Introduction letter | Our climate agenda | FY23 summary of progress | The IKEA climate footprint throughout the value chain | Air pollution | Appendices Materials - Food ingredients - Production - Product transport & logistics services - IKEA retail & other operations - Co-worker commuting & business travel - Customer travel & home deliveries - Product use at home - Product end-of-life Decarbonising the land section of the transport and logistics supply chain Compared to FY22, the absolute Collaborations to lower carbon emissions climate footprint from road on one of Europe's longest non-stop rail transports decreased by 19% and distances from rail by 33%. For the 昀椀rst time, the IKEA business collaborated with another transport buyer The main reason is less transport due to to transport products over one of the lower sales quantities during FY23. There longest rail distances in Europe – around was also a reduction in the relative emissions 2,000 km – without stops. An intermodal 1 from land transport by 7% compared to FY22 block train that runs once per week on and by 26% compared to the baseline FY17. the Poland-Spain corridor was launched This was due to an increase in the share of in October 2022. By using the block train intermodal solutions such as rail, short sea instead of road transportation, the result for and inland waterways. Switching from diesel the IKEA business is an estimated reduction trucks to intermodal transport also reduces of 4,500 trucks and lowered greenhouse gas emissions by 50% on average. In FY23, 51% emissions by 5,100 tonnes CO2 eq per year. of our global land transportation in terms of transported tonne-kilometres was conducted by intermodal transportation. Deployments of EV trucks in IKEA Industry Learning more about ports in our journey Introducing EV trucks in North America In FY23, IKEA Industry in Zbąszynek, Poland, towards zero-emissions transport In FY23, we began the transport of IKEA successfully deployed the 昀椀rst three heavy- Ports are important hubs in our supply chain products in Canada and the US on heavy-duty duty all-electric trucks in the unit, marking as they connect land and ocean transportation. EVs. In Montreal, Canada, two EV trucks are a signi昀椀cant shift in zero-emission transport That’s why they are key to enabling zero- used exclusively for IKEA deliveries from the operations. In 2022, in collaboration with emissions solutions in both ocean shipping and port to the IKEA distribution centre. In the external partners, IKEA Industry initiated the land transportation. We’re learning more about US, we have deployed EV trucks for round- operation of these trucks, charging them with the challenges and opportunities of ports and trip deliveries of containers from the ports of renewable electricity from 昀椀ve on-site stations. have joined the International Association of Los Angeles and Long Beach to our nearby Ports and Harbours to participate in discussions warehousing facility. on how we can contribute to and identify opportunities for decarbonising the transport industry. 1 A block train is a train that transports goods as one unit from the start destination to the end destination without stops. 23 - IKEA CLIMATE REPORT FY23