1、Ingka Group Annual Summary and Sustainability Report FY23 Ingka Holding B.V.2024.Some images by courtesy of Inter IKEA Systems B.V.The IKEA logo and the IKEA wordmark are registered trademarks of Inter IKEA Systems B.V.PLUFSIGFolding gym mat 39.992999Made of min.90%recycled polyesterIngka Group Annu

2、al Summary and Sustainability Report FY232 2Hej!We are driven by the IKEA vision to create a better everyday life for the many people.We are passionate about life at home and are transforming our business to create a better IKEA that is affordable,accessible,and positively impacts people and the pla

3、net.We 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-worker

4、s,customers and communities;playing our part in creating a Better planet;and creating a Better company for today and future generations.We seek to make balanced decisions and measure performance holistically across these four areas.We are 80 years old but young at heart.We keep challenging ourselves

5、,guided by our founder Ingvar Kamprad who said:“We will move ahead only by constantly asking ourselves how what we are doing today can be done better tomorrow”.The Ingka Group Annual Summary and Sustainability Report FY23 covers the financial year 2023(FY23),from 1 September 2022 to 31 August 2023,u

6、nless otherwise stated,and the entities controlled by Ingka Holding B.V.during this time.In our report youll find information on our financial and nonfinancial performance against a wide range of targets and indicators.We aim to provide a transparent account of our performance,highlighting areas whe

7、re we are making progress as well as where we are facing challenges.Ingka Group reporting includes:Find out moreIngka Group Annual Summary and Sustainability Report FY23 An in-depth account of our performance in FY23.Short summary of the Ingka Group Annual Summary and Sustainability Report FY23Key h

8、ighlights of our performance and challenges FY23Ingka Group reporting website An online summary of FY23 performance.3ContentsXX13Summary FY23About Ingka Group4A few words from our leadership5Our four movements6Our business impact on people and planet7Materiality 8Young Leaders opinion letter9Our per

9、formance at a glance10Our data FY23About our reporting 92Better homes data 93 Better lives data94Womens empowerment principles 99Better planet data100Better company data118UN Sustainable Development Goals 123 Assurance report of the independent auditor126 Better planet 44Progress against targets FY2

10、345 Climate change47 Resource use,circularity and waste58Water63Biodiversity and forestry65Better company 68Progress against targets FY2369Financial resilience70 Ethical business conduct73Digital trust75Responsible sourcing77Governance81BETTER PLANETBETTER HOMESBETTER LIVESBETTER COMPANYOur progress

11、 FY23Better homes 13Progress against targets FY2314 Affordability and accessibility of products and services15Healthy and sustainable living18Customer and end-user safety22Better lives 24Progress against targets FY2325Equality,diversity and inclusion27 Health,safety and wellbeing30Skills development

12、33Fair income36Human rights38Community impact41OUR DATAIngka Group Annual Summary and Sustainability Report FY234 Better lives Better planet Better company Better homesSUMMARYAbout Ingka Group|A few words from our leadership|Our four movements|Our business impact on people and planet|Materiality|You

13、ng Leaders opinion letter|Our performance at a glance About Ingka GroupEUR 44.3 billion total revenue165,353 co-workers3.2 billion online visits 537Customer meeting points in 31 countries44 Ingka Centres meeting places in 14 countries Read more about Ingka CentresRead more about IKEA RetailRead more

14、 about Ingka GroupRead more about Ingka InvestmentsIngka Group operates 537 customer meeting points 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

15、 growth and business transformation.IKEA is a franchise business,with many companies operating under one IKEA brand.Inter IKEA Group 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 I

16、KEA franchisee,generating over 88%of total IKEA Retail sales in FY23.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,with the purpose to create a better and affordable everyday life at hom

17、e.We operate 399 IKEA stores including city stores,as well as 138 plan and order points of various sizes.IKEA Retail operates under franchise agreements with Inter IKEA Systems B.V.,the worldwide IKEA franchisor.In FY23,we had 697 million visits to our IKEA locations and 3.2 billion online visits wi

18、th consent.Ingka CentresIngka Centres create meeting place experiences for people and drive visitation for IKEA and is a global developer and operator of retail-led destinations through its meeting place concept.Ingka Centres has 50 years of experience in shopping centres and works with 3,000 brands

19、 across its portfolio of 44 Ingka Centres meeting places in 14 markets and 352 million visits in FY23.Ingka InvestmentsIngka Investments makes investments and acquisitions that secure Ingka Groups long-term financial strength and support and accelerate our business growth,business transformation and

20、 sustainability goals.Our investments range are organised in seven portfolios:Business Development Investments,Prioritised Cities Real Estate Investments,Venture&Growth Capital,Renewable Energy Investments,Circularity Investments,Forestland Investments and Financial Markets Investments.Our unique ow

21、nership structureIngka Group(Ingka Holding B.V.and its controlled entities)has an ownership structure that ensures independence and a long-term approach.Ingka Group is owned by a Dutch foundation,Stichting INGKA Foundation(INGKA Foundation).INGKA Foundation does not have any owners;it owns itself.It

22、 also does not have any beneficial owners but holds its assets only on its own behalf.This means that nobody is entitled to the assets of the Foundation and there are no dividends paid to private shareholders.INGKA Foundation has a charitable purpose to create a better everyday life for the many peo

23、ple in need.The INGKA Foundation achieves its charitable purpose by providing funding to the Stichting IKEA Foundation,an independent philanthropic grant-making organisation committed to tackling the two biggest threats to the future of children and families:poverty and climate change.OUR DATAIngka

24、Group Annual Summary and Sustainability Report FY235 Better lives Better planet Better company Better homesSUMMARYAbout Ingka Group|A few words from our leadership|Our four movements|Our business impact on people and planet|Materiality|Young Leaders opinion letter|Our performance at a glance 5*Jespe

25、r and Juvencio are members of the Management Board,Ingka Groups ultimate decision-making body and responsible for formal conduct and strategic,structural and financial approvals,as well as critical risks.Jesper Brodin,President and CEO,Ingka Group*Juvencio Maeztu,Deputy CEO and CFO,Ingka Group*In FY

26、23 we celebrated 80 years of IKEA.So much has changed in eight decades,but we are still guided by the same vision:to create a better everyday life for the many people.That has never been more important or relevant than it is today.We succeed as a business by remaining relevant and affordable for our

27、 customers,by keeping our costs low,by reinvesting for the future,and by taking care of people and planet.Each element is equally important and thats why we judge our performance holistically across four areas:Better homes for our customers,Better lives for the many people and our co-workers,a Bette

28、r planet for all,and a Better company now and for future generations.To us,good performance means performing well in each and all of the four areas.The past few years have been unprecedented in so many ways and while FY23 was a less eventful year than some,we continued to operate in an environment o

29、f economic uncertainty and disruption.Yet together with our co-workers,we delivered on our vision to create a better life at home and in the world,while growing the business in a healthy way.We are proud“We are proud to be in a team of optimistic entrepreneurs,demonstrating together that it is good

30、business to be a good business.”A few words from our leadershipto be in a team of optimistic entrepreneurs,demonstrating together that it is good business to be a good business.Highlights from this year include opening 60 new locations to bring IKEA closer to more people,expanding our range of plant

31、-based food options and enabling more customers to buy and sell secondhand IKEA furniture.We pride ourselves on providing a great place to work for our co-workers and were pleased that 84%told us that they feel they can be themselves at work.Our financial performance was good in FY23,with revenues o

32、f EUR 44.3 billion and a 5.7%increase in retail sales.We reinvested 85%of our net income into the company and the remaining 15%was paid as a dividend to the Stichting INGKA Foundation,to achieve its charitable purpose.We have reduced our total climate footprint(scope 1,2 and 3)by 24.3%since FY16 and

33、 this year we invested a further 0.7 billion(including committed investments)in offsite renewable energy generation and the wider energy transition(EUR 3.8 billion since 2009).To build on this progress,we have strengthened our climate targets in alignment with the Science Based Targets initiative(SB

34、Ti)Net Zero standard and submitted these for approval to SBTi.The revised target is a reduction of the climate footprint across the value chain by at least 50%by 2030(compared to our 2016 baseline).We will report against these from FY24 once they have been approved.As we transform our business to be

35、 ever more affordable,accessible and sustainable,we are on a journey to strengthen our reporting too.We want to share our successes and achievements but also to be open about the challenges we face and to make sure we focus on the issues that matter most.We have taken some important steps this year

36、and this will remain a priority in FY24 and beyond.We are 80 years old but young at heart.We look to the future with curiosity and humbleness and remain inspired by the words of our founder Ingvar Kamprad:We will move ahead only by constantly asking ourselves how what we are doing today can be done

37、better tomorrow.OUR DATAIngka Group Annual Summary and Sustainability Report FY236 Better lives Better planet Better company Better homesSUMMARYAbout Ingka Group|A few words from our leadership|Our four movements|Our business impact on people and planet|Materiality|Young Leaders opinion letter|Our p

38、erformance at a glance 6BettercompanyBetterhomesBetterlivesBetter homesPeople are at the heart of everything we do.We want to take a leading role in creating a fairer and more equal society.Starting with our co-workers and supply chain,extending to our customers,neighbourhoods,communities and societ

39、y at large,we are determined to be a force for good.Better livesFor generations,we have been on a mission to bring inspiring and affordable home furnishings to the many people regardless of wallet size.Today we are focussing on omnichannel innovation,integrating our physical and digital channels to

40、bring IKEA to more people,and offering affordable products,services and solutions that make healthier and more sustainable living easier.We only have one planet,the home we all share.We are taking bold steps across our business to reduce our greenhouse gas emissions,minimise resource use and waste,a

