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1、Ingka Group Annual Summary and Sustainability Report FY22Ingka Group Annual Summary and Sustainability Report FY222About our reportingIngka Group reporting consists of two elements:this document,the complete Ingka Group Annual Summary and Sustainability Report FY22 and an online reporting website on

2、 I.We aim to provide a transparent account of our performance,highlighting areas where we are making progress as well as where we are facing challenges.Our four movementsWe are on a journey to create a better Ingka and IKEA,driven by our vision to create a better everyday life for the many people.We

3、 have bold ambitions to play our part in solving some of the many challenges facing the world,while delivering an ever better experience for our customers.Well achieve this by focusing on four big movements:helping more people to have better homes;contributing to better lives for our co-workers,cust

4、omers and communities;playing our part in creating a better planet;and creating a better company for today and future generations.Our report is structured around these four key movements and includes financial and non-financial performance against a wide range of goals and indicators.Our reporting c

5、hannelsOur report now includes two elements.The first is our Ingka Group Annual Summary and Sustainability Report FY22(this document).This provides an overview of our most material sustainability and ESG issues,summarising performance highlights and KPIs and progress and challenges for FY22.It also

6、provides a more in-depth description of our progress against targets,detailed actions from FY22,and a description of key policies.The report also includes a section with detailed performance data and our UN Global Compact Index and UN Sustainable Development Goals Index.Our Ingka Group reporting web

7、site(on )provides a summary of FY22 performance,with progress and challenges and an update against our targets.On the site you can download the full report(this document).Reporting scopeThe Ingka Group Annual Summary and Sustainability Report FY22 covers the financial year 2022(FY22),from 1 Septembe

8、r 2021 to 31 August 2022,unless otherwise stated,and the entities controlled by Ingka Holding B.V.during this time.It does not cover the activities of the Inter IKEA Group which includes the companies that develop and supply the IKEA product and food ranges,certain manufacturing and Inter IKEA Syste

9、ms B.V.the worldwide IKEA franchisor.Each year,Inter IKEA Group reports progress against the IKEA People&Planet Positive Strategy from across the IKEA value chain and franchise system.Relevant data from Inter IKEA Group is included within our scope 3 climate footprint reporting.External assuranceThe

10、 external assurance scope for FY22 covers our gender equal pay data and our direct climate footprint(greenhouse gas emissions scope 1 and 2)data.It also includes parts of our indirect footprint(scope 3),such as customer and co-worker travel and home deliveries.The majority of our scope 3 emissions c

11、ome from the production and use of the products we sell,which are supplied by Inter IKEA Group.Inter IKEA Group are currently reviewing their scope 3 emission model,so scope 3 emissions from Inter IKEA Group have not been included in the assurance scope this year.See Assurance report of the independ

12、ent auditor on page 144.IKEA Sustainability Report FY22Ingka Group reporting websiteAbout our reportingIngka Group Annual Summary and Sustainability Report FY223Summary FY22 About Ingka Group 04A few words from our CEO and Deputy CEO and CFO 05Our four movements 06Our business impact on people and p

13、lanet 07Materiality assessment 08Young Leaders Opinion letter 09Our performance at a glance 10Better homes summary 12Better lives summary 13Better planet summary 14Better company summary 15Our progress FY22Better homes 17Our commitments 18Progress against targets FY22 19Inspiring and enabling a bett

14、er,more sustainable life at home 20 Accessible and affordable for the many 31Better lives 37Our commitments 38Progress against targets FY22 39Respecting human rights 41Our co-workers at the heart of our business 45Worklife 48 Inclusion 51Democratic learning 54Better neighbourhoods 56Responding to th

15、e war in Ukraine 59 Better planet 61Our commitments 62Progress against targets FY22 63Becoming climate positive 65 Climate footprint:our operations 69Climate footprint:travel and home deliveries(scope 3)73Climate footprint:IKEA products and food(scope 3)75Reduction beyond the value chain 76Climate r

16、isks and net-zero opportunities 78Becoming a circular business 79 Better company 83Our commitments 84Progress against targets FY22 85Financial Independence and performance 87Investing with impact 91High standards of governance 96High standards of integrity and business ethics 108Our data FY22Better

17、homes data 114 Better lives data 115Better planet data 120Better company data 137UN Sustainable Development Goals 141Assurance report of the independent auditor 144 ContentsContentsIngka Group Annual Summary and Sustainability Report FY224About Ingka GroupAs the largest IKEA franchisee*,Ingka Group

18、operates 482 IKEA stores,shops and planning studios in 31 countries,as well as worldwide IKEA e-commerce and digital solutions.Our reach and expansion are strengthened by our network of meeting places,and an active investment arm to support sustainable growth and business transformation.One brand,ma

19、ny companiesIKEA is a franchise business,with many companies operating under one IKEA brand.Inter IKEA Systems B.V.is the franchisor,responsible for continuously developing the IKEA Concept and ensuring its implementation in new and existing markets.Ingka Group is the largest IKEA franchisee,generat

20、ing over 89%of total IKEA Retail sales in FY22.Ingka Group is made up of three businesses,working closely together:IKEA Retail,Ingka Centres and Ingka Investments.IKEA RetailIKEA Retail is our core business that operates 379 IKEA stores including city stores,as well as 103 IKEA shops and IKEA planni

21、ng studios in 31 countries.IKEA Retail operates under franchise agreements with Inter IKEA Systems B.V.,the worldwide IKEA franchisor.In FY22,we welcomed more than 680 million customers to our IKEA locations and IKEA.com saw more than 3.8 billion visits.Ingka CentresIngka Centres is a global develop

22、er and operator of retail-led destinations for the many people that we call“meeting places”.Ingka Centres has 50 years of experience in shopping centres and today works with almost 3,000 brands across its portfolio of 44 Ingka Centres meeting places in 14 countries.Ingka InvestmentsIngka Investments

23、 makes investments and acquisitions that secure Ingka Groups long-term financial strength and support our growth,business transformation,sustainability and societal commitments.Ingka Investments activities are organised in six portfolios:Business Development Investments,Prioritised Cities Real Estat

24、e Investments,Venture&Growth Capital,Renewable Energy Investments,Forestland Investments and Financial Markets Investments.About Ingka GroupEUR 42 billion total revenue177,192 co-workers3.8 billion visits to IKEA.com 482 IKEA stores,shops and planning studios in 31 countries 44 Ingka Centres meeting

25、 places in 14 countries*Ingka Group operates IKEA Retail business under franchise agreements.Ingka Centres and Ingka Investments are not under franchise agreements.Read more about Ingka CentresRead more about IKEA RetailRead more about Ingka InvestmentsRead more about Ingka GroupIngka Group Annual S

26、ummary and Sustainability Report FY225A few words from our CEO and Deputy CEO and CFOOur purpose is stronger than ever*Jesper and Juvencio are members of the Management Board,Ingka Groups ultimate decision-making body and responsible for the formal conduct and strategic,structural and financial appr

27、ovals,as well as critical risks.Financial year 2022 has been yet another exceptional year that has challenged us in new ways,yet it has also been one of the most rewarding.We continued to face the impacts of the pandemic even as supply and availability slowly started recovering,as well as economic a

28、nd political instability and the tragic ongoing war in Ukraine,which led to the decision to close our IKEA Retail operations in Russia.In the light of the challenges,we have never been prouder of the IKEA community,showing the strength of togetherness during a year that has tested us like never befo

29、re.We managed to achieve solid performance in a disrupted environment,and continued to invest in making IKEA better.We made big investments in becoming more accessible,affordable and sustainable while performing strongly across our four priorities of creating Better homes,Better lives,a Better plane

30、t and a Better company.Our sense of purpose is stronger than ever.Better homesOur vision is about creating a better everyday life for the many people,always keeping sight of the needs and dreams in life at home and being as accessible and affordable as possible.During the year we have invested subst

31、antially into new and existing stores,digital tools,services and customer support.We continue to do everything we can to keep prices as low as possible,as its in our DNA to be affordable.In addition,we continue to inspire and enable our customers to make greener choices with our home furnishing expe

32、rtise,the IKEA range and solutions that save both money and energy like our clean energy subscriptions and circular services.Better livesWe are a people-centred company and employer,creating better lives for the many people and this starts with our co-workers.During FY22 we made progress on our comm

33、itments to create a workplace that is as diverse as the world is and as inclusive as the world should be.We are prioritising learning and development as well as improving the co-worker experience.We provided our co-workers in Ukraine and Russia with income assistance and teamed up with partners like

34、 the UN Refugee Agency(UNHCR)and the UNICEF to provide humanitarian assistance.Our donations and support helped local organisations to assist 300,000 people affected by the crisis including furnishing temporary accommodation for some of those displaced by the war.Better planetBy 2030,we are committe

35、d to becoming climate positive by reducing more greenhouse gas emissions than the IKEA value chain emits,while growing the IKEA businesses.We have made an absolute reduction of our total climate footprint by 13.6%from FY16.We are aware of the challenges ahead,and in this most important decade for hu

36、mankind,we are committed to taking a lead through actions in our operations and value chain,by supporting our customers and partners to make positive changes and through the significant investments we are making in renewable energy.Since 2009 we have invested or committed to invest EUR 3.1 billion a

37、nd over the coming years,we will double that.Better company Being a foundation owned company,we have a long-term perspective of our business and our investments.Our founder,Ingvar Kamprad,left us with a simple,yet impactful financial policy“earn the money,before spending it”.This still guides us and

38、 across last year we have had a solid performance,where our revenue has increased by 5.7%and we delivered operating income of EUR 2.035 billion.We have invested in transforming the company into an omnichannel business,becoming more accessible whenever,wherever and however our customers want to inter

39、act with IKEA.The solid performance gives us resources to continue to invest in creating a better IKEA that is more accessible,affordable and sustainable.We know that its good business to be a good business,with profit and purpose going hand in hand and we are optimistic about the future,home has ne

40、ver been more important.In the coming year,we celebrate 80 years of legacy we will unleash our entrepreneurial spirit,build on our strengths-loving the past while creating the future.Most things remain to be done.Glorious future!Jesper Brodin,President and CEO,Ingka Group*Juvencio Maeztu,Deputy CEO

