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 Agriculture Agricultural raw materials are used in the more holistic scope that the IKEA business has ANNUAL CROPS in biodiversity, land and water use, climate, people throughout the IKEA o昀昀er. They include and communities. Cotton perennials such as co昀昀ee, tea and palm oil, as well as annual crops such Since FY15, the IKEA business only uses virgin For example, we're piloting cases during the next as cotton and animal-based products. cotton certi昀椀ed by our approved schemes or Cotton is the main agricultural material two 昀椀scal years that aim to source from and monitor recycled cotton. for the IKEA business. the same farm landscapes over a longer period (estimated 昀椀ve years) to track progress in soil health, In FY23, the total volume of cotton in IKEA landscape restoration and community wellbeing. products, including non-virgin cotton, Agriculture practices have wide-ranging impacts was 109,000 tonnes (FY22 144,100 tonnes). on water usage, pollution and conservation, nature During this process, as we continue to incorporate Around 80% of our virgin cotton came from and biodiversity, CO2 emissions and sequestration, additional markets and their local supply chains, smallholder farmers, and around 20% from animal welfare, and the lives of people and we are learning where we have more direct control large land-holding farmers. We continue communities connected to the cultivation of versus where we need to engage in di昀昀erent ways to emphasise physical segregation and agricultural materials. with others. Because we operate as a franchise system, which allows for both global and unique end-to-end traceability, diversi昀椀cation, risk In FY23, we started developing requirements for the mitigation, and the promotion of circular local o昀昀ers, we don’t yet have a complete overview new Agriculture Section in IWAY, the IKEA supplier of all products sourced or sold. A systematic cotton supply chains in an e昀昀ort to reduce Country of origin for cotton code of conduct (page 55). This is an important step approach and common requirements for our food the environmental and social impacts of our Fresh/virgin cotton 1 cotton supply chains. Read more about our in our responsible sourcing e昀昀orts. Through the supply chains will help us to increase visibility and view on cotton. requirements, we aim to take a holistic and coherent insight into operations, including the handling of 3% approach to responsible sourcing of agriculture raw animals. Cotton is one of the key focus areas in the 4% Cameroon materials addressing human rights, environmental Türkiye 1% impacts, including the risks of deforestation, and Food ingredients in this report represent long-term global partnership between the Burkina Faso IKEA business and WWF. 5% 1% animal welfare across the total value chain. approximately half of the total food ingredients Ivory Coast Others* sourced for the IKEA food business (supplied by 24% We are also preparing a transition from single IKEA Food Supply AG). For the remaining ~50%, 10% Pakistan raw material focused to wider landscape focused USA we're continuing to build a better understanding of action plans. Although we will continue to work on the gaps and how to ensure more comprehensive 14% initiatives connected to speci昀椀c raw material supply reporting in the future. India 18% chains, our aim is to quantify our impact and e昀昀orts China 17% * Brazil Others: Australia, Greece, Israel, Kazakhstan, Kyrgyzstan, South Africa, Spain 1 We use reputable sustainability standard systems in di昀昀erent agricultural areas to promote sustainability practices and performance for a variety of agriculture-based products in our o昀昀er. 38 - IKEA SUSTAINABILITY REPORT FY23