41、nd promote biodiversity and water conservation.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.We push to be a fair,inclusive and empowering company with good governance and respect for human rights across our

42、 value chain.We reinvest a large part of our net income in our business to become ever more affordable,accessible and people and planet positive.The remainder is paid as a dividend to the Stichting INGKA Foundation to achieve its charitable purpose.Better companyBetterplanetBuilding better into ever

43、ything we doWe support the United Nations Sustainable Development Goals(SDGs)in their ambition to achieve a better world for all.Read more on pages 124 to 126.OUR DATAIngka Group Annual Summary and Sustainability Report FY237 Better lives Better planet Better company Better homesSUMMARYAbout Ingka G

44、roup|A few words from our leadership|Our four movements|Our business impact on people and planet|Materiality|Young Leaders opinion letter|Our performance at a glance IKEA Retail Ingka Centres Ingka InvestmentsImpacts we make through products and services we purchase,including the IKEA products sold

45、in our stores that are supplied by our franchisor Inter IKEA Group.1.UpstreamImpacts 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.2.Our own operationsMaterials Manufacturing Pr

46、oductionTransportation of productsTransportation and delivery of IKEA productsOur customers and their homes Product end of lifeRecyclingReuse12Impacts that take place when our customers take our products home(including customer travel to our IKEA stores).For example,electricity used by our kitchen a

47、ppliances and the take-back,recycling or end of life of our products.3.Downstream3Buyback&ResellRepairOur value chainAt each stage of our value chain,our business has an impact on people and the planet from our sourcing to the use of our products by our customers.At Ingka Group we take a value chain

48、 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.We are accountable for our whole footprint but have most control over impacts in our own operations(section 2 in the diagram).We work with Inter IKEA Grou

49、p and other partners to address issues and opportunities 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 repair,reuse and recycling of IKEA pro

50、ducts(downstream).See next page for the material topics in our value chain*Where we outsource last mile delivery,we report our CO2 emissions in our scope 3 downstream reportingOUR DATAIngka Group Annual Summary and Sustainability Report FY238 Better lives Better planet Better company Better homesSUM

51、MARYAbout Ingka Group|A few words from our leadership|Our four movements|Our business impact on people and planet|Materiality|Young Leaders opinion letter|Our performance at a glance We want to make sure that we focus our work and our reporting on the topics that matter most for our stakeholders,our

52、 business and the planet.To help us do this,we regularly conduct a double materiality assessment which incorporates stakeholder input and research.You can read in more detail about how we conducted this assessment in FY23 on page 87.On this page we show how the material topics identified in our doub

53、le materialityassessment fit into the four better movementsthat form the structure for our report.The table summarises the significant impacts,risks and opportunities we have identified at each stage of our value chain.We report on the topics that matter mostSUMMARYAffordability and accessibility of

54、 products and services Equality,diversity and inclusion Climate changeFinancial resilience Fair incomeBiodiversity and forestry Digital trustHealthy and sustainable living Health,safety and wellbeingResource use,circularity and waste Human rights Responsible sourcingMaterial topicsWhere do we have t

55、he most significant impacts,risks and opportunities?UpstreamOur own operationsDownstreamCustomer and end-user safety Skills developmentWater Ethical business conduct Community impactMediumSee the full results and methodology of our materiality assessmentWhat is a material topic?Put simply,material t

56、opics are those which are most significant and relevant for our business and our stakeholders.In our assessment,we consider two questions could our business impact people or the planet in relation to the topic?Could the topic impact on the financial performance of our business?If the answer is yes t

57、o either question,we know its a material topic.High Critical Better homesBetter livesBetter planetBetter companyOUR DATAIngka Group Annual Summary and Sustainability Report FY239 Better lives Better planet Better company Better homesSUMMARYAbout Ingka Group|A few words from our leadership|Our four m

58、ovements|Our business impact on people and planet|Materiality|Young Leaders opinion letter|Our performance at a glance Young Leaders opinion letterOur Work Thus FarOver the past three years,we have engaged with the Ingka Group in a manner that balances collaboration with critical oversight.This year

59、,our involvement included engaging with the Supervisory Board,deep diving into AI policy and ethics discussions with the Group Management,and providing rapid feedback on various sustainability-related initiatives.Our work has encompassed challenging and advising on issues of circularity,transparency

60、,and sustainability,as well as advocating for a stronger diversity and equity approach to business operations.Our Transparency Working Groups role in reviewing Ingka reports and ensuring transparency and accountability has encouraged improvements in this years report.ConclusionIn the face of global

61、uncertainties,including devastating geopolitical tensions and climate-related natural disasters,we recognize that the solutions to these challenges require a concerted effort from all sectors of society.Our collaboration with the Ingka Group has pioneered a model for meaningful corporate engagement

62、with youth.This partnership marks early strides towards more inclusive business practices.We hope that our efforts will inspire the Ingka Group and other businesses to continue evolving in their engagement with young leaders.Zhilin Xiao,Cathy Yitong Li,Zanagee Artis,Vlad Kaim,Kehkashan Basu on behal

63、f of the Young Leaders ForumWe would like to see more progress in the following areas:-Besides commendable efforts on climate mitigation,especially on renewable energy,wed love to see Ingka taking the leadership on how IKEA and fellow businesses can step up on climate adaptation actions.-Human right

64、s within supply chains are vital.We look forward to Ingkas proactive steps to reduce any major non-compliances among suppliers.-Nature underpins our economy and our very existence.We are delighted to see more information on biodiversity and forestry shared in FY23.We encourage Ingka to further its w

65、ork by setting more specific and science-based targets.Additionally,we urge Ingka to go beyond FSC certification,ensuring science-and rights-based consumption and conservation of natural resources,through working with Indigenous Peoples and local communities.We have identified the following areas th

66、at are commendable:-Ingkas reports visibly include challenges sections,demonstrating their commitment to transparency.This openness in acknowledging the hurdles and limitations they face in achieving sustainability targets is a progressive step.-Ingkas adoption of a double materiality assessment mar

67、ks a noteworthy step in sustainability efforts.This approach helps identify key environmental and social impacts relevant to their operations and stakeholders,demonstrating a commitment to enhanced accountability and impact assessment.-Ingka has been a vocal advocate for climate actions,including th

68、e phasing out of fossil fuels,leading by example and encouraging other businesses and governments to pursue ambitious climate actions,evident in their collaboration with the B Team.We,as part of the Ingka Young Leaders Forum,are an independent external advisory group of under-30 activists and profes

69、sionals deeply committed to environmental and climate justice.Our collective experience spans building global movements,shaping multilateral policies,and empowering grassroots communities,all aimed at securing a livable planet for future generations.OUR DATAIngka Group Annual Summary and Sustainabil

70、ity Report FY2310 Better lives Better planet Better company Better homesSUMMARYAbout Ingka Group|A few words from our leadership|Our four movements|Our business impact on people and planet|Materiality|Young Leaders opinion letter|Our performance at a glance 1,135 refugees supported through our Skill

71、s for Employment programme in 22 countriesBETTER HOMESBETTER HOMESBETTER LIVES6014new locations opened to make IKEA more accessible and convenient for more peoplecountries started offering our new plant-based hot dog79%engagement score in ourco-worker survey BETTER LIVESTarget:80%2.6 millionhours sp

72、ent by co-workers on learning BETTER LIVES76 Happy Customer score for FY23 (FY22:71)BETTER HOMESgender balance in our management positions(all leaders)BETTER LIVES50/50Target:50/502.2 million375,000customers used our spare assembly parts service to maintain and repair their IKEA productscustomers us

73、ed IKEA Kreativ,our AI-driven digital interior design experience BETTER HOMESOur performance at a glance BETTER HOMESPlant-based hot dog0.79OUR DATAIngka Group Annual Summary and Sustainability Report FY2311 Better lives Better planet Better company Better homesSUMMARYAbout Ingka Group|A few words f

74、rom our leadership|Our four movements|Our business impact on people and planet|Materiality|Young Leaders opinion letter|Our performance at a glance BETTER PLANET75.9%operational waste recycled BETTER PLANET24.3%reductionin our climate footprint(scope 1,2 and 3)from our FY16 baselineBETTER COMPANYBET

75、TER COMPANYBETTER PLANETEUR 1.5 billion net incomeWe reinvested 85%of our net income into the company and the remaining 15%was paid as a dividend to the Stichting INGKA Foundation,to achieve its charitable purpose(FY22:EUR 0.3 billion)More than260,000e-learning sessions completed on data protection

76、and privacy79.2%of electricity we used was from renewable sourcesBETTER PLANETTarget:100%by 2025Target:EUR 7.5 billion by 2030(Including EUR 1 billion in transitional technologies)Target:100%by 2030EUR 0.7 billion(EUR 3.8 billion since 2009)Investments in off-site renewable energy(including committe

77、d investments)EUR 44.3 billionIngka Group revenue(EUR 42.0 billion in FY22)BETTER COMPANYBETTER COMPANYEUR 1.2 billion Total tax bill (FY22:EUR 1.0 billion)Normalised tax rate of 28%Better homesIngka Group Annual Summary and Sustainability Report FY2312Progress against targets|Affordability and acce

78、ssibility of products and services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARYOur progress FY23 Better homesIngka Group Annual Summary and Sustainability Report FY2313Progress against targets|Affordability and accessibility of

79、products and services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARY We believe a better home can enable a better life.For generations,we have been on a mission to understand the needs,challenges and aspirations of the many,bringi

80、ng inspiring and affordable home furnishings to people with big dreams regardless of wallet size.Better homesOur material topicsAffordability and accessibility of products and servicesHealthy and sustainable livingCustomer and end-user safety Better homesIngka Group Annual Summary and Sustainability

81、 Report FY2314Progress against targets|Affordability and accessibility of products and services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARY ON TRACK NOT ON TRACK Customer and end-user safetyProgress against targets FY23 OUR TAR

82、GETSPROGRESS IN FY23PERFORMANCE SUMMARY Affordability and accessibility of products and servicesTargets under development.Targets under development.We offer IKEA Energy Services in 11 countries,including a home solar service and,in Sweden,a heat pump service.Enable customers to reduce their climate

83、footprint by offering IKEA Energy Services in all markets by 2025.Healthy and sustainable living Progress this year included:As-Is areas in 373 stores where customers can buy returned,discontinued,ex-display and secondhand items for a lower price than buying new.Over 211,600 customers(FY22:105,000)u

84、sed our Buyback service to give 430,000 items a second life(FY22:230,000).A campaign to Keep Good Things Going ran in several markets to highlight the service.24.6 million spare assembly parts provided to customers(FY22:21.9 million)with online ordering for spare parts now available in 28 countries.

