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 conditions. To supplement the due diligence In FY23, as a result of the partnership, Kew other prede昀椀ned board mills and recycled processes, vetted third-party certi昀椀cation Gardens launched a 昀椀rst-of-its-kind publicly wood supply chains with the aim to 昀椀nalise the schemes should be a recognised tool. available DNA database of all rattan species. veri昀椀cations at all relevant second-tier critical The database includes a new test protocol, We are committed to no deforestation and sub-contractors by the end of 2023. o昀昀ering a unique possibility to identify no forest degradation across our primary Implementing responsible sourcing along species, enabling companies to gain deeper deforestation-linked commodities (soy, palm forest material supply chains is not an easy knowledge of rattan supply chains and to act to protect threatened species. This oil, beef, leather, co昀昀ee, cocoa, rubber, wood task for the stakeholders involved, including development supports the IKEA business in and sugarcane), with a target date of 31 sub-contractors. Mapping the supply chains 1 increasing traceability which is a step towards December 2025. was among the most challenging activities ensuring no threatened species are sourced. During FY23, we remained an active participant for suppliers because it was the 昀椀rst time that By launching this database and sharing all in the EU Commission Expert Group/Multi- some sub-contractors were asked to disclose the tools for free, the aim is to inspire other Stakeholder Platform on Protecting and this type of information. companies to use it to increase the traceability Restoring the World’s Forests – including the Despite these challenges – or perhaps because of their rattan supply chains as well. EU Timber Regulation and the Forest Law of them – the process has led to many bene昀椀ts, Enforcement, Governance, and Trade (FLEGT) such as a greater understanding from our regulation – by providing fact- and experience- sub-contractors on responsible sourcing, Contributing to the development of EUDR based insights and contributions to the transparency and traceability. Thousands of deforestation legislation development of legislation. sub-contractors handling forest-based material The IKEA business has long promoted have been mapped along supply chains all the way to the forest roadside. Most supply chains Launching a 昀椀rst-of-its-kind rattan species responsible sourcing within our business. Implementation of responsible sourcing are relatively short, reaching only to second- DNA identi昀椀cation database We have steered market transformation with Rattan can be a useful renewable forest respect to key raw materials and continue along forest material supply chains tier sub-contractors. However, a few reported resource in many applications. Historically, it to use innovative approaches to forest During FY23, together with our business supply chains are going all the way to tier 昀椀ve. has not been possible for the wider industry management, protection, restoration, and partners, we secured the robust requirements regeneration. The wood used in IKEA products outlined in our supplier code of conduct, to accurately identify the di昀昀erent types of rattan used in supply chains and over- is sourced from responsibly managed forests, beyond 昀椀rst-tier suppliers. harvesting of rattan from forests in Vietnam which do not contribute to deforestation. The implementation follows a stepwise and Indonesia can threaten biodiversity and We fully support the European Union’s goal to approach. The 昀椀rst step was completed at the ecosystems by contributing to the potential minimise the EU’s contribution to deforestation end of 2022 when supply chains connected to extinction of some rattan species. Therefore, and forest degradation. We urge a risk-based solid wood and prede昀椀ned board mills were in 2019, the IKEA business together with approach based on mandatory due diligence mapped with IWAY Must requirements and the Royal Botanic Gardens, Kew, in the UK, processes, including reporting and risk veri昀椀ed at all 昀椀rst-level critical sub-contractors. partnered around research on rattan species mitigation measures dependent on the market Starting on 1 January 2023, we began the 1 Commodities and products in the scope of the European Union identi昀椀cation. second step of implementation, focusing on risk pro昀椀le, nature of the commodity and local Deforestation-free Regulation (EUDR) will have to meet the corresponding timelines. 37 - IKEA SUSTAINABILITY REPORT FY23