers
The responsible recruitment of migrant
workers continues to be a particularly
critical area of focus. During FY23, the
IKEA business collaborated with the
International Organization for Migration
(IOM) on a project concerning Migrant-
Centered Human Rights Due Diligence
Assessment. The aim was to gain deeper
insights into the risks linked to both
cross-border and in-country recruitment of
migrant workers.
Training was provided 388 IKEA co-workers
and 1050 workers from our suppliers based
around the world. The training sessions
will continue in FY24. Results from the
project showed a need for industry-wide
collaboration and collective action on the
topic of responsible recruitment of migrant
workers. To better protect migrant workers
in supply chains and prevent challenges
and risks associated with the labour
migration process, both in country of origin
and country of destination, businesses
reviewing auditing systems, providing
training to ensure a good understanding
of the labour migration process and ability
to identify risks in the context of local
grievance mechanisms and remediation
processes.
Dening the IKEA approach to a just
transition
We have committed to take action to
strengthen the resilience of people in our
value chain and in the communities where
we operate, focusing on those who are
most vulnerable. This includes supporting
people as society transitions to net-
zero industries and a circular economy,
through upskilling and reskilling to meet
future demands and ensure no one is left
behind.
what a just transition means for the
IKEA business, applying a rights-based
environmental commitments and targets
on people, as well as connecting with and
involving those most vulnerable.
Inclusion of young workers in the IKEA
supply chain
We continue to work with a project
launched in 2021 that aims to further
strengthen the inclusion of young workers
in the IKEA supply chain, including providing
decent work and learning opportunities.
Last year, 16 factories located in East
Asia, Southeast Asia and South America
participated in the project. Together with
our suppliers, we focused on capacity-
building, gap assessments and system
improvements.
We held training sessions on the
recruitment process for young workers,
and obligations. Topics included:
appropriate work for young workers by
industry, systems for recruitment and
employment, and communication and
dialogue with young workers.
We also performed gap assessments on
responsible recruitment mechanisms,
including reviewing policies to promote
decent work opportunities, written
processes for recruitment and employment,
training and job rotation plans for young
workers.
In FY24, we will continue to promote
inclusion of young workers and the youth
development programme to our business
partners in other regions, for example, in
South Asia.
Addressing concerns through a grievance
mechanism
In FY23, Inter IKEA Group continued work to
establish a grievance mechanism encompassing
the IKEA value chain so that workers and other
stakeholders have an avenue to reach out to us
and raise a concern (page 58).
A pilot programme, expected to start in FY24
across three markets, will study how to best
communicate and operate the grievance
mechanism.
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52 - IKEA SUSTAINABILITY REPORT FY23
IKEA People Strategy for a more
inclusive IKEA
In FY23, we launched an updated People
Strategy to strengthening the equality,
diversity and inclusion (ED&I) direction
and ambition across all IKEA businesses,
creating a foundation for working with
the topic across our value chain. With "An
Inclusive IKEA" one of three focus areas,
mainly among leaders and co-workers
in our People & Culture group. This work
will create the preconditions to lead ED&I
topics in a systematic way across human
resource processes and as an integrated
part of the business agenda. In order
to set measurable, quantitative and
qualitative targets, the development of
people analytics and a co-worker insights
survey has been prioritised and will be
introduced in FY24.
The following concrete steps have been
taken.
Equality, diversity and inclusion
The IKEA business is actively working to
support and welcome people from all
backgrounds and identities in our operations.
1
2
Figures for Al-Homaizi are inclusive of in-sourced support functions.
3
Including IKEA Älmhult and Inter IKEA Group functions.
Gender balance has improved
In FY23, the gender balance improved in many
IKEA businesses compared to FY22. During
the year, 6 out of 12 franchisees took steps to
increase the number of women co-workers,
and 8 out of 12 increased the number of
women managers.
3 out of 12 IKEA franchisees have reached at
by women, with 6 out of 12 reaching over 40%.
In Ingka Group, 50% of managers and 48% of
from 45% in FY22.
We are working to expand our view on how
to measure dimensions of diversity, including
gender. Read more about our diversity data
in the Inter IKEA Holding B.V. Annual Report
for FY23.
