Towards Healthier & Safer Living Alexey Sokolov

To create a better everyday life for the many people. © Inter IKEA Systems B.V. 2008

We shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. © Inter IKEA Systems B.V. 2008

All over the world OUR RANGE 9.500 articles developed by IKEA of Sweden. IKEA GROUP FY10 the IKEA Group had operations in 41 countries. 29 Trading Service Offices in 25 countries, 27 Distribution Centers and 11 Customer Distribution Centers in 16 countries.

All over the world IKEA STORES 325 stores in 38 countries. In addition 45 IKEA franchise stores in 26 Countries/territories. IKEA VISITORS FY10 the IKEA Group stores had 626 million visitors and the IKEA websites had 712 million visits. IKEA SUPPLIERS FY10 IKEA had 1,074 suppliers in 55 countries.

Towards Healthier & Safer Living Understanding, Identifying, Measuring, and Reducing Toxic Substances in Furniture Agenda Background How IKEA works with chemicals Identifying and measuring toxic substances Responsible for: To secure that the IKEA range sold in their country complies with the national requirements/legislation with regards to: Safety, Environment, Health, Quality and Legal Information In the supply chain we work to secure that our articles comply with IKEA requirements (one basis for these is legal requirements)

1. Background IKEA products are: Safe to use Responsibly produced Well designed Customer friendly Durable and functional Safe to use Responsibly produced Safe to use – customers not having to worry, must feel – and be! – safe Responsibly produced – as regards chemicals, the working environment and the outside environment

Common Customer Questions Which materials are used in this product? Why does this product Smell so strange? Can you guarantee there is no health risk related to the smell? My child is allergic to some chemicals. Does this product contain these? Which product can you recommend us? Our customers care. During last years our customers’ awareness, knowledge and concerns grow, as well as media attention to chemicals in furniture materials. Are there any dangerous chemicals in this product? How is this product treated (glue, lacquer, formaldehyde)?

Precautionary Principle "When an activity raises threats of harm to human health or the environment, precautionary measures should be taken even if some cause and effect relationships are not fully established scientifically." These are the reasons why we follow the precautionary principle in IKEA. It means “Better safe than sorry” Example: in children’s articles we ban all phthalates, because we are sure that more than the 10 legally restricted phthalates are harmful, even if we don’t know for sure that all phthalates are equally harmful (maybe take in further slides, or skip as too detailed) Better safe than sorry! 9 9

It’s about the ... ... the IKEA brand, the brand, the brand! it consists of trust. IKEA brand is one of the most valuable brands in the World – and we need to keep it that way. Chemical demands are good and necessary for business – both IKEA’s and the IKEA supplier’s. Protect our brand – protect our suppliers’ business.

2. How IKEA works with chemicals I wrote IKEA of Sweden instead of IoS

Potential sources of hazardous chemicals Direct use of the substance e.g. as an additive in some chemical products used at IKEA supplier or at sub-sub(-etc)-supplier Contamination from recycled material process contamination Insufficient process control Say: direct use can be far back in the supply chain, but still remain in the article. Take an example. Recycled mat is good, but we need to secure that it’s free from any hazardous or restricted compounds Examples for process control and parameters of it (e.g. curing of paint/coating, gluing) Where do the hazardous chemicals come from? Usually three reasons… Direct use of the substance e.g. as an additive in some chemical products used. This may happen not only at the IKEA supplier, it can happen also at the sub-sub(-etc)-supplier Contamination, either from recycled material, or from process contamination if restricted chemicals are used for other customers’ articles from the same factory. Insufficient process control. (Process control is important for some substances that participate in chemical reactions. E.g. FA in wood-based board) This is what the IKEA supplier has to secure! This is why we have chemical requirements in IKEA[?]

