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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 Joining the Open Call to Accelerate Action Increasing water recycling in our textile on Water supply chain In March 2023, the IKEA business participated One textile supplier in China has installed in the UN Water Conference. At this historic a reverse osmosis and evaporator facility. meeting (the 昀椀rst UN conference on water in 40 The overall recycling rate has increased years), we joined the Business Leaders' Open from 74% in FY22 to 96% in FY23, resulting Call to Action on Water. We have committed to; 3 in four million m of recycled water • Improving water resilience in water basins being used in the facility. The increased where we operate recycling contributes to a 21% reduction in freshwater use compared to FY22. • Implementing resilient water management practices for both water quantity and Building a 昀氀oating platform to clean water Flood and drought risk assessment at quality in our supply chains in Pakistan IKEA Industry Poland sites • Joining others to make a positive water In FY23, WWF and the IKEA business, through During 2023, 昀氀ooding and drought risks impact in at least 100 vulnerable global our partnership to restore biodiversity in were assessed, and nature-based actions water basins by 2030, focusing on the cotton-growing regions, created a small to become more resilient were proposed. A most stressed basins in our operations and supply chains arti昀椀cial 昀氀oating platform for 昀氀owering plant wetland to prevent 昀氀ooding during heavy species. The platform is used to clean water rain was constructed at the Manufacturing Our plan to achieve these commitments for a small village in Khanewal, Punjab, Development Centre in Zbaszyn – a good includes target setting, working with and Pakistan. example of a nature-based solution. supporting suppliers throughout the IKEA value The platform improved the village’s local The assessment will continue, and more chain and continuing our work with WWF on water source – a pond that was a source of solutions will be proposed at other IKEA vulnerable water basins. diseases and pests such as mosquitoes with Industry sites during FY24. wastewater coming from the village. The free-hanging roots of reed plants 昀椀lter the water, removing pollutants and microbes. The cleaned water is now being used for growing cotton, which supports the lives and livelihoods of nearly 5,000 people in the village. This nature-based solution is low-cost and low-maintenance, and its scalability is currently being explored. 34 - IKEA SUSTAINABILITY REPORT FY23

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