GB GB

Prod

uced

in A

pril

2008

by

Corp

orat

e PR

, IKE

A Se

rvice

s AB.

Pho

tos:

IKEA

, UN

ICEF

, Sav

e th

e Ch

ildre

n, D

avid

Orr,

Han

s-Ju

erge

n Bu

rkar

d/ST

ERN

Mag

azin

e. P

rinte

d on

non

-chl

orin

e pa

per t

hat m

eets

the

crite

ria o

f the

Nor

dic S

wan

mar

k. Pr

oduc

tion

cost

per c

opy:

EUR

0.7

0

PEOPLE & THEENVIRONMENTTHE IKEA GROuP

www.IKEA.com

2 3

GB GB

Low price – but not at any priceThe IKEA vision is to create a better everyday life for the many people – our customers, co-workers and the people who produce our products. Consequently, low prices at IKEA must not be achieved at the expense of people or the environment. That is a condition for doing good business.

We don’t compromise on safety

THERE ARE NO SHORTCuTS to safety or environmental adaptation. New materials are subjected to exten-sive risk analysis and tests before being used in a product, and the product itself is tested continuously. External laboratories and institutes complement the work done in our own test lab.

THE IKEA RANGE COMPLIES with the strictest appli-cable laws and safety standards, and we have detailed regulations on the use of chemicals and other substances in the manufacturing process. If one country tightens its rules, we introduce these new regulations on all IKEA markets, whenever possible.

IKEA products must be safe, both for the environment and for human health. That’s why, whenever they develop a new product, our designers, product developers and technicians factor safety, quality and environ-mental impact into the equation right from the drawing board.

IKEA has been testing its products since 1961. All the materials used must comply with strict safety standards.

Customers should always feel confident when buying and using IKEA products.

4 5

GB GB

IKEA WANTS TO minimise or totally refrain from the use of chemicals and substances that can be harmful to people and the environment, by choosing better alternatives wherever possible.

• Water-based and UV-based lacquers are the norm for IKEA products.

• IKEA has strict limits for formaldehyde. • IKEA permits the use of PVC only in electric

leads.• Freons (CFCs) have not been used to make our

products since 1992.

Tough demands on children’s productsIKEA SETS PARTICuLARLY rigorous standards for the children’s range, testing products to ensure they withstand the kind of punishment children dish out. IKEA co-workers who develop and purchase children’s products learn about chil-dren’s development needs, safety and health in our Children’s School training programme.

A CHILDREN’S CHAIR can be a pirate ship on a stormy sea, or a stepladder to forbidden adult

IKEA toys must not contain harmful substances or present a choking risk. At the slightest suspicion that a product may be dangerous, sales are stopped until a full investigation has been carried out.

No optical brighteners are used in IKEA quilts and pillows.

All drinking glasses sold at IKEA are lead-free.

Did you know…

treasures high up in a bookcase. So it has to cope with much more demanding use than intended – and bookcases need to be firmly secured to the wall.

THE PATRuLL RANGE can prevent many accidents in the home. A hob guard can protect a child from scalding hot water, window catches can prevent falls, and safety plugs offer protection from electric shocks.

IKEA children’s products are carefully tested.

6 7

GB GB

Economising is part of our natureECONOMISING ON RESOuRCES is part and parcel of the IKEA approach to product development. It helps to save not only money, but the environ-ment, too.

WE uSE NO MORE material than is necessary. And we try to use as much renewable, reclaimed and recyclable material as possible.

LACK has a core of stiff card sandwiched between thin sheets of wood.

IKEA sells energy-saving dishwashers. ÖGLA chair contains sawmill waste.

Wood is an excellent environmental choice

We want to be sure that timber comes from responsibly managed forests.

ONE GOOD EXAMPLE is wood, one of our most important raw materials. Other renewable resources are cotton, bamboo, banana leaves and the natural fibre, lyocell.

IKEA SELF-ASSEMBLY FuRNITuRE is easy to disman-tle, too. That makes it simpler to recycle and reuse materials such as wood, plastic, metal and glass.

8 9

GB GB

IKEA DOES NOT ACCEPT illegally felled wood or wood from intact natural forests. This is one of the basic conditions that IKEA imposes on suppliers of solid wood. Suppliers must be able to document the origin of their wood.

IKEA HAS ITS OWN forest specialists who work in the field, close to both suppliers and forests. Their most important task is to promote development towards more responsibly managed forests by spreading information and knowledge.

