SUSTAINABILITY

REPORT 2022
► REPORT INTRODUCTION

► INTRODUCTION LETTER

► GENERAL MANAGEMENT APPROACH

► HEALTHY & SUSTAINABLE LIVING

► CLIMATE POSITIVE & CIRCULAR

► FAIR & EQUAL

► DICTIONARY, GRI INDEX

REPORT
INTRODUCTION
The financial year 2022 showed us many an underground tank for collecting rainwater
challenges, including a war in our neighbouring in another one.
country, the impacts of climate change, rising
inflation, and increasing energy and raw materials At IKEA, we‘re committed to making a positive
costs. Despite these difficulties, we came together impact on people and the planet. To help make the
as a team and as a community, showing us our world a better place, we must understand how our
power and dedication to supporting each other. activities affect the earth and look for ways to reduce
Our hearts went out to those who lost their homes our carbon footprint. We think daily about what we
or, even worse, their loved ones. We‘re proud to have can do better tomorrow and lead by example.
united and done our best to create better days and
better lives. The sustainability report 2022 covers the financial year
2022 (FY22), from 1st September 2021 to 31st August
We want to play our part in solving some of the 2022, with reference to GRI Standards.
world‘s many challenges while delivering an even
better experience for our customers. Our strategy
revolves around three core areas: helping more
people to have healthy and sustainable living, being
climate positive and circular to create better planet
and living conditions for us all, and to create a fair
and equal company. The report addresses these three
areas and compares some of the data with FY21.

In response to the crisis in Ukraine, we focused our

help on what we do best, donations of furniture
and furnishing temporary houses, refugee centres
and apartments, or help centres. Additionally,
we remained committed to supporting vulnerable
groups, particularly women and children. We were
able to extend our support to Ukrainian women
and children seeking refuge in Slovakia, Hungary,
and Czech Republic.

Ultimately, we continue on the path to a sustainable

home. We have introduced new products and
improved our stores. We expanded our SOLHETTA
LED bulb range as a perfect solution to reduce home
energy use. We also expanded our air-purifying range
with STARKVIND, which is compatible with the IKEA
Home smart system. To help save water at home,
we introduced the ÅBÄCKEN mist nozzle,
an easy-to-install device that saves water. We also
took steps to reduce our water consumption and
waste in one of the stores by implementing new
water recycling and reusing solutions or by adding

4
INTRODUCTION Republic, which will be opened gradually to
equip everyone by 2025.
GRI 2-22

LETTER
I am happy that one of the main contributors
to the decreased climate footprint is our more
energy-efficient range, such as the new and
more affordable SOLHETTA LED range. We also
saw a continued increase in the share of sales
for our plant-based food options, such as the
plant ball and the veggie hotdog. During FY22,
we also managed to increase the share of
renewable electricity in IKEA retail.

The transition to a circular economy with limited

environmental impact creates additional
challenges for livelihoods and human rights.
Therefore, we put a lot of effort into revising
the Fair & Equal section of the IKEA sustainability
strategy during the year. The update includes
strengthened commitments to contribute to
more resilient societies, with a continued focus
on refugees, LGBTI, people with disabilities and
victims of domestic abuse as a particularly
vulnerable group. I am more than glad that we
FY22 was a year of challenges affecting people also continue upskilling and reskilling our
all over the world as well as the IKEA business in co-workers to meet future demands.
the Czech Republic, Hungary and Slovakia – the
still ongoing COVID-19 pandemic, the devastating Our work towards becoming people and planet
war in Ukraine, high inflation impacting cost of positive continues, and we stay optimistic. Our
living, climate change, escalating nature loss and long-term commitment is to ensure sustainable
rising inequalities. In times like these, staying living is affordable and accessible to the many,
committed to our sustainability strategy is more and together we will make it happen.
important than ever – it‘s critical for our business
and an important part of fulfilling our vision.
In this challenging year, we first and foremost Dave
want to thank all our colleagues, customers and – Chief Sustainability Officer
suppliers for their continued support and hard
work. Together, we keep the IKEA spirit alive!
The war in Ukraine is a human tragedy that
continues to affect people and communities.
Our priority has been to provide humanitarian
aid with a focus on long-term projects in
furnishing accommodation. Together for all three
countries, we have donated 1 254 000 euros to
people who fled from Ukraine. We have provided
both temporary and long-term accommodation.
We also continue to support the creation of 100
children‘s groups across all regions in the Czech

6
 reported year was still heavily impacted by
COVID, we cannot see an enormously positive
development in some areas due to the “coming
back to normal” stage of our operations. The
report doesn’t align with our financial report
issues earlier this year because of the audit
controlling our data on a global level that was
finalised after the financial report was issued
locally. So far, we have not been obliged to
report; however, we want to do this homework
to understand where we stand with our
commitments and benchmark them to global
standards. Since we’re part of Ingka Group,
IKEA’s biggest franchisee, we share the same
material topics already stated in the global
report and used for our report as well (see page
X). Therefore, there was no need to re-approve
the materiality with our board.

Our vision “to create a better everyday life for

the many people” is our daily purpose shared
by all IKEA entities. In today’s world, it’s
impossible to create a better everyday life
without caring for our homes, society and the
GRI 2-3 Last year was like no other. Not only for us home we all share - our planet. This vision is our
as a business but for us as humanity. Events guiding star for our local wished position and,
GRI 2-5
of the previous year, which unfortunately subsequently, sustainable strategy that is set
continue at the time of releasing this report, until 2025. The movement called “Together for
GRI 2-12
shook our company to the core. Even though a better planet and society” was co-created
seeing the horrors of the war, we could have with the executive team and set the primary
GRI 2-14
also experienced solidarity, compassion and objective to enable more and more people
a huge amount of energy to help where possible. to live a healthier, safer and more
More than 400 of our co-workers used sustainable life. The progress of this
the possibility to take three paid days off to movement is steered through other
volunteer to support Ukrainian refugees. Even functions to secure full integration
though many functions, including sustainability, and institutionalisation of sustainability
turned into an emergency team overnight, we into everyday business operations.
also paid attention to the environment. I am
excited to share with you our report about
sustainable development for the Financial Year Barbora
2022 [1.9.2021 - 31.8.2022]. Currently, there is no – Country Sustainability Manager
assurance for this report; however, the Ingka
Group report, from which some of the data
is obtained, is assured by the KPMG audit.

