Social and Environmental Affairs Thomas Bergmark IKEA Group. Inter IKEA Systems B. V. 2000

Transcription

1 Social and Environmental Affairs Thomas Bergmark IKEA Group

2 IT S&E Impacts What social & environmental issues you can relate to?; Design & materials Manufacturing Distribution Use of the products End-of-life How do we address these issues today? Needs for the future?

3 Agenda Workshop on prepared questions IKEA S&E Strategy & actions Lunch Case studies Sharing results from Case studies

4 Workshop on prepared questions Read through the Social & Environmental strategy and reflect upon the Focus Areas. What results, activities or goals make YOU proud? Pick 3 examples. What results, activities or goals will YOU actively contribute to? Pick 3 examples.

5 17,3 billion Euro sales FY co-workers 237 stores in 39 countries 1300 Suppliers in 54 countries 38 factories in 9 countries 26 distribution centres in 16 countries

6 Purchasing Purchasing FY 06 By region Asia 28% North America 3% Top 5 purchase countries China 18% Poland 14% Italy 8% Sweden 7% Germany 6% Europe 69%

7 Our Vision. is to create a better everyday life for the many people

8 Småland Småland is associated with its hard working people who have developed skills for living on small means and making the best possible use of the limited resources available.

9 A set of shared values Togetherness and enthusiasm. Constant desire for renewal. Cost-consciousness. Willingness to accept and delegate responsibility. Humbleness and will-power. Simplicity. Leadership by example. Daring to be different. Striving to meet reality. Being on the way.

10 10 jobs in 10 years Job no 9 To take responsibility for our Suppliers, their co-workers and the environment

11 Sustainability Direction ; In a consumer society with growing & international business; The IKEA business shall have an overall positive impact on people & the environment

12 IKEA s business shall have an overall positive impact on people & the environment As a business we will have both positive and negative impact on people & the environment when we analyse individual issues. Long term we are convinced that it is fully possible to have a balance with more positive than negative impact on people and also on nature, as we step by step implement better solutions and alternatives. Thereby we move in the direction of sustainability

13 IT S&E Impacts Discuss what social & environmental issues you can relate to; Design & materials Manufacturing Distribution Use of the products End-of-life How do we address these issues today? Needs for the future?

14 Focus Areas - also beyond Products & materials Suppliers Energy & Transport Buildings & infrastructure Community involvement Leadership & Competence

15 Products & materials Products and materials shall always be environmentally adapted and safe from a health perspective

16 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

17 Energy & Transport IKEA shall employ and promote sustainable transport and energy use

18 Buildings & infrastructure IKEA establishments shall be the good example regarding environmentally adapted technology and infrastructure solutions

19 Community involvement IKEA shall act and be recognised as a good community partner wherever it operates

20 Leadership & Competence IKEA shall secure strong integration of Social & Environmental issues in our way of doing business and in our organisational behaviour.

21 Confidence in IKEA IKEA is a company that shows in action that it takes Social & Environmental responsibility. Co-workers Customers Suppliers

22 A lot of nice words and statements but what does IKEA really do?

23 Products & Materials - The E-Wheel Resource extractions 2. Production 3. Use 4. Recycling/End-of-Life 3 2

24 Environmentally adapted! At a lower cost!!

25 A World of Chemicals chemicals in society are used regularly 50 are evaluated from health & environmental perspective Precautionary principle!!

26 The IKEA supplier world...

27 Differs a lot...

28 Operational Purchasing Strategy Best buy Competitive bidding Cost savings by creating optimal conditions IKEA purchase price spiral Secure Quality and Code of Conduct

29 IWAY consists of... Our Code of Conduct - IWAY The IKEA Way on Purchasing Home Furnishing Products IWAY Standard IWAY evaluation checklist 90 criteria s Database with audit results Business responsibility, since Sept 2000 IWAY Council

30 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

31 Strategy against child labour. Ignore the problem? Work to improve the situation and to prevent child labour.

32 UNICEF project. 500 villages and more than people

33 Long term goal: To source all wood in the IKEA range from verified well-managed forests

34 IKEA Staircase Model Level 4 Level 1 Entry level Not from INF or HCVF Known origin Level 2 Minimum demands Legislation Not protected area Nov rule High value tropical tree species-fsc Level 3 4Wood IKEA standard Level 4 standard Official standard recognised by IKEA - FSC

35 WWF- IKEA forest projects Responsible forestry Promote legal compliance Strengthen FSC-certification

36 Trading Service Offices performing IWAY audits developing suppliers..

37 Internal & External Verification audits 1. Trading Service Offices 2. Compliance team 3. PWC, KPMG and ITS

38 IWAY fulfilment 2005

39 Difficult issues!local legislation!working hours!overtime payment!wastewater treatment!hazardous waste!chemicals In August 2006 the average supplier fulfils 90% of our requirements.. the 90 criteria s

40 Development!! Active support to the suppliers Training & education Special projects Re audits Co-operations & alliances

41 IWAY on Distribution Social- working and environmental requirements on Distribution i.e. Transport and Warehousing

42 IKEA Way on purchasing Food.is being developed further now!

43 The IKEA Store Internal audits Energy supply Customer Transportation Waste Management Training

44 Energy & Transport 100% renewable energy 25% more efficient Public transportation Goods transportation

45 Building strategical alliances Other Businesses Unions NGO s Employers organisations UN ILO Authorities Swedish embassies Etc.

46 The IKEA Group member of UN Global Compact

47 Co-operation with BWI since 1998 Open dialogue on IWAY

48 E-learning on Intranet Social and Enviromental Training

49 Social & Environmental Report F.Y.2005 on

50 IMS Social & Environmental Affairs IKEA Services S&E Organisation FY07 Environmental managers & coord. BA, IoS PR & CO Products and Materials E-team, IoS Property Retail NA/EUR/AP Retail IKEA Services ICS AB SECO group Forestry Pur Co-ord. Trading Trading & Suppliers Pur Co-ord. Trading Distribution Distr Co-ord. IoS Foresters Trading Swedwood Swedwood Int IKEA AB 4WD Trading Modul service AB QE managers TSO SWEDWOOD network Transport env. managers & co-ord. Environmental coord. on national and store level resp. IKEA Food services Warehousing env. managers & co-ord. IKEA IT

51 Summary of Strategy FY Products & materials Suppliers Energy & Transport Buildings & infrastructure Community involvement Leadership & Competence

52 Conclusions Our Vision, Culture & Values - the foundation S&E Direction and Strategy Covers all main parts of our business Clear requirements & tools for improvement Transparency - in communication Building strategical alliances

53 WE CAN MAKE A DIFFERENCE!! - by doing business in a responsible way.

54 IT S&E Impacts What social & environmental issues you can relate to?; Design & materials Manufacturing Distribution Use of the products End-of-life How do we address these issues today? Needs for the future?

55 Case study 1 Sustainability direction Based on the IKEA Sustainability direction - discuss what positive and negative impacts we have on people and the environment today? - what can we do to fill with more positive impacts in the next 5 years?

56 Case study 2 Supply matrix IKEA has a global sourcing strategy - What impacts does that have on the environment? - What can we do the next 5 years to make a more positive impact?

57 Case study 3 Product Range Today we have e.g. Low energy lamps in our product range - what more environmental products do we have today - what more would you like to add in 5 years from now?

58 Case study 4 Business integration To what extent is social & environmental issues integrate in the IKEA way of doing business today? What can we do to improve that within the next 5 years?