Sustainability is one of IKEA’s four most important cornerstones for the business IKEA Sustainability and chemical substances Sven-Åke Herbertsson Product Laws& Standards Manager © Inter IKEA Systems B.V. 2011

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

© Inter IKEA Systems B.V 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.

All over the world  OUR RANGE articles developed by IKEA of Sweden.  IKEA GROUP Last year 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. © Inter IKEA Systems B.V. 2011

All over the world  IKEA STORES 325 stores in 38 countries. In addition 45 IKEA franchise stores in 26 Countries/territories.  IKEA VISITORS Last year the IKEA Group stores had 626 million visitors and the IKEA websites had 712 million visits.  IKEA SUPPLIERS Last year IKEA had 1,074 suppliers in 55 countries. © Inter IKEA Systems B.V. 2011

IKEA a responsible company Affordable products and solutions, while also taking responsibility for people and the environment © Inter IKEA Systems B.V. 2011

IKEA work proactively We want our customers to feel confident that the products they purchase from IKEA are safe and of good quality. © Inter IKEA Systems B.V. 2011

SMALL changes BIG volume X a HUGE difference © Inter IKEA Systems B.V. 2011

Our four goals  Offer a range of products that are more sustainable.  Take a leading role towards a low carbon society.  Turn waste into resources and reduce our water footprint.  Take social responsibility. © Inter IKEA Sysms B.V. 2011

Hazardous substances Principles  IKEA aims to refrain from the use of chemicals and substances that could potentially be harmful to people and the environment  IKEA often goes beyond legal requirements in our strive to remove harmful substances from our products. © Inter IKEA Systems B.V. 2011

Hazardous substances Principles  Whenever applicable IKEA apply the strictest demands on any of our markets.  Beyond safe and healthy products we want to reducing our impact on the environment and the people producing our products © Inter IKEA Systems B.V. 2011

IKEA and Formaldehyde - Changing the industry © Inter IKEA Systems B.V. 2011

Why Low formaldehyde Emission?  IKEA wants to provide good & healthy products  Our customers expectations is that products are safe and free from questionable substances © Inter IKEA Systems B.V. 2011

Our long term vision “ Formaldehyde emission levels in wood based products shall be on the same levels as natural wood.” © Inter IKEA Systems B.V The vision will be implemented step by step.

Why a step by step approach? The quality and health aspects of the final products must be secured Good working conditions at our suppliers to be maintained Costs to be kept low Secure that production capacity is available © Inter IKEA Systems B.V. 2011

Formaldehyde emission 20 years learning's “The External process”  Scientific reports  Different views among experts  Scattered process & quality assurance activities  Huge variation in country legislations  Gradually sharpened legislation  Slow progress in the industry (Denial)  A lot of different test and verification methods © Inter IKEA Systems B.V. 2011

Formaldehyde emission 20 years development “The IKEA internal process”  Moved from E2 to E1 requirement levels *  Process & quality assurance activities  Mistakes leading to costs  Termination of formaldehyde in lacquering systems  Entering into Japan, very strict formaldehyde requirements  Implementing CARB requirement levels  During the last years moved from E1 * (0,1ppm) to E1 ½ (0,05 ppm) requirement levels * = EN © Inter IKEA Systems B.V. 2011

Low Emission Project  Project “Low emission” started 2005  Material in scope: Board, Board on frame, Veneer, Foil, Layer glued, Plywood and Solid wood  Invited and cooperation with the glue and board industry as well as the IKEA suppliers  Meetings to: Motivate, agree on actions, experiment, measure, analyze an implement © Inter IKEA Systems B.V. 2011

Result from the project  Formaldehyde terminated in glue used for gluing veneer  Implementation of E1½ formaldehyde requirements on all board material  Implementation of lower requirements than E1½ on e.g. layer glued and plywood  Implementation of new certification and monitor routines involving independent 3 rd partner  None or very low price increase of the materials  IKEA changed a whole industry. Now this is a standard

There is still no global industrial technique to produce “FA free” boards.

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