85、Provide knowledge,inspiration,services and platforms supporting customers to actively participate in circular actions.Better homesIngka Group Annual Summary and Sustainability Report FY2315Progress against targets|Affordability and accessibility of products and services|Healthy and sustainable livin

86、g|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARY Affordability and accessibility of products and servicesMATERIAL TOPIC With over 80 years of home furnishing and life at home expertise,we are constantly innovating to meet peoples dreams and needs with products,

87、services and solutions that are affordable,accessible and more sustainable.Challenges we are addressing In FY23,despite the challenges of inflation,currency fluctuations and economic disruption,we invested in decreasing prices in some parts of our range but still have further to go to reach pre-pand

88、emic price levels.We are prioritising this in FY24 and expect to lower prices for many more products during the year.Our customer research shows that we can further improve ease of shopping for some customers and do more to create a smoother ordering process.What we are proud of Opened three new sto

89、res,10 city stores and 47 new plan and order points as well as two new Ingka Centres meeting places.Used innovative technology in our stores and fulfilment centres and online to improve the customer and co-worker experience.375,000 customers used IKEA Kreativ,our AI-driven digital interior design ex

90、perience.Despite economic challenges in many markets,our retail sales grew by 5.7%.Our IKEA Life at Home Report shared unique insights from research with 37,000 people in 38 countries.Better homesIngka Group Annual Summary and Sustainability Report FY2316Progress against targets|Affordability and ac

91、cessibility of products and services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARYAn affordable offer Affordability is always our priority.We fine-tune our service offering and work with our franchisor Inter IKEA Group to ensure

92、that we have an affordable offer.Ingka Group measures affordability against competitors and by tracking our perception amongst customers.The pandemic and war in Ukraine have disrupted supply chains over the last few years and led to price instability and rises in the cost of raw materials,goods and

93、services which have resulted in price increase for some products.At the start of FY22,we started to invest in lowering prices in selected parts of our range,choosing the products we knew our customers loved and needed the most.We have continued to invest in decreasing prices wherever possible and wi

94、ll keep doing so for many products across markets in the coming months despite challenges due to inflation,currency fluctuations and other economic disruption.We offer financial services in 29 markets to help customers spread the cost of their purchases.In FY23,we extended these including offering n

95、ew loan services in Italy,Spain and Sweden and a payment by instalment service in Portugal.Customers in five countries can also acquire the IKEA Family credit card to spread the cost of purchases and gain rewards.To safeguard our customers and support their financial resilience in a responsible way,

96、we always provide at least one offer at 0%interest rate.We partner with financial service providers who share our values and we work to make sure our offers are communicated in a way that is simple and easy to understand.64%of customers using our financial services to purchase at IKEA report that wi

97、thout financial services they could not afford to make their purchase(fully or partially).Ingka Investments made new minority investments in two financial services companies DirectID and Kreditz which are improving management of credit risk and supporting more accessible financial services.We are ma

98、king sure our products and services for healthy and sustainable living are affordable to the many.See page 18.Bringing our stores closer to more peopleWe are investing in new locations and expanding in city centres to make IKEA more accessible and convenient for more people.We increasingly integrate

99、 our digital and physical sales channels to facilitate a seamless customer journey and a convenient shopping experience wherever,whenever and however our customers want to meet us.During the year we opened three new stores,10 city centre locations and 47 new plan and order points as well as two new

100、Ingka Centres meeting places.For example,in the US we opened new locations in San Francisco and Arlington Virginia and announced an EUR 2 billion(USD 2.2 billion)investment in omnichannel growth over the next three years.This will create 2,000 jobs,strengthen our fulfilment network and include eight

101、 new IKEA stores and nine plan and order points.In Spain we are making a EUR 150 million three year investment in new locations which will see us recruiting more than 1,500 new co-workers.In Denmark,we opened our first city centre store in Copenhagen and invested in Denmarks second-largest logistics

102、 centre,CDC Copenhagen,which will improve availability,flexibility and delivery times for customers.IKEA Kreativ:bringing interior design to the many IKEA Kreativ,our AI-driven digital design experience enables customers to design and visualise their own living spaces,using a computer or smartphone.

103、It enables customers to erase existing furniture from the scene,position new IKEA furnishings and accessories,rapidly swap through alternatives,and fully design the room.Now available in nine markets,375,000 customers used IKEA Kreativ in FY23.We also offer our online interior design service to help

104、 customers transform their homes,with convenient access to home furnishing advice at affordable prices.In FY23,321,000 people used the service to create a better home in 30 countries.Better homesIngka Group Annual Summary and Sustainability Report FY2317Progress against targets|Affordability and acc

105、essibility of products and services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARYDigital services and solutionsToday 26%of our sales are generated from our digital touchpoints and we expect this to increase.We are using technolog

106、y to enhance the online experience,to engage with our customers in relevant ways and to improve the accessibility of our products and services.For example,even in our smaller stores we want customers to be able to experience our full range.In France,weve been testing interactive room design that ena

107、bles customers to visualise our range at full scale using digital projections.Home furnishing products that would usually require 40,000 m2 of display space can be viewed in a 9m2 area.We are also using automation to improve efficiency and enhance the co-worker and customer experience.For example,by

108、 using autonomous drones to track stock inventory we can free up co-workers to focus on meeting our customers on the shopfloor.We have over 100 drones in 17 locations in Belgium,Croatia,Slovenia,Germany,Italy,the Netherlands,Switzerland and the US.In Japan,our Tokyo Bay store has introduced a roboti

109、cs solution that automatically picks products from the storage area to fulfil orders of small items.This is improving delivery times and giving co-workers more time to spend with customers.In FY23,we ran or tested more than 40 different automation solutions.Our Digital Ethics Policy helps ensure we

110、use AI and other technologies responsibly,see page 76.What our customers thinkWe use sales data,customer feedback and research to assess whether our products and services are affordable and accessible,and to help us keep improving.Despite economic challenges in many markets,our retail sales grew by

111、5.7%in FY23.Our Brand trust score,tracked via consumer and customer research,improved thanks to better perceptions of our shopping experience and remained stable in relation to perception of range quality.We outperformed direct competitors in relation to perceptions of our impact on society and the

112、environment,although our score dipped slightly on the previous year.47%of people in our primary market areas trust IKEA more than other brands within the home furnishing category.We track our Brand trust score in 30 countries,and in 27 of these we are the most trusted brand vs direct competitors.Our

113、 end of year Happy Customer score for FY23 was 76,compared with 71 in FY22.The results show improved ratings for ease of shopping,stock availability,remote customer support and co-worker availability.The results also showed that we can further improve ease of shopping for some customers and create a

114、 smoother ordering process.Happy Customer scores are based on feedback from several sources.To further improve how we measure customer perceptions of their shopping experience with IKEA we are currently evolving and improving the methodology for our Happy Customer score.Insights and ideas for a bett

115、er life at homeWe conduct life at home research to help us develop products,services and solutions that make a good home more accessible to the many people.Our annual IKEA Life at Home Report was based on a survey with more than 37,000 people in 38 countries.We found that peoples concerns about the

116、economy and their health and wellbeing continue to rank highest,but during times of uncertainty they still feel good about life at home 60%of people feel positive about their current life at home,and 52%say that home is their favourite place to be.The report also explores the eight key emotional nee

117、ds that create the feeling of home privacy,ownership,security,comfort,belonging,enjoyment,accomplishment and aspiration.Read more here.Better homesIngka Group Annual Summary and Sustainability Report FY2318Progress against targets|Affordability and accessibility of products and services|Healthy and

118、sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARY Healthy and sustainable livingMATERIAL TOPIC The 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,

119、we contribute by bringing our customers products,services and solutions that can help to reduce their environmental impact and by using our communication to inspire positive lifestyle changes.Challenges we are addressing Finding circular solutions that strike the right balance between accessibility,

120、convenience,profitability and scalability takes time.We are testing many different approaches,building our knowledge and expertise and scaling up the most successful.We continue to work to accelerate progress in this area.We have not been able to roll out our IKEA Energy Services to more countries a

121、s quickly as we would like due to a number of factors including fluctuations in customer demand,the ongoing cost of living crisis and changes in government subsidies and regulations.We are developing our approach to enable us to measure and report progress against the IKEA ambition to inspire and en

122、able 1 billion people to live a better everyday life within the boundaries of the planet.What we are proud of Continued to develop our in-store Sustainable Living Shops to build awareness about more sustainable living and highlight products and actions that can help customers to use less energy and

123、water,reduce waste and prolong product life.Over 211,600 customers used our Buyback service to sell back IKEA products they no longer need.Provided spare assembly parts to 2.2 million customers to help them maintain and upgrade their IKEA products.Made our plant-based food options available at the s