It is our second report written with reference

to the GRI standard in a row, so we are able
to compare year-on-year data. Since the first

8
GENERAL
MANAGEMENT
APPROACH

10
 Organisational structure Region Czech Republic, Hungary and Slovakia
GRI 2-1

GRI 2-2
IKEA is often viewed as a single brand, but much like our furniture, it is an intricate assembly of multiple parts
that work together to create a unique experience.
Praha
Across the globe, there are numerous IKEA stores operated by 12 franchisees that have agreements with Černý Most
Inter IKEA Group, the franchisor and owner of the IKEA Concept. Additionally, there is IKEA CZHUSK, a retail Praha Zličín

organization under the Ingka Group, which shares a common history and heritage with Inter IKEA Group but Hradec Králové
Ostrava
operates as a separate company with distinct management and owners.
Brno
Žilina
To operate under the IKEA Concept and Brand, all franchisees pay a 3% fee to Inter IKEA Systems B.V., which
Košice
grants them access to a wealth of resources, including systems, methods, and proven solutions, as well as staff České Budějovice
training, manuals, and updates related to store layouts, fittings, and display concepts. This report provides data
on the entire IKEA value chain, including local IKEA Retail (Ingka Group), to offer a comprehensive view of the
brand‘s global operations.
Bratislava
Debrecen

Stores:
CZ - Praha Zličín, Praha Černý Most, Budapest Örs vezér tere
Ostrava, Brno, Budapest Budaörs
HU - Budapest Budaörs, Budapest Örs Budapest Soroksár
vezér tere, Budapest Soroksár,
SK - Bratislava

Plan and Order Points:

CZ - České Budějovice, Hradec Králové,
Praha - Chodov, Olomouc,
HU - Debrecen,
SK - Košice, Žilina

At IKEA CZHUSK, we take sustainability seriously, Malá Beluská. As the top management sustainability GRI 2-13
and we‘re proud to have a dedicated team working sponsor within the organisation, Eva ensures that
towards our environmental and social commitments. sustainability is integrated throughout the business.
David McCabe, our CSO and Retail Manager, leads While our sustainability team plays a critical role
these efforts with passion and commitment, ensuring in driving sustainable projects, we believe that
that we align with Ingka‘s global strategy. Barbora cross-functional collaboration is key to achieving our
Kotoun, our Country Sustainability Manager, is goals. Through close partnerships and integration,
responsible for the delivery of these commitments we‘re committed to making a positive impact on the
and works closely with the BDT department led by Eva environment and society.

12
 We took the double materiality assessment from The table summarises the material issues we have
Sustainable Strategy People and Planet Positive
GRI 3-1
GRI 3-1
the Ingka Group Sustainability report to inform identified, the scale of the impact, as well as the
the issues we report on. This page presents how ocation of the impact along our value chain. GRI 3-3
GRI 3-3
As an organization, we strive to positively impact We build our P&PP strategy upon three core pillars the sustainability issues identified in our materiality The right-hand column summarises how we manage
both local and global communities through our People that embody our commitment to sustainable assessment fit into the three pillars of our impact. Read more about how we address our
and Planet Positive strategy. This strategy serves and responsible business practices. We can drive the sustainability strategy that our report impacts in the corresponding sections of this report.¹
as a framework for all our activities and guides us positive change and contribute towards a more is structured around.
towards achieving our mission of creating a better sustainable and equitable world by focusing on
future for all. We‘re committed to using our resources Healthy & Sustainable Living, Climate Positive
and influence to drive positive change in our & Circular, and Fair & Equal.
communities and the world at large.

GRI 3-2 Materiality

Each stage of our business has an impact on people Our capacity to affect change is limited to our own
and the planet – from our sourcing to the use of our operations. As a retail organisation, our influence
products by our customers. extends primarily to Section 2 in the diagram,
although certain aspects upstream and
At Ingka Group we take a value chain downstream are also in our circle of influence.
approach – seeking to understand and address our By prioritising sustainable products, including
impacts at every stage to achieve our vision to create plant-based foods, we can influence the materials
a better everyday life for the many people. used in manufacturing. By promoting circularity,
Source: Ingka Group Annual and Sustainability we can also help reduce waste products and shape
Report FY22) customer behaviour in downstream operations.

While our report primarily focuses on non-financial information, we understand that financial results are also
an important aspect of any official report. Therefore, we would like to provide a brief overview of our financial
performance for FY22, before delving into our PPP results.

CZ HU SK GRI 201-1

Profit before tax 1 563 534 000 CZK 6 362 069 000 Ft 11 469 432 €
Profit after tax 1 245 281 000 CZK 5 803 081 000 Ft 8 844 060 €
Turnover 11 912 256 000 CZK 130 927 982 000 Ft 130 628 667 €
Taxes CZK 3 255 869 000 Ft €

We can confirm that our organization did not receive any financial support from any government GRI 201-4
during this period.

* ¹ Source: Ingka Group Annual and Sustainability Report FY22

14
HEALTHY AND
SUSTAINABLE
LIVING
A standard household can waste significate amounts
of fresh water and energy every day, but it does not
need to be this way. Reducing utility bills and easing
the strain on our planet‘s finite resources is possible
by taking a fresh perspective on daily habits. Rather
than flushing money down the drain, small changes
in behaviour can make a big impact.

By the year 2030, our mission is to inspire and

empower over 1 billion people globally to live better,
more sustainable everyday lives within the limits of
our planet. Our path to achieving this goal is through
our wide range of products and solutions that
encourage a healthier, more sustainable life at home.

