Wood is IKEA identity - Illegal loggingRomania France Slovakia Italy Canada Czech Republic Thailand Latvia Vietnam United States Austria Brazil Belarus Ukraine Portugal Finland Bulgaria

Forestry Chatham House 170113

Wood is

IKEA identity


IKEA Forestry requirements

since 1998


Approximate

5,9

7,9

0,4 0,4 0,1 0,010123456789

Solid

Wood

Board

Mate

rials

Paper

Cata

logue

Paper

Corr

ugate

d

Board

Paper

in A

rtic

les

Oth

er

PaperM

illi

on

m3 R

WE

Fresh Wood Raw Material Usage FY2011

http://iwww.retail.ikea.com/ipublish/net/public/Link.aspx?link=news&news_id=259724

http://iwww.retail.ikea.com/ipublish/net/public/Link.aspx?link=news&news_id=259724


Top Sourcing Countries FY12

Solid Wood and Board

material

22%

8%

8%

7%

7% 6%

6%

4%

3%

2%

2%

2%

2%

2%

2%

2%

1% 1%

1% 1%

1%

1% 1%

1% 1% 1%

5%

Poland

Germany

Russia

Lithuania

Sweden

China

Romania

France

Slovakia

Italy

Canada

Czech Republic

Thailand

Latvia

Vietnam

United States

Austria

Brazil

Belarus

Croatia

Ukraine

Portugal

Spain

Finland

Bulgaria

Switzerland

others


• EU Timber Regulation • US Lacey Act • Australia Illegal logging Bill

90% of IKEA retail market !

http://www.enchantedlearning.com/school/Australia/Flagprintout.shtml




• Integration of ALL legal requirements

• IKEA’s due diligence system


Role of certification

• IKEA considers the legal due diligence systems in certification best practice

• Control points are in the right place. In the forest or where the wood leaves the forest

• IKEA due diligence integrates both FSC and PEFC approaches to ensuring of legality


16 IKEA Foresters


Start-up of new IKEA supplier

First delivery

Approved: a) Wood Procurement Plan

or b) FSC chain of Custody

(chp 15)

Within 90 days to comply with applicable IWAY

Forestry Standard procedures (chp.16, 17 or

18)

Initial IWAY assessment IWAY MUST approval


IKEA Approved Species List


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


IKEA Forestry Tools (3) 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

…


Russia

Belarus

Lithuani

a


Lacey Act Declaration

Connect Data

Shipment Data

0.015 m3

0.0155 m3

0.013 m3

Solid Pine

Solid Pine layered

Plywood

Layered beach veneer

Solid beach

Pinus primus, SE Pinus primus, FI

Pinus secundus, PL



Approved Species

in Connect

Fagus primus, SE Fagus primus, DK

Fagus secundus, PL

Fagus primus, DK

Declarations according by material supplier (IWAY and IOS-MAT-0087)


Not affected

PIA

Items affected

by Lacey Act

Item & HTSUS code

Custom system

Lacey Act Declaration

Article affected by Lacey Act and requires declaration

Y/N Connect data not available

Connect data is available

Warning / manual handling

Connect Data

Shipment Data

= new system functions

Input modul

HTSUS Codes requiring

declaration


EU Timber regulation

Key Elements

1. Information

2. Risk Assessment

3. Risk Mitigation

The Due Diligence System

√ √

√


It is not normally

possible to trace individual

product back to the forest


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

http://images.google.se/imgres?imgurl=http://www.davidclouting.co.uk/images/defaultpic.jpg&imgrefurl=http://www.davidclouting.co.uk/edgebandingproduct.html&usg=__rA7pPGIea5HVXd1m0z0Obo45CaI=&h=500&w=500&sz=37&hl=sv&start=257&um=1&tbnid=8hrJFDaCbU5hwM:&tbnh=130&tbnw=130&prev=/images%3Fq%3Dmelamine%2Bfoil%26ndsp%3D18%26hl%3Dsv%26sa%3DN%26start%3D252%26um%3D1