41、and CFO,Ingka Group*Our four movementsBuilding better into everything we doWe at Ingka Group set goals,evaluate our performance and report according to our ambition to be better in four key ways:better homes,better lives,better planet and better company.Ingka Group Annual Summary and Sustainability

42、Report FY226BettercompanyBetterhomesBetterlivesOur passion for a better life at home is what makes us IKEA.For generations,we have been on a mission to understand the needs,challenges and aspirations of the many,bringing inspiring and affordable home furnishings to people with big dreams regardless

43、of wallet size.Now we are transforming our business to bring IKEA to more people,and to make healthy and sustainable living desirable and affordable for the many,not just the few.Better homesPeople are at the heart of everything we do.We want to take a leading role in creating a fairer and more equa

44、l society and improve the lives of the millions of people that interact with,or are impacted by,our company.Starting with our co-workers and supply chain,extending to our customers,neighbourhoods,communities and society at large,we are determined to be a force for good.Better livesWe only have one p

45、lanet,the home we all share.To achieve our vision for a better everyday life for the many people,we have to play our part in tackling climate change and creating a circular economy.And we have to act now.Ingka Group are taking bold steps across our business to help achieve the IKEA commitment to bec

46、ome a climate positive and circular business by 2030,and we are making it easier for our customers to act too.Better planetWe do business with a humanistic outlook,guided by our vision and values,always adapting to a changing world.We invest 85%of our net income back into our business.This allows us

47、 to be more affordable,accessible and people and planet positive.The remaining 15%of the net income is paid as a dividend to the Stichting INGKA Foundation to achieve its charitable purpose.Nobody is entitled to the assets of the Stichting INGKA Foundation and no dividend from Ingka Group flows to a

48、ny individuals.We push to be a fair,inclusive and empowering company with good governance,equal opportunities and respect for human rights across our entire value chain.Better companyBetterplanetWe support the United Nations Sustainable Development Goals(SDGs)in their ambition to achieve a better wo

49、rld for all.You can find a mapping showing how we contribute to each goal in page 141.Ingka Group Annual Summary and Sustainability Report FY227Our business impact on people and planetOur business impact on people and planetEach stage of our business has an impact on people and the planet from our s

50、ourcing to the use of our products by our customers.At Ingka Group we take a value chain approach seeking to understand and address our impacts at every stage to achieve our vision to create a better everyday life for the many people.Ingka Group has most control over impacts in our own operations(se

51、ction 2 in the diagram).We work with Inter IKEA Group and other partners to address issues associated with sourcing and production(upstream).We offer products and services to inspire and enable our customers to live a healthier and more sustainable life at home and to conserve resources through repa

52、ir,reuse and recycling of IKEA products(downstream).Impacts we make through products and services we purchase,including the IKEA products sold in our stores that are supplied by our franchisor Inter IKEA Group.Issues identified:Global emissionsMaterial useDeforestationBiodiversity lossHuman rights i

53、ssues(our suppliers)Impacts that take place when our customers take our products home(including customer travel to our IKEA stores).For example,electricity used by our kitchen appliances and the take-back,recycling or end of life of our products.Issues identified:Global emissions ConsumptionWasteHea

54、lth issues(customers)1.Upstream3.DownstreamImpacts that come directly from our own operations(including co-worker travel and last-mile delivery)through our IKEA stores,Ingka Centres meeting places and Ingka Investments.Issues identified:Global emissions CircularityWasteWaterIncome InequalityDiscrimi

55、nationHealth issues(co-workers)Human rights issues(co-workers and communities)Urbanisation2.Our own operationsMaterials Manufacturing ProductionTransportation of productsTransportation and delivery of IKEA productsOur customers and their homes Product end of lifeTake-backRecyclingReuseIKEA Retail In

56、gka Centres Ingka Investments123Ingka Group Annual Summary and Sustainability Report FY228MaterialityWe report on the issues that matter most to the many Material issuesWhere do we have the biggest impact?What do we do to manage our impact?UpstreamOur own operationsDownstreamBetter homesConsumption

57、Our IKEA Retail offer includes products that enable customers to reduce their resource and energy consumption.We inspire and enable customers to reduce consumption of natural resources and materials by prolonging the life of IKEA products.Health issues(our customers)Through our life at home knowledg

58、e we offer solutions and inspiration that help the many people to live a healthy,more sustainable life at home.Urbanisation(and increased cost of living in cities)With more people moving to the cities we play a role in providing affordable home furnishing solutions that are accessible in the heart o

59、f cities and beyond.Better livesHuman rights issues (co-workers and communities)We have a human rights policy and have expanded our human rights team to ensure respect for human rights across our business.Our Ingka Group Neighbourhoods Framework defines how we create positive impact together with lo

60、cal communities.Income inequaility As a large employer we work to ensure responsible wage practices and gender equal pay for our co-workers and suppliers.Discrimination Our policies prohibit discrimination and each of our countries is implementing our Equality Plan to ensure an inclusive workplace.H

61、ealth issues(our co-workers)Clear policies,training and engagement activities help us to prevent accidents and support co-worker mental,physical and financial wellbeing.Better planetGlobal emissions We are reducing our emissions in our own operations and beyond in line with the Paris Agreement,aimin

62、g to become climate positive by 2030 and net-zero by 2050 at the latest.Material use and circularity As well as offering circular living solutions,Ingka Group prioritises use of renewable,recycled and recyclable materials in our operations.Inter IKEA Group is responsible for integrating circular des

63、ign principles into the IKEA range.Waste We prioritise actions to prevent,reduce,reuse and recycle waste.We have processes in place for reducing both food waste and product waste.We strive for 100%recycling in our operations by 2030.Deforestation Ingka Group uses wood-based materials for some custom

64、er touchpoints(e.g.buying guides and e-commerce packaging).Our policies state this must come from recycled or FSC(Forest Stewardship Council)Certified sources.We continually monitor compliance.Management of all our forestland investments is FSC certified.Inter IKEA Group are responsible for the sour

65、cing of wood-based materials for IKEA products.Water At Ingka Group we implement water reuse or harvesting in stores and meeting places,with focus on water-stressed areas.Inter IKEA Group is responsible for the water used in the production of IKEA products.Biodiversity loss Unsustainable resource us

66、e leads to a loss of natural diversity.At Ingka Group we are developing our approach to better assess our impact and develop appropriate metrics.Better companyHuman rights issues(our suppliers and society at large)Through our supplier code of conduct,IWAY,we ensure that human rights and labour right

67、s in our supply chain are protected.With our humitarian outlook,we choose to drive positive change in respecting human rights.For example donations for refugees and our Skills for Employment Programme.To inform the issues we report on we conducted a double materiality assessment in FY21.This helped

68、us to identify the sustainability issues of most importance to people,planet,stakeholders and our business.You can read in more detail about how we conducted this assessment on page 105 of this report.On this page we have identified how the sustainability issues identified in our materiality assessm

69、ent fit into the four better movements that our report is structured around.The table to the right summarises the material issues we have identified,the scale of the impact,as well as the location of the impact along our value chain.The right hand column summarises how we manage our impact.Read more

70、 about how we address our impacts in the corresponding sections of this report.*This table does not include two issues categorised as low impact in our materiality assessment:polarisation and the digital divideVery high impact Medium impactHigh impact See the full results and methodology of our mate

71、riality assessmentIngka Group Annual Summary and Sustainability Report FY229Young Leaders Opinion letterWe invite the Young Leaders to share their views about our reporting through our first ever”Young Leaders Opinion page”About the Young LeadersThe Ingka Young Leaders Forum is composed of activists

72、 and professionals under 30 years old working towards environmental and climate justice for a livable planet,with experience in building global movements,influencing multilateral policy,and collaborating with grassroots communities.Our work thus farThrough a combination of in-person meetings and vir

73、tual forums,we as Young Leaders have collaborated with the Ingka Group to advise on some of the businesss most pressing challenges,including circularity,transparency,as well as sustainability and supporting refugees throughout the supply chain.In dialogue with the Group Management,we have pushed the

74、 boundaries of what it means to be a truly sustainable and transparent business,and formed an unprecedented partnership between young activists and business leaders to collectively address the climate crisis.ConclusionOur work has set a precedent in the way corporate actors shape their reporting to

75、earn the trust of youth and future generations.At the same time,this is only the beginning of a long journey for businesses to explore how to engage with youth on equal terms as experts.We hope that our example will inspire the Ingka Group to deepen this partnership and for more businesses to follow

76、.Zanagee Artis,Michael Backlund,Vlad Kaim&Zhilin XiaoOn behalf of the Ingka Group Young Leaders ForumYoung Leaders Opinion letterIn our work,we have identified the following points that are commendable:-Sustainability reporting is further integrated throughout the business,including tax reporting.Th

77、ere is evidence that the company is becoming more open to acknowledging where data collection and reporting have been a challenge or results did not correspond to the intentions-Ingka Group is on track to meet emission reduction targets on time;a notable highlight is their commitment to renewable en

78、ergy.The companys transparency around challenges and solutions to off-track targets sets an example of how businesses can self-critically report on sustainability-Ingka Groups Group management actively solicits feedback on reporting and sustainability goals from diverse stakeholders and integrates i

79、t into key documents We would like to see substantial improvement in the following points:-More transparent reporting on where,how,and why the Ingka Group has influenced policy-Increased information on longer-term targets beyond 2030 to ensure Ingka Group is on track to meet 2050 targets-Tracking an

80、d reporting nature and biodiversity impacts as an independent pillar,and building conservation and forestry management strategies that ensure meaningful and equitable engagement with a wider range of stakeholders,including,but not limited to,environmental and human rights defendersIngka Group Annual

81、 Summary and Sustainability Report FY2210BCKEN our new water nozzle fits onto standard bathroom taps and can reduce water flow by up to 95%Our performance at a glance EUR 15.2 milliondonations in cash and in-kind donations to support those affected by the war in Ukraine BETTER HOMESBETTER HOMESBETTE

82、R LIVES3.8 billionvisits to IKEA.com and 680 million visits to our IKEA stores(4.6 billion IKEA.com visits,657 million visits to our IKEA stores in FY21)Our performance at a glance 81.2%of co-workers feel includedBETTER LIVESTarget:80%80.2%of co-workers believe we live our valuesBETTER LIVESTarget:8