124、ame price or even lower than our meat-based alternative.This applies even in cases where the cost of raw materials is higher than for our meat-based products.HUVUDROLLPlant balls,500 g4.50/0.5 kg Better homesIngka Group Annual Summary and Sustainability Report FY2319Progress against targets|Affordab

125、ility and accessibility of products and services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARYSustainability and the IKEA range The IKEA range includes products designed to make it easier to adopt sustainable living habits at hom

126、e.In a time of rising living costs and high energy prices,we want to make sure customers know about these products and understand that saving energy and resources at home can also save them money.In FY23,we continued to develop our in-store Sustainable Living Shops.These are spaces within our stores

127、 designed to build awareness about sustainable living practices at home.We use them to highlight products and actions that can help customers to:use less energy,use less water,create less waste,reuse products and prolong product life.Products that may be featured include long-lasting LED lightbulbs,

128、energy-saving light control systems,rechargeable batteries,blinds that trap heat,cooling pads,energy-efficient induction cooktops,home solar systems and water-saving showerheads.In some markets we also include our energy and Buyback services.Products and services for circular livingWe are testing,ad

129、opting and scaling up solutions that can help to prolong the life of our products,keep resources in use for longer,and make it easier for people to give products they no longer need a second life.This can reduce the use of resources,and be more affordable for customers.Finding circular solutions tha

130、t are accessible,convenient,profitable and scalable is not straightforward.By trialling different approaches,we are building our knowledge and experience,working towards solutions that are good for our customers,commercially viable and contribute to our commitment to transform into a circular busine

131、ss.As-Is areas in our stores:The As-Is part of our stores is where we sell a variety of products at lower price points than buying new.These can include customer returns,discontinued,secondhand or ex-display products.All items that are sold through As-Is are thoroughly inspected to ensure functional

132、ity and safety.We are rolling out our updated As-Is concept that includes information on how we are working with more circular practices and provides inspiration on how to prolong the life of IKEA products.By the end of FY23,we had As-Is areas in 373 stores,and 337 of these had the updated concept(F

133、Y22:306).In addition,we continue to our expand the As-Is option online,and this is now available for 278 stores in 24 countries.Latest sustainability highlights in the IKEA range SPRTMAL is a low-cost solid beech wood chopping board and serving tray.It is made from off-cuts from production of other

134、wooden products,helping to reduce waste.VINDSTYRKA,our new air quality sensor launched in FY23,enables customers to easily monitor air quality inside their homes.UPPTVIND air purifiers,our low-cost solution for customers who want to improve indoor air quality,were launched globally.Our SAMMANLNKAD s

135、un-powered LED lamps were developed with social business Little Sun to enable customers to try solar energy and raise awareness about the need for sustainable energy sources.Our BROGRUND mixer tap includes a cold start function.It can help to reduce energy and water use because customers dont have t

136、o run the tap when switching between cold and hot water.It is rated in the highest performance band by the European Unified Water Label(dark green).VINDSTYRKAAir quality sensor40SAMMANLNKADLED solar-powered lighting12BROGRUNDShower set with thermostatic mixer215LVKVIST and HLASS bins with lids,desig

137、ned to enable recycling habits.HLASS features two internal compartments to promote waste sorting and is accessible for many because of its low price.SPRTMALChopping board10HLASSBin with lid3.50 Better homesIngka Group Annual Summary and Sustainability Report FY2320Progress against targets|Affordabil

138、ity and accessibility of products and services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARYIn FY23,more than 45.1 million products were given a second life(FY22:42.6 million),with 36.1 million products resold via the As-Is areas

139、 and more than 9 million repacked and sold in other areas.We sold 263,000 products via As-Is online reservations,a significant increase on the previous year(FY22:70,000).Buyback&Resell service:Customers in 28 countries can bring back IKEA products they no longer need to one of our stores and receive

140、 an IKEA voucher to spend in-store or online,including on our food range.Over 211,600 customers used the service in FY23(FY22:105,000)for 430,000 items(FY22:230,000).We are pleased at the progress but recognise that secondhand still accounts for a small percentage of our global sales.Despite our Buy

141、back service,we know that many people still dispose of IKEA furniture that is in good condition and could be reused.In Norway,we are trialling a new partnership with the municipality of Oslo to create a dedicated collection point for unwanted IKEA furniture at the Haraldrud municipal recycling centr

142、e.We hope this will improve convenience and increase the amount of good quality IKEA furniture that we can resell.Spare assembly parts:We offer a spare assembly parts service in 30 countries,helping customers prolong the life of their IKEA products by replacing small parts,like screws and fittings(k

143、nown as assembly parts).In FY23,2.2 million customers used the service(FY22:1.8m),with 24.6 million assembly parts provided(FY22:21.9 million).Our online system is now rolled out across 28 countries via IKEA.com,making ordering assembly parts easier.We source most assembly parts from our suppliers,b

144、ut co-workers also rescue parts from returned products that cant be resold.Circuit at Ingka Centres:Circuit,is a concept designed to bring the idea of a community-based circular lifestyle to the many people,through services,events and offers.Our first Circuit in Birsta City Sweden,includes secondhan

145、d and rental services and a swap where visitors can exchange items according to a monthly theme.It also hosts workshops and activities to help people better care for and extend the life of their belongings.Circuit was already awarded the NCSC-Nordic Commercial Spaces&Communities Award for Commercial

146、 Concept of the Year,NCSC Sweden Innovation Concept Award and Svensk Handel Sustainability Initiative Award.We will test Circuit in a small number of meeting places in FY24.IKEA Energy Services bringing renewable energy to customersIKEA Energy Services,available in 11 countries,enable customers to u

147、se and produce renewable energy at home.We work with different partners to deliver the services and our offer,which varies by country,includes:A home solar service,including solar panels and,when suitable,a battery storage system or electric vehicle charging point.This service,currently active in 11

148、 countries,enables customers to produce their own energy.In FY23,we extended our home solar service to customers in California,US working with a leading solar technology and energy services provider.An electricity subscription service in Sweden,making it easier for customers to switch to buying elec

149、tricity from renewable sources.A heat pump service in Sweden,helping customers to buy quality heat pumps at affordable prices and to potentially use less energy to heat and cool their home.In its first year,this service helped almost 2,000 customers in Sweden to install a heat pump.We have not been

150、able to roll out our IKEA Energy Services to more countries as quickly as we would like.This is due to a number of factors including fluctuations in customer demand which result from the ongoing cost of living crises in many countries.This creates uncertainty and makes it harder to address affordabi

151、lity issues in partnership with our suppliers.Although renewable technologies can generate significant savings for customers over time,and prices have been trending downwards over the last year,it is still a large initial investment for our customers to make at a time when wallets are squeezed from

152、many angles.Fluctuations in government subsidies for consumers and policies that prevent customers from selling excess energy generated back to the grid have also had an impact.We continue to explore opportunities to speed up the roll out and make our offer available to more IKEA customers.Better ho

153、mesIngka Group Annual Summary and Sustainability Report FY2321Progress against targets|Affordability and accessibility of products and services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARYMaking plant-based food more affordable

154、and accessibleOne of the ways we can achieve our vision is to offer affordable and accessible plant-based food with a lower climate impact(read more here).By including more plant-based alternatives on our menus,we can enable and inspire more people to try plant-based eating.Our goal for 2025 is that

155、 50%of our IKEA restaurant meals offered will be plant-based.A growing number of our customers are opting for our plant-based food products,including our veggie balls,plant balls,plant-based hot dogs,veggie hot dogs,and plant-based soft ice.To encourage this,since 2022 weve made sure that our 30 Ing

156、ka retail markets offer our plant-based food at the same price,or a lower price than the meat-based option(even where the cost of raw materials is higher).We have introduced a new training programme for co-workers in our food business,to increase knowledge of the sustainability aspects of our food r

157、ange and help co-workers to communicate with customers on this topic.Informative and inspirational communicationWe want to use our communication to inspire positive lifestyle changes and to nudge and encourage our customers,co-workers and partners to take actions such as saving energy,reducing waste

158、 and prolonging the life of IKEA products.In FY23 our customer communication included our Keep Good Things Going campaign that highlighted our Buyback service.We also ran an energy-saving campaign across 21 countries that highlighted small actions that could save customers money by reducing energy u

159、se at home as well as products from the IKEA range such as LED lights.The campaign reflected growing customer focus on rising energy costs.We saw an increase in sales of products featured in the campaign.We want all co-workers to feel confident about communicating on sustainability and our products

160、with customers.Our 30 minute introduction to sustainability training helps build their knowledge and,by the end of FY23,66%of our co-workers had completed the training.While communicating about our products or services it is important that we have clear substantiated facts for any environmental clai

161、ms that we make.Vague,non-specific or misleading statements about the sustainability aspects of a product can lead to greenwashing claims.The European Union has introduced a new directive called Substantiating Green Claims and is strengthening Unfair Commercial Practices Directive to fight greenwash

162、ing practices effectively.In FY23,we reviewed our in-store sustainability communications and adjusted these where needed to make sure they are specific and easy to understand and that we have evidence to back up any environmental claims.We are developing our wider approach to this topic in partnersh

163、ip with Inter IKEA.We support the development of a clear and predictable regulatory framework in relation to greenwashing.Our new plant-based hot dogWeve been serving hot dogs since the 1980s.Now customers can enjoy our new plant-based hot dog,which we think is just as tasty as the original and cost