To ensure that our products align with our vision

for a more sustainable future, we use the following
categories to classify them:

► Water and energy-saving solutions

► Products for a healthier home

► Waste-reducing solutions

► Products and services making furniture last longer

► Products from more sustainable materials

► More sustainable food

16
 Products for healthier home
GRI 302-5 According to IKEA Climate Report 1, in FY22, the total product use at home. Between FY21 and FY22,
IKEA climate footprint decreased by 1.4 million tonnes the use of renewable energy in the production
of CO2 eq in absolute terms compared to the previous of IKEA products increased from 46% to 50%,
year. That means a reduction of 5%. The reduction with an additional 111 suppliers achieving 100% Leading a sustainable lifestyle is about personal To help reduce water consumption daily at home,
was driven by continued strong progress in using renewable electricity consumption, moving well-being and protecting the environment. we have developed the ÅBÄCKEN mist nozzle,
renewable energy across the value chain and the total to 268 suppliers. We provide simple and affordable ways for our which can be installed on most common basin taps.
significantly improving the energy efficiency for customers to make their daily routines more When used in mist mode, ÅBÄCKEN can save up to
eco-friendly. This can improve their quality of life 95% of water used, and in spray mode, up to 66%.
and create a healthier environment at home. (Compared to standard washbasin mixer taps with
We recently expanded our air-purifying range a water flow of 5.7 L/min. 2) Compared to taps and

Water and energy-saving solutions

GRI 302-5 by introducing STARKVIND, which provides showers without the built-in feature)¹
higher-quality air and is compatible with the IKEA
Home smart system. STARKVIND is also available
GRI 303 Nowadays, we cannot imagine our lives and homes In FY22, IKEA expanded our SOLHETTA LED bulbs as part of our table collection.
without electricity. But we need to be careful with its range with more sizes, shapes, and functions.
use, not only to avoid high bills but also to reduce our Customers can now use SOLHETTA LED bulbs for
impact on the environment. We are here to help our more purposes and in more areas of the home,
customers find a way to be more energy-efficient by
offering innovative lighting and home
which reduces home energy use. ²On average,
the SOLHETTA LED bulb is 35% more energy efficient
Waste reducing solutions
appliances solutions. than previous IKEA LED bulbs. It lasts up to 25,000
hours - approximately 20 years when used for Reducing or reusing waste is one of the big At IKEA is more than just furniture. You can sit with
3 hours daily. environmental issues of our time. Our goal is to your family and take a break in our restaurants or
minimise our waste or prevent it altogether. bistros. Large food business offers lunches, dinners

Our strategic focus areas target where we have the We are dedicated to using our sources carefully,
making the most of what we have and optimising
or just a quick coffee and afternoon cake. In FY22,
we served almost 9 million customers in our region.
most influence and opportunities for positive impact our logistics operations.

Visitation of Swedish restaurant and Swedish Bistro in the region:

► Improve water quality and water availability throughout our value chain.
► Enable reduced water consumption in the home. CZ HU SK
► Show leadership and collaborate for a water positive future.
FY 21 2 721 653 3 392 141 946 727
According to FY21 and FY22 data, our water footprint was as follows:

FY 22 4 284 022 3 527 683 1 170 691

GRI 303-5 Water consumption [ML] CZ HU SK

FY 22 55 503 46 838 9 974

FY21 39 050 37 901 6 978

The increase in water consumption in FY22 is evident; however, the explanation is straightforward.
The temporary closure of stores due to COVID-19 pandemic caused a temporary closure of stores, which
led to lower water consumption in FY21. We are continuing to prioritize sustainable practices and effective
management of water consumption.

GRI 303-1 In Slovakia, we have successfully implemented new water recycling and reusing solutions. We use water
from the distribution network, and to run our heating and cooling systems, we use water from drilled wells.
GRI 303-2
We also use this water to flush toilets in the store. We don‘t let any water go to waste and only measure how
GRI 303-4 much we use.

GRI 303-1 We have added a new feature to the Brno store in the Czech Republic - an underground tank for collecting
rainwater. This tank is now connected to the irrigation system for the green islands in front of the store‘s facade
and at the bus stop.

* ¹ IKEA Climate Report FY22 * ¹ Ingka Group Annual Summary and Sustainability Report FY22 18
* ² Ingka Group Annual Summary and Sustainability Report FY22
Leading by example, we have made the reduction We also encourage our customers to contribute by Here you can see the number of items repurchased and resold to customers in FY22. The resold number
of food waste a priority. And successfully. offering various reusable products, such as shopping can be higher than the bought-back number because we already had some furniture from FY21.
In FY22, we reduced our waste by 5.7 grams per ticket bags, straws, and food containers. Our offer enables
in Slovakia. In the Czech Republic, our increase per customers to waste less and save more. It is important
ticket is 0.3g and in Hungary 5.7g per ticket. Every to decrease waste. Reducing our waste production CZ HU SK
year, waste reduction is one of our top priorities. Our leaves behind a cleaner and healthier planet for
food co-workers have been trained to use a hi-tech future generations. Products bought back 6 057 2 177 750
food waste scale and analytics solution. Daily reports
enable our co-workers to identify sources of waste Products resold to customers 6 022 2 177 1 049
and make substantial savings. You can read more
about it in Ingka Group Annual Summary and
Sustainability Report FY22. Products and services
making furniture
While we cannot guarantee a reduction in waste every
year, we have implemented a sophisticated system last longer Assembly parts online
that allows minimal variability. That is why in FY21,
we reduced our waste significantly, and our highly Missing something? If the customer finds out they are missing a component, there is no need to throw out the
We also encourage our customers to contribute by
effective waste management helps us maintain this furniture. Customers can easily order small spare parts and IKEA components from our website for free, saving
offering various reusable products, such as shopping
standard. It is also good to note that during FY22, the furniture and money.
bags, straws, and food containers. Our offer enables
we have organised some events like Meatball days
customers to waste less and save more. It is important
and Food Days, which may have partly brought some
to decrease waste. Reducing our waste production
extra waste. Donation of unconsumed food is not
possible due to hygiene standards and high
leaves behind a cleaner and healthier planet for CZ HU SK
future generations.
standards set by internal legislation. 8 820 7 844 2 087

Second Life of Furniture

Guaranteed buy-back for children’s furniture
For many years, customers could buy returned,
repaired, or ex-display products furniture
At IKEA, we understand that circumstances change, especially when it comes to children‘s furniture. That‘s why
at discounted prices at IKEA. We believe in finding
we offer an exclusive service for IKEA Family members to sell their pre-loved items back to us at a pre-set price.
new homes for furniture, and what one household
And another family can enjoy the furniture at a lower cost.
does not need anymore can be useful in another.
That is why we have turned these areas into our
circular hubs, where we buy back used IKEA furniture
CZ SK
and give it a second life.

