“We are going all-in to have a positive impact on people and the planet. We’ve achieved a lot in FY15, and we are raising our voice on climate change, the most important issue our society faces today. By taking action and encouraging others to do so, we can create a better everyday life for the many people.”

STEVE HOWARDChief Sustainability Officer, IKEA Group

We want to inspire and enable a more sustainable life at home for the many peopleThat is why we are developing products and services that enable our customers to use less water and energy, reduce waste and live healthier lives.

We want to become resource and energy independentThat means helping to transform the industry for our key raw materials like cotton and wood, investing in renewable energy and becoming more efficient in our operations and supply chain. And it means making every product more sustainable while keeping the quality, function, form and affordability our customers love.

We want to create a better life for the people and communities impacted by our business That includes everyone involved in our business, from our suppliers’ co-workers to our own co-workers, our customers and the communities around us.

LED - Our entire lighting range is now LED or compatible with LED bulbs. They use up to 85% less energy than traditional in-candescent light bulbs and last up to 20 years! This is great news for the planet and for customers’ wallets.

The IKEA Foundation committed EUR 400 million to support communities most impacted by climate change.

Now all of the cotton we use for IKEA products comes from more sustainable sources1. This means that the farmers supplying cotton use less water, chemical fertilisers and pesticides, while increasing their profits.

EUR 600 million We committed EUR 600 million to renewable energy, building on the EUR 1.5 billion we have invested in wind and solar since 2009. This will help us to reach our 2020 target to produce as much renewable energy as the energy we use across our operations.

Supporting suppliers with IWAY (our supplier code of conduct) Together with our suppliers, we significantly reduced working hours, while maintaining salaries, for the peo-ple who work for our suppliers in China.

Veggieballs We introduced veggieballs to our food range. With just half the saturated fat

and 3-5% of the carbon footprint of our traditional meatballs, this is another step towards making our food range healthier

and more sustainable.

EUR 400 million

4,033 co-workers and 146 customers trialled products to enable them to live more sustain-ably at home. The first of these projects launched in France and Switzerland, and more will follow in FY16.

82%Our VOICE survey showed that 82% of co-workers agree with the statement, “I am proud of the way that IKEA works with sustainability”, and 79% agree with the statement, “Within my department sustainability is a natural part of everyday work”.

29%increase in sales of products that contribute to a more sustainable life at home, compared with FY14.

EUR 20.9 million raised to improve opportunities for children and families in some of the world’s poorest communi-ties through the Brighter Lives for Refugees and Soft Toys for Education campaigns4.

MORE SUSTAINABLE LIFE AT HOME

RESOURCE AND ENERGY INDEPENDENCE

BETTER LIFE FOR PEOPLE AND COMMUNITIES

2 More sustainable sources for wood are currently defined as FSC™-certified or recycled wood. 3 Crayfish is an exception as there are currently no certified fisheries.

1 Cotton from more sustainable sources includes cotton grown to the Better Cotton Standard; by farmers working towards Better Cotton; and more sustainable cotton from the USA (such as the ‘e3 Cotton Program’).

4 Figures for the Soft toys for education campaign are from November and December 2014, figures for the Brighter lives for refugees campaign are from February and March 2015

A MESSAGE FROM STEVE

SUSTAINABILITYSUMMARY IKEA

GROUPFY15

Sustainable seafood – Fish and seafood sold and served in IKEA stores around the world now comes from sustainable and responsible sources3.

50%of our wood came from more sustainable sources2, meeting our target two years ahead of schedule! By August 2020, we aim to source 100% of our wood, paper and cardboard from more sustainable sources.

53%We produced renewable energy equivalent to 53% of our total energy consumption. Adding all the wind farms that we have committed to own and operate, we will gener-ate renewable energy equivalent to over 70% of our FY15 consumption.

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