164、s the same too.It has been designed to closely resemble our meat-based hot dog in taste,look and texture but is based on rice protein.The plant dog was introduced at our bistros in 14 European countries in FY23 and will be rolled out globally from early 2024.Plant-based hot dog0.79 Better homesIngka

165、 Group Annual Summary and Sustainability Report FY2322Progress against targets|Affordability and accessibility of products and services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARYCustomer and end-user safetyMATERIAL TOPIC The s

166、afety of customers who use our products and who visit our stores and locations is a top priority.We work closely with Inter IKEA to continuously improve the safety of our products and locations.Challenges we are addressing Maintaining high safety standards in our locations requires all our co-worker

167、s to be vigilant and to apply our policies consistently.We need to continually reinforce a focus on safety through our training and communications.What we are proud of Conducted training sessions for our Retail Solutions and Product Quality teams on safety requirements for display solutions and reta

168、il installations.Rolled out the GOOD FOOD app for our co-workers to help manage safety and hygiene processes in food storage and preparation to 25 countries.Better homesIngka Group Annual Summary and Sustainability Report FY2323Progress against targets|Affordability and accessibility of products and

169、 services|Healthy and sustainable living|Customer and end-user safety Better lives Better planet Better companyOUR DATASUMMARYCustomer safety in our locationsWe have strict safety policies and procedures for our stores and meeting places,to ensure that customers stay safe throughout their visit.Co-w

170、orkers carry out regular safety checks in customer areas to make sure all furniture is displayed safely and to check for and address any potential trip hazards.Checks are particularly frequent in our childrens play areas.We train co-workers on customer safety and we work closely with Inter IKEA to i

171、ntegrate safety measures into the design of retail equipment such as shopping trolleys and racking.Most customer accidents in our stores and locations are minor and are due to slips,trips and falls.More serious accidents are rare but can occur,for example,when a customer is handling items in our war

172、ehouse areas.We conducted training sessions for our Retail Solutions and Product Quality co-workers in FY23 on safety requirements for display solutions and retail installations.Food safety and hygieneWe served food to more than 630 million customers last year.In all our food outlets we have rigorou

173、s safety and hygiene standards to make sure our food is always safe to eat.To do this,we apply food safety standards set by Inter IKEA,incorporate best practice from international accredited bodies and comply with local regulations.All our food outlets undergo an external third party audit against o

174、ur safety standards twice a year.We are rolling out the GOOD FOOD app to help our co-workers manage safety and hygiene processes in food storage and preparation.It includes digital checklists and enables them to monitor digitised temperature checks for hot and cold food items and automated temperatu

175、re checks for fridges and freezers.Co-workers can use the app to track that any corrective actions are implemented and followed up.Product safetyProduct safety for the IKEA range is primarily the responsibility of Inter IKEA,whose approach includes:Risk assessment:A formalised risk assessment proces

176、s known as“Design for Safety”.Product safety risk assessments consider intended and unintended uses of every product we sell.Safety testing:Over a million product tests are carried out every year at IKEA Test Labs in lmhult,Sweden,and China,as well as independent accredited test labs around the worl

177、d.Safety standards:IKEA product safety standards comply with,and often exceed,all relevant safety laws and standards in the countries where we operate.Information for customers:We provide guidance on correct use of products to prevent any safety issues occurring.At Ingka Group,we are responsible for

178、 reporting any safety concerns that arise in relation to the IKEA range to Inter IKEA via an online reporting tool which is monitored 24/7.Co-workers are trained on our Ingka Product Safety Policy and how to report concerns.We track the number and types of concerns raised to ensure co-workers are ap

179、plying our policies consistently.Our compliance teams check our displays,room sets and advertising to make sure that products are shown being used correctly and safely.We have a process to ensure that secondhand products are assembled correctly and relevant safety information is provided to the cust

180、omer.Read more on the Inter IKEA website.Product safety in actionFurniture tipping over is one of the most significant safety risks for the home furnishing industry.If not properly assembled and secured to a wall,a small shift in the centre of gravity can put both children and adults at risk.We are

181、continually finding ways to improve the overall safety and stability of furniture.One recent example is VIHALS chest of drawers that has a new safety feature called Anchor and Unlock.With this feature you must anchor your furniture to the wall to be able to open more than one drawer at a time.Once y

182、ouve anchored the chest of drawers to the wall,the drawers are unlocked,and you can open as many as you like at once.VIHALSChest of 4 drawers125Ingka Group Annual Summary and Sustainability Report FY2324 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbein

183、g|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARY People are 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 inter

184、act with,or are impacted by,our company.Our material topicsEquality,diversity and inclusion Health,safety and wellbeingSkills developmentFair incomeHuman rightsCommunity impactBetter livesIngka Group Annual Summary and Sustainability Report FY2325 Better livesProgress against targets|Equality,divers

185、ity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARY ON TRACK Equality,diversity and inclusionHealth,safety and wellbeing We maintained a 50/50 gender balance in our management positions(al

186、l levels of management).Although this target was originally for FY22,we continue to measure ourselves against it,reflecting the importance of this issue.Our engagement score was 79%(FY22:81%,FY21:80%),almost meeting our target.We are progressing well towards our target,with women now making up 38.5%

187、of our Group Management(including our Management Board),41.4%of board members for our three Ingka businesses and 42.9%of committee members.At country level,women made up 55.8%of registered board members.45.8%of country CEOs were women and 61.6%of country retail management teams.Women accounted for 2

188、5%of members on the Supervisory Board.There are currently no women on our Management Board which is a small group of two members.Our boards and committees are small in size and individual changes can have a large impact on total figures creating significant variations from year to year.Our survey sh

189、ows that 79%of co-workers believe we live our values(FY22:80%,FY21:80%);although this is very slightly below our target we are pleased with this strong result.Our score in FY23 was 80%(FY22:81%).Data from our voluntary and anonymous Diversity&Inclusion survey in FY22 showed that while our overall co

190、-worker population reflects the diversity of the communities in which we operate,further work is needed to increase diversity at all levels of management.We will repeat the survey in FY24.Progress against targets FY23 OUR TARGETSPROGRESS IN FY23PERFORMANCE SUMMARY ON TRACK ON TRACK ON TRACK Achieve

191、gender balance across our business by FY27.Maintain at least an 80%engagement score in our co-worker survey.Achieve gender balance across our governing bodies and senior leadership(boards and committees)by FY27.At least 80%of co-workers believe we live our values,based on our co-worker survey.Score

192、80%on our inclusion index,based on our co-worker survey.Increase ethnic,racial and national diversity at all levels so our workforce reflects the diversity of the communities in which we operate by 2024.ACHIEVED ACHIEVED Ingka Group Annual Summary and Sustainability Report FY2326 Better livesProgres

193、s against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYProgress against targets FY23 OUR TARGETSPROGRESS IN FY23PERFORMANCE SUMMARYFair income Human rightsComm

194、unity impact*Our latest annual equal pay assessment shows that 3.87%of co-workers belong to groups where pay gaps cannot be explained by performance,competence or a countrys legal requirements(FY22:4.84%).We have supported 2,935 refugees through skills for employment programmes in 24 countries.In FY

195、23,1,135 refugees completed the training.Although we did not meet the target in FY22 as we had originally intended,we were pleased to meet and exceed it in FY23.Equal pay for women and men performing work of equal value in all countries.*Targets under development.Support at least 2,500 refugees thro

196、ugh job training and language skills initiatives in Ingka Group units across 30 countries by 2022.Skills development74%of co-workers in our survey reported that they have good opportunities to develop their competencies(FY22:74%).We continued to run our programmes such as Digital Accelerators and Bo

197、otcamps,launched our new onboarding process focused on rapid skills development,and created a skills library to make it easier for co-workers to access learning and development programmes.At least 80%of co-workers feel they have good opportunities to develop their competencies.*Upskilling and reskil

198、ling training provided to co-workers in our transformation initiatives starting with customer service,facilities and stores.ON TRACK ON TRACK ACHIEVED ON TRACK*We have updated our target to reflect a change in how we track co-worker views on competency development.Our previous target was that at lea

199、st 80%of co-workers are empowered to develop their competencies.*Our target on gender equal pay is for our own co-workers.*We are no longer reporting progress against our previous target to develop products and services with local social businesses.As a result of changes in how we source and work wi

200、th suppliers at Inter IKEA and Ingka Group,it was no longer possible to achieve this target.We continue to work with social businesses in several markets and will start work to develop a new target during FY24.Ingka Group Annual Summary and Sustainability Report FY2327 Better livesProgress against t

201、argets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYWhat we are proud of Maintained gender balance(equal representation of men and women)across Ingka Group co-workers

202、and management teams.Continued to pilot Equal UP!,our programme to remove barriers that hinder people from underrepresented backgrounds from reaching leadership positions.2,000 people managers and co-workers took part in our inclusive leadership programmes in two countries.84%of co-workers feel they

203、 can be themselves at work.Equality,diversity and inclusionMATERIAL TOPIC We believe that a better everyday is an equal everyday.Ingka Group is committed to fair treatment and equal opportunities,creating a workplace where people of all backgrounds and identities can thrive and feel supported and va

204、lued for who they are.Together we want to create a workplace that is as diverse as the world is,and as inclusive as the world should be.Challenges we are addressing Our overall co-worker population reflects the diversity of the communities in which we operate(based on our co-worker survey in FY22)bu

205、t further work is needed to increase ethnic,racial and national diversity at all levels of management.We have further work to do,in partnership with others,to improve our diversity data,in particular in relation to ethnicity.We are making good progress on gender balance in senior leadership but have

206、 not yet achieved it for our Group Management,Management Board and Supervisory Board.We aim to address this through succession planning.Ingka Group Annual Summary and Sustainability Report FY2328 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills

207、 development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYOur prioritiesWe focus on multiple dimensions of diversity and their intersections,including gender,ethnicity,race,nationality,ability,and sexual orientation.For the last two years we have

208、been particularly prioritising:gender balance,ethnicity and disability inclusion.Our Ingka Group Equality Plan comprises goals and actions focused on:Co-workers:reflecting the diversity of our society at all levels and creating an inclusive work environment.Business:embedding equality into our busin

209、ess practices,policies and ways of working.Society:advocating for a more equal society and being a positive example to inspire change,including through our Skills for Employment programme(see page 43).Every Ingka Group country has developed a local Equality,diversity and inclusion(ED&I)action plan,a

210、nd most have a dedicated ED&I Leader.In FY23,we established our ED&I Sponsors Network to encourage learning between different parts of the business.Sponsors are drawn from country and function management teams to help embed ED&I in strategic decisions.Key policies including our policy on Human Right

211、s and Equality and our Rule on Equality support our efforts to establish a workplace that is free from discrimination,harassment and hostility.Each of our countries in the European Union has signed their countrys national diversity charter.Co-worker Resource Groups(CRGs)We have over 20 CRGs,voluntar

212、y networks of co-workers based on shared identities.CRGs are helping to foster an inclusive culture through education,individual development,networking and sharing lived experiences through participation in celebrations and heritage moments.Themes include gender equality,LGBT+inclusion,ethnicity,and

213、 disabilities.A gender balanced business We maintained gender balance(equal representation of men and women)across Ingka Group co-workers and management teams in FY23.At the end of the year 50%of managers and 45.8%of country CEOs in our markets were women(FY22:49.5%*,45.8%).We are proud of the progr

214、ess we have made so far and are working to maintain our position.Actions were taking include mandating gender balanced final interview candidate shortlists,implementing mentoring and reverse mentoring initiatives,supporting Women and Allies networks and promoting co-worker wellbeing at key life stag

215、es such as the menopause.Women made up 38.5%of our Group Management(including our Management Board),41.4%of board members for our three Ingka businesses and 25%of the Supervisory Board.The Ingka Succession approach,launched in FY22,is helping to make our succession planning more inclusive,including

216、for our most senior roles.Over time,we expect this to have a positive impact on gender balance among our top leadership,see page 35.Our data on gender balance is subject to external assurance(see page 93 for details of the assurance).Equal UP!to improve representationWe aim to have a workforce and l

217、eadership that reflects the multicultural diversity of the communities and countries in which we operate.In FY23,we continued the pilot of Equal UP!in Portugal and the US.This initiative aims to develop our inclusive behaviours and people processes to remove barriers that hinder people from underrep

218、resented backgrounds reaching leadership positions.The pilots involved awareness and inclusive leadership programmes for over 2,000 people managers and co-workers across 12 business units.Co-workers contributed to developing new approaches to tackling the impact of unconscious bias in attraction,rec

219、ruitment,onboarding and development.We will use what we have learnt from the pilot to develop our Group-wide approach.Fifteen of our countries have now set targets to improve multicultural diversity in management positions by FY27.*We have restated our data for FY22 to correct an inaccuracy(previous

220、ly reported as 49.8%).Ingka Group Annual Summary and Sustainability Report FY2329 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYFoc

221、us on disability inclusionWe want to make sure we are accessible physically,socially and mentally to our customers and co-workers.We launched the first Ingka Global Disability Inclusion Approach in FY23 to improve accessibility,to increase engagement on issues surrounding disability,and to clarify a

222、ccountability for delivering our plans.We are working with organisations such as the Business Disability Forum,an independent not-for-profit organisation,and the Valuable 500 to carry out internal and external reviews of our current efforts to identify opportunities for improvement.We track the perc

223、entage of co-workers with a disability and we include questions relating to disability and workplace adjustments in our co-worker survey to help us assess progress on being a disability inclusive workplace.Our most recent diversity and inclusion survey,conducted in 2022,showed that 11%of co-workers

224、identified as having a disability.We will repeat the survey in FY24 to help us set a baseline for monitoring progress.LGBT+inclusionOur LGBT+Inclusion approach and Global Trans Inclusion guidelines help our managers create an inclusive workplace where LGBT+co-workers feel welcome,safe and accepted.I

225、n many countries we participate in Pride events and mark the International Day Against Homophobia,Biphobia and Transphobia(IDAHOBT).We are members of Workplace Pride,Stonewall,and Open for Business,a business coalition for advancing LGBT+inclusion.Measuring progress on inclusionOur inclusion index h

226、elps us measure progress on creating an inclusive culture and is based on questions from our co-worker survey.The score for FY23 was 80%(FY22:81%).The survey also showed that 84%of co-workers feel they can be themselves at work(FY22:86%).To monitor the success of our interventions,we need to strengt

227、hen the data we hold on co-worker diversity.Ingka Includes is our voluntary co-worker survey which will run for the second time in FY24.It can be challenging to collect ethnicity data in some countries due to local regulatory restrictions.Building competence for ED&IWe are focusing on tackling bias

228、in the workplace to improve the quality of decision making in our people management and business processes.Since FY22 we have been rolling out unconscious bias training and over 3,000 leaders and recruiters have participated so far.In addition,800 of our most senior leaders have completed our ED&I:B

229、ridging Intentions and Actions workshop and we are rolling it out to all country management teams.84%of co-workers feel they can be themselves at workIngka Group Annual Summary and Sustainability Report FY2330 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and we

230、llbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYHealth,safety and wellbeingMATERIAL TOPIC Across all parts of Ingka Group,our goal is to create a workplace that people are proud to be a part of,where they can grow and devel

231、op and feel that they are making a difference.We prioritise our co-workers wellbeing,investing in programmes and support to help them thrive at work and at home.Research shows a strong correlation between satisfied co-workers and customer happiness.So,investing in co-workers happiness and wellbeing

232、is good for our co-workers and good for business.Challenges we are addressing We have established working groups to explore lower scoring areas in our co-worker survey such as workload and to develop an action plan.Higher risk processes for health and safety include customer fulfilment and logistics

233、(27%of incidents),sales(22%)and food operations(21%),often when co-workers are handling material or using hand tools.Rising online sales can increase some safety risks,for example musculoskeletal disorders connected to manual handling of packages.Staff turnover,stress and fatigue also contribute to

234、health and safety risks.Mental health conditions are increasing worldwide and this impacts our co-workers.What we are proud of Achieved a reduction in our Lost Time Accident Frequency Rate(LTAFR).Rolled out wearable exoskeletons to prevent injuries and reduce repetitive strain and fatigue for co-wor

235、kers lifting heavy boxes and packages.Offered a range of programmes and support to help co-workers look after their mental,physical and financial wellbeing.83%of co-workers participated in our annual survey which showed an overall engagement score of 79%.Reduced our voluntary co-worker turnover rate

236、.Ingka Group Annual Summary and Sustainability Report FY2331 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYHealth and safety perfor

237、manceWe want all co-workers to feel and be safe at work,no matter what their role.Our Group Rule on Health and Safety and our framework on Occupational Health and Safety(OH&S)provide guidance on how our locations should evaluate and mitigate safety risks.We have health and safety training for all co

238、-workers and more detailed training for managers.Our Lost Time Accident Frequency Rate(LTAFR),the number of lost time accidents(more than one day of lost time)per million hours worked,was 13.07 in FY23(FY22:15.19,FY21:12.61).*Our OH&S induction and refresher training was completed over 46,000 times

239、in FY23.There were no co-worker fatalities.During FY23 we worked with our country teams to ensure safety metrics are being used correctly and we established a safety network,with regular meetings and communications to encourage consistency and more best practice sharing around the Ingka Group.We con

240、tinued to roll out our safety training for managers and began developing further safety standards for contractors and third parties operating on our sites.We also reviewed and updated our Group Rule on Health,Safety and Security in FY23 and will roll it out in FY24.Developing our wellbeing programme

241、sOur Ingka Group Health and Wellbeing Framework helps us to create consistency across our markets in the quality and extent of support we provide to co-workers.We focus on three aspects of wellbeing:Mental wellbeing We provide an inclusive and open working environment where our co-workers feel suppo

242、rted and able to seek help when needed,can realise their potential,work productively and cope with the normal stresses of life.We encourage open and honest conversations about mental health to break down taboos and stigma.We run our global mental health training and support World Mental Health Day t

243、o help tackle stigma around mental health.Physical wellbeing We promote healthy lifestyle choices,from offering nutritious food in our canteens to providing facilities for exercise,helping co-workers to stay fit and well and avoid preventable diseases.Financial wellbeing We want to help our co-worke

244、rs to build a strong financial foundation through access to financial education and resources including tax advice,pension planning,support during major life events and learning modules focusing on budgeting and financial planning.We offer flexible benefits to help co-workers manage their economic l

245、ives,both in the present and future.By supporting our co-workers financial wellbeing,we aim to alleviate financial stress and promote security and stability.We are exploring how flexible working solutions can help to improve business efficiency and co-worker wellbeing.For example,we are trialling se

246、lf-scheduling systems in several countries which give shop-floor co-workers more control over their work schedules and help them to maintain a good worklife balance.Employee Assistance ProgrammeOur Employee Assistance Programme,available in all countries,provides access to experts,counselling,and re

247、sources to support co-workers mental,physical and financial wellbeing and promote healthy lifestyles.*Data is for retail employees only.We identified an error in our previously reported data for FY22 and as a result we have restated this figure(previously reported as 17.16).Data for FY21 has also be

248、en restated(previously reported as 12.93).Exoskeletons:an exciting new technologyA wearable exoskeleton may sound futuristic but this technology is already helping to protect the physical health of co-workers in our warehouses.Worn over clothing,the exoskeleton reduces the impact of heavy lifting on