• Launched holistic ED&I competence
development training with
management team workshops
markets, including unconscious bias
training and LGBTQ+ inclusion.
• Developed and launched a practical
guide to accelerate ED&I focused on
four identity dimensions: gender,
1
age, ethnicity and persons with
disabilities. It enables assessment and
goal-setting activities that will bring
ED&I in line with the business agenda.
• Established the ED&I franchisee
network, bringing together ED&I
leaders across the IKEA franchise
system.
• Established co-worker resource
communities across the IKEA
business, inviting co-workers to
contribute to a more inclusive IKEA
business and workplace.
Co-worker gender diversity in FY23
% Co-workers % Managers
Ingka Group
Inter
IKEA Group
Al-Futtaim
Dairy Farm
Ikano Group
Miklatorg
Al-Homaizi
2
House Market
Sarton
Al-Sulaiman
MAPA
Northen Birch
Falabella
IKEA
franchisees
29 71
47 53
48 52
59 41 56 44
22 78
60 40
26 74
46 54
49 42 58
75
52 48
30 70
48 52
23 77
40 60
47 53
5149
48 52
% Management team
% Supervisory board
Inter IKEA
Holding
Franchise
3
Range
Supply
54 46 50 50
55
52
43
45 55 45
46
44
40 33
67
5834
54
56
60 67
33
426657
48
25
% Co-workers
% Managers
51
47 53
49 51
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Steps taken across many IKEA
organisations to improve gender balance
and other aspects of diversity
During FY23, the franchisee Ingka Group
focused on three strategic priorities:
gender, ethnicity, and disabilities. Ingka
successfully piloted a new programme called
"Equal UP!", which aims to identify and
address barriers to equal opportunities for
people from underrepresented ethnic and
cultural backgrounds. Ingka also created
an approach to global disability inclusion –
building competencies, accountability, and
on inclusive succession planning; 55% of
those in the talent pipeline for key positions
identify as women and 50% of the people
in Ingka leadership programmes identify as
women.
The franchisee, Al Futtaim, which operates
in Dubai, Abu Dhabi, Oman and Egypt, has a
commitment to increase the ratio of people
identifying as women to 35% by 2025. Next
year, targets will be set for departments
the business. Additionally, a community of
women in leadership will be established to
Sarton Group, the franchisee operating in
the Spanish Islands, Dominican Republic and
Puerto Rico, has implemented workplace and
sexual harassment protocols in all locations
Gender balance in the trucking industry
gender balance in the transport and
logistics industry, particularly in India,
truck drivers. Almost 25% of commercial
vehicles remain unused due to this
shortage.
In India, IKEA Supply Chain Operations
partnered with Ashok Leyland, a leading
truck manufacturer, and – using their
Northern India, who had already trained
to drive heavy vehicles, to participate
Rajasthan facility. In May 2023, they
relocated to the city of Pune to become our
distribution centre.
The plan is to expand this model to
continue diversifying the truck driving
industry in India.
and gender and domestic violence protocols in
the Dominican Republic and Puerto Rico, taking
greater responsibilities beyond the workplace. In
the Dominican Republic, Sarton has been working
together with the Ministry of Women and the
United Nations Development Programme (UNDP)
towards an equality seal.
With operations in Singapore, Thailand, Malaysia,
the Philippines and Mexico, the franchisee, IKANO
has taken important steps to support the LGBTQ+
community in both Thailand and the Philippines.
IKEA Thailand celebrated Pride Month by co-hosting
a public seminar on how to prevent LGBTQ+
discrimination and harassment in the workplace.
Awards 2023, which recognises purpose-driven
brands.
Inter IKEA Holding B.V. and Inter IKEA Systems B.V.
have set a minimum target of at least 40% for the
least represented gender (male or female) in their
respective Management Boards and Supervisory
Boards by the end of 2030. Inter IKEA Group aims
to have equal representation (50%) of females and
males in management teams by the end of 2030.
An action plan has been prepared to reach the
goals and develop a gender-balanced, long-term
succession pipeline.