The process is simple - customers can return their

FY22 61 13
gently used furniture to IKEA and receive an IKEA
refund card worth up to 50% of the original price. FY23 / T1 44 8
We inspect the furniture and place it for sale in our
Second Life of Furniture area. This way, we can offer
quality furniture at an affordable price, reduce waste
and promote sustainability. All items sold in our
Discount Products and Sustainable Solutions More sustainable food
department have a one-year guarantee.

You can also find these products online. Ingka Group Annual Summary and Sustainability Report FY22 states that the food range includes sustainably
We thoroughly inspect all items sold for reuse sourced options and ingredients. These range from organic rapeseed oil and responsibly-farmed eggs, meat
to ensure functionality and safety. and dairy to seafood certified by the Aquaculture Stewardship Council (ASC) and Marine Stewardship Council
(MSC) and UTZ/Rainforest Alliance-certified coffee, tea and cocoa. ¹

* ¹ Ingka Group Annual Summary and Sustainability Report FY22 20

In FY22, we added new plant-based products to our IKEA range, such as a veggie ball alternative to LÄTTLAGAT
ready meals and chocolate-flavoured plant-based soft ice cream.

The base of our customers also grows in restaurants. In FY22, we served 9 414 201 customers through the
region‘s IKEA Restaurants, IKEA Bistros and Swedish Food Markets. Delicious and satisfying meal option for
meat-lovers and vegetarians? We sold 3 465 638 portions of hot dogs and veggie dogs. Our veggie alternative
accounted for 20% of total sales.

Region
CZHUSK CZ HU SK
FY22 (portions) (portions) (portions) (portions)

Hot dog 2 771 383 923 958 1 523 876 323 549

Veggie dog 694 255 279 470 302 181 112 604

Whole hot dogs (portions) 3 465 638 1 203 428 1 826 057 436 153

% of V from total 20,0 23,2 16,5 25,8

We continue to explore ways to reduce the impact of our food ingredients on the environment. We‘re exploring
options to remove or replace dairy in our products. Our goal is to offer food options that are both delicious and
environmentally friendly.¹

* ¹ Ingka Group Annual Summary and Sustainability Report FY22 22

CLIMATE POSITIVE
& CIRCULAR
The IKEA vision is to create a better everyday life
for the many people. Climate change threatens this
for people today and for generations to come.

Around the world, people are increasingly

experiencing the effects of climate change through
severe weather and natural disasters like heatwaves,
floods and fires. We must act now while securing
a transition to a net-zero economy that is fair and
equitable to all. We have a big responsibility – and
many opportunities – to make a positive difference
in climate change.

How will IKEA become climate positive?

IKEA is committed to becoming climate positive by

2030 by taking action across the IKEA value chain
and beyond. This includes a commitment to halving
greenhouse gas (GHG) emissions in absolute terms
from the total IKEA value chain by 2030, including
emissions reduction, carbon removal and storage.

We will achieve this by taking action across three

areas:

► Drastically reducing greenhouse gas emissions.

► Removing and storing carbon through forestry,

agriculture and products. We will explore and improve
ways to store carbon through a forest and agricultural
practices. We will not purchase carbon offset
certificates but ensure that carbon remains stored
in our products longer through the circular economy.

► Going beyond the IKEA value chain to contribute

to additional greenhouse gas emissions reductions
in society. We will address a larger climate footprint
than our own value chain by collaborating with our
customers, suppliers and partners to reduce their
total greenhouse gas emissions.

* ¹ Ingka Group Annual Summary and Sustainability Report FY22 24

GRI 302-5 According to Ingka Group Annual Summary and Sustainability Report FY22 in FY22, the total IKEA climate
footprint decreased by 1.4 million tonnes of CO2 eq in absolute terms compared to the previous year
– a reduction of 5%. The reduction was driven by continued strong progress in the use of renewable energy
across the value chain and significantly improving the energy efficiency for product use at home. Between FY21
and FY22, the use of renewable energy in the production of IKEA products increased from 46% to 50%, with an
additional 111 suppliers achieving 100% renewable electricity consumption, moving the total to 268 suppliers.

Scope 3 emissions account for 99,61% of total emissions. Scope 3 emissions are GHG emissions that occur due
to a company’s activities but outside direct control. Below you can see how different parts of our retail value
chain contribute to our climate footprint within Scope 3.

According to FY22 data our GHG emissions were as follows (tCO2e):

GRI 305-1

GRI 305-3

According to FY22 data, the volume of energy consumed in CZHUSK was as follows
(all of our electricity came from renewable sources):

Energy Source (Mwh) - Energy consumption within the organization GRI 302-1

26
GRI 305-6 During the project, all the old air-conditioning units were replaced with new ones with better parameters
such as lower electricity consumption, better controllability and higher efficiency in recovering heat from
the exhaust air and transferring it to the fresh air supplied. The air handling units‘ cabinets are better sealed
against heat leakage.

In Slovakia, our store in Bratislava decreased in FY22 its energy consumption by 9% in FY21. The consumption GRI 302-4
of 38,3 kWh/m2 is the lowest consumption per square metre in CZHUSK region, which is 28% lower than
the average of the region. We have achieved it also by using efficient and sustainable heat pumps for efficient
heating and cooling, which means we do not use gas for heating.

