8 - IKEA Sustainability Strategy - People & Planet Positive - © Inter IKEA Systems B.V. 2023 Challenge Inequality is rising The world economy has grown Global challenges such as pandemics, climate Inequality has become a systemic risk that exponentially over the past change, biodiversity loss and geopolitical is threatening individuals, communities, hundred years, contributing to con昀氀icts continue to accelerate inequality, companies and entire economies. Businesses, the largest reduction of poverty hitting the most vulnerable the hardest. like IKEA, have a huge opportunity and in the history of mankind. At The transition to a net-zero economy brings responsibility to work alongside governments the same time, there is an ever- additional challenges for livelihoods and to build resilient societies in which everyone’s increasing level of inequality human rights, as industries must drastically rights are respected, basic needs are met, and and social instability, with vast change, while the impacts of climate change equal opportunities are available for all. numbers of people being left are set to cause widespread disruption that will disproportionally a昀昀ect vulnerable behind. IKEA has identi昀椀ed and is taking action across communities. many areas – including respecting human Inequality is the uneven distribution rights, providing decent and meaningful of income, wealth, and wellbeing. Many people have seen their jobs become Estimates show that COVID-19 has pushed work, paying and promoting a living wage It matters because it undermines unstable, wages not covering basic needs around 100 million people back into extreme and focusing on vulnerable groups, such as human dignity – breeding discontent, 1 and a fast technological shift that’s di昀케cult to poverty. Women are disproportionately children, and becoming a more equal, diverse fuelling division, and leaving our adapt to – automation is predicted to replace and inclusive business. a昀昀ected, leaving their jobs and not returning, societies incapable of tackling the millions of jobs in the coming decades. Gender and younger generations are losing access to collective challenges we face. equality is still far from a reality and people education and job opportunities. New research are still discriminated against based on their suggests climate change could push a further WBCSD, 2022 ethnicity, ability, gender identity or sexual 130 million people into extreme poverty by orientation, etc. 2 2030. 1 World Bank, 2021. Updated estimates of the impact of COVID-19 on global poverty: Looking back at 2020 and the outlook for 2021. 2 World Bank Group, 2020. Revised Estimates of the Impact of Climate Change on Extreme Poverty by 2030.