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54 - IKEA SUSTAINABILITY REPORT FY23
Internship to expand the diversity of
engineers in Sweden
The IKEA business is participating in the
Jobbsprånget internship programme, an
initiative by the Swedish Royal Academy
of Engineering Sciences. The aim of the
initiative is to support academics new to
the Swedish job market. During the pilot,
we were able to employ talented, highly
motivated and experienced engineers from
other cultures and markets. As of FY23,
over 100 interns have found employment
through the programme, with more than
50 in the IKEA business.
New UNHCR pledge
At the UNHCR Global Refugee Forum in
December 2023, Ingka Group made a new
commitment to support 3,000 refugees and
asylum seekers by the end of 2027 through
their Skills for Employment programme in
IKEA retail. Surpassing its 2019 commitment
to support 2,500 people by 2023, the
programme has supported 2,935 asylum
seekers and refugees to date, with 54%
Additionally, since 2022, the company has
directly hired 332 forcibly displaced people
through its Displaced Talent programme.
IKEA Social Entrepreneurship
In FY23, IKEA Social Entrepreneurship had a
total of 12 social business partners producing
products sold at IKEA stores. Through these
partnerships the IKEA business can support
people from vulnerable groups around the
income. The number of people employed
at social business partners producing IKEA
products in FY23 grew to 11,200. Over 6,000
of these are from our newest social business
partner, Karupannya. In total, over 20,000 jobs
and income opportunities were sustained by
our social business partners in FY23, producing
products for IKEA and other businesses.
Our partnership with Jordan River Foundation
and growing over time. As of FY23, over 370
refugee women and Jordanian artisans are
producing handcrafted products for IKEA
stores.
At the UNHCR Global Refugee Forum in
December 2023, we renewed our commitment
to employ 400 women at JRF by 2027.
We continued to launch products that sell
globally, year-round, to increase volumes and
create consistency in production and income
security at social businesses.
To continue to play our full part in contributing
to a fair and equal society we provide ongoing
support for social entrepreneurs in and beyond
our value chain.
In FY23, IKEA Social Entrepreneurship B.V
supported 95 social enterprises in 23 countries
around the world through a combination
of impact investment and capacity-building
accelerator programmes. Two funds were
newly established: one for supporting refugee
and migrant employment in Poland and
Romania, the other providing capital for social
enterprises in the waste sector in India. With
a focus on circularity, inclusive employment
programmes supported 80 social enterprises
to strengthen their business and increase
their impact for people from vulnerable and
marginalised groups. Read more examples
from IKEA Social Entrepreneurship.
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55 - IKEA SUSTAINABILITY REPORT FY23
IWAY – the IKEA supplier code of conduct
IWAY is the IKEA way of responsibly
procuring products, services, materials
and components. It’s a complete
sustainability system for working
together with all suppliers throughout
our value chain. It’s also the IKEA
supplier code of conduct and a
development programme for supplier
sustainability practices.
In FY23, we continued the implementation of
the IWAY Digital Platform Work Section 6.0
among suppliers who rely on digital platforms
to provide services for the IKEA business. These
services typically include customer delivery
and installation with workers who often
employment relationship with the suppliers
or digital platforms. One challenge in such
instances is implementing requirements for
systems to register working hours.
During the year, to support suppliers
1,000 implementation activities. These include
capacity-building and training on topics
like internal auditing, health and safety and
responsible recruitment. Read more about how
we work with IWAY.
While IWAY has a focus on supporting our suppliers
with their continuous development journey,
compliance with mandatory IWAY requirements
remains the foundation of our partnerships with
activities were performed in the Inter IKEA Group
supply chain. They include gap assessments
for new suppliers and full or focused audits for
existing suppliers. Following the pandemic, audits
are back on track, with remote audits being just
Read
more about IWAY audits.
The IWAY System is continuously developed
and improved to maintain relevance. During
FY23, we launched new IWAY requirements for
ocean transport service providers, strengthening
requirements on decent work for for seafarers
working on vessels and ships in the IKEA value
chain (page 49). In addition, we have started work
to strengthen the IWAY Animal Welfare Section
with additional criteria addressing animal welfare
in all IKEA supply chains (page 40). We also started
developing requirements for agriculture supply
chains, strengthening our responsible sourcing in
both environmental and social aspects. In parallel
we started to develop the roadmap for supply
chain compliance with mandatory requirements in
the upcoming IWAY Agriculture Section.
