6 - IKEA Sustainability Strategy - People & Planet Positive - © Inter IKEA Systems B.V. 2023 Challenge Climate change Climate change is one of the To limit the critical e昀昀ects climate change IKEA climate footprint FY16 (baseline year) biggest challenges that humanity has on people, the planet and business, % of total greenhouse gas emissions – 27.8 million tonnes CO2 eq faces. Temperatures are rising the temperature increase must be limited 3,4 more and more every year,1,2 to 1.5°C. To do this, global greenhouse Materials 43.5% and gas emissions must be cut in half by 2030 today we can already see the compared to 2010 - achieved mainly through Food ingredients 3.5% 3 impact. The urgency to act now drastic reductions in greenhouse gas is clear. Production 10.5% emissions, as well as by removing CO2 from the atmosphere through better forest and Product transport 4.0% The signing of the Paris Climate Agreement agriculture management. By 2050, at the IKEA retail & other was an important step towards coordinated operations 1.9% latest, this combined e昀昀ect must reach net global action to keep the global temperature zero emissions. Co-worker commuting 0.8% increase to below 1.5°C by the end of the & business travel century. Customer travel & 5.4% home deliveries Product use at home 23.1% Product end-of-life 6.2% Other 1.0% 1 https://news.un.org/en/story/2022/01/1110022 The climate footprint data is annually reviewed and updated, to 2 https://climate.nasa.gov/vital-signs/global-temperature/ accommodate for new emerging data and facts. The largest IKEA climate 3 https://www.ipcc.ch/sr15/ footprint comes from the materials used in products. Baseline calculation IPCC special report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, FY16, percentages have been rounded. in the context of strengthening the global response to the threat of climate change, sustainable development, and e昀昀orts to eradicate poverty. 4 https://www.wwf.org.uk/updates/our-warming-world-how-much-di昀昀erence-will-half-degree-really-make