http://images.google.se/imgres?imgurl=http://www.wfgreenland.com/pp/product/2008523103151.jpg&imgrefurl=http://www.wfgreenland.com/cp_re.asp%3Fid%3D168&usg=__fMGz9e9I8R__uwzOCccjLdQnLuM=&h=307&w=350&sz=32&hl=sv&start=270&um=1&tbnid=2cwxrT79VheBiM:&tbnh=105&tbnw=120&prev=/images%3Fq%3Dparticleboard%26ndsp%3D18%26hl%3Dsv%26sa%3DN%26start%3D252%26um%3D1

http://images.google.se/imgres?imgurl=http://www.trojancrates.co.uk/images/mdf.jpg&imgrefurl=http://www.trojancrates.co.uk/timbersupply2.asp&usg=__a_DNsQ3Q3Wda-R0IA07Z3p2DQdE=&h=846&w=1122&sz=122&hl=sv&start=3&um=1&tbnid=up5DA828--POwM:&tbnh=113&tbnw=150&prev=/images%3Fq%3DMDF%26hl%3Dsv%26um%3D1

http://images.google.se/imgres?imgurl=http://www.indiamart.com/nirmalindustries/pcat-gifs/products-small/hard-board.jpg&imgrefurl=http://dir.indiamart.com/impcat/hardboard.html&usg=__77_IGDSAgRrWN9YR7eaYYHLfCaE=&h=240&w=240&sz=10&hl=sv&start=115&um=1&tbnid=vsKi-smiNefhfM:&tbnh=110&tbnw=110&prev=/images%3Fq%3Dhardboard%26ndsp%3D18%26hl%3Dsv%26sa%3DN%26start%3D108%26um%3D1


http://images.google.se/imgres?imgurl=http://www.chiphi-pi.org/b2b/pics/Melamine_Edge_Band.jpg&imgrefurl=http://www.chiphi-pi.org/b2b/dining_room_furniture/5/&usg=__9yinHlJmDE2l-xXYKjIfwEiaNyU=&h=359&w=359&sz=14&hl=sv&start=10&um=1&tbnid=7b-k6__wNgKBpM:&tbnh=121&tbnw=121&prev=/images%3Fq%3Dedge%2Bband%26hl%3Dsv%26um%3D1



Material sourcing for a simple product

Furniture

producer

Board

mill

Paper

mill

Pulp

mill

Board

mill

Paper

mill Pulp

mill

Board

mill

Paper

mill

Pulp

mill

Foil mill

Paper

mill Pulp

mill

Foil

mill

Foil

mill

Foil

mill

IKEA

x 3-5

x 2-3

x 2-3

x 2-3 x 1-2

x 2-2

x 3-4

x 3-4

x 2-3

x 3-4

x 3-4

x 2-3 x 2-3

x 2-3

x 2-3 x 50-60

x 50-60

x 50-60 x 50-60

x 50-60

x 50-60

x 50-60





http://images.google.se/imgres?imgurl=http://costadelcroco.com/e-market.bg/images/melamine_MDF.jpg&imgrefurl=http://costadelcroco.com/e-market.bg/index.php%3Fmain_page%3Dindex%26manufacturers_id%3D10&usg=__TPv4rYqh0YI-4RV8wMdvNrRtp6A=&h=375&w=500&sz=36&hl=sv&start=5&um=1&tbnid=5JGBC-MUfaj6JM:&tbnh=98&tbnw=130&prev=/images%3Fq%3DMDF%2Bmelamine%26hl%3Dsv%26um%3D1


















Material sourcing for a simple product

Furniture

producer

Board

mill

Paper

mill

Pulp

mill

Board

mill

Paper

mill Pulp

mill

Board

mill

Paper

mill

Pulp

mill

Foil mill

Paper

mill Pulp

mill

Foil

mill

Foil

mill

Foil

mill

IKEA

x 3-5

x 2-3

x 2-3

x 2-3 x 1-2

x 2-2

x 3-4

x 3-4

x 2-3

x 3-4

x 3-4

x 2-3 x 2-3

x 2-3

x 2-3 x 50-60

x 50-60

x 50-60 x 50-60

x 50-60

x 50-60

x 50-60












Wrap up

• 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

Documents

Wood is IKEA identity - Illegal loggingRomania France Slovakia Italy Canada Czech Republic Thailand Latvia Vietnam United States Austria Brazil Belarus Ukraine Portugal Finland Bulgaria