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 Product end-of-life (6.2% of the total IKEA value chain climate footprint in FY23) 1 Climate footprint (million tonnes CO2 eq) FY16: 1.7 Baseline In FY23, the climate footprint from Our journey to transform into a circular business FY22: 1.6 -4% (vs FY16) product end-of-life decreased by 9% will reduce the chances that our products end up FY23: 1.5 -12% (vs FY16) compared to FY22 and 12% compared to in land昀椀lls or are incinerated. We're working to -30% the baseline FY16. prolong the life of our products, supporting the Goal FY30 compared to FY16 development of responsible waste management set-ups and circular product loops. We’re also As a part of our new net-zero goals, we have set working together with communities where Goal FY30 (updated) a goal for product end-of-life. We aim to reduce we source to enable an increased recycling By FY30, reduce the absolute GHG emissions from product emissions by 30% compared to the baseline FY16. infrastructure. end-of-life by at least 30% compared to baseline FY16. As in FY22, the decrease in the climate footprint for If we manage to design all products to be recycled product end-of-life is primarily due to a decrease and enable recycling in our markets, then we’ll be in the total weight of products sold. Our current able to, in principle, eliminate this climate footprint calculation model is based on estimations of the weight of products sold and the national averages by FY30. However, the 昀椀rst step is prevention. We’ll on end destinations of waste: recycling, incineration encourage reuse and work with refurbishment and repair to ensure products last as long as possible and land昀椀ll. This model will be updated during FY24 and are recycled only as a last step. to account for movements towards designing our products for recycling. Another improvement in the model will be to move away from using national averages on end destinations for di昀昀erent types of waste and instead to specify the local infrastructure near each IKEA store. 1 Scope: GHG Protocol, scope 3 emissions: End-of-life treatment of sold products. 32 - IKEA CLIMATE REPORT FY23