Wood is one of the most important raw materials for IKEA. It is also an excellent choice from an environmental point of view, provided that it comes from responsibly managed forests. Wood is renewable, recyclable and biodegradable.

Forestry know-how is vital

IKEA forest specialists help to source more wood from forests certified as responsibly managed.

Making the best use of trees

IKEA PS EDEN: We have learned how to use birch heartwood, the spine of the tree that previously went to waste.

IKEA PS ELLAN: Sawmill waste mixed with recycled plastic produces a strong material that minimises the use of resources.

NORDEN: Knotty birch is excellent for making furniture in classic Scandinavian style.

WHEN IKEA uSES raw materials, the principle is always to make use of as much of the material as possible. Designers and product developers are

constantly searching for new techniques to get the best possible return from every tree trunk.

IKEA FOREST SPECIALISTS work every day to increase understanding of the requirements IKEA has and ensure that these are met. They also trace batches of timber all the way back to their origins to check that they come from the forests the suppliers have stated.

OuR LONG-TERM GOAL is to source all wood for IKEA products from forests certified as responsi-bly managed. At present, the Forest Stewardship Council (FSC) is the only forest certification standard supported by IKEA.

10 11

GB GB

IKEA BELIEVES THAT it is essential to tackle problems such as illegal logging and the lack of FSC-certified raw materials. That’s why IKEA is involved in various projects that focus on forest man-agement, research and training. WWF is an important partner, and one that IKEA works with in Russia and China, Bulgaria, Romania, Ukraine, Latvia, Lithuania, Vietnam, Laos and Cambodia.

Partnerships to benefit the forest

TRuCKS AND TRAINS loaded with thousands of logs cross the Russian-Chinese border every day on their way from the vast Siberian forests to various producers of wooden goods in China. Border controls are inadequate; there are many middle-men and huge quantities of illegally felled timber change hands every day. IKEA is working with WWF to put a stop to this.

EFFORTS INCLuDE tightening legislation in Russia, improving cooperation between customs authori-ties in both countries, and training forest workers and inspectors. Methods are also being devel-oped to enable IKEA suppliers to take more responsibility themselves for tracing the origin of the wood they use.

Stopping illegal logging

IN THE STATE OF SABAH in the north-eastern corner of Malaysian Borneo the “Sow a Seed” project will help to rehabilitate 18,500 hec-tares of rainforest depleted by logging and damaged by a serious fire in 1983.

MILLIONS OF TREES are being planted in an area the size of 29,000 football pitches. It is hoped that a mix of native species will restore biological diversity and tempt insects, birds and mammals to return. The area is protected from logging for a period of 50 years.

THE PROJECT EMPLOYS 150 people to raise seeds into plants and then transplant the saplings. In the village where they and their families live, the project has helped to provide accommodation and meeting places, clean water, electricity, schooling and free healthcare.

SOW A SEED is run in conjunction with the Swedish University of Agricultural Sciences and the Yayasan Sabah Group.

Saving Borneo’s rainforests

12 13

Certification means that we know where and how the coffee is produced.

GB GB

Certified coffee at IKEAWE WANT IKEA customers and co-workers to know that the coffee they drink is produced in a respon-sible manner. This is why all coffee sold and served at IKEA will be certified and traceable all the way back to the plantations.

uTZ CERTIFIED MEANS, for example, that plantation workers’ families have access to reasonable housing, healthcare and schooling for the children. Coffee production must minimise the use of water, artificial fertilisers and pesticides. Farmers receive training and support to increase their productivity and cost-effectiveness at the same time as the quality of the coffee is improved. UTZ means “good” in a Mayan language in Guatemala.

MILLIONS OF PEOPLE eat in IKEA store restau-rants and buy food products from the in-store Swedish Food Market shops every year. The food must offer good value for money and be tasty, safe to eat and produced with consid-eration for the environment. All food suppliers must comply with the code of conduct require-ments in The IKEA Way on Purchasing Food.

Good, safe food

Good hygiene is an important aspect of safety.

IKEA supports sustain-able cotton production MOST COTTON PLANTATIONS use huge amounts of water, artificial fertilisers and pesticides. At IKEA we want the cotton in our products to come from more sustainable sources and are working actively to promote this.

TOGETHER WITH WWF we are training cotton farmers in Pakistan and India in Farmer Field Schools. Here farmers are taught more sustain-

able cotton production techniques, and learn how to make much more efficient use of water, essen-tial pesticides and artificial fertilisers in ways that are safer for both people and the environment.

