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 IWAY – the IKEA supplier code of conduct While IWAY has a focus on supporting our suppliers with their continuous development journey, Top home furnishing purchasing markets compliance with mandatory IWAY requirements (% of total volumes purchased) remains the foundation of our partnerships with suppliers. In FY23, more than 1,000 veri昀椀cation 3% activities were performed in the Inter IKEA Group Vietnam supply chain. They include gap assessments 4% 2% for new suppliers and full or focused audits for Sweden India existing suppliers. Following the pandemic, audits 2% 5% Türkiye are back on track, with remote audits being just Romania one of the types of veri昀椀cation activities. Read 5% 25% more about IWAY audits. Germany China 8% The IWAY System is continuously developed Lithuania and improved to maintain relevance. During 9% FY23, we launched new IWAY requirements for Italy 20% Poland ocean transport service providers, strengthening 17% requirements on decent work for for seafarers Other IWAY is the IKEA way of responsibly services typically include customer delivery working on vessels and ships in the IKEA value procuring products, services, materials and installation with workers who often chain (page 49). In addition, we have started work function independently and don't maintain an and components. It’s a complete to strengthen the IWAY Animal Welfare Section In total, we have around 800 home furnishings suppliers for employment relationship with the suppliers with additional criteria addressing animal welfare Inter IKEA Group. The largest home furnishing purchasing sustainability system for working 1 region in terms of volumes is Europe. or digital platforms. One challenge in such in all IKEA supply chains (page 40). We also started We believe in building together with all suppliers throughout instances is implementing requirements for long-term relationships with our suppliers and emphasise our value chain. It’s also the IKEA developing requirements for agriculture supply supplier development. The average length of collaboration systems to register working hours. chains, strengthening our responsible sourcing in with our home furnishing suppliers is 11 years. We take supplier code of conduct and a both environmental and social aspects. In parallel e昀昀orts to understand speci昀椀c local contexts and take a development programme for supplier During the year, to support suppliers consistent and risk-based approach to securing good social, we started to develop the roadmap for supply environmental and working conditions. sustainability practices. implementing IWAY, we o昀昀ered more than chain compliance with mandatory requirements in 1,000 implementation activities. These include the upcoming IWAY Agriculture Section. In FY23, we continued the implementation of capacity-building and training on topics the IWAY Digital Platform Work Section 6.0 like internal auditing, health and safety and among suppliers who rely on digital platforms responsible recruitment. Read more about how to provide services for the IKEA business. These we work with IWAY. 1 The purchasing share for EU in value is 64%. 55 - IKEA SUSTAINABILITY REPORT FY23