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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 Wood Textiles Completed an in-depth risk assessment of textile value chains The global post-consumer textile recycling sector is immature, which limits textiles as a source of secondary raw materials at scale. However, there is a big potential for the IKEA business, together with other large companies, to be a leader in developing the recycled textiles sector. In FY23, together with Article One, we We're now producing the kitchen front VOXTORP in high gloss completed an in-depth risk assessment white, using more than 50% recycled wood in the 昀椀breboard. New recycled 昀椀breboard technology of textile value chains, including recycled By 2030, at least one-third of the IKEA wood-based materials. The objective was to identify range will be made from recycled wood. Fibreboard is any human rights risks across 昀椀ve key a key material for IKEA furniture, but one of the biggest Share of recycled wood in particle board (%) materials in the recovered materials challenges is its recyclability. In FY23, the share of recycled supply chain, discovering opportunities to content in particle board we use was 30% and 0.3% in help strengthen risk mitigation and build FY21 27% capabilities to assess human rights risks 昀椀breboards. in other IKEA recovered materials supply In FY23, we developed a new technology that enables FY22 27% chains. the recyclability of 昀椀breboard. We're now using this In FY23, we explored new feedstock types technology in the production of IKEA products, which FY23 30% is guiding us in developing new ways of working with and streams as well as technologies to these materials. The process is used to produce the FY30 80% accelerate textile-to-textile recycling and SKÅDIS pegboard and now, for the 昀椀rst time, in producing continued to build new supply chains By 2030, we aim to secure that at least 80% of our utilising post-consumer textile products the VOXTORP kitchen front in high gloss white with particle board is based on recycled wood. such as quilts and pillows. We piloted 昀椀breboard made of more than 50% recycled wood. thermo-mechanical recycling of polyester We are in dialogue with partners to join us in scaling up textile waste into yarns, and we partnered this technology and together moving the manufacturing with the social enterprise Saahas Zero industry in a new direction using recycled wood 昀椀bres. Waste in India to run a feasibility study for the collection and sorting of domestic post- consumer textile waste. 43 - IKEA SUSTAINABILITY REPORT FY23

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