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 2. Removing and storing carbon from the atmosphere through forestry, agriculture, and products within the IKEA value chain Forest plantations grow When logged, CO2 remains stored in products faster than natural forests, made from wood (An estimated lifetime of 20 as described below, and can years has been used for wood-based products remove carbon from the and excludes the e昀昀ects of recycling.) atmosphere at a higher pace. By recycling the wood at the end of a product's life, the removed carbon continues to be stored. ORED CARBON By prolonging the life of wood-based products, the removed carbon remains stored even longer. Increasing the level of removed and During FY23, we continued our contribution to has been completed, we will set a strategic goal VED AND STstored carbon the work of the GHG Protocol in developing their for removing and storing carbon through forestry, Land Sector and Removals Guidance. The guidance agriculture and products as part of our climate REMO will secure principles on how to account for and agenda. That goal will de昀椀ne the ambition level for report GHG emissions and carbon removals and carbon removals and storage by FY30 and how we storage connected to land use and products made will neutralise any remaining GHG emissions after with renewable materials. Throughout the project, reducing them by at least 90% by FY50 at the latest. Natural forests play a crucial role in climate change mitigation. In this the IKEA business has been part of the Advisory example, they grow slower than the plantation and reach an even state Committee and Technical Working Groups. During While our goal is pending, we’re still taking action of carbon removed and stored. At the same time, these areas are of great importance due to their already stored carbon and biodiversity. They need to FY23, we also contributed by conducting pilots in the to improve carbon removals and storage. One be an integral part of any landscape approach to secure healthy ecosystems. IKEA supply chain during the public consultation and such initiative is the EUR 100 million 昀椀nancing of a piloting phases. carbon removal and storage programme. As a part DECADES of this programme, in 2022 we started a 昀椀ve-year Above is a simpli昀椀ed model illustrating an example of removing and storing carbon through the establishment of The guidance provides the accounting principles for engagement to work with smallholder farmers in fast-growing tree plantations plus restoration of natural forests on degraded land, including the e昀昀ect of prolonging the carbon storage through wood-based products and recycling. Trees from responsibly managed forest plantations absorb the target setting standard by the Science Based Vietnam to prolong acacia rotation. The bene昀椀ts Targets initiative (SBTi) on land-based emissions and for the climate and income for the farmers in this substantial amounts of carbon dioxide (CO2) from the atmosphere. When trees are made into wood-based products, they act as temporary carbon storage. This storage e昀昀ect can be extended through reuse, refurbishment, remanufacturing and recycling of the material at end-of-life. In resilient landscapes, the contribution of responsibly managed forest plantations towards climate removals from Forest, Land and Agriculture (FLAG) – project are expected to be signi昀椀cant. work that we have also contributed to. change mitigation, and the many contributions of natural forests, in terms of biodiversity or soil protection, for example, have to be considered together. A holistic view, where we balance forest growth, harvest, carbon storage in land and products and other environmental services, such as biodiversity, is critical. The guidance is now expected to be completed during the summer of 2024. Once the guidance 28 - IKEA SUSTAINABILITY REPORT FY23