REDuCING THE uSE of resources also enables farmers to increase their income without increas-ing their output. And these new ways of working inspire other local farmers, too.

14 15

GB GB

THE BASIS FOR IKEA product development is our insight into production conditions. That’s why designers, product developers and purchasers often work on site in factories. Better working conditions and more environmentally friendly production methods then become a natural part of discussions.

WE WANT IMPROVEMENTS in working conditions and environmental performance to be part of suppli-ers’ day-to-day operations, independent of IKEA. We help them to put their own regular inspections and corrective measures in place, instead of waiting passively for IKEA audits. Each supplier must also establish a committee of managers and co-workers to monitor health and safety issues.

The best way of influencing and contributing to positive development is to maintain close, long-term relationships with our suppliers. By supporting suppliers with know-how we want to motivate them to take more respon-sibility for people and the environment.

IKEA on site in the factories

For a supplier, investments in working conditions and the environment can lead to more orders, better productivity and higher profitability.

IKEA products must be manufactured under acceptable working conditions by suppliers who take responsibility for the environment.

16 17

GB GB

IN CERTAIN AREAS progress in making improve-ments to working conditions and the environment is slower than we would like and our inspectors don’t always get a realistic picture of the situation when they visit a factory. That is why IKEA also makes unannounced visits to suppliers’ premises.

IN SOME COuNTRIES it is difficult to resolve issues relating to working hours and wages as existing legislation is not implemented and is inad-equately policed by the authorities. In such situations the efforts and inspections of IKEA alone are insufficient.

Difficult, but not impossible

The best way to solve problems is to be there and contribute to the solution.

OuR CODE OF CONDuCT, The IKEA Way on Purchasing Home Furnishing Products (IWAY), specifies the minimum requirements we place on suppliers and describes what they can expect from us in return. IWAY applies to all IKEA sup-pliers who, in turn, are responsible for informing their employees and sub-contractors.

IWAY requirements include:• Compliance with national legislation• No forced or child labour• No discrimination• Payment of at least the minimum wage and

compensation for overtime• A safe and healthy working environment• Responsibility for waste, emissions and the

handling of chemicals

SPECIALLY TRAINED IKEA auditors make detailed inspections to ensure compliance with these requirements. Suppliers are given a deadline for taking care of any problems that are identified, before a new inspection is carried out.

Our code of conduct – IWAY

IKEA introduced its code of conduct, IWAY, in 2000.

18 19

GB GB

IKEA works actively to prevent child labourChild labour does occur in some countries where IKEA purchases products. To deal with this, IKEA works with preventive measures among suppliers and cooperates with various bodies that combat the root causes of child labour.THERE IS A special code of conduct on child labour, The IKEA Way on Preventing Child Labour, that all IKEA suppliers and their sub-contractors must comply with. But rules alone can not solve this problem. That is why IKEA lays great emphasis on preventive measures.

PuRCHASERS, TECHNICIANS AND product develop-ers frequently visit suppliers. This gives them an opportunity not only to observe the conditions, but also to initiate discussions that increase under-standing of why children should not be at work.

All actions must be in the best interests of the child.

IN SOME AREAS, where the risk of child labour is more pronounced, IKEA helps to provide on-the-spot educational resources in the form of work-shops for managers, workers and representatives from the sub-contractors. Child labour and children’s rights are discussed openly and frankly in order to bring about a change in attitude and build a climate of mutual respect.

AT EVERY SuPPLIER’S factory in India IKEA trains a children’s ombudsman to protect and promote children’s rights. This ombudsman then trains a similar ombudsman for each sub-contractor.

IKEA INSPECTORS VISIT suppliers regularly to make sure there is no child labour. In addition, external auditors make unannounced visits to suppliers and sub-contractors.

IF, DESPITE ALL these efforts, child labour is exposed, the supplier must ensure that the child receives an education instead. IKEA follows up to make sure the child attends school. No new orders are placed with the supplier for six months, and only when the supplier can point to improved routines to prevent child labour is the business relationship normalised.

Every child has the right to a healthy, secure childhood and the oppor-tunity of a good education. IKEA Social Initiative works together with UNICEF and Save the Children on various projects to give children a better start in life.

Together we strengthen children’s rights.

