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 Co-worker commuting & business travel (1.9% of the total IKEA value chain climate footprint in FY23) 1 Climate footprint (million tonnes CO2 eq) FY16: 0.50 Baseline The climate footprint from co-worker To help us further achieve our travel goals, we FY22: 0.45 -9% (vs FY16) commuting and business travel have six objectives, which we measure using key FY23: 0.45 -10% (vs FY16) decreased marginally by 0.5% in FY23 performance indicators. These KPIs are split into two compared to FY22. Compared to the areas – sustainability and cost. As a consequence of baseline FY16, we've seen a reduction of the sustainability-related KPIs, we have seen a drop Goal FY30 10%. in day trips. By FY30, reduce the greenhouse gas (GHG) emissions from co-worker travel by 50% in relative terms per The business travel climate footprint has Short-haul 昀氀ights for day trips are amongst the 2 co-worker compared to baseline FY16. worst for GHG emissions in terms of e昀케ciency per signi昀椀cantly decreased, with a 64% reduction distance travelled. Our policy is to limit these short- compared to the FY16 baseline. This substantial stay trips, and we have seen a 66% reduction in day decrease can be attributed to the implementation trips since FY19. of the Meet & Travel policy in FY21. This policy was introduced to curtail non-essential business travel, The co-worker commuting footprint, which has 12% promote more e昀케cient meetings, and ultimately increased by 13% compared to the baseline, has, Business travel lower greenhouse gas (GHG) emissions and costs. however, decreased by 6% compared to FY22. We Climate Notably, we have seen an absolute reduction in air continue to implement a hybrid work model for footprint travel by 60%, rental cars by 57% and hotel stays our IKEA o昀케ce-based employees (excluding those (tonnes CO2 eq) by 83% compared to the FY16 baseline. However, working in our stores and factories), resulting in a reduction in daily commutes to the o昀케ce. we acknowledge that the lingering e昀昀ects of the 88% COVID-19 pandemic may still impact travel levels, Co-worker commuting preventing a complete return to pre-pandemic norms. While the Meet & Travel policy has played a role in driving reductions, external factors, such as ongoing global uncertainties and events, may continue to in昀氀uence the overall travel landscape. 1 Scope: GHG Protocol, scope 3 emissions – category 6: Business travel of Inter IKEA Group and IKEA retail part of Ingka Group, scope 3 emissions – category 7: Employee commuting of Inter IKEA Group and IKEA retail part of Ingka Group. 2 Scope: Inter IKEA Group and the IKEA retail business of Ingka Group. 27 - IKEA CLIMATE REPORT FY23