Social and Environmental Affairs

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Presentation transcript:

Social and Environmental Affairs Thomas Bergmark

14,6 billion Euro sales FY 2005 90.000 co-workers 216 stores in 33 countries 1500 Suppliers in 55 countries 32 factories in 9 countries 27 distribution centres in 16 countries

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

“Sustainability Direction”; In a consumer society with growing & international business; “IKEA’s business shall have an overall positive impact on people & the environment”

“Focus Areas” FY 06-09 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”

The IKEA supplier world...

Differs a lot…...

IWAY consists of... Based on UN and ILO decl & conv Our Code of Conduct - “IWAY” “The IKEA Way on Purchasing Home Furnishing Products” Based on UN and ILO decl & conv IWAY Standard – specifying requirements IWAY evaluation checklist – 90 criteria’s Business responsibility, since Sept 2000 IWAY Council – CEO is Chairman

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

. . 43 Trading Service Offices 80 auditors performing IWAY audits developing suppliers . .

Internal & External Verification audits A. Trading Service Offices B. Compliance team C. 3rd parties - PWC, KPMG and ITS

Difficult issues remains to be solved…….. Local legislation Working hours Overtime payment Wastewater treatment Hazardous waste Chemicals In August 2005 the average supplier fulfils 90% of our requirements…..”the 90 criteria’s”

How IKEA can contribute to this UNEP meeting…… We have been working with Social & Environmental actions since 15 years We have a substantial experience from the field We are actively working with the UN Global Compact “Ten Principles” We are profitable and growing and S&E actions is one of the success factors

Benefits to IKEA by participating We can highlight the challenges we are facing We need partnerships to solve several difficult issues We can learn a lot from other stakeholders We can contribute to and influence the development

Social & Environmental Report F.Y.2004 on www.IKEA-group.IKEA.com

Conclusions Our Vision, Culture & Values - the foundation Sustainability Direction and S&E Strategy Clear requirements & tools for improvement Participating is a win-win situation S&E actions is core to our business success

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