IKEA Social Initiative sides with children

20 21

GB GB

We want to improve children’s opportunities in lifeMany children in South Asia lack clean water and basic healthcare, and have little chance of receiving a quality education. We want to change that.LASTING CHANGE REQuIRES a holistic approach that involves understanding the children’s situa-tion and undertaking long-term programmes to combat poverty, ill health and lack of knowledge. The way forward is often through the children’s mothers, so IKEA is actively involved in promoting women’s rights, too.

FIRST AND FOREMOST IKEA Social Initiative sup-ports projects aimed at women and children in India and Pakistan, where the need is great and IKEA has conducted business for many years.

Reaching children via mothers MANY IKEA RuGS are woven in the northern Indian state of Uttar Pradesh. Despite a sharp fall in recent years, child labour can still occur here, so IKEA Social Initiative is supporting a major UNICEF project to promote children’s rights.

WOMEN AND MOTHERS are the key to bringing lasting change to ancient traditions. Much of the work focuses on empowering these women and raising awareness about how they can prevent their children from being forced into work.

THE PROJECT SETS uP women’s self-help groups. The women save small sums of money as shared funds. Loans from this account enable women to start their own small businesses to contribute to the family income, or avoid financial distress in the

event of illness. Fair interest rates mean the women do not have to turn to loan sharks and force their children to work to pay off ever-rising debts.

THE WOMEN ARE taught about health and diet, and about the importance of education for their children – particularly for the girls, who are often kept at home to help around the house instead of going to school.

CHILDREN WHO HAVE not previously attended school are first taught at an Alternative Learning Centre (ALC) before enrolling in the formal educa-tion system. ALC teachers are trained in play-based learning techniques that make learning basic skills easier and more appealing to pupils.

The project covers hundreds of villages in India and millions of people.

22 23

IN PARTS OF India many children fall seriously ill or die as a result of worm parasites, infant diarrhoea and the fact that too few children and women are immunised. Illness also often leads a family into a spiral of debt, which can subsequently force children into work.

CHILDREN AND MOTHERS are immunised against common illnesses such as measles, polio, diphtheria and whooping cough. They also receive preventive medical treatment, such as deworming medicines and vitamin supplements, and are given mosquito nets to protect against malaria. Mothers are encour-aged to breast-feed their babies, which greatly reduces child mortality.

A healthy startThe health project will reach more than 10 million children.

Vaccinations improve living conditions.

IKEA SOCIAL INITIATIVE supports UNICEF’s work to prevent child labour on the cotton seed farms in Andhra Pradesh in southern India.

IT IS ESTIMATED that as many as 200,000 children – mostly girls, many as young as six or seven – work in the fields there.

THE PROJECT HELPS parents to understand the importance of schooling and gives thousands of children access to education in special or ordinary schools.

ONE IMPORTANT ASPECT of the project is to establish the contacts with government authori-ties, NGOs and employers that are essential to change attitudes to child labour.

School instead of work

GB GB

24 25

SINCE 2003 IKEA has been making donations from the sale of teddy bears and soft toys to children’s projects all over the world. For a number of weeks every year IKEA donates 1 euro for every soft toy sold – a total of millions of euros – to projects run by UNICEF and Save the Children. So far the money has helped fund projects in around a dozen countries, including Albania, Bangladesh, Russia, Vietnam, Ivory Coast, Uganda and China.

IKEA customers help children at risk

EVERY YEAR THOuSANDS of children are abandoned in Romania and later risk being exploited as child workers or becoming victims of trafficking. UNICEF works to prevent the desertion and exploitation of these children.

NEW-BORN BABIES are registered so they can no longer disappear without a trace, and social workers and medical staff support new mothers. Some of the money is used to fund homes for mothers and children.

Stop for child exploitation in Romania

Romanian mothers get help to keep their children.

MILLIONS OF PEOPLE in China are leaving the countryside to seek work in the cities. Save the Children works to protect children who are living in difficult conditions after migrating, as well as those left behind in the rural communities.

SAVE THE CHILDREN liaises with local authorities to ensure that children have access to educa-tion and healthcare. The charity also builds activity centres and playgrounds so that children have an opportunity to play.

Schools and games in China

Children need to play and go to school.

Climate threat demands smart solutions

Stackable products mean less transportation and fewer emissions.

GB GB

26 27

GB GB

IKEA PRODuCTS ARE TRANSPORTED by road, rail and sea between suppliers, distribution centres and stores. To reduce emissions, IKEA requires distribution centres and transport service provid-ers to meet a number of key criteria.