New bus stop shelter with a sustainable message

GRI 304-2

Offering zero-emission home deliveries, everywhere

In the Czech Republic, next to our Brno store, we We have also incorporated a new digital panel to
built the new bus stop and bike shelter featuring display commercial content, which we can change
We aim to use electric vehicles (EV) or other zero-emission solutions for all our home deliveries in the
green roofs that help reduce dust in the surrounding remotely. This allows us to keep the content up to
Czech Republic, Hungary, and Slovakia by 2025. To achieve this, we reviewed our customers‘ and employees‘
area, improve the microclimate, and provide date, making the shelter functional and engaging
requirements, enabling us to provide them with the necessary charging infrastructure. We ended the FY22
a natural habitat for small animals, contributing for commuters.
with the following EV shares in the respective countries:
to the greening of the urban living environment.
In addition, the green roofs naturally cool the space It is essential to ensure that our products havea
longer lifecycle, while also being mindful of the waste
COUNTRY FY22 Goal FY22 Reached under the shelter, creating a more comfortable
experience for waiting passengers and cyclists. generated by our own activities. Both are crucial for
The bike stands are made from recycled old car tires achieving sustainability in our business practices.
CZ 10% 10,32%
to promote sustainability further. This durable rubber
According to FY22 data, the waste volume produced
material is strong enough to support bicycles yet soft
HU in CZHUSK was as follows:
5% 0,82% enough not to cause any damage.

SK 5% 13,50%

At the time of the report creation, March 2023, we reached 23% EV share in the Czech Republic. Due to
geographical challenges in Slovakia, we were on 14%, but we were about to extend the e-fleet with two
more vehicles, increasing our EV share to 25%, aligned with the country‘s goals. In Hungary, we deployed
a home-delivery tender to find better strategic fits on the market to reach our ZED goals. Due to these
changes, the deployment of an extended EV fleet is slower, so our current share at that time was between
4-5%, but a fleet of 10 chassis box vans was about to come in May, which would result in a 16-18% increase
and this was not the only fleet we are still expecting to be deployed in FY23.

We aim to reduce emissions from our employees and customers commuting by 50% by 2030.

GRI 302-4 Leading the Way in Renewable Energy

by Eliminating Fossil Fuels
In the Czech Republic, our Brno store strives to achieve our 2030 goal of eliminating fossil fuels from our energy
usage. We have taken steps to replace our gas boiler with heat pumps and installed a solar power plant on the
roof of our store. We only purchase electricity that we cannot produce ourselves from renewable sources.

To heat our department store, we have installed air-water heat pumps that boast excellent efficiency, even
in extremely low outdoor temperatures. During the summer, these pumps can also provide cooling capabilities
to our existing cooling machines or replace them in case of a breakdown.

28
GRI 306-3

The production of total waste increased in the Czech Republic compared to FY21. This increase can be a result
of the low number in FY21 due to closed stores. The store in Brno reported the most significant increase, which
resulted from the ongoing rebuilding of the store.

GRI 306 Disposal methodby waste stream:

30
 FAIR & EQUAL
GRI 202-1 Human rights are founded on the principle Ingka Group is committed to fair treatment and equal
of equality, which is why we at IKEA believe that opportunities, creating a workplace where people
everyone should receive fair treatment and equal of all backgrounds and identities can thrive and
opportunities, regardless of their background feel supported and valued for who they are.
or identity. As a purpose-led business, we also want to play
our part in advancing equality in society.
People are the heart of everything we do. We make
sure that our business treats everyone fairly and By 2030, IKEA wants to be a leader in creating a fair
provides decent, safe, and meaningful employment. and equal society that benefits the many. We will do
At IKEA, we want to make the most of our differences this by growing the IKEA business in an even more
and encourage daily collaboration and inclusive inclusive way, respecting and encouraging diversity
behaviour. Our goal is to contribute and lead by and promoting decent and meaningful work across
example in creating fair and equal society. the IKEA value chain, enabling people to provide
a good life for themselves and their families.
In today’s world, we face different challenges and
obstacles than yesterday. We observe, understand, Being inclusive is about both engaging with others
and adapt to these changes to help those in need. in the work they do and inviting others to participate
We hope our contribution and the changes we make in our work.
can improve people’s lives. It is important for us
to adapt to changes, be open to new ideas and find We are committed to:
a way of doing things to help, to help to create a fair
and equal society. ► Providing and supporting decent
and meaningful work across our value chain
Heart-breaking events of February 2022, just outside
our borders, united people together, and we focused ► Being an inclusive business
our efforts on providing help. All our actions and
decisions are guided by IKEA values and our ► Promoting equality
commitment to supporting people. Our co-workers
have shown immense support and understanding and
helped by delivering and putting together furniture
and setting up crisis centres for Ukrainian refugees.
Shortly after the start of the war, we paused our IKEA
Retail operations in Russia. We have provided support
and guaranteed six months’ salary and core benefits
for all co-workers affected by this closure.

GRI 404-3 At IKEA, we offer career and skills growth. Co-workers

regularly receive performance and career
development reviews because we value their hard
work, capabilities, and knowledge and believe they
could be the best candidates for our company‘s new
roles. Investing in our employees creates a positive
and supportive work environment that benefits
everyone involved.

32
GRI 2-28 IKEA is a member of several membership associations, Stakeholders are identified by topics and issues
industry associations, and national or international that either affect the company or are important
advocacy organizations. In the Czech Republic, we are to the company. To create a meaningful relationship
part of SOCR (Czech Retail Association) and Změna with stakeholders, we actively seek opportunities
k lepšímu (Change for better). While in Hungary, to engage with them as partners in those areas of our
we participate in the Swedish Chamber of Commerce, interests; when possible, we co-organise events and
the National Trade Association, and the Business participate in common discussions. Key areas of focus
Council for Sustainable Development. IKEA Slovakia are EDI, Sustainability, Business-related and others.
is a member of AmCham, RÚZ (Union of Employers), We aim to advocate on behalf of many people.
Circular Slovakia, and SEVA.
The total number of employees according to
GRI 2-29 We are in contact with the following categories our FY22 data *
of stakeholders: Government, Neighbouring
municipalities, representative organisations,
embassies, and NGOs.