249、 joints and muscles.For co-workers lifting many heavy boxes and packages every day,it can prevent injuries and reduce repetitive strain and fatigue.This benefits the business,too,with fewer days off work.We have received positive feedback from co-workers already using the exoskeletons and have worke

250、d with the supplier to ensure the technology is available and cost effective across our locations.Ingka Group Annual Summary and Sustainability Report FY2332 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|

251、Community impact Better homes Better planet Better companyOUR DATASUMMARYImproving retention,reducing turnoverWe track co-worker turnover and review the causes to identify where there may be opportunities to strengthen our communication,policies and processes.In FY23,voluntary co-worker turnover was

252、 21.0%(FY22:23.9%*)and involuntary turnover was 9.0%(FY22:10.4%*).We were very pleased to achieve a reduction in voluntary turnover and believe this reflects our work on improving flexibility and giving co-workers more control over scheduling,as well as our fair income policies(page 37).What do our

253、co-workers think?We track the impact of our co-worker programmes through our regular engagement survey.We were really pleased that in FY23,135,200 co-workers took part,an 83%response rate(FY22:83%).We view this high response rate as an indicator that co-workers trust us to listen and respond to thei

254、r feedback.We achieved an overall engagement score of 79%(FY22:81%)which is well above the global benchmark of 71%.The overall survey score was 79%(FY22:80%).Consistent with previous years,Ingka Group co-workers rated us most positively on questions relating to leadership,equality,diversity and incl

255、usion and collaboration.The survey also identified areas where we can do better.For example,co-workers expressed concerns about managing workloads and lacking resources,tools and equipment.We have established a taskforce to address concerns relating to workload including giving co-workers more flexi

256、bility and control over scheduling and improving our people planning processes.Were also investing to make sure that co-workers have the tools and equipment they need.Our eNPS employer Net Promotor Score(showing how willing employees are to recommend their workplace to people they know)was 23(FY22:2

257、7).While this dropped year on year,it remains significantly higher than the global cross-sector benchmark score of 6.*We identified some errors in our previously reported data and as a result we have restated our data for FY22.83%Leadership index83%in FY22 73%Health and wellbeing74%in FY2280%Inclusi

258、on index81%in FY2279%Living our values index80%in FY22Ingka Group Annual Summary and Sustainability Report FY2333 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet

259、Better companyOUR DATASUMMARYSkills developmentMATERIAL TOPIC We are on a journey to create a dynamic and democratic learning culture at Ingka Group.We believe everyone can lead,everyone has talent,and everyone is a learner.Regardless of where we come from,and whatever our role,position or assignmen

260、t,we work hard to make sure all of us at Ingka Group have equal opportunities.Challenges we are addressing Many co-workers will need new or additional skills in the near future to meet changing business needs and to adapt to the changing nature of work.Were preparing for this challenge through our u

261、pskilling and reskilling programmes.We are working to further adapt our learning offer to ensure we are providing relevant training and development for each role and work environment alongside our broader learning programmes.What we are proud of 2.6 million training hours were logged by co-workers a

262、nd 74%of co-workers felt they had good opportunities to develop their competencies.We have a succession plan in place for 70%of our global key positions.Bloom!,our Market Manager Programme,ran for the second year,preparing ambitious and diverse early-career co-workers to step into market leadership

263、roles.83%leadership score in our co-worker survey(FY22:83%)Ingka Group Annual Summary and Sustainability Report FY2334 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better pl

264、anet Better companyOUR DATASUMMARYStrengthening our approach to learningLearning and skills development begins with onboarding and includes acquiring the skills for your role as well as mandatory training such as health and safety and data protection.In FY23,we took some important steps to improve a

265、ccess to learning for all.This included the launch of our Group Learning Principles,to help us develop,modify and curate relevant and accessible learning content for our many co-workers and our mandatory training framework which defines which training is required for which roles.We also created a sk

266、ills library and methodology.This covers all job categories across Ingka,giving co-workers equal access to clear information on the skills they need for their role and potential future roles.This will be rolled out from FY24.We run many upskilling and reskilling programmes.For example,8,500 co-worke

267、rs in our call centres have been upskilled to adapt to changing customer needs,see page 76.In addition to our own training,co-workers continue to access LinkedIn Learning and Rosetta Stone language learning where they can benefit from over 16,000 courses and learn 24 languages.Over 18,400 co-workers

268、 used LinkedIn Learning in FY23,accessing over 25,000 hours of content.Co-workers com-pleted almost 24,000 hours of learning on Rosetta Stone.To track the impact of our learning approach and programmes we monitor business results,our Happy Customer score,feedback from co-workers following training s

269、essions and via our regular co-worker survey I Share.Leadership by all Our leadership approach is designed to empower all co-workers to unleash their potential to lead,supported by targeted upskilling programmes.Our Leadership idea is summarised as:inclusive values-based leadership by all.It include

270、s seven leadership expectations for all co-workers which are:I develop our business;I create results;I collaborate and co-create;I develop myself and others;I communicate with impact;I navigate the unknown;I lead by example.Bloom!,our Market Manager Programme,prepares ambitious early-career co-worke

271、rs to step into market leadership roles.Now in its second year,88 participants took part in FY23,representing 35 nationalities with 60%women.Diversity is a key element of the Bloom programme and candidate selection is gender balanced with 30%of slots assigned to underrepresented groups.Although only

272、 in its second year,we are already seeing Bloom participants go on to successfully take up Market Manager and Deputy Market Manager roles.Since its launch in 2022,our introductory leadership e-learning course has been accessed by more than 60,000 co-workers,including over 28,500 in FY23.During the y

273、ear we focused on developing leadership learning journeys for co-workers and managers and established five key leadership practices to support co-workers in their development.These are designed as enablers of behavioural change to further strengthen our Leadership by all movement.We track the impact

274、 of our programmes by assessing co-workers views on the quality of our leadership through our annual survey I Share.Performance against our leadership expectations accounts for half of the score in all co-worker annual appraisals.Developing our digital skills We are investing in growing and developi

275、ng our Group Digital function.For example,we ran the fourth iteration of our Accelerators programme in FY23 focused on recruiting,onboarding and upskilling junior team members into hard-to-fill positions,such as software engineers,system engineers,data engineers and data scientists.The programme com

276、bines learning activities with on-the-job learning over six months.In FY23,we also took the time to run our Re:Root awareness training on our culture and values for 650 co-workers who have recently joined our digital teams.2.6 million training hours were logged by co-workers(FY22:2.8m)74%of co-worke

277、rs felt they had good opportunities to develop their competencies(FY22:74%)83%leadership score in our co-worker survey based on responses to ten questions(FY22:83%)Ingka Group Annual Summary and Sustainability Report FY2335 Better livesProgress against targets|Equality,diversity and inclusion|Health

278、,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYA more effective onboarding processWhen a new co-worker joins us,its our job to help them to quickly gain confidence in their new role and become comfortable per

279、forming their tasks and assignments.To support this,we developed a skills-based onboarding approach which focuses on learning the skills needed to perform the role rather than broad competence areas.We piloted this with our goods flow co-workers in Sweden and Portugal in FY23(those responsible for m

280、aking sure our stores are stocked with the right products each day).We achieved strong results with new joiners improving their skills by 150%in the first month.We also saw a reduction in 90-day turnover.Succession planning and performance developmentThe Ingka Succession Approach,introduced in FY22,

281、aims to ensure we have a strong succession pipeline for leadership and managerial positions that aligns with our strategies for co-worker development and equality and diversity.It integrates a focus on skills development and empowers co-workers and their line managers to set development goals,develo

282、p performance and progress careers.We are starting to see a positive impact with a succession plan now in place for 70%of our global key positions and improved diversity and gender balance in our succession pipeline.Performance Success our performance and development approach launched in FY22 aims t

283、o give equal,fair and transparent opportunities for everyone at Ingka Group to perform and develop.It focuses on enabling(rather than managing)performance and is based on frequent touchpoints between manager,co-worker and team,with regular feedback and coaching.Advocacy and partnershipsWe work with

284、many partners to improve our learning offer and participate in global efforts to develop skills and close skills gaps.In FY23 this included working with the World Economic Forum through its Future Skills Alliance and Chief Learning Officers community,the EU Pact for Skills and the Learning Forum Ski

285、lls Group.Ingka Group Annual Summary and Sustainability Report FY2336 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYFair incomeMATE

286、RIAL TOPIC A fair income is essential to improving the wellbeing of all co-workers and at the heart of building a more inclusive IKEA.We define it as an income that is perceived by co-workers as fair reward for the work they do and which enables them to live a decent life.Fair income is part of our

287、Total Rewards offer which includes:our culture and values,purposeful jobs,choice-driven benefits,supporting wellbeing and sustainability,performance appreciation and safeguarding a decent standard of living.Challenges we are addressing Our Responsible Wage Practices survey showed that we need to dev

288、elop the competencies of line managers to have meaningful conversations with co-workers on pay.We have made strong progress on gender equal pay but we are still identifying some pay gaps.When gaps are identified we take action to close them.What we are proud of Combined feedback from co-workers and

289、managers shows that our Responsible Wage Practices framework is helping to ensure accuracy,transparency and legal compliance in relation to pay and benefits.Our fifth annual group-wide gender equal pay assessment showed that we reduced the percentage of co-workers in groups where pay gaps could not

290、be explained by performance,competence or a countrys legal requirements.More than 96,000 co-workers received a bonus pay-out for FY23,totalling EUR 311 million.Ingka Group Annual Summary and Sustainability Report FY2337 Better livesProgress against targets|Equality,diversity and inclusion|Health,saf

