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 FY23 global trends and challenges Our sustainability strategy is continuously ! Addressing the ongoing climate crisis on nature and prioritising actions to take in a ! Transforming food systems reviewed to secure alignment with We have already begun seeing worse impacts stepwise manner. We are currently assessing The global food system is increasingly in the the total IKEA strategic landscape and of climate change on communities around our impact and dependency on nature across external developments. We receive and the IKEA value chain and welcome the Business spotlight as it contributes to – and is a昀昀ected by review ongoing input from stakeholders, the world. In the six years from 2016 to 2021, for Nature campaign “It’s Now for Nature” to – nature and biodiversity loss, climate change, UNICEF reported that 43.1 million children were encourage business action on protecting and land and soil degradation, humanitarian key scienti昀椀c reports, advisory boards, 1 displaced due to weather-related disasters. sustainability council meetings, regulatory restoring nature. crises, and con昀氀icts. Making susbstantial and legislative developments and our Combating climate change is a critical changes to the way we farm, source food and partners. This supports us in identifying global challenge. The IKEA business remains eat can play an important role in addressing and addressing trends within major global committed to the Paris Agreement to limit ! Protecting human rights these challenges around the world. We must challenges, revising our plans, and raising global warming to 1.5°C and to contribute by act to protect, conserve, and restore nature leading with actions, facts and science-based Upholding human rights is an imperative for – including halting and reversing the loss of ambition levels wherever possible. building resilient and just societies worldwide. forests – and other important ecosystems to goals. Due to the accelerating inequality, global ensure that food systems deliver signi昀椀cant and geopolitical unrest and the devastating impacts measurable progress. We aim to play our part ! Geopolitical tensions and con昀氀ict ! Safeguarding and restoring natural systems of environmental emergencies on the most in contributing to food systems and agricultural These challenges are set against the As climate change and other environmental vulnerable, there is increasing demand for practices that deliver progress for people, backdrop of continuous destabilising and crises worsen, preserving and restoring nature companies to respond to human rights issues nature and climate. devastating con昀氀icts and humanitarian stands out as a critical challenge. Following across their value chains. Companies are crises, which have the potential to divert the adoption of the historic Kunming-Montreal expected to step up their due diligence e昀昀orts the attention of governments away Global Biodiversity Framework in 2022, and address any adverse impacts. Regulatory ! Making healthy and sustainable living from addressing climate change and governments and organisations worldwide developments such as the EU Corporate a昀昀ordable biodiversity loss. Another trend is the rise, are now tasked with meeting 23 targets for Sustainability Due Diligence Directive (CSDDD) Findings from the Globescan 2023 Healthy in many countries, of governing powers 2030 and four key goals by 2050 in order to are accentuating the role of companies in and Sustainable Living consumer research that undermine environmental e昀昀orts restore biodiversity and nature and give the taking responsibility for human rights issues. programme show that healthy and sustainable The IKEA business is committed to contributing 2 and legislation. It is more important than world a chance to mitigate some of the worst living is considered too expensive. The ever that businesses keep the momentum e昀昀ects of a changing climate. In May 2023, to a fair and equal society by respecting and increased cost of living remains a challenge going, showing the strong will of the the Science Based Target Network (SBTN) promoting human rights across the IKEA value for many people globally, emphasising the private sector to address these challenges released the 昀椀rst version of their guidance chain and contributing to resilient societies. need for companies to make healthy and with urgency. to set science-based targets for nature, sustainable o昀昀erings more a昀昀ordable and guiding companies in assessing their impact accessible to all. 1 UNICEF, "Weather-related disasters led to 43.1 million displacements of children over six years" 2023. 2 GlobeScan, "Healthy & Sustainable Living Report", 2023. 7 - IKEA SUSTAINABILITY REPORT FY23