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 Decent and meaningful work IKEA INDUSTRY We're committed to providing and supporting decent and meaningful work across the value chain. IKEA Industry is the Inter IKEA owned strategic manufacturer that produces IKEA home furnishing products. Health and safety is a Responsible wage practices top priority to secure a safe workplace for the over 14,000 IKEA Our journey to take a holistic approach to responsible Industry co-workers. Incident reporting is an important driver wage practices (RWP), putting equal focus on equality in identifying improvements to prevent future accidents, and in FY23, 14,400 incidents were reported (FY22: 13,000). at work, pay principles, competence, dialogue and a living wage, continues across all IKEA businesses. To support a safe working place, we closely monitor, record 2 In FY23, RWP was introduced and began being and act on incidents with the aim of decreasing the number of 3 implemented in all parts of our business. The pace of accidents year on year. implementation is determined by various business IKEA Industry striving to make workplaces safe, everyday Our goal is for all co-workers to be safe at work and return home realities and local prerequisites. safely every day. In FY23, we saw a decrease not only in reported 4 A baseline assessment was completed in 31 IKEA retail lost time accidents (LTA) but in the frequency of these accidents markets,1 showing areas for improvement, including as well (FY22: 134, 4.4). competence development. Action plans are now in place to improve identi昀椀ed areas and to establish systematic ways of working with RWP processes. IKEA Industry IKEA Industry IKEA Industry * 5 * Other IKEA franchisees are in the exploration phase LTA – Lost time accident trend LTAF – Lost time accident frequency Reported incidents (thousands) and planning for RWP baseline assessments in FY24. To better support the implementation of RWP into FY21 123 FY21 3.85 FY21 56.3 various IKEA businesses and beyond, we have been FY22 134 FY22 4.4 FY22 13.0 gathering and sharing learnings, both from internal partners and from other companies, as well as FY23 88 FY23 3.6 FY23 14.4 external parties like the Fair Wage Network and * * WageIndicator Foundation. Accidents requiring a minimum of one day sick leave. Unsafe conditions, unsafe acts and near misses that could have led to an accident. We actively support the global movement towards decent work and living wages and the ambition to publish a global database on living wages. 2 An unsafe condition, unsafe behaviour or a near miss. 3 An occurrence resulting in damage or injury. 4 An on-the-job accident that results in an employee being absent from the workplace for a minimum of one full day work day. 5 Number of accidents reported per working hours. 1 All markets operated by the franchisee Ingka Group. 50 - IKEA SUSTAINABILITY REPORT FY23