How IKEA works with chemical requirements in the purchasing process Supplier and IKEA agree Supplier secures Supplier verifies IKEA verifies the supplier Contract between supplier and sub-supplier refers to IKEA requirements 13

Verifying documentation Self declaration Tool for communication to and from sub-suppliers Summarizes chemical requirements Test report Testing at IKEA approved labs Safety Data Sheet (SDS) IKEA requirement for all chemical products Third-party supervision basically used to secure low formaldehyde emission from wood-based materials SD: SD from sub-supplier shows us that they have received, understood and secured the IKEA requirements. Test report: Minimum documentation demands in IKEA specifications, but it is the supplier’s responsibility to test as much as is needed in order to secure compliance SDS: . 1. not complete info but one tool for knowing more, and 2. we require SDS also for non-hazardous chemical products (but how far back in the supply chain we go depends on if ordinary article or children’s or food-contact article Third-party is an external organisation which performs regular (e.g. quarterly) audits at IKEA supplier and evaluates process control parameters, internal laboratory, personnel competence, and also takes samples for random testing. TPC is basically used to secure low formaldehyde emission from wood-based materials. SDS: IKEA requirement for all chemical products 14

Process control requirements We also verify process control for following special processes at all suppliers: Injection molding of thermo-plastics Gluing of wood-based materials Printing on textile UV-coating on wood-based materials Polyurethane foam production Inorganic coating on metal Note that there are other kinds of process control that need to be controlled! But in the cited cases we have specific IKEA guidelines for the process control. 15

Process control requirements Input → Process → Output The process control at IKEA supplier is secured when: Process scheme is followed The measurements are within tolerances Actual measurements are recorded Verification test report is available We perform quality audits to verify that the process control is performed according to IKEA standard at each supplier. Suppliers also refer to IKEA process control requirements when ordering materials for our products IKEA allows deliveries from a supplier only if these requirements are fulfilled 16

3. Identifying and measuring toxic substances

How we measure and identify toxic substances in IKEA Collect and analyze all verification test reports recieved from IKEA suppliers With use of IKEA-approved laboratories, perform additional random or targeted ”spot tests” on samples taken from IKEA stores or warehouses 18

How we measure and identify toxic substances in IKEA Since 2008: Perform XRF-screening of materials with use of hand-held XRF analyzers! Based on IKEA’s world-wide experience, perform material risk assessment to improve efficiency of additional verification 19

Just a few examples of tests that we perform in laboratories on regular basis Lead in paint and lacquering Formaldehyde in wood-based materials Alkylphenolethoxylates in textile Volatile organic compounds emission from final articles All tests, when they are available, are done in accordance with the standard methods stated in specifications 20

All tests are done in accordance with the standard methods stated in specifications An example of standard test method in IKEA chemical specification

X-Ray Fluorescence Handheld Analyzers In addition to laboratory testing, we have one more verification tool… X-Ray Fluorescence Handheld Analyzers 22

XRF analysis in IKEA Advantages of handheld XRF: Non-destructive, reliable and precise identification of hazardous elements in various materials, based on XRF Fluorescence Easy to use in office or take to supplier, to the store or raw material warehouse Completely safe when used by trained staff There is no radioactivity in the device. NO radiation when turned off. And radiation is minimal if you follow the simple rules Precise, easy, fast and reliable measurements as additional control to secure safety in IKEA 23

XRF analysis in IKEA Quick and easy identification of: Lead in different surface coatings: paint/lacquer on wood, powder coatings, ceramic glaze Lead and Cadmium in metal alloys, glass, polymeric, textile It saves time, money and IKEA customers’ safety 24

XRF analysis in IKEA Quick and easy identification of: Brominated flame-retardants in plastics, e.g. in expanded polystyrene Unapproved usage of external recycled polymerics or textile materials It saves time, money and IKEA customers’ safety 25

XRF analysis in IKEA XRF allows IKEA to identify chemical risk and take precautionary actions even before sending samples for wet chemical tests It saves time, money and IKEA customers’ safety 26

XRF analysis in IKEA When we use XRF in IKEA: Final “gate-check” of a new product before the first delivery to IKEA Screening of raw materials at suppliers to identify possible source of contamination Inspections of products in the stores Other ad hoc activities, e.g. internal investigations 27

XRF analysis in IKEA History of implementation: XRF has been used by IKEA Test Lab since 2008 In 2009-2011 14 XRF analyzers were purchased by IKEA Trading, i.e. all our biggest Trading offices of IKEA are now equipped with one XRF device About 15 specialists (XRF superusers) from IKEA Trading offices worldwide were trained personally by the producers of the XRF analyzer on two special trainings 28

XRF analysis in IKEA History of implementation: Each XRF superuser in IKEA is able to provide support and training for other users in their office 2011: IKEA Guideline document about how to use the XRF, how to handle typical materials and articles; and with emphasis on clear & simple safety instructions 29

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