Top home furnishing purchasing markets
(% of total volumes purchased)
25%
China
17%
Other
9%
Italy
20%
Poland
8%
Lithuania
5%
Germany
5%
Romania
4%
Sweden
2%
India
3%
Vietnam
2%
Türkiye
1
The purchasing share for EU in value is 64%.
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56 - IKEA SUSTAINABILITY REPORT FY23
1
To create one competence centre for purchasing the supply of raw materials and components, as of 1 September 2021, the purchase of direct
material for IKEA owned factories of IKEA Industry is led from IKEA Components.
2
The table does not include local suppliers to IKEA franchisees.
3
Some suppliers and service providers have multiple production and service units. IWAY applies on a unit level.
4
No air freight is used for our product transport.
5
6
activities were reduced or put on hold due to worldwide travel restrictions.
7
Inter IKEA Group suppliers and service providers actively working with IWAY
1
IKEA
supplier type
2
Number of
production
and service
units
3
FY23
Description
(% of all suppliers)
FY20 FY21 FY22 FY23
Home furnishing suppliers 1,383 Manufacture IKEA home
furnishing products
95 99 99 99.8
Transport and distribution
suppliers (often referred
to as partners and service
providers)
4
395 Transport IKEA products from
suppliers to, and between stores
and distribution centres
94 97 99 99.8
Food suppliers 441 Provide the food and ingredients
for the IKEA bistros, restaurants,
and Swedish Food Markets
99 99 99 99.9
IKEA Components 1,215 Provide components and
materials used in IKEA home
furnishing products to IKEA
suppliers and sub-contractors
95 98 99 99.9
IKEA global media
productions
32 Provide pulp, paper, and print
services for global media
productions
5
93 94 95 99.5
Critical sub-contractors 4,995 Critical home furnishing sub-
contractors where compliance
towards IWAY Must has been
95 80
6
89 71
7
Non-conformities in working hours
registration, accident insurance and the
responsible recruitment of migrant workers
discovered during audits
During IWAY audits performed at suppliers
conformities to IWAY Must requirements were
connected to the following issues:
•
hours, including overtime, were found at 13
suppliers.
• Non-compliance to the accident insurance
The accident insurance requirement was
strengthened in IWAY 6 and now includes
occupational illnesses. Including occupational
illnesses is new in some regions and has led
to non-conformities, despite implementation
support to suppliers.
•
responsible recruitment of migrant workers
at three suppliers. Securing compliance with
IWAY requirements on responsible recruitment
of migrant workers is an important area that
we are working on in all markets where we
operate.
As with all IWAY deviations, we take these issues
very seriously and are following the IWAY process
of identifying root causes, securing that suppliers
implement corrective actions, and phasing out
reliable and consistent way. During FY23, we
ended our partnership with seven suppliers due to
IWAY non-compliance.
Competence development a focus of
collaboration with our suppliers
Competence development is one of the key
components of the IWAY implementation
support to suppliers. All IKEA suppliers perform
internal audits to assess compliance with IWAY
requirements at least once a year. Having an
enables the suppliers to proactively address
deviations, as well as develop knowledge and
understanding of the IWAY requirements and
their implementation in their organisation.
Supplier-led IWAY audits do not replace IWAY
audits performed by IKEA teams or third-party
auditors.
During FY23, regional teams of IKEA co-
workers supported 22 suppliers implementing
and strengthening their ability to self-manage,
the IWAY system builds competences and
enhanced outcomes and leads to discussion on
sustainability topics between IKEA co-workers
and suppliers.
Verifying no child labour at suppliers
monitor for this at all our suppliers and are
continuing to work to prevent and address
(page 48).
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57 - IKEA SUSTAINABILITY REPORT FY23
An essential part of reaching the IKEA sustainability
to develop strong and meaningful relationships.