291、ety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYResponsible wage practices(RWP)Our Responsible Wage Practices framework is our shared approach with Inter IKEA Group to providing fair incomes across the value chain

292、 by focusing equally on five practices:Equality at work,Pay principles,Competence,Dialogue and Living wage.It includes a consistent methodology for calculating,benchmarking and monitoring a living wage that is used in all Ingka countries.This is informed by data from the WageIndicator Foundation,a n

293、ot-for-profit organisation that calculates and benchmarks living wages across multiple countries.We have rolled out our RWP framework to all our countries.In FY23,more than 10,000 co-workers participated in a RWP survey to answer questions on the topic,building on feedback from workshops with unit m

294、anagement teams and a management survey in FY22 as well as the results of our living wage benchmarking.The combined results suggest that our pay principles and living wage practices are well established,and are helping to ensure accuracy,transparency and legal compliance in relation to pay and benef

295、its.Our research also identified a need to develop the competencies of line managers to have meaningful conversations with co-workers on pay.We will use these findings as a baseline to help us monitor our future progress on implementing the RWP.In the longer term,we plan to roll out the RWP to our v

296、alue chain but our current focus is on our own co-workers.Gender equal pay(GEP)We are committed to achieving and sustaining equal pay for work of equal value.There should be no gaps in pay that are not explained by performance,competence,or a countrys legal requirements.We use annual Gender Equal Pa

297、y assessments across our markets to identify and address any gender pay gaps.In FY23 we carried out our fifth annual group-wide gender equal pay assessment.*This found that,3.87%of co-workers were in groups where pay gaps could not be explained by performance,competence or a countrys legal requireme

298、nts(FY22:4.84%).We put concrete actions in place,both monetary and non-monetary,to address the gaps including salary and reward adjustments where necessary.0.78%of co-workers were in groups where financial investment was needed to close a pay gap(FY22:1.02).Our assessment process and reported data f

299、or FY23 were externally reviewed by KPMG(see page 126 for details of the assurance).We use a set of gender-neutral salary setting and review principles,we focus on gender balance in recruitment,and,where allowed by local law,we do not ask about a candidates previous salary.Our Group and Country Mana

300、gement Teams are required to report annually on the status of gender equal pay during their board meetings and we train recruiters and managers.69.0%of our recruiters and 59.4%of managers have completed training on gender equal pay.We are a member of the Equal Pay International Coalition(EPIC),an in

301、itiative led by the International Labour Organization(ILO),UN Women and the Organisation for Economic Co-operation and Development.Our membership is one way that we demonstrate our commitment to equal pay for current and potential co-workers,and help to raise the profile of this issue.We are also a

302、founding member of the World Economic Forum business commitment framework for gender parity in the future of work.*The assessment covers all Ingka Group part-time or full-time co-workers with temporary and permanent contracts.It excludes the following groups:seasonal co-workers,co-workers with non-c

303、omparable salary setting(for example due to being on assignment),co-workers of Ingka Holding B.V.(holding company)and acquired companies,co-workers not receiving a salary during the assessment period(for example because they joined the business in the month prior to the assessment date)and co-worker

304、s for whom we dont have information on gender.Ingka Group rewards and benefits We aim to offer our co-workers equal-for-all core benefits like paid time off,parental leave,insurance,pension,and co-worker discounts as well as market-relevant flexible benefits to support their wellbeing.We want all co

305、-workers to understand their total rewards offer and aim to be transparent about pay.Since FY22,we have been rolling out the My rewards portal to provide co-workers with more personalised insights into their rewards and benefits.As of FY23,the portal was live in 13 countries with the remaining count

306、ries expected to be using the portal by the end of FY24.By the end of FY23,the portal was available to almost 93,000 co-workers and around 60%of these had already used it.Feedback has been very positive with co-workers appreciating the simple overview and reporting that it has improved their underst

307、anding of the benefits theyre entitled to.Our annual One IKEA Bonus programme rewards co-workers for achieving and exceeding our business goals and is directly linked to our financial performance.More than 96,000 co-workers received a bonus pay-out for FY23,totalling EUR 311 million.Our loyalty prog

308、ramme Tack!is inspired by our founder Ingvar Kamprad,who wished to share the success of IKEA among all co-workers equally.It rewards co-workers who have worked for Ingka Group for at least 5 years with a contribution to their individual pension funds.In democratic fashion,all co-workers within a cou

309、ntry receive the same Tack!amount.The programme paid EUR 103 million towards Ingka co-workers pensions funds in FY23.Ingka Group Annual Summary and Sustainability Report FY2338 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair i

310、ncome|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYHuman rightsMATERIAL TOPIC At Ingka Group we put 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

311、and Human Rights.Our respect for human rights encompasses everyone our business touches including our co-workers,customers,workers in our supply chain and our neighbours.Challenges we are addressing Our baseline assessment showed that we can further strengthen our governance around human rights and

312、further develop our risk assessment processes and remediation framework.We have put an action plan in place to address the findings.Human rights issues are often systemic and complex to address.We need to work in a joined-up way within our business and with others to reduce human rights risks but th

313、is can take time.We are working to develop metrics and targets on human rights risks.What we are proud of Conducted a company-wide human rights baseline assessment to benchmark our approach against the UN Guiding Principles on Business and Human Rights and current and upcoming human rights legislati

314、on.The assessment found we have some key policies and procedures in place to protect human rights in our own operations and the wider value chain.Ingka Group Annual Summary and Sustainability Report FY2339 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbe

315、ing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better companyOUR DATASUMMARYOur approach to human rights The Ingka Group Policy on Human Rights and Equality is the basis of our approach and we are also guided by the IKEA Employment Standards,our Code of C

316、onduct and IWAY the IKEA supplier code of conduct.Our Policy is approved by our Management Board and our Sustainability Committee.The Committee,chaired by our Deputy CEO and CFO,governs and monitors our approach to human rights.We have a Human Rights and Social Impact team to lead our efforts.Salien

317、t human rights risks:We aim to focus on the most salient human rights risks those that could create severe negative impacts.Potential human rights risks for our industry,include modern slavery and forced labour,low wages,undocumented cash wages,excessive hours,unsafe working conditions,and threats t

318、o freedom of association rights.Assessing direct and indirect human rights risks is an ongoing process and we are continually learning and developing our approach.Due diligence:Through the IWAY System we aim to identify human rights risks before supply agreements are entered into and to continue to

319、identify,monitor and manage these throughout the lifetime of the agreement.Our risk assessment covers human rights aspects such as workplace health and safety,wages and working hours.See page 86.Human rights is one of the categories included in the Ingka Group risk management process and we are expl

320、oring how we can further embed this.For more on risk management see page 85.Remediation:We take seriously our responsibility to remediate any negative human rights impacts on people,society and the environment that we cause or contribute to.Our approach,including which impacts we prioritise for reme

321、diation,depends on how we are connected to the impact and its nature and severity.In cases where Ingka is indirectly connected to a negative impact caused by one of our suppliers,we work together with and through the supplier to provide access to remediation with the support of experts or an indepen

322、dent partner or organisation,when necessary.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 Business and Human Rights.Our baseline assessmentWe conducted a company-wide human rights baseline asse

323、ssment in FY23.This aimed to identify any gaps in our internal policies and processes and to make sure were fully aligned to the UN Guiding Principles on Business and Human Rights as well as current and upcoming human rights legislation.The assessment found there was a shared understanding of the im

324、portance of human rights due diligence across our business and that we have some key policies and procedures in place to protect human rights in our own operations and the wider value chain.It also identified some gaps and opportunities to strengthen our work both internally and in our supply chain.

325、It recommended that we should extend our grievance mechanism to our value chain,further develop our governance structure and remedy frameworks and ensure we integrate human rights due diligence in all processes where there could be human rights risks.The baseline assessment has provided valuable ins

326、ight and deepened our understanding of what it means to be a duty-bearer.We have created an action plan to address gaps identified in the baseline assessment and elevate the voices of rightsholders and impacted communities in our due diligence.Extending our grievance mechanismsCo-workers who have an

327、y human rights concerns can raise them through our internal grievance mechanism,Trust line,see page 74.IWAY also requests suppliers,to put a grievance mechanism in place that enables workers to raise complaints or concerns without fear of retaliation.We also aim to offer appropriate external grievan

328、ce mechanisms so people outside our organisation can report any human rights concerns relating to Ingka Group directly to us.We are working with Inter IKEA to explore how we can develop a grievance mechanism for workers in our supply chain to report violations of IWAY,our supplier Code of Conduct.In

329、 the EU,we are making our internal grievance mechanism,Trust line,available in compliance with the EU Directive on Whistleblowing.This enables people who have a work relationship with Ingka,such as freelance workers,suppliers,contractors,job candidates and volunteers,to raise concerns about workplac

330、e misconduct.For more on Trust line see page 74.Ingka Group Annual Summary and Sustainability Report FY2340 Better livesProgress against targets|Equality,diversity and inclusion|Health,safety and wellbeing|Skills development|Fair income|Human rights|Community impact Better homes Better planet Better

331、 companyOUR DATASUMMARYRespecting and supporting childrens rightsWe 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 with our business through our products,stores,marketing and supply chain.We have zero tol

332、erance for any form of child abuse.Our approach is based on the Childrens Rights and Business Principles,developed by Save the Children,the UN Global Compact and UNICEF.Childrens rights are covered in our Ingka Group Policy on Human Rights and Equality and we have detailed principles for child parti

333、cipation and safeguarding.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 employment opportunities,but they should not do hazardous work,night work or overtime.There were no cases of child labour identified in FY23.For mor