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 While our absolute footprint was down in As a part of our net-zero goal setting, we launched FY23 by 12%, our relative footprint grew by a comprehensive business consequence analysis to 9% upstream (produced volume) and 2% identify the actions needed to halve emissions by FY30 The IKEA climate footprint in both absolute and relative terms downstream (sold volume), compared with FY22. compared to our FY16 baseline. These action plans will Our upstream supply chain includes materials, provide the foundation for our continued reduction of FY16 FY21 FY22 FY23 food ingredients, production, product transport overall emissions and should reverse the increase in and logistics services and downstream includes relative emissions we saw in FY23. 110% IKEA retail, co-worker commuting and business 0.48 travel, customer travel and home deliveries, 100% 31.0 0.48 product use at home and product end-of-life. 0.36 28.7 0.44 Our calculation methodology for production 90% 0.45 uses a spend-based allocation (share of EUR 27.2 purchased) for supplier factory emissions, which 80% determines the IKEA share of GHG emissions, 0.26 24.1 so the increase of relative emissions in FY23 can 70% 0.26 0.25 be largely attributed to the e昀昀ects of in昀氀ation. That is, more GHG emissions were allocated to 60% the IKEA business even if our actual production at supplier factories was comparable to previous 50% years. In addition, the climate footprint of material, the largest portion of our footprint, is largely based Climate footprint of the total IKEA value chain both upstream and downstream on estimations which today do not account for (million tonnes CO2 eq) the various positive movements we've made in 3 Climate footprint (upstream) per m produced volume incl. food, indexed vs. baseline FY16 the business such as the introduction of more 3 (million tonnes CO2 eq per million produced m ) recycled and renewable materials. As a result of Climate footprint (downstream) per sold volume, indexed vs. baseline FY16 the digitalisation of data collection, we aim to 3 (million tonnes CO2 eq per million sold volume m ) provide more accurate data in the FY24 report. 26 - IKEA SUSTAINABILITY REPORT FY23