As a company that values its principles and goals, we are dedicated to creating a healthy, safe, secure working
and shopping environment. Therefore, the health, safety, and security of our co-workers, customers, visitors,
and others working on our premises is one of our top priorities. We have established policies, benefits,
and complementary rules to ensure health, safety (including fire safety and natural hazards), and security.
* Average headcount over the whole fiscal year rounded to the nearest integer These guidelines align with our company philosophy and are a natural part of our way of doing business.
Category: Total (Female / Male)
We provide a range of benefits to our co-workers. All working part-time or full-time co-workers are entitled GRI 401-2
According to FY22 data our number of co-workers grew as follows: to the same benefits. We understand the importance of useful benefits for our employees and provide
an extensive benefits package that supports our co-workers’ well-being and job satisfaction.

One IKEA Bonus Programme

GRI 201-3
At Ingka we believe that each of us contributes to reaching (and exceeding!) our goals. Everything we achieve,
we achieve together. One IKEA Bonus is designed to help us improve our business and recognise good
performance. It pays out here and now each year if we reach or exceed our goals.

Tack! Loyalty Programme GRI 201-3

Tack! is the Swedish word for saying “Thank you” and the name of our loyalty programme. Tack! is inspired by
our founder Ingvar Kamprad, who wished to share the success of IKEA among all co-workers equally. Through
this program, all eligible co-workers receive an additional contribution to their pension funds in recognition of
their loyalty and contributions towards the company’s growth. Co-workers qualify for Tack! after working at
IKEA for five consecutive financial years. IKEA contributes to their supplementary pension fund (retroactively).

34
 HELP Programme
Hungary

Zuglói Család és Gyermekvédelmi Központ

The HELP programme is an IKEA-provided benefit with (Tündérpakk Közhasznú alapítvány)
no cost to the co-worker. We renovated and designed (sofas, armchairs, tables,
It is an online/phone service available 24/7, provided decorations, storage solutions, toys) counselling
by an external company. A co-worker is entitled rooms and the separate meeting rooms of the child
to 5 sessions per category per topic. The service is protection centre. These rooms are a common
focused on providing counselling with professional meeting place for separated families and consultation
counsellors, concentrating on personal, health, rooms for children and families in need.
legal and financial issues. Because we care!
Józan Babák Egyesület átmeneti otthon (NANE)
Support victims of domestic abuse We helped to refurnish two kitchens, two living
Domestic abuse is a serious problem and can rooms, and one common area in temporary homes
significantly impact the victim’s personal and working for abused women. This activity created a more
life. We aim to help co-workers to cope with such comfortable area with great functionality for women
situations through the following forms of assistance: in crisis to feel more at home.

► Up to 10 days of leave from work in the event Heim Pál gyermekkórház fejlesztési alapítvány
of domestic abuse (Heim Pál Children‘s Hospital)
We refurnished and restructured restrooms and
► Safety in the workplace dressing rooms for nurses and doctors in children‘s
hospital. We increased the rooms‘ capacity, creating
► Up to 3 days of annual leave for co-workers a better environment and involved a new space
providing support to another co-worker who in creating a better atmosphere for every workday.
is a victim of domestic abuse
Slovakia
► Financial and other material support
We combined the volunteer days with helping to set
► Psychological and legal support up crisis centres for Ukrainian refugees. Our volunteer
days have occurred in several facilities, such as hostel
Fortuna or Kopčany.

Training and Education

Volunteer Days
GRI 403-6 – Day for Good Cause Telemedicine Every position has a learning path with training related to specific skills. Every co-worker has access to more GRI 404-2
than 6000 internal training and LinkedIn learning, and all can learn foreign languages for free. Off-boarding
coaching sessions provided for managerial positions with guidance related to continued employability.
Ingka Group actively helps societies in need, and The health and well-being of our co-workers are Our co-workers have undertaken an average of 2,7 hours in Czech Republic, 3 hours in Hungary and 3,3 hours GRI 404-1
co-workers should be able to personally contribute to a priority to us, and we want to ensure everyone gets of training in Slovakia in FY22.
making everyday life better. We offer co-workers the proper care. Co-workers have access to telemedicine
opportunity to spend one day (8 working hours) per services paid for by the employer. The service
financial year volunteering at a non-profit or another is free and can be used from anywhere as often
type of charitable organization as a volunteer while as co-workers need it. Co-workers are asked to
still receiving their IKEA salary as if they were at work. participate in voluntary screening (prevention Health Occupational Health and Safety
days) and are offered many webinars/seminars
Here you can find some highlights of our supporting their physical and mental well-being.
Our Group Rule on Health, Safety and Security and our framework on Occupational Health and Safety (OH&S)
volunteer work.
provide guidance on how all our locations should evaluate and mitigate safety risks and prevent work-related
In the Czech Republic and Slovakia, telemedicine
accidents and occupational diseases. Our extensive requirements cover OH&S management, risk assessment,
Czech Republic can also be used for family members. Not only
training, co-worker involvement, equipment, personal protective equipment, and respiratory virus prevention.
is a consultancy for the co-worker for free, but also
Our co-worker introduction training covers potential risks associated with their work, policies, rules and GRI 403-8
In the Czech Republic, we joined forces with the the provider ulekare.cz/ulekara.sk arranges the
standard operation procedures, and how to work safely and deal with medical emergencies.¹
initiative Ukliďme Česko in March and September doctor‘s appointment in case of need.
for a nationwide volunteer cleaning event.
We established volunteer ambassadors with active
co-workers. These colleagues are helping us with

* ¹ Ingka Group Annual Summary and Sustainability Report FY22 36

 We support our employees with a sense of well-being so they can work in a healthy, safe (physically
Mechanisms for seeking advice and raising concerns
GRI 403-7 GRI 2-26
and socially) environment in all areas of our company. Our goal is to avoid workplace accidents
and occupational illnesses.
We promote an open culture of trust and honest flow. This includes communication with the person
communication. We also promote a culture where involved, the supervisor or the manager. If they do
we do not tolerate misbehaviour. We take concerns not feel comfortable doing it or if the issue is more
and advice very seriously and have established complex, they can talk to the local Business Risk
GRI 403-5 NAME OF THE TRAINING
various mechanisms to address them effectively. & Compliance Manager or local P&C. If they do not feel
- No. of co-workers who engaged in the training. comfortable doing, they can contact our Trust line,
If an employee knows or has a reason to suspect any accessible to all employees, free of charge. We want
Introduction to Safety and Security 1 951
violation, needs to raise a concern or seeks advice, to ensure that our employees can speak up and that
RUN HIDE TELL refreshment training 1 529 we encourage them to follow proper communication their concerns are addressed promptly and effectively.