When we work together, we can drive and support
solutions. Our key stakeholder groups are:
• Co-workers: The 219,000 IKEA co-workers from
around the world share a special set of values
and a vision to enable people to live a better,
more sustainable everyday life. They come
together in diverse, inclusive and open IKEA
unique. Every co- worker plays a role in creating a
better business.
• Communities: We engage in the communities
where we operate to learn and share ideas while
working collaboratively to create positive impacts
on the environment, livelihoods and local
economies.
• Suppliers and partners: Working with over
1,600 direct suppliers and service providers in
the areas of transport, logistics and distribution
services, components, and food to minimise the
environmental footprint of the total IKEA supply
chain and beyond, while improving working
conditions. There are millions of workers who
– through our suppliers and service providers
– source, make and transport our products and
components, provide food for our restaurants
and supply essential services to IKEA companies.
• Customers: In order to live up to the IKEA vision
of creating a better everyday life for the many
people, we need to understand the needs of
our customers. The IKEA business engages with
customers in many ways, such as in stores,
online, by visiting them at home and via IKEA
FAMILY. Each year, IKEA co-workers conduct
thousands of home visits around the world.
The data and insights collected are used in the
development of IKEA products and services. Since
results are published in the Life at Home Report.
• Partners and collaborators: The IKEA business
partners and collaborates with many external
organisations that are committed to tackling
large and complex global sustainability
challenges that both impact and are impacted
by the IKEA business. Our partners and
collaborators include businesses, governments,
universities and NGOs.
Below is a select list of partners and collaborators
we worked with during FY23. Read more about
IKEA stakeholder engagement.
• Business for Nature
• Business for Social Responsibility (BSR)
• The Centre for Child Rights and Business
• Climate and Clean Air Coalition (CCAC)
• Consumers Goods Forum (CGF)
• Ellen MacArthur Foundation (EMF)
• EuroCommerce
• European Furniture Industries Confederation
(EFIC)
• Exponential Roadmap Initiative (ERi)
• GlobeScan
• ILO Child Labour Platform
• Inner Development Goals
• Institute for Human Rights and Business (IHRB)
• International Chamber of Commerce (ICC)
• International Organization for Migration (IOM)
• International Social and Environmental
Accreditation and Labelling (ISEAL) Alliance
• Leadership Group for Responsible Recruitment
(LGRR)
• Nordic Business Network for Human Rights
(NBNHR)
• Nordic Innovation Ethical AI Expert Group
• One Young World
• Our Normal
•
• Science Based Targets initiative (SBTi)
• Science Based Targets Network (SBTN)
• Stockholm Environment Institute (SEI)
• The Climate Group and its EV100, EV100+ and
RE100 initiatives
• The 10 YFP/One Planet Network
• UNFCCC, including Race to Zero
• UN Global Compact
• UNICEF
• World Business Council for Sustainable
Development (WBCSD)
• World Economic Forum
• We Mean Business Coalition
• World Resources Institute (WRI)
• WWF
• 50L Home Coalition
Stakeholder engagement
1
Through Ingka Group.
2
This is an Ingka Group initiative.
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
58 - IKEA SUSTAINABILITY REPORT FY23
Sustainability is an integrated part of our business
and is led from a holistic perspective with an aligned
overall direction. Each part of the IKEA business
contributes to the total IKEA sustainability agenda.
Strategic Sustainability Council
The total IKEA sustainability direction (ambitions and
commitments) is set by the Strategic Sustainability
Council, hosted and led by Inter IKEA Systems
comprised of representatives from Inter IKEA Group
and the franchisees to ensure alignment across
the IKEA franchise system while respecting their
independence.
Sustainability working groups, with experts from
Inter IKEA Group and franchisees, discuss and align
strategy.
Inter IKEA Group sustainability management
Inter IKEA Group sustainability management
is responsible for aligning and developing
sustainability ambitions and commitments and
reporting on performance. The group also provides
recommendations on strategic business decisions
with environmental and social impacts and prepares
content and decisions for the Strategic Sustainability
Council.