83、0%1,765refugees supported to get into employment since FY20BETTER LIVESTarget:2,500 by end of 2022gender balance in our management positions(all leaders)BETTER LIVES50/50Target:50/5032.5 millionreturned,repaired,ex-display and second hand products sold in our As-Is areas,helping customers to embrace

84、 circularity(32.0 million in FY21)BETTER HOMESIngka Group Annual Summary and Sustainability Report FY2211Our climate footprint FY22 49.6%3.0%7.3%4.7%1.7%2.8%11.5%12.5%5.9%1.2%MaterialsFood ingredientsProductionProduct transportGoods and services used in our operationsRetail&Ingka Centres operations

85、Customer travel&home deliveriesProduct use at homeProduct end of lifeOther emissionsBETTER PLANETBETTER PLANETOur performance at a glance 75.7%operational waste recycled BETTER PLANET57.8%reduction13.6%reductionin production food waste from our IKEA stores since FY17,going beyond our target by the e

86、nd of 2021of our total climate footprint(scope 1,2 and 3)since FY16BETTER PLANETBETTER COMPANYBETTER COMPANYBETTER PLANETEUR 2.0 billionoperating income(EUR 1.9 billion in FY21)Total investments or committed investments in renewable energy made by Ingka InvestmentsEUR 0.9 billion in FY22(EUR 3.1 bil

87、lion since 2009)Target:50%by the end of 2021Target:EUR 6.5 billion by 2030Target:100%by 20301.8 millioncustomers used our spare partsservice to repair and extend thelife of their IKEA products EUR 42.0 billionIngka Group revenue(EUR 39.8 billion in FY21)BETTER COMPANY25-30%Our normalised tax rate*fo

88、r FY22 was stableBETTER COMPANY*This years effective tax rate is 65.6%,mainly due to the impacts in our financial market investments portfolio.Ingka Group Annual Summary and Sustainability Report FY2212With almost 80 years of home furnishing and life at home expertise,we are constantly innovating to

89、 meet peoples dreams and needs with products,services and solutions that are affordable,accessible and sustainable.We are transforming our business to find new ways to reach more people and to make healthy and sustainable living affordable for the many,not just the few.The IKEA range of products has

90、 always been designed to help create a better everyday life at home.Today this is more relevant than ever.As people across the world face rising economic uncertainty and continue to feel the impacts of pandemic,war and climate change,the need to feel safe and happy at home matters just as much as it

91、 ever has,if not more.Sustainability is a top priority in all aspects of our customer service offer;from the products in the IKEA range that help customers save energy,water and waste,to circular services and healthier,more sustainable food options for our customers.We contribute to the IKEA ambitio

92、n to inspire and enable 1 billion people to live a better everyday life within the boundaries of the planet by 2030.We invest in research to keep strengthening our life at home knowledge and we bring IKEA closer to our customers both physically through new locations and retail formats,and through co

93、nvenient online shopping,services and delivery.However they interact with us,customers should always get a great service and access to the IKEA range integrated with affordable,convenient and sustainable services.Better homes summaryBetter homes summaryWhat we are proud ofAccessible and affordable:W

94、e opened our first city stores in Sweden,the UK,Canada and India to bring the IKEA range closer to more people and performed 74 million services such as home delivery,product assembly and installation,improving customer convenience.We also expanded affordable financial services to China and Ireland,

95、giving more people a chance to improve their homes while keeping their budget in balance.A better,more sustainable life at home:We extended our clean energy services by start selling heat pumps in Sweden and introduced our Sustainable Living Shop across 30 markets,to highlight sustainable products a

96、nd solutions to more customers.We also connected with over 37,000 people in 37 countries to conduct our ninth annual Life at Home Report.Challenges we are addressingDuring the first years of the pandemic,despite rising costs,we kept prices as low as possible for our customers.Together with Inter IKE

97、A Group,we absorbed substantial supply chain-related costs to soften the impact on retail prices.However,in FY22 we have had to increase our prices to reflect rising material and transportation costs following the pandemic and war in Ukraine.We are developing our approach to enable us to measure and

98、 report progress against the IKEA ambition to inspire and enable 1 billion people to live a better everyday life within the boundaries of the planet.Do you have a great idea on how we can meet our challenges?Send us your thoughts!Ingka Group Annual Summary and Sustainability Report FY2213People are

99、at the heart of everything we do.We want to take a leading role in creating a fairer and more equal society and to improve the lives of the millions of people that interact with,or are impacted by,our company.Respect for human rights is at the core of our approach and we are guided by our culture an

100、d values in all our actions.For our co-workers,we are focused on creating inclusive workplaces,offering meaningful and engaging work for fair reward.We see every co-worker as a leader and a talent and emphasise opportunities for everyone to learn,develop and grow.Through our new Ingka Group Neighbou

101、rhoods framework we are committed to creating long-lasting positive social impact in our neighbourhoods.We focus on enabling people experiencing(or at risk of)poverty and social exclusion to develop their potential and capacity to have a better everyday life.Through our emergency community support w

102、e assist those affected by natural disasters and war.Better lives summaryWhat we are proud of Our co-workers:Our co-worker survey showed that 80.0%of co-workers believe we live our value which contributed to an increased engagement score of 81.0%.We achieved a 50/50 gender balance in our management

103、positions(all leaders)and our latest gender equal pay assessment showed that we are making progress at removing pay gaps that cannot be explained by performance,competence or a countrys legal requirements(FY22:4,84%).Better neighbourhoods:We donated EUR 15.2 million in cash and in-kind donations to

104、support those affected by the war in Ukraine and we reached almost 417,500 people through our social impact programmes in FY22.Better lives summaryChallenges we are addressingOur Lost Time Accident Frequency Rate(LTAFR)increased to 17.16 and we believe this is due to improvements in our incident rep

105、orting processes as well as changes to business processes and procedures in our customer fulfilment centres as a result of the pandemic and an increase in online sales.We did not meet our neighbourhood target to support at least 2,500 refugees by the end of FY22,but we expect to do so during FY23.Un

106、foreseen global events including the Covid-19 pandemic and war in Ukraine resulted in store closures which impacted our operations and ability to roll out and scale up the programme in some countries.We were not able to partner with as many social enterprises as anticipated due to resourcing challen

107、ges following the pandemic and associated supply chain disruption and the discontinuation of some services.Do you have a great idea on how we can meet our challenges?Send us your thoughts!Ingka Group Annual Summary and Sustainability Report FY2214We at Ingka Group are taking bold steps across our bu

108、siness to help achieve the IKEA commitment to become a climate positive and circular business by 2030,and we are making it easier for our customers to act too.To achieve our vision for a better everyday life for the many people,we have an important part to play in tackling climate change and creatin

109、g a circular economy.We are committed to taking action on climate change in line with the Paris Agreement.IKEA has set a commitment to be climate positive by 2030 and net-zero by 2050 at the latest.At Ingka Group,as the largest IKEA franchisee,we have an important part to play in achieving these com

110、mitments,for example by reducing our energy consumption,switching to renewable energy and zero emission deliveries.We also seek to work in partnership with others to accelerate the transition to a net-zero society,by providing clean energy services,investing in renewable energy and advocating for re

111、gulation that has a positive impact on people and the planet.We set science based targets in 2018 to reduce emissions across our value chain in line with a 1.5C pathway.We aim to update our targets in FY23 in alignment with the new Net Zero standard and submit them to the Science Based Targets initi

112、ative(SBTi)for validation.Using resources efficiently has always been part of how we work,and we want to play our part in making the circular economy a reality.IKEA is committed to become a circular business by 2030 and Ingka Group contributes to this goal by providing products and services for circ

113、ular living(see page 23),switching to renewable,recycled and/or recyclable materials and reducing waste and water use.The world is experiencing a biodiversity crisis.Unprecedented loss of species,ecosystems and genetic diversity is human-induced and represents,together with climate change,one of the

114、 greatest challenges of our time.We have started to map our impacts and dependencies on nature,using the initial release of the technical guidance issued by the Science Based Targets for Nature(SBTN).What we are proud of We have made an absolute reduction of our total climate footprint across our va

115、lue chain(scope 1,2 and 3 emissions)by 13.6%from FY16.In FY22,74.2%of the electricity we used was from renewable sources,enabling us to reduce our operational climate footprint(scope 1 and 2 emissions)by 32.3%,from our FY16 baseline.We achieved our goal to cut food waste by 50%by 31 December 2021.Th

116、e reduction in food waste from FY17 is equivalent to the food used in 20 million meals and 36,000 tonnes of CO2e avoided.Challenges we are addressingAlthough we have made an absolute reduction of our total climate footprint across our value chain(scope 1,2 and 3 emissions)by 13.6%from FY16,we need t

117、o significantly accelerate our progress in order to become climate positive by 2030.Although we reduced operational waste by 9.5%compared to FY21,our recycling rate has remained stable at 75.7%(FY21:75.0%).It has been challenging to increase recycling rates,particularly at our Ingka Centres meeting

118、places,where a large proportion of the waste is mixed consumer waste that tends to be contaminated,for example with food residue.Better planet summary*The Paris Agreement is a legally binding international treaty on climate change adopted at COP 21 in Paris.Its goal is to limit global warming to wel

119、l below 2C(preferably 1.5C),compared to pre-industrial levels.Better planet summaryDo you have a great idea on how we can meet our challenges?Send us your thoughts!Ingka Group Annual Summary and Sustainability Report FY2215Ingka Group is driven by the IKEA vision to create a better everyday life for

120、 the many people.That is our purpose.We do business with a humanistic outlook,achieving our purpose through our strategic direction,our leadership and our values.We structure our business to ensure financial resilience and we reinvest profit to help us keep growing and improving.We think in generati

121、ons,not quarters,and invest in the long-term good of our customers,our business,people,society and our planet.This includes investments made through Ingka Investments,our investment arm,to strengthen our long-term growth and business development,secure our financial resilience and make responsible i

122、nvestments in people and businesses.Our governance is designed to ensure that Ingka Group remains a well-managed,successful,purpose-led company,and that we deliver on our strategic ambitions and goals,including our sustainability strategy.We run our business honestly and with integrity,meeting high

