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 Wood (forestry) Wood is the material most used in the wood processing volume and, for the 昀椀rst time, IKEA wood processing volume Europe IKEA range.1 provide a more substantial breakdown separating 84% (million m3 Round Wood Equivalent (RWE)) It's part of the IKEA identity North our virgin wood consumption from our recycled America Asia and our Swedish heritage and includes wood consumption as well as an estimated volume 0.4% 13% Includes virgin, recycled wood and the estimated particle board, 昀椀breboard, paper-based Africa volume of the residual wood material from sawmills products and solid wood. of the residues from the sawmill manufacturing 0.002% as well as paper, industrialised bamboo, and indirect process. With this breakdown, our total virgin wood South America materials, e.g. packaging. consumption is reduced as residual wood material 2% Oceania 1% We're committed to making responsible forest is now excluded and calculated as consumed within FY23 16.8 million m3 management the norm across the world, going the sourcing market. The updated calculation beyond the wood sourced for the IKEA business; method is based on information reported by our halting deforestation and reforesting degraded Total wood processing Indirect material suppliers, the best available data for our business With an industry-昀椀rst global wood supply map, launched in FY23 昀椀gure for home furnishing (3 million m3) landscapes; and driving innovation to use wood in type and commonly approved conversion factors. for increased transparency, the IKEA business is sharing where products (13.8 million m3) smarter ways. Read more about our forest agenda. all the wood material (excluding paper) in IKEA products comes from. The map includes information about wood species, sourcing Within our commitment to drive innovation to use regions, volumes and how the IKEA business works to improve forest Wood residue byproduct from sawmill (1 million m3) In FY23, to increase the accuracy of our wood wood in even smarter ways, we have set a goal for management across di昀昀erent markets. Recycled wood material in products (2.3 million m3) consumption data across our home furnishing at least a third of the wood in the IKEA range to be Virgin wood material in products (10.5 million m3) products and indirect material use (e.g., packaging), recycled wood by 2030. In FY23, 17% of our wood- we reviewed and updated our calculation method. based range was made of recycled wood material Markets which supply the most virgin wood for Many parts of the wood industry have become more IKEA products (FY22: 15%). e昀케cient and smarter in their use of wood due to technological advancements in wood processing, In FY23, 97.8% (FY22: 99,9%) of our total wood used since our initial calculation method was developed. 16% Others was either Forest Stewardship Council certi昀椀ed (FSC) 3% or recycled.3 Latvia Until now, our wood consumption was calculated A slight decrease occurred due to our decision in FY22 to no longer accept wood from 3% 3% Slovakia based on the total wood processing 昀椀gure of round Russia and Belarus. This meant that a few suppliers Vietnam 32% wood equivalent.² This method included a signi昀椀cant Poland amount of residue material from the sawmill needed to 昀椀nd alternative sourcing options. All 4% manufacturing process – for example wood chips, wood used still met our IWAY forestry minimum Czech Republic requirements. 4% 10% o昀昀cuts, wood shavings, and sawdust – which was Romania Sweden 1 Based on purchasing value. sometimes used by other supply chains outside of ² To measure our wood consumption with one relevant unit, we Europe remained the main wood-sourcing region for 6% apply conversion factors for di昀昀erent wood materials used in our products and calculate back to cubic metres of roundwood the IKEA business. This consequently in昀氀ated our materials used in IKEA home furnishing products, Germany 10% 3 volumes. equivalent (m RWE). Roundwood equivalent (RWE) is a measure with over 80% of all wood use in IKEA products 9% Lithuania of the volume of logs (roundwood) used in the making of wood- China based products. coming from this continent. 3 We consider a goal to be fully reached when we achieve To become more accurate in our reporting, from more than 98% ful昀椀lment overall. Due to disruptions or new suppliers/business partners, we can’t guarantee 100% ful昀椀lment FY23 onwards we will continue to share the total at every given point in time. 35 - IKEA SUSTAINABILITY REPORT FY23