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IKEA Forestry
Due DiligenceFair Wood Seminar – Japan’s Illegal Logging Measures: “Goho” Wood and Retailers Role
Global Environmental Forum, Friends of the Earth – Japan
15 March 2013 Tokyo
Outlook for today• IKEA introduction
• Wood use
• Drivers of responsible wood
procurement
• IKEA Forestry Standard & tools
• Challenges
Wood
is
IKEA
identity
The early years - from ballpoints and stockings to furniture
Our first catalogue. Developing own designs - and starting to pack them flat!
Expanding - Germany, Australia, Canada…Start to purchase in Greater China
Expanding - USA, UK, Italy...
Expanding - China, Poland, Spain...
1940’s
1950’s
1980’s
1990’s
2000’s
1970’s
Expanding - Russia, Japan and on the Internet
IKEA was founded in 1943.
IKEA RETAILING WORLDWIDE SEPTEMBER 2011 – AUGUST 2012
Top 5 Wood buyersamong home improvement retailers & consumer goods
companies
1. The Home Depot (USA)
2. Lowe’s (USA)
3. IKEA (Sweden)
4. Kimberly-Clark (USA)
5. Procter & Gamble (USA)
Source: http://www.rainforests.net/top5woodbuyers.htm
0
1
2
3
4
5
6
7
8
solid wood board papercatalogue
papercorrugatedboard
paper inarticles
other paper
5.9
7.9
0.4 0.40.1 0.01
IKEA wood use FY12(Million m3 round wood equivalent)
Species & countries
Consumer attitude* 消费者的观点
0% 5% 10% 15% 20% 25%
Energy used in transport
Waste and energy in stores
Fair treatment of workers in its suppliers
Fair treatment of employees in IKEA
Energy used in the manufacture of its…
Sourcing of the wood used in its…
Quality and durability of its products
3%
2%
3%
6%
7%
8%
9%
9%
11%
19%
21%
木材来源
能量消耗
公平对待宜家员工
公平对待供应商员工
8564 respondents in 8 markets (US, UK, SW, Germany, Italy, France, China, Poland), % of all consumers who selected the issue as most important for IKEA to address在宜家8个主要的消费市场共8564名参与者选出了他们认为对宜家最重要方面
*Lippincott Study 2011
质量和耐用性
• EU Timber Regulation
• US Lacey Act
• Australia Illegal
logging Bill
90%90% of IKEA retail market
implement law on legality!
What could be the consequences for IKEA of
breaking the law ?
• Brand damage
• Legal consequences
• Brand damage
• Legal consequences
• Integration of ALL legal requirements
• IKEA’s due diligence system
IKEA minimum requirements 宜家最低要求
1) known origin of wood 知道木材原产地
2) not from any of the following 禁止下列来源木材：
Illegal logging, Social conflicts, Geographically
identified HCVF, Conversion, GMO 涉及非法采伐，涉及
社会冲突，原始森林和高保护价值森林，热带雨林，转基因
人工林
IKEA preferred sources
宜家优先选用木材来源
forests verified as responsibly managed according to a system recognized by IKEA
currently, only FSC FM & CoCcertified wood and recycled wood meet IKEA requirements for preferred sources
木材来自负责人经营的森林，该森林必
须通过宜家认可的认证体系。现阶段,
只有通过森林管理委员会（FSC）森林
管理(FM)和产销监管链(CoC)标准认证
的木材符合宜家优先选择资源的要求和
消费前和消费后回收木材
IKEA forestry direction宜家森林方针
IKEA Forestry Tools (1) Forest Tracing Survey (FTS) –regular report from suppliers on wood material
that could have been used in IKEA articles
Wood Procurement Plan (WPP) –report from new and ongoing on suppliers on
planned wood material sourcing for IKEA
Wood Tracing System (WTS) –web based system for managing, visualizing, analyzing data from suppliers and storing data from audits.
IKEA Risk List – for identifying high risk wood
sources that may be present in IKEA wood supply
chains
Auditing – IWAY Forestry (5)
IKEA
IKEA Supplier
Auditing – Wood Supply Chain Audits
IKEA
IKEA Supplier
IKEA Sub-supplier
Logging site
…
Supplier level audit:
• Forestry responsible
• Wood procurement procedure
• Communication of IKEA requirements down supply chain
• Risk analysis and Verification
• Records of incoming wood– Supply chain structure– Evidence of wood origin– Evidence on Landing volume
• Separation of unverified wood
Audit of logging site:• Document proof of legality (obtaining logging rights, logging
license etc)• Field evidence of compliance with legislation (logging site borders,
logging methods & season compliant with management plan, etc)• Evidence of compliance with IKEA min requirements
What is audited? Resources: 16 forestry specialists
QINGDAO
SHENZHEN
Mikhail Tarasov
FORESTRY MANAGER
Qingdao
Tai WenFORESTRY SPECIALIST
Qingdao
StoneFORESTRY SPECIALIST
Qingdao
EstellaFORESTRY SPECIALIST
Qingdao
CarrieFORESTRY SPECIALIST
Shanghai
DorisFORESTRY SPECIALIST
Shenzhen
KristinaFORESTRY SPECIALIST
Novosibirsk (Russia)
SHANGHAI
NOVOSIBIRSK IKEA China forestry team
• 17.3% of wood verified by IKEA internal audits (90% in China)
�81% of wood comes from 3rd
party- or IKEA-verified suppliers
• 63.5% of IKEA wood comes from FSC CoC certified suppliers
IKEA wood verification
limited amount of certified wood on the market
市场上认证木材数量有限
Challenges of responsible wood
supply 1(3) 木材采购面临的挑战 1(3)
• Increase supply from IKEA pref sources
– help certify FM and CoC
– Over 80% of FSC certified forests in China supported by
IKEA funded projects
• 增加宜家优先选择木材的供应
– 协调认证林地和产销监管链
– 现在中国认证的林地中超过80%是通过宜家项目支持的
And how to address those
challenges? 如何迎接挑战
State Forestry Administration
• It is normally not possible or meningful to trace individual products back to the forest
Challenges of responsible wood
supply 2(3) 木材采购面临的挑战 2(3)
Materials of wood origin in a
modern simple chest of drawers
Board, 3 types
Paper core foil,
3 types*
Paper core
edge band*
7 composite
wood based
materials
Material sourcing for a simple product
Furniture
producer
Board
mill
Paper
mill
Pulp
mill
Board
mill
Paper
millPulp
mill
Board
mill
Paper
mill
Pulp
mill
Foil mill
Paper
millPulp
mill
Foil
mill
Foil
mill
Foil
mill
IKEA
x 3-5
x 2-3
x 2-3
x 2-3x 1-2
x 2-3
x 3-4
x 3-4
x 2-3
x 3-4
x 3-4
x 2-3x 2-3
x 2-3
x 2-3
x 200-1000
x 500-2000
x 500-2000
x 200-1000
x 200-1000
x 500-2000
x 500-2000
• Verifying the origin of boards in some countries (China)
Challenges of responsible wood
supply 3(3) 木材采购面临的挑战 3(3)
• Customer expectations (Brand capital) & legal requirements - drivers
• System approach– physical tracing of wood is resource inefficient
• Mitigation has to take place in the supply chain to bring the risk down to low before placing on the market
• Business advantage for companies who have operational DD systems
• We are happy to share our 15 years of experience
Wrap up