123、ethical standards in our interactions with each other,our customers,visitors,suppliers and the world around us.Better company summaryWhat we are proud ofFinancial performance:Despite a challenging environment,Ingka Groups revenues increased,and the operating income was stable.The normalised tax rate

124、 remained in the 25-30%band.Total Ingka Group revenue for FY22 amounts to EUR 42.0 billion and increased by 5.7%compared to FY21.Investing with impact:Ingka Investments has invested or committed to invest EUR 3.1 billion in renewable energy since 2009,including EUR 0.9 billion in FY22.Our capital ex

125、penditure amounted to EUR 2.1 billion,plus acquisitions of EUR 0.5 billion.This includes investments in our business transformation,our stores,distribution and customer fulfilment networks,the digital customer experience and shopping centres.Integrity and ethics:More than 98,300 co-workers completed

126、 our Code of Conduct training and we completed 256 IWAY reviews of Ingka Group suppliers and 168 IWAY Initial Assessments of potential new suppliers.We developed our Digital Ethics Policy that applies across our digital services,including algorithmic systems.Better company summaryChallenges we are a

127、ddressingFinancial year 2022 has been difficult for many people and businesses.Amid rising inflation and the increasing cost of energy and raw materials,we invested substantially,and continued to make every effort,to minimise price increases.Our business was impacted by the war in Ukraine(see page 5

128、9)and although the pandemic had less impact than the previous year,it still caused store closures in some countries and supply disruptions and affected stock availability.We are not currently able to report fully on progress against all our targets for integrity and business ethics due to changes to

129、 our data systems in FY22.We are reviewing how to address this.Do you have a great idea on how we can meet our challenges?Send us your thoughts!Our progress FY22Better homesWe believe a better home can enable a better life.For generations,we have been on a mission to understand the needs,challenges

130、and aspirations of the many,bringing inspiring and affordable home furnishings to people with big dreams regardless of wallet size.Better homes/Our commitments1.Inspiring and enabling a better,more sustainable life at home 2.Accessible and affordable for the many Better homes Our commitments18Ingka

131、Group Annual Summary and Sustainability Report FY22Ingka Group Annual Summary and Sustainability Report FY2219 OUR TARGETSPROGRESS IN FY22PERFORMANCE SUMMARYProgress against targets FY22Better homes/Progress against targets FY22 Inspiring and enabling a better,more sustainable life at homeEnable cus

132、tomers to reduce their climate footprint by offering clean energy services in all markets by 2025.We have reached 11 countries with our clean energy services.In FY22 we made heat pumps available to customers in Sweden.Provide knowledge,inspiration,services and platforms supporting customers to activ

133、ely participate in circular actions.We have introduced and tested a range of solutions,including turning our As-Is areas into circular hubs in 306 stores,enabling customers to buy second-hand and nearly new furniture.Our spare parts service was used by 1.8 million customers to repair and extend the

134、life of IKEA products and over 105,000 customers used our Buyback&Resell service.Ingka Centres have also launched Circuit a curated community hub for circular living in some of our meeting places.ON TRACK NOT ON TRACK Ingka Group Annual Summary and Sustainability Report FY2220In the last few years,l

135、ife at home has been subject to unexpected challenges from the pandemic to rising costs of living and the growing impacts of climate change.It is clear that the way we live at home has a big impact on the planet and our health.Many people want to make healthier and more sustainable choices but not a

136、t the expense of price,quality or convenience.At Ingka Group,we are passionate about making life at home better.By bringing our customers affordable,sustainable,well-designed and functional home furnishing products,services and solutions alongside creative ideas and inspiration we can live up to our

137、 vision to create a better everyday life for the many people.Our approachThe IKEA ambition is to inspire and enable 1 billion people to live a better everyday life within the boundaries of the planet by 2030.At Ingka Group,we contribute to this goal by:Making sustainable living desirable,accessible

138、and affordable for the many,through our stores,meeting places and online from prolonging the life of our products,to creating a clean energy community and offering more plant-based food options in our food outlets.Using our research and insights to develop an even deeper understanding of peoples liv

139、es at home:their needs,hopes and dreams,in every city and market Sharing our unique insights and home furnishings expertise with customers in new and engaging ways to inspire and enable them to reduce their environmental footprint and create a better life at home.We are developing our approach to en

140、able us to report progress against our ambition.Better homes/Our commitments/1.Inspiring and enabling a better,more sustainable life at home1.Inspiring and enabling a better,more sustainable life at homeIngka Group Annual Summary and Sustainability Report FY2221With our products,knowledge of life at

141、 home and over 3 billion visits online and to our stores and meeting places each year,we have a unique opportunity to make healthier and more sustainable living desirable,affordable and accessible for the many.We offer products,services and solutions that enable people to reduce their environmental

142、impact and aim to use our communications to inspire positive lifestyle changes.At Ingka Centres we are also working with our partners to explore a range of approaches that support sustainable living.We recognise that a shift is needed towards more sustainable consumption patterns that reduce over-us

143、e of natural resources.We are exploring how we can best contribute to this shift,including through our focus on circular living.We aim to collaborate with others and use our influence to support government policies and business best practice that enable sustainable consumption and production,see pag

144、e 25.Better homes/Our commitments/1.Inspiring and enabling a better,more sustainable life at home/Healthy and sustainable livingHealthy and sustainable livingWeve introduced our Sustainable Living Shop across 30 markets,providing a dedicated space in our stores to highlight accessible and affordable

145、 products and solutions that enable customers to reduce their climate impact and household costs by using less energy,reducing single use plastics,creating less waste,using less water and caring,repairing,reselling and recycling.Many Ingka Centres are also dedicating space to inspire visitors to liv

146、e a healthier and more sustainable life.For example,Livat Wuhan in China has created a Sustainability Space furnished with recycled materials that includes information and ideas on circular living and runs regular educational events.We have also launched Circuit a curated community hub for circular

147、living,see page 25.Ingka Group Annual Summary and Sustainability Report FY2222Sustainability and the IKEA rangeThe IKEA range is supplied by Inter IKEA Group.It is designed according to the five dimensions of Democratic Design:form,function,quality,sustainability and a low price.This means sustainab

148、ility is considered from the start and continual improvements are made to embed sustainability considerations into design,manufacture and use.At Ingka Group,we have a key role to play in communicating the sustainability attributes of IKEA products and making sustainable living accessible and desirab

149、le to customers.We continue to inspire and guide our customers across all our IKEA stores and online by highlighting products and sharing tips and tricks that can help them save energy,reduce waste and give their favourite furniture a longer life.A more circular BILLY bookcase In FY22,one of our bes

150、t-selling products,BILLY bookcase,was redesigned to improve its circular capabilities.By shifting from veneer to paper foil and reducing plastic,most materials used to produce the new BILLY bookcase will come from renewable sources.Let there be LEDIn FY22 IKEA expanded our SOLHETTA LED bulbs range w

151、ith more sizes,shapes and functions.Customers can now use SOLHETTA LED bulbs for more purposes and in more areas of the home,which reduces home energy use.Launched in FY21,SOLHETTA LED bulbs are more energy efficient and on average more affordable than previous IKEA LED bulbs.Saving water every time

152、The new BACKEN water nozzle.When used in mist mode,BACKEN can save up to 95%of water used,and in spray mode,up to 66%2.This also results in energy savings from water heating.This solution builds on the water saving abilities of the existing IKEA tap and shower range which has built-in water efficien

153、cy features that already enable water use reduction of up to 40%.Cutting down on resource useOur RNNINGE extendable table now requires fewer raw materials to produce following the introduction of hollow wooden legs.While it is lighter on the planet,the new design does not compromise on function,dura

154、bility,style,or quality.In FY23 well also be introducing the GRNSTA chair which is recyclable with a seat shell made from post-industrial waste.Flavourful food with a smaller footprintWe introduced new IKEA plant-based products in FY22,including a veggie ball version of LTTLAGAT ready meals.We also

155、launched plant-based soft ice with chocolate flavour.We continue to explore where and how we can remove or replace dairy in our range(without compromising on taste)to further reduce the climate impact of our food ingredients.Breath of fresh airIn FY22,IKEA made air purifiers for the home more access

156、ible by introducing the low-price solution UPPTVIND.Just like all IKEA air purifiers,UPPTVIND is optimised to filter out approximately 99.5%of smaller airborne particles,including PM2.5 particles,dust,and pollen1.Better homes/Our commitments/1.Inspiring and enabling a better,more sustainable life at

157、 home/Healthy and sustainable living 1 PM2.5 are small inhalable particles that measure 0.1-2.5 micrometres.2 1)Compared to standard washbasin mixer taps with a water flow of 5.7 L/min.2)Compared to taps and showers without the built-in feature.Ingka Group Annual Summary and Sustainability Report FY

158、2223A range of clean energy servicesWere making it easier and more affordable for IKEA customers to use and produce renewable energy at home,supporting the transition to a net-zero society.We offer a range of clean energy services with different partners and have reached 11 countries so far.Our offe

159、r varies from country to country and can include:Home solar service,including solar panels and when suitable a battery storage system.By turning customers rooftops into mini power plants,customers can produce their own energy and sometimes even sell it back to the grid.An electricity subscription se

160、rvice,making it easier for customers to switch to buying electricity from renewable sources.A heat pump service,helping customers to use less energy to heat and cool their home.Launched in Sweden in FY22,the service enables customers to buy quality heat pumps at affordable prices.Making renewable en

161、ergy accessible and affordable is good for the planet and good for our customers wallets and wellbeing.Products and services for circular livingHaving a positive impact on people and planet is at the centre of our development and innovation efforts.By testing,adopting and scaling up new circular sol

162、utions,we are exploring ways to prolong the life of our products,give customers access to furniture without owning it and helping people give products they no longer need a second life.Finding circular solutions that are accessible,convenient and profitable can be challenging.By trialling different

163、approaches we are building our knowledge and experience in this area,which will help us to offer a range of different circular product and service options to suit the many people,and ultimately contribute to our ambition to become a circular business.Examples of approaches we are testing in our reta

164、il business include:Circular hubs bring circularity to more customersFor many years,customers have been able to pick up a bargain in our As-Is areas the part of the IKEA store where we sell returned,repaired,or ex-display products at discounted prices.Now our As-Is areas are being turned into circul

