Introduction | Becoming People & Planet Positive | Stakeholder engagement | Sustainability governance | SDG index INTRODUCTION LETTER Taking action here and now to pave the way for another 80 years FY23 has been another year of challenges In FY23, the IKEA climate footprint was estimated to A signi昀椀cant achievement this year was the conducted a double materiality assessment to for people around the world, as well as be 24.1 million tonnes CO2 eq, down 12% from FY22 development of rigorous action plans that allowed us inform our work. Looking ahead, we are preparing to for the IKEA business. We all experienced and 22% compared to the baseline year, FY16. The to strengthen our climate goals in line with the 1.5°C adjust our reporting in alignment with global and EU FY23 reduction was due mainly to lower production target and the SBTi Net-Zero standard. Our new goals initiatives like the CSRD. the e昀昀ects of in昀氀ation and a higher cost volumes but was also a result of increased renewable involve halving greenhouse gas emissions from the of living, geopolitical con昀氀icts, climate electricity use in both retail and production, as well IKEA value chain in absolute terms by FY30 compared In a challenging business environment, our change and the accelerating loss of as continued energy e昀케ciency improvements in the to FY16, and striving for a 90% reduction by FY50. Any commitment to playing our full part in contributing nature. In times like these, we try to be IKEA lighting range. Last year, however, we also saw remaining emissions will be neutralised within the to a fair and equal society is more important than both realists and optimists, and let IKEA a slight increase in the use of coal in production, IKEA value chain – without using carbon o昀昀sets – to ever. One way is to provide and support decent values, culture, and spirit lead the way. presenting a challenge to address in FY24. reach net-zero emissions. Our previous goal for FY30 and meaningful work. In FY23, we extended our We would like to give a big thanks to all was a 15% reduction. Our new goals were submitted responsible wage practices framework – an approach our colleagues, suppliers and partners A milestone that will impact our future footprint to SBTi in mid-November 2023 and are currently to putting equal focus on equality at work, pay for your support and hard work. is the introduction of bio-based glue in one of our pending approval. To further support change, the principles, competence, dialogue and a living wage board factories. Today, 5% of the climate footprint for IKEA business was present at COP28, joining in the – to IKEA franchisees. As a next step, we will initiate FY23 also marked 80 years since Ingvar Kamprad the total IKEA value chain is connected to the use of call to phase out fossil fuels, halt deforestation, and pilots among suppliers. We also continued our founded IKEA in 1943. Ever since then, we have had glue in board materials. address the root causes of air pollution. partnerships with social businesses. In FY23, we had the privilege of being part of people’s homes and a total of 12 partnerships with over 11,000 people lives. Our circularity agenda, which includes using more The IKEA business has long promoted responsible from vulnerable and marginalised groups now recycled materials, is crucial for lowering our climate sourcing within our business. We have steered employed in IKEA production. Overall, IKEA stores welcomed 860 million visitors footprint. While some materials, like ceramics, are market transformation for key raw materials in FY23, and sales amounted to EUR 47.6 billion, an challenging to recycle. One breakthrough from FY23 and continue to use innovative approaches to As our work continues, we stay optimistic. increase of 6.6% compared to FY22. Both store sales was the SILVERSIDA product series. It represents our forest management, protection, restoration, and Sustainability is an integrated part of our business, and online sales continued to grow in value despite 昀椀rst successful attempt to use ceramic production regeneration. During the year, we continued the and our long-term commitment to making the continued challenge of lower sales quantities. waste to make new tableware. SILVERSIDA products work of understanding our impact and dependency sustainable living a昀昀ordable and accessible to the Looking ahead, we’re focusing on our three main are made from 65-70% factory waste materials. on biodiversity across our value chain using the many will continue to guide us for the next 80 years. Science Based Targets Networks (SBTN) as guidance. opportunities: become even more a昀昀ordable, more accessible and more sustainable. Another challenge is producing 昀椀breboard from recycled materials. The share of recycled content in In FY23, we took a big step by launching an Today, achieving our IKEA vision of creating a better our particleboard was 30%, compared with 0.3% for industry-昀椀rst global wood supply map, increasing everyday life for the many people means acting here 昀椀breboard. But now, we're using new technology transparency by publicly sharing the origins of the and now to contribute to limiting climate change, enabling the use of more than 50% recycled wood in wood used in IKEA products. reversing nature loss and reducing inequality. 昀椀breboard. In FY23, we started producing the popular VOXTORP kitchen front in high-gloss white using the Additionally, we are progressing the work to secure more sustainable 昀椀breboard. our readiness for the Corporate Sustainability Jon Abrahamsson Ring Pär Stenmark Reporting Directive (CSRD) by 2026. Last year, we Chief Executive O昀케cer, Chief Sustainability O昀케cer, Inter IKEA Group Inter IKEA Group 3 - IKEA SUSTAINABILITY REPORT FY23