IKEA A PRESENTATION ON SUSTAINABILITY. IKEA Corporate and Social responsibility.
Social and Environmental Affairs Thomas Bergmark IKEA Group
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Transcript of Social and Environmental Affairs Thomas Bergmark IKEA Group
© Inter IKEA Systems B. V. 2000
Social and Environmental AffairsThomas Bergmark IKEA Group
© Inter IKEA Systems B. V. 2000
…is to create a better everyday life for the many people
Our Vision….
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• 19,8 billion Euro sales FY 2007
• 118.000 co-workers
• 260 stores in 39 countries
• 1350 Suppliers in 50 countries
• 38 factories in 11 countries
• 42 distribution centres in 16 countries
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“Focus Areas” - also beyond 2009…...
Products & materials Suppliers Energy & Transport Buildings & infrastructure Community involvement Leadership & Competence
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Suppliers
“IKEA shall secure good Social, Working and Environmental conditions at its suppliers, and increase the suppliers’ own capability and motivation to implement and maintain our demands”
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Is it possible to source at competitive prices while living up to its customers demands on taking social and environmental responsibility?
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Top 5 purchase countries
China 22%Poland 16%Italy 8%Sweden 6%Germany 6%
Purchasing
By region
Asia 33%
Europe 64%
North America 3%
Purchasing FY 07
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The IKEA supplier world...
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Differs a lot…...
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IWAY consists of...
• Our Code of Conduct - “IWAY” “The IKEA Way on Purchasing Home Furnishing Products”
• Social-, Working- and Environmental conditions
• IWAY Standard
• IWAY evaluation checklist – 90 criteria’s
• Requirements on all 1350 IKEA Suppliers
• Sub-suppliers to sign and acknowledge the requirements
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IWAY Standard - 17 areas•.General Legal Compliance•.Emissions to air and water, Noise•.Ground Contamination•.Chemicals•.Hazardous and Non-Hazardous Waste•.Fire Safety •.Worker Safety•.Provided Housing Facilities•.Wages, benefits and Working Hours•.Child Labour•.Forced & Bonded Labour•.Discrimination•.Freedom of Association•.Harassment and Abuse / Disciplinary Practises• Continuous Improvements•.Routines for procurement of wood, bamboo and rattan• Fulfilment of IKEA and legal forestry demands
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Trading Service Offices• 100 IKEA auditors performing IWAY audits
• developing suppliers
• ..
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Internal & External Verification audits
1. Trading Service Offices2. Compliance team 3. PWC, KPMG and ITS
• All suppliers are covered• Selected Sub-suppliers as well
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Sub Suppliers
• Unannounced child labour audits in India and Pakistan by 3rd party• “High risk” strategy
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IWAY fulfillment rates 2007
Average IWAY fulfilment
50%
60%
70%
80%
90%
100%
March2004
March2005
March2006
Dec2006
May2007
Sept
Europe
Asia
Americas
Total
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Social & Environmental Report F.Y.2006 on www.IKEA-group.IKEA.com
Social & Environmental
Responsibility
Report 2006
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Conclusions• Our Vision is the foundation• S&E Strategy with suppliers in focus• Clear requirements in our CoC• Auditing of suppliers and sub-suppliers• We put a lot of IKEA resources on this• No quick fix! Also dilemmas!
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WE CAN MAKE A DIFFERENCE!!- by doing business in a responsible way….
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