Respiratory Virus Prevention 1 457

IKEA Food Safety for co-workers 506

Minimum notice periods regarding

GRI 402-1
Run Hide Tell 489
Introduction to anti-bribery and corruption 453 operational changes
Introduction to ASC/MSC – IKEA Food 423
As a part of effective communication, we strive to such changes in advance, sometimes even months.
Respiratory Virus Prevention
- a refresher 291 keep our co-workers informed and prepared for any We provide more detailed information as the date
changes or developments that may occur. Depending approaches to ensure our co-workers are fully
Fire response training (CZHUSK) 243 on the topic, we communicate significant changes prepared. No collective bargaining agreement exists, GRI 2-30
that could affect their work at least four weeks in and any special negotiations do not cover co-workers.
Safety & Security Duty Manager (CZHUSK) 131
advance. We want everyone to have enough time to We work and regularly communicate with Social
Introduction to Hazard Analysis Critical adjust to organisational changes, so we communicate Partners and Trade union representatives.
Control Point (HACCP): workshop 110
Safety & Security First Aid (CZHUSK) 104

Diversity and Equal Opportunity

GRI 405-1

GRI 205-2 Communication and training about anti-corruption At IKEA, we want to make changes. We know that
inequalities in society often show up in the workplace,
the same opportunities. We are proud of what we
have achieved, and we are continuing our journey
policies and procedures but we want to change that. Our goal is to create towards gender-equal pay. That means ensuring
a work environment that celebrates the diversity everyone is paid fairly, without gaps that cannot be
of our communities and welcomes everyone as they explained by their performance, competence, or the
All co-workers should have a training Code of conduct at the beginning of their employment. People working
are, regardless of gender, ethnicity, race, nationality, laws in their country. At IKEA, we believe everyone
in sensitive positions such as management, contract handling, money handling, suppliers/contractors,
ability, sexual orientation, or gender identity. deserves to be treated with respect and given
connections/negotiations etc., are also trained in separate training called Anti-Bribery and Corruption. Training
We believe that together, we can build a just as a chance to succeed. We are a member of the Equal
is repeated regularly on a yearly level. The company also has an ethic code for our suppliers, which is part
diverse and inclusive workplace as the world around Pay International Coalition (EPIC). We are committed
of contract management - business ethics and IWAY standards.
us. We understand that there are many challenges to ensuring equal pay for women and men throughout
facing people today and that not everyone has the Ingka Group.

GRI 403-9 Workplace accidents

Workplace accidents can always happen despite best efforts, policies, training, and safety measures.
We continuously review and improve our training and safety protocols to minimize the risk of injury. During
the treatment, co-workers can use the support from our HELP Programme and Telemedicine services.

► Number of work injuries with absences: 111

► Number of people with work injury absence: 108
► Total number of absent hours: 15 901,15

38
 The process to determine the remuneration
GRI 405-1 Report shows an overview of the diversity categories applicable, such as minority or vulnerable groups. GRI 2-20
present within governance bodies and employee By analysing these percentages, we have insights into
categories. These categories include gender, age our diversity and inclusivity efforts and can better
group, and other indicators of diversity where identify improvement areas. Proposal for investment into co-workers‘ salaries General Manager. The agreed percentage increase
is carefully calculated and annually brought by Total is shared with Global Function and Country Board
Rewards Manager for People Steering Committee if asked. Total Rewards Manager then ensures that
CZ HU SK decision. The proposal reflects the market situation the approved budget is not overspent and applies
Age: <30 | 30-50 | >50 <30 | 30-50 | >50 <30 | 30-50 | >50 and labour cost development but is also a result of guidelines for a fair and consistent approach to
Management: 1,72% | 89,66% | 8,62% 5,41% | 91,89% | 2,70% 7,69% | 84,62% | 7,69% pre-discussion regarding the sales development, and calculate the individual increases. The individual
All: 23,87% | 59,02% | 17,11% 29,90% | 53,05% | 17,05% 22,69% | 63,18% | 14,14% thus the foreseen ability to manage the increased increases are then shared with the HR manager in
people costs in a respective financial year. The market each unit and then with the line managers. The final
Gender: Female | Male Female | Male Female | Male data used are bought on the country level from Korn alignment takes place between the units and Service
Management: 39,66% | 60,34% 59,46% | 40,54% 38,46% | 61,54%
Ferry and Mercer, independent survey companies with Office. Any kind of deviation outside the agreed rules
All: 58,30% | 41,70% 58,70% | 41,30% 54,80% | 45,20%
high credibility. The proposal is then discussed and needs to be approved by the Total Rewards Manager
People w/ disabilities: without | with without | with without | with reviewed at the People Steering Committee, where and Head of HR. No further sharing with other People
Management: 100% | 0% 97,30% | 2,70% 100% | 0% the highest representatives of the region are, Steering Committee members regarding individual
All: 98,09% | 1,91% 96,43% | 3,57% 96,51% | 3,49% including the Head of HR, Head of Finance and increases happens.

