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 Plastics Plastics are found throughout the IKEA Our main challenges include the a昀昀ordability of, and accessibility to, the right feedstock as well as the right 8% o昀昀er – from furniture and electronics to PET (any type, 昀椀ttings and packaging material. technical solutions on a commercial scale, especially excl. for in textiles 8% and comfort for our three key plastic materials: polypropylene (PP), ABS (any type) materials) The three main movements to reduce the climate acrylonitrile butadiene styrene (ABS) and polyamide footprint from plastics are: (PA). 11% PE (any type) Weight • Reaching the full potential of mechanically recycled Another challenge is determining the climate footprint 3% (tonnes) plastics of renewable plastics, which is highly dependent PS 3% PA • Using mass-balanced renewable and chemically on the type of feedstock, management practices, 12% 55% recycled plastics for polypropylene (PP) production location and process steps. Others PP (any type, excl. • Adopting new technologies and feedstock sources for in textiles and 13% comfort materials) In FY23, we reduced the amount of plastic packaging ABS (any type) 39% of consumer goods by approximately 47% and 7% PP (any type, excl. for in textiles decreased total plastic packaging (including consumer PET (any type, excl. for in textiles and comfort Climate packs, multipacks, unit loads and handling materials) and comfort materials) materials) footprint by approximately 44% compared to FY21. Making recycling bins from recycled (tonnes CO2 eq) content 11% We continue to shift towards using more recycled or PE (any type) 15% renewable plastics for both existing and new products. The HÅLLBAR collection, consisting of a 4% Other However, since these recycled or renewable materials series of sorting bins designed to meet PS waste sorting needs, was launched in 2020. 11% PA can have di昀昀erent properties, product development is also needed. Lowering the climate footprint of the Products in the HÅLLBAR collection are UPPDATERA cutlery trays going through a transition to being made In the short term, we'll continue to use more post- We moved from recycled polythylene from recycled sources. Share of material weight (% tonnes) vs. climate footprint industrial feedstock to convert to recycled materials. To date, IKEA plastic products produced (% tonnes CO2 eq). terephthalate (PET) to recycled From FY25 onwards, we'll begin to use more post- in Europe contain at least 70% recycled polypropylene (PP) in our UPPDATERA consumer – rather than just pre-consumer – and content, where more than half of it comes Sub-goal products (consisting of multi-use plastic renewable feedstock in our range while we develop boxes) lowering the CO2 emissions on a from post-consumer sources such as By FY28, aim to phase out plastic from customer packaging. innovations in materials and technologies to meet our material level by approximately 12%. The household plastic waste. The same journey climate goal and our ambition to only use renewable lower emissions of PP are mainly driven by is ongoing in the other production regions, or recycled materials by FY30. As of January 2020, all the lower energy consumption of recycling resulting in lowering the CO2 on a material single-use plastic products have been removed from plastic than for PET. Additionally, this change level by approximately 60% compared to if the IKEA home furnishing range globally. entirely made from fossil virgin plastic. provided better a昀昀ordability for customers. 15 - IKEA CLIMATE REPORT FY23