165、ar hubs where,as well as the usual bargains and nearly new products,customers can buy secondhand products,view our product recovery and repacking processes,and learn how to maintain,clean or personalise their IKEA products.By the end of FY22,we had 306 circular hubs(FY21:170).During the year more th

166、an 42.6 million products were given a second life(FY21:42.2 million),with 32.5 million products resold via the As-Is areas and more than 10 million repacked and sold in other areas.All items that are sold for reuse are thoroughly inspected to ensure functionality and safety.To improve accessibility

167、and enable more customers to use our As-Is areas weve also taken them online at 219 stores in 21 markets.This enables customers to view and reserve second-chance products and pick them up from their nearest store.This improves convenience and enabled As-Is areas to continue operating during pandemic

168、 lockdowns and improved convenience for customers.We sold 70,000 products via online reservations in FY22.All items that are sold for reuse are thoroughly inspected to ensure functionality and safety.Better homes/Our commitments/1.Inspiring and enabling a better,more sustainable life at home/Healthy

169、 and sustainable living Ingka Group Annual Summary and Sustainability Report FY2224Buyback&Resell gives old or unwanted IKEA furniture a second life With Buyback&Resell,customers in 29 countries can bring back unwanted IKEA furniture to one of our stores and receive an IKEA voucher to spend in-store

170、 or online.Around 96%of items are resold via our As-Is areas.Any items not resold are recycled or donated to local community projects.Over 105,000 customers used the service in FY22(FY21:74,000)and gave 230,000 items a second life,a 50%increase on the previous year.We also improved the Buyback quota

171、tion digital tool,to make the service easier to use for customers and more efficient for co-workers.Our#BuyBackFriday campaign for our retail business promoted a more sustainable alternative to the usual Black Friday sales events,encouraging customers to use Buyback&Resell.The campaign gained a lot

172、of interest from the media and customers.People used our online tool 980,000 times during the campaign to see the value of their items and around 110,000 pieces of old IKEA furniture were returned.Read more here.Around the time of Black Friday,Ingka Centres meeting places ran a“Love your stuff for l

173、onger”campaign for the second year.The campaign involved over 400 partners and aimed to inspire more circular consumption with a range of initiatives,from repair cafs to educational classes on how to care for,reuse and repurpose goods.21.9 million spare parts,here to helpWe offer a spare parts servi

174、ce in 30 countries,helping customers prolong the life of their IKEA products by replacing small parts,like screws and fittings.In FY22,1.8 million customers used the spare parts service,with 21.9 million spare parts provided.Our online system is now rolled out across 28 countries via IKEA.com,making

175、 ordering spare parts even easier for customers.We source most spare parts from our suppliers,but co-workers also rescue spare parts from damaged or unused returned products that cant be resold,ensuring important resources dont go to waste.We are also testing whether we can offer larger spare parts

176、for furniture.For example,in Poland we have offered sofa armrests and cushions,enabling customers to repair damaged or worn products,rather than replacing them.Enabling circularity through new service models As part of our learning approach to circular services,weve been exploring furniture rental a

177、s a service assessing ways for our customers to access IKEA furniture without owning it.Our aim is to improve flexibility for customers,extend the life of products,and reduce waste by enabling the same product to have several lives.Through our multi-market test,known as Furniture as a Service,weve b

178、een exploring a service where we retain ownership of our products,maintain and take care of them,and when the furniture has been reused as many times as possible the materials and components are recycled.We have now tested different iterations of this concept in several countries and have learned a

179、lot about the challenges and opportunities.Although we initially planned to test Furniture as a Service in 30 markets,we have instead decided to concentrate on refining the tests,building on what we have learned so far.Our focus during FY22 was on Italy.Here we are running an updated version of the

180、test,focusing on desirability and scalability which weve learnt are preconditions for any service to make a real impact.As a next step,we will explore different ways to extend the life of products during and after the rental service.We will use what we learn to inform development of our circular off

181、ering,helping our business with its transformation to become circular by 2030.Inspiring customers with affordable second hand products in SwedenWeve been testing our first secondhand store offering only used IKEA products in Eskilstuna,Sweden.Here customers can buy used IKEA products that have been

182、cleaned,repaired and restored to their former glory,at an even more affordable price.The store has been well received by local customers with 16,000 people purchasing 43,000 products during FY22 of which 80%came from customer homes and offices.Were working with a social business partner to clean and

183、 repair the returned products,providing an income for people who may otherwise struggle to find employment.In Sweden,we also ran flea markets at all IKEA stores on one day during FY22.IKEA Family members could book a table to sell possessions they no longer needed while visitors also benefited from

184、a 40%discount on products in the As-Is area,as well as the chance to attend DIY workshops and a DIY live shopping event.IKEA bookshelf returned after 56 yearsBengt Johansson,has become a buyback hero in Sweden after using our Buyback service to return the IKEA KONCENTRA bookcase he purchased in 1965

185、.The unit is in perfect condition,complete with his original handwritten paper receipt.Originally purchased at the first IKEA store in lmhult,the bookcase was auctioned online,with proceeds from the sale going to global charity Save the Children.Read more onlineBetter homes/Our commitments/1.Inspiri

186、ng and enabling a better,more sustainable life at home/Healthy and sustainable living*Due to changes in how we measure the scope of spart parts data we cannot directly compare FY22 with FY21 figures.This year we include assembly parts(e.g.screws,bolts etc required for assembling items)furniture spar

187、e parts(e.g.replaceable parts of an item such as drawer fronts,table tops etc)and other parts for electrical items(e.g.cables).The number of customers is the number of unique orders dispatched.Ingka Group Annual Summary and Sustainability Report FY2225Making the world go round at Ingka CentresWe ope

188、ned the first Circuit space at our Ingka Centres meeting place in Birsta City,Sweden,in June 2022,to inspire visitors to repair,reuse and recycle everyday items.It offers a contemporary twist on the traditional flea market,with a curated space for goods and services related to the circular economy,i

189、ncluding a community swap where visitors can exchange books,plants and boardgames.Visitors can utilise clothes repair service and rent out childrens wear and equipment.Circuit hosts a lively agenda of workshops and activities to help people better care for and extend the life of their belongings.We

190、are exploring how to measure the impact of this initiative and hope to encourage other retailers in our meeting place to join Circuit.At our Ingka Centres meeting place in Hammersmith,London,we are also hosting The Library of Things(LoT)kiosk a social enterprise which provides an affordable rental s

191、ervice for household items such as drills,gardening equipment and sewing machines.Initial results suggest that the kiosk is helping the LoT to increase its user base.Read more onlineAdvocacy and partnerships Ingka Group is engaging with policy makers and others to support policies that enable more s

192、ustainable consumption of resources.In FY22,this included:Jesper Brodin,CEO of Ingka Group,met with Virginijus Sinkevicius,European Commissioner for Environment and Ms.Sirpa Pietikainen,Member of the European Parliament,to discuss how to break down policy barriers to ensure no mattress goes to waste

193、 in Europe by 2030.We participated in the European Commissions call for evidence for an impact assessment on the initiative Sustainable consumption of goods promoting repair and reuse.We participated as the only private sector company in a discussion on sustainable production and consumption at One

194、Planet Network with UNEP and the B Team.Better homes/Our commitments/1.Inspiring and enabling a better,more sustainable life at home/Healthy and sustainable living Ingka Group Annual Summary and Sustainability Report FY2226Ingka Group is a large food business,serving almost 600 million customers thr

195、ough our IKEA Restaurants,IKEA Bistros and Swedish Food Markets every year.We aim to offer a delicious and affordable food range that makes it easier to eat a healthier and more sustainable diet while inspiring consumers with the knowledge and inspiration to make more sustainable food choices.For ma

196、ny years,the IKEA food range has included sustainably sourced options and ingredients.These range from organic rapeseed oil and responsibly-farmed eggs,meat and dairy,to seafood certified by the Aquaculture Stewardship Council(ASC)and Marine Stewardship Council(MSC)and UTZ/Rainforest Alliance certif

197、ied coffee,tea and cocoa.Now,we are going even further to make our food range better for people and planet,with a focus on making plant-based food options attractive and affordable to more people.Read about our approach to food waste on page 81.Better homes/Our commitments/1.Inspiring and enabling a

198、 better,more sustainable life at home/Healthier and more sustainable foodHealthier and more sustainable foodIngka Group Annual Summary and Sustainability Report FY2227Inspiring a switch to plant-based dishes Plant-based food can be good for our health and can have a reduced climate footprint compare

199、d with meat-based alternatives.We see an opportunity to enable many more people to make sustainable food choices,by making plant-based food more affordable and accessible.Our goal for 2025 is that 50%of our restaurant meals offered will be plant-based.As of October 1st,2022,all our markets now offer

200、 plant-based food at the same or a lower price than the meat-based alternative.This includes our veggie balls,plant balls,veggie hot dogs,and plant-based soft ice.A growing number of our customers are opting for our plant-based food products,with sales of our plant balls and veggie balls increasing

201、by 62%compared with the previous year,and sales of our veggie hotdogs increasing more rapidly than the meat-based original.We want to inspire even more people to try the plant-based option when they visit us and piloted a new in-store communications approach in three of our markets.This drew on scie

202、ntific insights from the World Resources Institute and built our co-workers knowledge of our plant-based dishes.Our range of vegetarian and plant-based dishes and products includes our veggie balls and veggie hot dogs as well plant-based and vegetarian options in our restaurants and LTTLAGAT ready m

203、eal range.Recent highlights and additions to the range include:Plant-based mince launched in 26 markets:VRLDSKLOK,a shapeable,plant-based mince looks and tastes like ground beef,but is made from pea protein.For customers who are already vegetarian or vegan,VRLDSKLOK can be another convenient item on

204、 their IKEA shopping list.For meat lovers new to plant-based products,its an easy way to try an alternative in their cooking at home,substituting VRLDSKLOK for regular minced meat in burgers,tacos or Bolognese,with the same great(or even better)taste.Plant ball ready to roll worldwide:Our popular HU

205、VUDROLL plant ball is now available in all our markets.Made from 100%vegan ingredients,including pea protein,oats,potatoes,onion and apple,the plant ball looks and tastes like meat(and blind tests show that our customers find them just as delicious).Plant-based soft ice:100%plant-based,100%delicious