Ethics and integrity
The IKEA way of doing business is strongly rooted in
actions, decisions and behaviours. This behavioural
we interact with each other, our business partners
and customers. The IKEA business requirements
cover a wide range of topics, including business
ethics. Important documents covering business
requirements are:
• Code of conduct: for Inter IKEA Group co-workers
• IConduct: for IKEA franchisees
• IWAY: for IKEA suppliers and service providers
The Inter IKEA Group Code of Conduct, introduced in
2016, is undergoing a revision and is expected to
launch in FY24. It will be accompanied by wider
communication on ethics. The objective is to foster
an ethical workplace and to stimulate dialogue on
ethical dilemmas.
Raising a concern
The IKEA business promotes a culture of
inclusiveness, and everyone is encouraged and
should feel empowered to come forward and raise
culture, either by addressing the situation to the
person directly, with a manager or a People & Culture
colleague, or through the Raise a Concern
platform.
• Read more about the Inter IKEA Group Raise a
Concern environment.
In FY23, 129 concerns related to Inter IKEA Group were
reported. The majority of the concerns
were reported in the supply operations, which have
the most co-workers. Most cases reported concerned
either HR or business ethics related topics (e.g.,
harassment, discrimination, leadership behaviour,
raised were found to be (partly) substantiated,
improvements.
Inter IKEA Group is committed to operating a
sustainable business with respect for human rights
and ensuring fair and safe working conditions in
our value chain. Our supplier code of conduct, IWAY,
explains our expectations towards our business
partners thereon. One of the requirements in IWAY is
that our business partners should have a grievance
mechanism in place for their workers.
In FY23, Inter IKEA Group continued exploring the
possibilities for setting up a grievance mechanism
for the IKEA value chain so that workers can also
reach out to the IKEA business to raise a concern
engage stakeholders and provide the means by which
people can bring serious non-compliance issues with
IWAY to our attention. A pilot is expected to start in
FY24 in three selected markets to study how to best
communicate and operate the grievance mechanism.
The IKEA Sustainability Report and the Climate Report
summarise the combined performance of companies
operating within the IKEA franchise system and/
or in the IKEA value chain. These reports do not
address any formal reporting requirement that may
be applicable to companies covered in the report.
Inter IKEA Group will report under the EU Corporate
Sustainability Reporting Directive when applicable in
FY26, for which preparations are ongoing.
Read more
Group publishes its reports on Inter.IKEA.com.
IKEA franchisees often issue their own reports,
which may include both the IKEA business and other
businesses. Please refer to these reports for more
detailed information about each franchisee.
Sustainability governance
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
59 - IKEA SUSTAINABILITY REPORT FY23
SDG index
The United Nations Sustainable Development
Goals (SDGs) provide a framework for collective
action to tackle global issues, such as poverty,
gender equality and climate change. We
recognise that we have an important role to
play in contributing to achieving the SDGs,
and value chain. The SDGs have been used as
one of the key inputs when the People & Planet
Positive strategy and the ambitions for 2030
were developed. In FY24, we will review how
we contribute to the SDGs and report on the
outcomes of our work.
In this table, we summarise how the IKEA
business, through its strategy, contributes to
the SDGs.
1. No poverty
Fair & equal
Fair & equal
IWAY
Fair & equal
Our circularity agenda
Regenerating resources
Our climate agenda
Fair & equal
Fair & equal
Fair & equal
Fair & equal
IWAY
Our circularity agenda
Our climate agenda
Healthy & sustainable living
Healthy & sustainable living
Regenerating resources
Healthy & sustainable living
IWAY
Healthy & sustainable living
Our circularity agenda
Regenerating resources
IWAY
Our climate agenda
IWAY
Regenerating resources
Regenerating resources
Healthy & sustainable living
Regenerating resources
Healthy & sustainable living
Our climate agenda
2. Zero hunger
4. Quality education
5. Gender equality
3. Good health &
well-being
6. Clean water &
sanitation
7. Aordable & clean
energy
8. Decent work &
economic growth
9. Industry, innovation
and infrastructure
11. Sustainable cities &
communities
13. Climate action
15. Life on land
16. Peace, justice and
strong institutions
17. Partnerships for the
goals
10. Reduced inequalities
14. Life below water
12. Responsible
consumption &
production
Sustainable Development Goals Sustainable Development GoalsInuence through our strategy Inuence through our strategy
Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index