ALL TRANSPORT SERVICE providers must use modern vehicles, have specific emission targets and measure their carbon dioxide emissions. The demands are specified in the code of conduct The IKEA Way on Distributing Home Furnishing Products, and performance is monitored by IKEA.

CLEANER FuELS AND fuel-efficient driving tech-niques are also important factors in making goods transport better adapted to the environment.

Transport requirements

Flatpacks mean we transport only the minimum amount of air.

REDuCING EMISSIONS REQuIRES smart thinking in many areas: optimising packaging solutions, transporting goods with the least possible envi-ronmental impact, encouraging more customers and co-workers to leave their cars at home, cutting our electricity consumption and reducing our reliance on fossil fuels.

In a bid to stop the accelerating pace of climate change, IKEA is working actively to reduce carbon dioxide emissions resulting from its operations.

IKEA will reduce its impact on the climate

GOODS TRANSPORT ACCOuNTS for a large portion of carbon dioxide emissions. That’s why it’s important to pack every container and every truck as full as possible. IKEA flatpacks and other

Less air means fewer emissions

As early as 1956, IKEA was aware of the benefits of not transporting more air than necessary. LÖVET table was designed with removable legs so it would pack flat.

Slimming down KLIPPAN sofa packaging by a few centimetres made room for four more sofas in every truck.

smart packaging solutions are of key importance in keeping prices low and reducing environmental impact.

28 29

GB GB

IKEA IS COOPERATING with WWF in a project to reduce impact on the climate. The aim is to cut carbon dioxide emissions from IKEA suppliers and from passenger traffic to and from the stores.

IKEA, WWF AND selected suppliers in some coun-tries are creating a casebook of good examples and methods for how suppliers can save both energy and money and reduce their reliance on fossil fuels, both in the manufacturing process and for heating, cooling and ventilation.

PILOT STuDIES ON transporting people are being undertaken in several countries. Better public transport is being developed in partnership with local authorities, businesses and organisations, which can also help with other innovative ideas and encourage a change in behaviour patterns.

IKEA tackles climate issues with WWF

IKEA WANTS TO make it easier for customers and co-workers alike to leave the car at home and instead use public transport to travel to and from the store.

WHEN PLANNING A new store, access to good public transport networks is an important part of the decision-making process. IKEA also works with local authorities to improve bus and train services to existing stores. To make life easier for customers using public transport, a home delivery service is available. In many places, these home delivery companies use environmentally adapted vehicles. Some stores offer discounts on the hire of small self-drive biofuel delivery vans for custom-ers who have travelled by bus or train.

Better public transport for customers and co-workers

In many places IKEA offers free shuttle buses between the city centre and the store, as well as environmentally friendly home delivery of goods purchased.

IKEA has started to replace company cars with “green” alternatives. Vehicles for the home delivery service will also be “greener”.

WWF ALSO PROVIDES advice for the internal IKEA energy project, “IKEA goes renewable”.

30 31

GB GB

SIMPLE EFFORTS CAN save a lot of energy, both in new IKEA buildings and older ones that were not initially built to economise on energy and resources. Consumption is continually monitored and all IKEA units use energy-saver checklists to compare performance and learn from the good examples of others.

Low-energy bulbs last longer and use less electricity than conventional bulbs. When bulbs have burnt out, IKEA stores ensure they are responsibly recycled.

Internal communication and activities involve IKEA co-workers in environmental issues.

Simple measures save energy and money

ECONOMISING ON resources is part of our corporate culture. So it’s natural that, under the slogan “IKEA goes renewable”, we have set ourselves the target of improving our total energy efficiency by 25 percent compared to 2005 levels.

IKEA goes renewable WHAT’S MORE, OuR long-term ambition is that all IKEA stores, distribution centres, factories and offices will run entirely on renewable energy instead of fossil fuels. All newly built facilities are designed to use biofuels, geother-mal heat, solar or wind power, and all existing buildings are being adapted where possible.

• Stores can save a lot of electricity by having all lights lit only during opening hours.

• All IKEA buildings use energy-saving lighting where possible.

• Solar panels and extra roof insulation make heating and cooling buildings more energy-efficient.

• Effective temperature control systems are big energy-savers, as air conditioning is only used when really necessary.

• Distribution centres cut electricity consumption drastically with motion sensors, keeping areas lit only when people are present.