206、,with only half of the climate footprint of a dairy ice cream.Growing our own greens with urban farming solutionsIn FY22,we concluded our pilots testing the use of vertical farms to grow leafy greens.These included a container farm and in-store growing cabinets and aimed to engage co-workers and cus

207、tomers with an on-site growing experience as well as providing locally grown herbs and lettuce to serve in our restaurants.We learned that this technique had a lower environmental impact compared to our usual leafy greens supply,and also enabled us to meet customer demand for local produce with lowe

208、r resource-use.The main challenge to scaling this up into large volume solutions is operational costs.When the industry has matured,and costs have decreased,we will re-evaluate the opportunity to develop vertical farming solutions at scale.Better homes/Our commitments/1.Inspiring and enabling a bett

209、er,more sustainable life at home/Healthier and more sustainable foodRead more onlineIngka Group Annual Summary and Sustainability Report FY2228We are passionate experts on life at home.We want to show people how better homes create a better life and use our know-how in personal,engaging and entertai

210、ning ways to reach more people in all our markets.We continually build our expertise and conduct research to help us understand peoples everyday life at home.Our co-workers play a key role and we invest in training and upskilling to keep improving our home furnishing expertise.We also engage our co-

211、workers on sustainability,and encourage them to communicate on this topic with our customers.This includes our 30 minute introduction to sustainability training that reached 65%of our co-workers in FY22 and the launch of our Assembly Guide for a Better Future book,which aims to inspire co-workers on

212、 our sustainability journey.Insights and ideas for a better life at homeBetter homes/Our commitments/1.Inspiring and enabling a better,more sustainable life at home/Insights and ideas for a better life at homeOur life at home researchIn FY22 for our latest Life at Home Report we connected with more

213、than 37,000 people across 37 countries.We wanted to learn more about the many different ways that people shape their home to meet their needs,and the frustrations they face,particularly during a time of rising costs and instability.Our research showed that today,home is more important than ever with

214、 people seeing their home as a place of comfort and security during uncertain times.With the cost of living on the rise,were likely to spend even more time at home as we seek to save money by cutting back on the expense of hobbies and interests outside the home.The research showed that were more lik

215、ely to feel good about home when it reflects our personality,but only around 6 in 10 people say they feel their home is a reflection of themselves.Our relationships,the things we own and the space we have available are important ways we express ourselves,but theyre also the biggest sources of tensio

216、n at home.In fact,as many as 4 in 5 people say they are regularly frustrated by aspects of their home.The report shares solutions that ease these stresses and celebrates the different ways that people around the world live,so everyone can feel at home when they walk through their front door.Life At

217、Home ReportIngka Group Annual Summary and Sustainability Report FY2229New ways to engage and inspire our customersWe are finding creative new ways to engage and inspire customers to create a better life at home.Bringing interior design to the many Our online interior design service is helping custom

218、ers transform their homes,offering convenient access to expert advice at affordable prices.Customers can choose any room in their home and work with one of our interior designers to generate new design ideas.In FY22,almost 70,000 people used the service to create a better home in 29 countries.In FY2

219、2,we launched IKEA Kreativ in the US and Canada,our new AI-driven digital design experience.This offers customers a lifelike,fully integrated way to design and visualise their own living spaces,using a computer or smartphone.It combines our life at home expertise with new developments in spatial com

220、puting,machine learning and 3D mixed reality technologies to enable customers to erase existing furniture from the scene,position new IKEA furnishings,rapidly swap through alternatives,and fully design the room.Read more here.Meeting our customers in new ways with IKEA live-shopping Were exploring l

221、ive streaming as a way to engage with our existing customers and meet new ones.This enables us to create an interactive experience for customers allowing them to comment,ask questions,like,and purchase products directly from the live stream.In Sweden we integrated live-streaming within IKEA.com in F

222、Y22,hosting 28 Live shows.Feedback showed that viewers enjoy the content,the knowledge sharing and the real IKEA people on stage.In Japan we trained more than 45 co-workers as Home Furnishing Influencers.In the first 6 months they shared their knowledge via 12 IKEA Live shopping sessions,with custom

223、ers watching over 1,700 hours of content.Watch IKEA Live episodes from IKEA Japan here.Watch Live shopping episodes from IKEA Sweden here.IKEA Festival engages people around the world The IKEA Festival took place in IKEA stores and online across the world celebrating peoples real creativity and inve

224、ntiveness at home.The festival focused on ten different topics:food,sports,gaming,music and dance,nature,fashion and beauty,collecting,arts and crafts,focus and wellness,and pets.It included in-store events,live shopping,ideas from inspirational content creators,and a unique new IKEA digital platfor

225、m where people could watch the festival and link with social media campaigns showing how to turn inspiration into reality.Better homes/Our commitments/1.Inspiring and enabling a better,more sustainable life at home/New ways to engage and inspire our customersIKEA FestivalIngka Group Annual Summary a

226、nd Sustainability Report FY2230Atelier100:inspiring customers with local creativity Were always on the look out for new creative ideas and concepts for our business and want to connect with talented new designers and creative people.In FY22,we joined forces with retailer H&M to launch Atelier100,a u

227、nique incubator programme aimed at finding and nurturing up-and-coming creative people in our local areas.For the pilot in London,20 creative people and makers living in a 100km radius of London were chosen and are being mentored by leading experts in the field of design.A physical Atelier100 space,

228、located in Ingka Centres meeting place Livat Hammersmith,opened in June 2022 selling a range of locally produced and sustainable products that will include those developed by the programme participants.Working with Channel 4 in the UKWe teamed up with Channel 4,one of the main TV channels in the UK,

229、to bring viewers an exciting new six-part series on home improvement.It brought inspired,space-saving solutions to a different real life family in each episode,championing the transformative power of good home design and featuring a range of IKEA products.H22:inviting young creatives to design a bet

230、ter everyday lifeIn summer 2022,we supported H22 City Expo,an international creative event in Helsingborg,Sweden,aimed at generating new ideas for smarter and more sustainable city living.Our global design competition asked young creative people from any country to design affordable and sustainable

231、spaces that can help bring people closer to nature.The winning designs were built in an artificial forest in Helsingborg,constructed for the Expo and the designs were made available online so they could be replicated anywhere in the world.Read more here.Better homes/Our commitments/1.Inspiring and e

232、nabling a better,more sustainable life at home/New ways to engage and inspire our customersInspiring businesses to a better life at work We know that many small and medium sized businesses buy their furniture from us and may have different needs when it comes to products,solutions and services compa

233、red to individual customers.During FY22 we made it easier to browse our business offering online,developed our interior design service and fine-tuned our delivery services to better fit the needs of business customers.IKEA Business Network is our loyalty club that provides members with access to a r

234、ange of benefits,such as product offers and discounts on services.It supports small businesses to create a better life at work,nurture growth and take greater control over their business.In FY22 we went live in 12 countries,attracting over 500,000 members.We will continue to roll out to all Ingka Gr

235、oup countries in the coming years.Ingka Group Annual Summary and Sustainability Report FY22312.Accessible and affordable for the many To reach more of the many people,and meet their changing needs and expectations,Ingka Group is committed to bringing IKEA closer to more people and offering a great e

236、xperience at all customer meeting points.We are becoming a true omnichannel business,with an emphasis on customer focus,innovation and collaboration.In developing our business we are always guided by our culture and values and by our passionate people with their deep knowledge of life at home.Togeth

237、er with our co-workers and through new partnerships and technologies were determined to transform our business to be more accessible and affordable,serving our customers better every day.Our approachMaking every customer happy is a top priority.To create an excellent customer experience for more of

238、the many,we are focusing on:Making IKEA more accessible:We want to bring IKEA closer to our customers,both physically closer through new locations and retail formats,and by making IKEA more accessible through seamless online shopping,new services,convenient delivery options and ever better customer

239、service.Affordability,always our priority:Economic uncertainty,rising inflation and increased cost of living are causing stress and having a big impact on peoples lives.At the same time,our homes have never been more important to us.Despite the challenges of rising costs,we believe more than ever in

240、 making home furnishing more affordable and sustainable for the many.Better homes/Our commitments/2.Accessible and affordable for the many Ingka Group Annual Summary and Sustainability Report FY2232Making IKEA more accessible We want to be there,wherever and whenever our customers want to meet IKEA.

241、New store formats and locationsTo meet the changing needs of our customers and growing urbanisation,we continuously develop and test new retail formats and bring IKEA to new locations closer to where customers live,shop and socialise.Today our three main retail formats are stores,city stores and pla

242、nning studios.In the past year,we continued our expansion into cities with our smaller formats including opening our first city stores in Sweden(Stockholm City),the UK(London Hammersmith),Canada (Toronto Downtown),and India(Mumbai Worli and Mumbai R City).We opened IKEA planning studios in new locat

243、ions,where customers can get expert help to plan more complex purchases,such as kitchens,bathrooms and wardrobes.Customers can touch and feel selected relevant products,for example kitchen fronts and handles,while getting design help from our knowledgeable IKEA co-workers.We also expanded our Ingka

244、Centres business including opening more Livat meeting places that provide spaces for local people to meet,eat,spend time and experience new things.IKEA Hammersmith brings us closer to customers Our first city centre store in the UK opened in FY22 in Hammersmith,West London,part of a EUR 1.2 billion

245、investment in the UK capital over the next three years.The goal to enable Londoners to shop with us for a better,more sustainable life at home,whenever,wherever and however they choose.IKEA Hammersmith offers 1,800 products available to take away and 4,000 on display to provide life at home inspirat

246、ion.The full range remains available for delivery,alongside in-store planning services that support customers in designing bespoke solutions for kitchens,bedrooms and bathrooms.With a focus on accessibility,the store includes self-serve checkouts and has three entrances and exits.Its new Swedish Del

247、i,positioned at the edge of the store,will open one hour earlier than the store itself to allow those in the local community,and busy commuters,to grab and go.The location,is in close proximity to four tube lines and 68 bus routes,reducing customers reliance on private transport.The store is located

248、 in Livat Hammersmith,owned by Ingka Centres.As well as stores and food outlets,the centre includes pay-by-the-hour adaptive retail spaces to give local start-ups,pop-ups and food outlets the opportunity to grow and flourish.Read more onlineBetter homes/Our commitments/2.Accessible and affordable fo

249、r the many/Making IKEA more accessible Developing our online shopping journey We are making IKEA ever more accessible to customers who prefer to browse or shop online.Today almost 80%of all shopping journeys with IKEA start online and in FY22,online sales accounted for 25%of our total.The IKEA app w

250、as downloaded 20.3 million times in FY22 and we had over 3.8 billion sessions on IKEA.com.As we continue our digital transformation we aim to create a seamless customer experience between online and offline shopping,to find innovative ways to keep improving online support and to bring new digital se

251、rvices to customers.Ingka Group Annual Summary and Sustainability Report FY2233Customer supportThis past year Ingka Group has invested in digital self-service tools to improve convenience for customers,as well as digital tools and services to make our co-workers more available to customers in-store

252、and via our digital channels.Online customers can now use live-chat and email,or schedule an online video meeting for advice from our knowledgeable co-workers on buying more complex solutions like kitchens and wardrobes.In FY22,we generated EUR 1.2 billion in remote sales involving customer support.

