Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index Healthy & sustainable living - Our circularity agenda - Our climate agenda - Regenerating resources - Fair & equal - IWAY The IKEA sustainability strategy The purpose of our sustainability system and value chain. Each company strategy, People & Planet Positive, is working under the IKEA Brand sets its to inspire, activate and lead us in our own strategic goals to contribute to the High-level material topics Key challenges IKEA focus areas & commitments decision-making and goal-setting in common ambitions and commitments. Our order to achieve the changes we want sustainability ambitions and commitments for to see in the world, as well as the 2030 are in line with the SDGs. Health & wellbeing entire IKEA ecosystem. Life at home & work impact Unsustainable consumption Healthy & sustainable living On 5 January 2023, the Corporate • Inspiring and enabling people to live Sustainability Reporting Directive (CSRD) healthier, more sustainable lives The strategy is structured based on material Resource e昀케ciency entered into force, and then on 31 July 2023, Climate footprint • Promoting circular and sustainable topics (see diagram, right). These are considered the European Commission adopted the consumption the most important sustainability issues on European Sustainability Reporting Standards • Creating a movement in society around which the IKEA business can have an impact. Material use better everyday living (ESRS), a critical step for the EU's sustainability When we developed the strategy, we looked at agenda. This year, we continued our work to Sourcing impact what stakeholders expect from us and where Production impact become CSRD-ready. We performed our 昀椀rst Climate change Circular & climate they could see us making the biggest positive Double Materiality Assessment (DMA), which Logistics impact changes. As an outcome, we clustered the we will disclose in upcoming sustainability Operations impact • Transforming into a circular business identi昀椀ed material topics into three major reports. We have also started an ongoing • Becoming climate positive challenges – unsustainable consumption, assessment to identify and close the gaps for • Regenerating resources, protecting climate change, and inequality – linked to the reporting under the ESRSs. ecosystems, and improving biodiversity IKEA focus areas and commitments: Healthy Human rights & sustainable living, Circular & climate, and We don’t have all the answers and can't Decent work Inequality Fair & equal Fair & equal. The UN Sustainable Development achieve our goals alone. We're working Goals (SDGs) and the requirements stemming together with partners and striving to balance Social impact • Being a responsible business and from sustainability legislation have also played securing both economic growth and positive contributing to resilient societies a role in the development of our sustainability social impact with environmental protection • Providing and supporting decent and strategy. and regeneration. meaningful work across the IKEA value chain • Being an equal, diverse and inclusive The IKEA People & Planet Positive strategy The IKEA sustainability strategy introduced in 2018 sets a common business describes the sustainability agenda and direction for the IKEA franchise system and value chain. See our summaries of each strategic focus area for more information on the ambition for everyone in the IKEA franchise progress we made in FY23. 6 - IKEA SUSTAINABILITY REPORT FY23