Social and Environmental Affairs

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Presentation transcript:

Social and Environmental Affairs Thomas Bergmark IKEA Group

Our Vision…. …is to create a better everyday life for the many people

19,8 billion Euro sales FY 2007 118.000 co-workers 260 stores in 39 countries 1350 Suppliers in 50 countries 38 factories in 11 countries 42 distribution centres in 16 countries

“Focus Areas” - also beyond 2009…... Products & materials Suppliers Energy & Transport Buildings & infrastructure Community involvement Leadership & Competence

Suppliers “IKEA shall secure good Social, Working and Environmental conditions at its suppliers, and increase the suppliers’ own capability and motivation to implement and maintain our demands”

Is it possible to source at competitive prices while living up to its customers demands on taking social and environmental responsibility?

Purchasing Purchasing FY 07 By region Top 5 purchase countries North America 3% Asia 33% Top 5 purchase countries China 22% Poland 16% Italy 8% Sweden 6% Germany 6% Europe 64%

The IKEA supplier world...

Differs a lot…...

IWAY consists of... Social-, Working- and Environmental conditions Our Code of Conduct - “IWAY” “The IKEA Way on Purchasing Home Furnishing Products” Social-, Working- and Environmental conditions IWAY Standard IWAY evaluation checklist – 90 criteria’s Requirements on all 1350 IKEA Suppliers Sub-suppliers to sign and acknowledge the requirements

IWAY Standard - 17 areas .Emissions to air and water, Noise .General Legal Compliance .Emissions to air and water, Noise .Ground Contamination .Chemicals .Hazardous and Non-Hazardous Waste .Fire Safety .Worker Safety .Provided Housing Facilities .Wages, benefits and Working Hours .Child Labour .Forced & Bonded Labour .Discrimination .Freedom of Association .Harassment and Abuse / Disciplinary Practises Continuous Improvements .Routines for procurement of wood, bamboo and rattan Fulfilment of IKEA and legal forestry demands

. . Trading Service Offices 100 IKEA auditors performing IWAY audits developing suppliers . .

Internal & External Verification audits 1. Trading Service Offices 2. Compliance team 3. PWC, KPMG and ITS All suppliers are covered Selected Sub-suppliers as well

Sub Suppliers Unannounced child labour audits in India and Pakistan by 3rd party “High risk” strategy

IWAY fulfillment rates 2007

Dilemmas Local legislation Working hours? Minimum or living wages? Overtime payment

Social & Environmental Responsibility Report F.Y.2006 on www.IKEA-group.IKEA.com Report 2006 Social & Environmental Responsibility

Conclusions Our Vision is the foundation S&E Strategy with suppliers in focus Clear requirements in our CoC Auditing of suppliers and sub-suppliers We put a lot of IKEA resources on this No quick fix! Also dilemmas!

WE CAN MAKE A DIFFERENCE!! - by doing business in a responsible way…. www.IKEA-group.IKEA.com