253、We have been listening to and engaging customers using research panels in several markets to help shape our next wave of customer support improvements.In the UK and Canada we have tested a digital forum for customers to connect with each other to discuss IKEA products,to ask questions and give perso

254、nal advice.The pandemic and war in Ukraine have disrupted many supply chains around the world,including the ones we rely on.This means that in the last year,our customers have not always been able to get the products they want,when they want them,which of course has sometimes impacted the customer e

255、xperience.When we dont have the exact product a customer expects,we have put our focus on finding alternatives,helping our customers to create the life at home that they want with the products we have available.At the same time,we are being transparent so customers know they may have to wait longer

256、for some orders.Availability for most products is now improving.Services improve convenience and accessibility for customers In FY22,we performed 74 million services and about 40%of our retail sales were connected to a service.Services such as home delivery,assembly and installation are a vital part

257、 of our business that help to make our range more convenient and accessible to customers.The quality of services like these are one of the most important drivers for choosing IKEA for some customers,particularly those from younger generations.Bringing the IKEA range closer to customers in Southern I

258、ndia One of our newest stores is located in Bengaluru the state capital of Karnataka province and home to around 10 million people.The store,our fifth in India,employs more than 1,000 co-workers and offers around 7,000 products that reflect local home furnishing needs.It is connected to the local me

259、tro station and customers can benefit from services such as remote planning,personal shopper,and click&collect.Read more onlineBetter homes/Our commitments/2.Accessible and affordable for the many/Making IKEA more accessible Ingka Group Annual Summary and Sustainability Report FY2234Partnership impr

260、oves convenience for customers Our commitment to improving convenience and accessibility for customers means innovating in our business and also forging new partnerships with specialist service providers.IKEA Canada,has partnered with Penguin-PickUp,a network of secure locations where customers can

261、pick up,ship and return packages.This partnership enables customers to use collect near you locations in three major urban areas.In FY22,the network grew to 28 locations and together we plan to continue expanding with additional locations over the next few years.Assembly services available to more c

262、ustomers online Online shoppers in 11 countries can now book assembly services for their new IKEA products at the point of purchase,improving accessibility and convenience.During FY22 around 2 million assembly services were booked and we aim to extend similar services to all our countries over the n

263、ext few yearsLocker solution enables online order pick up,any time of the day or night In France,were seeing an increased demand for click and collect and home delivery options and our IKEA Plaisir store has installed two locker solutions outside the store to improve convenience for customers.With o

264、ne set of lockers for small orders and one for larger IKEA products on trolleys,customers are able to pick up the purchases at a time that suits them including outside store opening hours.Orders on trolleys are placed in elevated storage and automatically retrieved when the customer arrives,meaning

265、they use up less floor space,improve convenience for customers and allow the store to serve more people.Better homes/Our commitments/2.Accessible and affordable for the many/Making IKEA more accessible Ingka Group Annual Summary and Sustainability Report FY2235Technology improves efficiency for cust

266、omers and co-workers Behind the scenes,we are using technology to improve efficiency and assist our co-workers to better serve our customers.In our IKEA Ottawa store,for example,weve introduced a new first-of-its kind system that uses autonomous mobile robots to pick and carry products across the wa

267、rehouse to our co-workers.This is helping the store meet the growing demand for click and collect services and is complemented by other changes including a comfortable and stylish customer lounge for order collection,traditional kerb-side pickup,and 24/7 accessible collection lockers,that allow cust

268、omers to pick up their orders at a time convenient to them.The robots speed up order processing to benefit customers while also improving safety and ergonomics for co-workers as there is less need to lift and carry heavy products.Were rolling out a machine learning tool that improves forecasting acc

269、uracy and helps to ensure better availability of products for customers.Traditional demand forecasting is based on statistical sales,looking at patterns from previous years.Demand Sensing calculates the forecasts and predicts the future in a smarter way,looking at a range of factors from the weather

270、 forecast,to external events and even when people get paid.It also enables forecasting at a local level.Demand Sensing is now in place in nine of our countries in Europe.Better homes/Our commitments/2.Accessible and affordable for the many/Making IKEA more accessible Ingka Group Annual Summary and S

271、ustainability Report FY2236Affordability a key cornerstone Affordability is central to our offer as IKEA to reach more of the many people we must keep our prices as low as we possibly can.Ingka Group measures affordability against competitors and our perception amongst customers,fine-tuning our serv

272、ice offering and working with our franchisor Inter IKEA Group to ensure that we have an affordable offer.During the first years of the pandemic,despite rising costs,we kept prices as low as possible for our customers.Together with Inter IKEA Group,we absorbed substantial supply chain-related costs t

273、o soften the impact on retail prices.However,in FY22 we have had to increase our prices to reflect rising material and transportation costs following the pandemic and war in Ukraine.We remain committed to affordability and will continue to invest to reduce prices when and where possible during FY23.

274、Affordable financial services in 28 countriesWe offer convenient and responsible financial services to our customers giving more people a chance to improve their homes while keeping their budget in balance.Our transparent and affordable financing services enable customers to spread the cost of purch

275、asing larger items over time and are needed more than ever in the current economic climate.36%of our customers who used the services report that they wouldnt have been able to afford the purchase without them.Customers can visit our Finance Services page to get an estimate of monthly payment options

276、 using our calculator tool.In FY22 we expanded our financial services to further countries including China and Ireland.In Germany,we launched the IKEA Family Credit Card with a reward system incentivising taking financial responsibility giving customers who stay within their credit limit and pay on

277、time,vouchers to spend at IKEA.The credit card also offers flexible financing where customers can connect their purchase to a specific repayment plan.Better homes/Our commitments/2.Accessible and affordable for the many/Affordability a key cornerstoneExploring affordable financing solutionsPeople ar

278、e at the heart of everything we do.We want to take a leading role in creating a fairer and more equal society and improve the lives of the millions of people that interact with,or are impacted by,our company.Better livesBetter lives/Our commitments Better lives Our commitments1.Respecting human righ

279、ts 3.Better neighbourhoods 2.Our co-workers at the heart of our business 2.1 Worklife 2.2 Inclusion2.3 Democratic learning38Ingka Group Annual Summary and Sustainability Report FY22Ingka Group Annual Summary and Sustainability Report FY2239Better lives/Progress against targets FY22 ACHIEVED ACHIEVED

280、 ACHIEVED ON TRACK ON TRACK OUR TARGETSPROGRESS IN FY22PERFORMANCE SUMMARYProgress against targets FY22 Culture and valuesMaintain at least an 80%engagement score in our co-worker survey.Our engagement score was 81.0%(FY21:79.8%;FY20:80.1%),an increase on last year.At least 80%of co-workers believe

281、we live our values,based on our co-worker survey.Our survey shows that 80.2%of co-workers believe we live our values(FY21:79.8%).Fair,equal,inclusiveAchieve gender balance across our business in 2022.At the end of FY22,we had achieved a 50/50 gender balance in our management positions(all leaders).3

282、8.0%of our Group Management and 45.8%of country CEOs were women.We reached gender balance in our country management teams.Equal pay for women and men performing work of equal value in all countries.Our latest annual equal pay assessment shows that 4.84%of co-workers belong to groups where pay gaps c

283、annot be explained by performance,competence or a countrys legal requirements(5.04%in FY21).Score 80%on our Inclusion Index,based on our co-worker survey.Our score in FY22 was 81.2%(FY21:80.4%;FY20:81.5%).Increase ethnic,racial and national diversity at all levels so our workforce reflects the diver

284、sity of the communities in which we operate by 2024We have started to put in place processes and programmes to drive and measure our progress against this target.For example,our Equal UP!programme aims to identify and address barriers to equal opportunities for people from underrepresented ethnic an

285、d cultural backgrounds.Our voluntary and anonymous Diversity&Inclusion survey indicates that our workforce reflects society,but more work is needed to achieve diversity at leadership and management levels.NOT ON TRACK Ingka Group Annual Summary and Sustainability Report FY2240 ACHIEVED NOT ON TRACK

286、ON TRACK Better lives/Progress against targets FY22 OUR TARGETSPROGRESS IN FY22PERFORMANCE SUMMARYProgress against targets FY22 Lifelong learningAt least 80%of co-workers are empowered to develop their competencies.81.5%of co-workers in our survey reported feeling empowered to utilise their competen

287、ces(FY21:80.7%).Upskilling and reskilling training provided to co-workers in our transformation initiatives starting with customer service,facilities and stores.We have delivered a range of targeted upskilling programmes for co-workers in these three transformation initiatives resulting in 2,790 co-

288、workers being upskilled and reskilled.Neighbourhoods and communitiesSupport at least 2,500 refugees by the end of 2022 through job training and language skills initiatives in Ingka Group units across 30 countries.We reached 1,765 refugees through skills for employment programmes by our target date,i

289、ncluding 918 refugees in 22 countries in FY22.Unforeseen global events including the Covid-19 pandemic and war in Ukraine resulted in store closures which impacted our operations and ability to roll out and scale up the programme in some countries.Although we did not meet our target of 2,500 by the

290、end of 2022 we expect to do so during FY23.All Ingka Group retail countries will develop products or services from local social businesses by 2025.We partnered with 30 social entrepreneurs in 13 countries.The number of partnerships was lower than in FY21.This was due to resourcing challenges followi

291、ng the pandemic and associated supply chain disruption and the discontinuation of some services.NOT ACHIEVED Ingka Group Annual Summary and Sustainability Report FY22411.Respecting human rights We are committed to promoting and supporting a world where human rights are a reality for all.Ingka Group

292、puts respect for human rights at the heart of our business,integrating it into our strategies,policies and processes based on the UN Guiding Principles on Business and Human Rights.Our respect for human rights encompasses our co-workers,customers,workers in our supply chain and our neighbours in fac

293、t,everyone our business touches.Our sustainability strategy,People and Planet Positive,includes strategic commitments to respect human rights and embed this into all aspects of our operations.Our approachThe Ingka Group Policy on Human Rights and Equality is the basis of our approach and we are also

294、 guided by the IKEA Employment Standards,our Code of Conduct and IWAY the IKEA supplier code of conduct.Our Human Rights and Equality Policy is approved by our Management Board and our Sustainability Committee,chaired by our Chief Financial Officer and deputy CEO.This committee also governs and moni

295、tors our approach to human rights.In FY22,we created a Human Rights and Social Impact team to drive our efforts in this area.Potential human rights risks:We aim to focus on the most salient human rights impacts those at risk of the most severe negative impacts.We have identified a range of potential

296、 human rights risks for our industry,including modern slavery and forced labour,low wages,undocumented cash wages,excessive hours,unsafe working conditions,and threats to freedom of association rights.Assessing the human rights impacts of our business activities is an ongoing process and we are cont

297、inually learning and developing our approach.We know there is always more we can do to ensure respect for human rights across our business and throughout our value chain.Due diligence:The IWAY System is designed to ensure that sustainability impacts,including human rights risks,are identified before

298、 supply agreements are entered into and then continuously identified,monitored,and managed over time.As part of the selection process,potential suppliers undergo a risk assessment which covers human rights aspects such as workplace health and safety,wages and working hours.See page 110 for a descrip

299、tion of the IWAY process.Other human rights risks are picked up via the Ingka Group risk management Better lives/Our commitments/1.Respecting human rightsIngka Group Annual Summary and Sustainability Report FY2242process.This captures strategic and operational human rights risks through an annual ri

300、sk assessment at a global and local level.For more on risk management see page 101.In FY23,we will review how our human rights due diligence systems are applied across Ingka Group.Remediation:We take seriously our responsibility to remediate any negative human rights impacts on people,society and th

301、e environment that we cause or contribute to.Our approach to remediation,including which impacts we prioritise for remediation,depends on how we are connected to the impact and its nature and severity.For example,in cases where a negative impact is caused by one of our suppliers,we work together to

302、provide access to meaningful remediation and the IWAY standard sets clear expectations on how specific negative impacts should be remediated.We are reviewing how we provide remedy to affected stakeholders beyond our direct business partners to ensure we align with the UN Guiding Principles on Busine

303、ss and Human Rights.Grievance mechanisms:Co-workers who have any human rights concerns can raise them through our internal grievance mechanism,Trustline,see page 109.In addition,we request all our suppliers,via IWAY,to put a grievance mechanism in place that is known to their workers and enables wor

304、kers to raise complaints or concerns without fear of retaliation.When requested,we provide guidance and support.Equality lies at the core of human rights.We believe that all people should be treated fairly and given equal opportunities,whatever their background or identity.Read more about our approa

305、ch to equality,diversity and inclusion on page 51.Advocacy and partnerships When it comes to human rights,we do not have all the answers and need to work together with others to address complex challenges and contribute to systemic change.We want to play our part in addressing the root causes of neg

306、ative human rights impacts on people,society and the environment.During FY22,Ingka Group continued to work closely with partners such as the B Team,UNICEF,Real Play Coalition and World Economic Forum to exchange and drive change on human rights related topics.We are members of the Business Network o

307、n Civic Freedoms and Human Rights Defenders and our Human Rights and Social Impact Manager,Julia Olofsson,served as the co-chair of the World Economic Forums Global Future Council on Human Rights.We believe businesses have a responsibility to provide transparency around human rights through due dili

308、gence reporting.Together with our franchisor,Inter IKEA Group,we are actively engaging with EU institutions and key stakeholders on the proposal for a Corporate Sustainability Due Diligence Directive(CSDDD).We support well-designed,harmonised legislation on human rights and environmental due diligen

309、ce which is mandatory and proportionate.Due diligence mechanisms should use a risk-based approach that allows businesses to identify and manage risks proactively,moving beyond simply avoiding adverse impacts.Aligning to international standards Our approach to human rights is guided by well-establish

310、ed international standards.This starts with the Universal Declaration of Human Rights and its two corresponding covenants,The International Covenant on Civil and Political Rights and The International Covenant on Economic,Social and Cultural Rights,which form the basis of our approach.We pay special

311、 attention to childrens rights,womens rights and the rights of people belonging to underrepresented and marginalised groups,as outlined in international conventions including:the UN Convention on the Rights of the Child the UN Convention on the Elimination of All Forms of Discrimination against Wome

312、n the International Convention on the Elimination of All Forms of Racial Discrimination the International Convention on the Rights of Persons with Disabilities.Our commitment to workers rights is based on the International Labour Organizations(ILO)Declaration on Fundamental Principles and Rights at

313、Work.Our approach to human rights in our business is also aligned to:the UN Guiding Principles on Business and Human Rights the Childrens Rights and Business Principles the OECD Guidelines for Multinational Enterprises the UN Global Compact,including the UN Womens Empowerment Principles the Gender G

314、uidance to the UNGPs the UN Standards of Conduct for Tackling Discrimination against LGBTI people.We comply with applicable laws in the countries where we operate.When these laws are not aligned with international human rights standards,we strive to find the best way forward to secure that the essen

315、ce of the rights reflected in these international human rights standards is still respected.Better lives/Our commitments/1.Respecting human rightsIngka Group Annual Summary and Sustainability Report FY2243Better lives/Our commitments/1.Respecting human rights/Respecting and supporting childrens righ

316、tsRespecting and supporting childrens rights Our business touches the lives of children through our products,stores,marketing and supply chain.Ingka Group are committed to being a child-friendly retailer.We always try to act in the best interest of the children and families that come into contact wi

317、th our business and have zero tolerance for any form of child abuse.Childrens rights are one of the key areas in our updated Ingka Group Policy on Human Rights and Equality.We also have detailed principles for child participation and safeguarding to ensure a consistent approach to child rights acros

318、s our business.Our approach is based on the Childrens Rights and Business Principles,developed by Save the Children,the UN Global Compact and UNICEF.We look at all aspects of our business from a childs rights perspective,and our key commitments include:Ensuring that our stores and meeting places are

319、 child-friendly.Working with Inter IKEA Group to ensure that our products for children are safe.Preventing misleading,exploitative,discriminatory,or aggressive marketing and communication practices towards children.Never tolerating any form of child or forced labour,modern slavery or mistreatment of

320、 workers.Supporting fair work for young workers,parents and caregivers.We make our stance on child labour clear to suppliers through our IWAY Standard on Preventing Child Labour and Supporting Young Workers.Our belief is that young people who are legally able to work should have access to decent emp

321、loyment opportunities,but they should not do hazardous work,night work or overtime.Read more about IWAY on page 110.Child rights and marketingA key focus is how we address and portray children through our marketing and communications.We have developed a set of principles for marketing agencies and p

322、roduction companies to ensure they align with our standards.These state that:We should never use children to endorse the IKEA brand in a way that is beyond their understanding or control.We should only use children as spokespersons in relation to their own products such as the SAGOSKATT range of sof

323、t toys designed by children through a yearly drawing competition.We do not use children as IKEA brand ambassadors to endorse products or services.Winning ideas that support the right to playEvery child has a right to play.Its how they develop creativity,empathy,self-control and other essential skill

324、s.Yet millions of children worldwide especially in cities are denied playtime,even though there is often great potential to integrate play into everyday life.IKEA is one of the founding members of The Real Play Coalition,a movement dedicated to narrowing the play gap for 100 million children by 2030

325、.During FY22 we helped launch the second Real Play City Challenge,aiming to shine a light on great examples of cities that give people time,space and opportunities to play.The Challenge received 94 entries,spanning cities and community organisations across four continents and focusing on three theme

326、s:Places where play heals people;Places where play supports climate action;and Places where play unites us all.Responding to human rights cases In FY22,we identified two cases in the category of child labour in the Ingka Group supply chain.Both cases were in the UK and related to workers for home de

327、livery suppliers whose children were found to be riding in the delivery van with their parents.We required these suppliers to immediately resolve the situation and to update their child labour policies to be clear that children cannot ride in delivery vans.The updated policies were sent to all relev

328、ant sub-contractors and the suppliers are conducting a programme of vehicle spot checks.www.realplaycitychallenge.orgIngka Group Annual Summary and Sustainability Report FY2244Better lives/Our commitments/1.Respecting human rights/Protecting workers rights in a changing worldProtecting workers right

329、s in a changing world Everyone has the right to decent and meaningful work including a healthy and safe workplace,freedom from discrimination and freedom of association,job security,predictable working hours,financial stability and training.However,many people working in global supply chains experie

330、nce unfair and unsafe working conditions.This is not acceptable.Ingka Group will play our part in protecting the human rights of the workers in our supply chain,just as we respect the rights of our own co-workers.IWAY:We work with suppliers and service providers to ensure that environmental,social,a

331、nd working conditions are secured and respected in our supply chain through IWAY,our supplier code of conduct.This is explained on page 110.Responsible recruitment:We have further guidelines and standards that support IWAY,such as our guidelines on Responsible Recruitment.These help our suppliers an

332、d service providers reduce modern slavery risks,including the risk of people being forced or bonded into labour,having their passports taken away or becoming trapped by large recruitment fees.We have trained our procurement and sustainability compliance teams on the guidelines.Digital platforms:Weve

333、 also added requirements to our IWAY Standard for digital gig economy platform companies in our supply chain.Gig economy businesses connect independent contractors with customers that need their services such as home delivery,assembly and installation.There is a risk that these people may not be covered by national employment and social protections,as they dont have conventional employment contrac