Nationality: Czech | other Hungarian | other Slovakian | other

Management: 56,90% | 43,10% 86,49% | 13,51% 100% | 0%
All: 87,96% | 12,04% 98,33% | 1,67% 93,89% | 6,11%

Annual total compensation ratio

GRI 2-21
Management
headcount: 62 39 13

IKEA has annual process of deciding about the i.e. market situation, sales performance of the region,
compensation increase for all the co-workers. individual performance and competences. including
The final percentage is based on the many factors, the Head of HR, Head of Finance and
GRI 2-19 Equal pay
IKEA applies the same principles for all levels of based on their individual performance and market
co-workers regarding remuneration. Salary must pay. The highest governance body has the same Having positive social impact
be set independently of a co-worker’s age, gender evaluation principles as any other co-worker
identity, sexual orientation, mental or physical ability, regarding their competence and performance We are on a mission to create a better everyday However, we understand that we cannot do
ethnicity, race, nationality, religion, marital or family in the yearly evaluation process. One IKEA bonus life for people worldwide, and we are committed everything alone. We support individuals and
status, or any other dimension of their identity. is paid according to the business performance, to fulfilling our responsibility towards the local organizations who support local communities.
All co-workers shall be rewarded fairly and equally and the rules for a payout are the same for all. communities where we operate. We want to
positively impact society and the environment, Here are a few examples how we put people first.
regardless of our location or business activities.

Responding to the war in Ukraine

Supporting our co-workers including Ukraine, Poland, Russia, Hungary, Slovakia,
The devastating war in Ukraine is a human tragedy; Romania, the Czech Republic.
our deepest empathy and concerns are with the ► Evacuation support for expat co-workers in Ukraine
millions of people impacted. At Ingka Group, we have and Russia.
acted to support the personal safety and security ► Supporting displaced Ukrainian co-workers and
of our co-workers and their families in affected their partners who wish to work in another country
countries. Our first actions included the following: to find suitable jobs with Ingka Group, and provide
necessary coaching, training, and language skills
► Securing employment and income (including core to meet job requirements in the new country.
benefits) for co-workers in Ukraine during FY22. ► Providing legal and medical assistance to displaced
► Making substantial emergency funds available to Ukrainian co-workers and in some cases offering
the countries directly or indirectly affected by the war welfare support such as furnishing temporary
40
 (EAP) in affected countries to support co-workers
Women in distress
accommodation and childcare.
We also put in place longer-term support for and their families
co-workers and leaders such as: ► Additional training for leaders on how to support
► Targeted mental health resilience training available their teams in crisis. Escaping a violent relationship is complicated. We also worked with ROSA, an organization focused
in 24 languages Shortly after the start of the war, we paused our IKEA IKEA is committed to raising awareness of domestic on aiding women who are victims of domestic
► 100 seminars with psychological experts open to Retail operations in Russia. We have provided support violence by 2022, supporting expert education and violence. IKEA donated furniture for bedrooms,
all co-workers globally and guaranteed six months’ salary and core benefits ensuring better access to protection, support, and ensuring these women have a comfortable place
► Strengthening our Employee Assistance Programme for all co-workers affected by this closure.1 accommodation for victims of domestic violence. to rest as they work towards rebuilding their lives.
We are gradually fulfilling this commitment.
In Slovakia, we partnered with Woman in Distress
In the Czech Republic, IKEA has partnered with to furnish two apartments in Martin and Vrútky for

Fast and responsible support Magdalenium (Together with us makeover), an

NGO dedicated to supporting victims of domestic
women fleeing violence. These apartments have
concealed addresses and were designed with safety
to people and communities abuse in Brno. Together, we furnished and and comfort in mind. The makeover project included
decorated consulting rooms and offices for the the involvement of volunteers who generously gave
organization, providing a safe space for those their time and energy to make these spaces into
Ingka Group have been responding to the impacts of kindergartens as a primary barrier to employment.
seeking help and guidance. welcoming homes for those who need them most.
the war in Ukraine, including through our operations We believe this project will help with proper
in neighbouring countries. In total, we donated integration, solving a systemic problem and
EUR 15.2 million in cash and in-kind donations. simplifying access to work. We have donated 19 500
Our in-kind donations supported the furnishing pieces of furniture and equipment.
of over 500 accommodation units in Poland, the Social initiatives local (CZ)
Czech Republic, Hungary, Slovakia, and Romania, IKEA Hungary partnered with NGO Migration Aid
in collaboration with 39 trusted partners, including to furnish temporary accommodations for Ukrainian Empowering vulnerable groups
UNHCR, UNICEF, the Red Cross and local authorities. refugees in Budapest and Győr with IKEA products.
We also supported the Záhony Municipality in Soft toys therapeutic aid Music school
We, as IKEA CZHUSK, in cooperation with our furnishing a help centre near the border and a shelter We donated soft toys – 432 orangutans, for NGO We furnished learning rooms for teaching and
long-term NGO partners, provided humanitarian aid for Ukrainian refugees. We delivered range for Cesta domů. Orangutans were then sent to Ukrainian therapy, and also rest areas (project Skořápka
to people affected by the war. In line with our values, temporary houses counting almost 125 000 euros psychologists caring for mother and their children - program for children with different healthy
we supported those who really needed us the most in our range. who had experienced war trauma. A soft orangutan handicaps)
and lost their homes - people who fled from Ukraine. with Velcro on the arms and legs can be an effective
The most significant projects in support of and natural therapeutic aid. It can help children start Dětský domov Dolní Počernice
IKEA Czech Republic supported vulnerable groups, Ukraine were implemented in Bratislava, Slovakia. a safe way of self-healing from the difficult things (kids in children‘s home)
especially refugees from war-torn Ukraine, by IKEA Slovakia, in cooperation with the City of they have experienced. We provided multiple donations throughout
providing in-kind donations worth 950 000 euros. Bratislava, created a unique project where we the year- furniture for the multichannel room,
We donated 4 300 pieces of furniture to the General transformed temporary hostels into crisis housing. decorations, air purifiers, starter packs for
Directorate of the Fire and Rescue Service. The space was divided into individual cubicles wit children leaving children‘s home.
Additionally, we collaborated with the UNHCR to the help of IKEA fabrics to provide at least partial
provide equipment (5 000 articles) for 100 flats for privacy for Ukrainian refugees. To support them
we delivered
Ukrainian refugees in Havířov. Together with the
City of Ostrava, we helped furnish 81 apartments for range for temporary houses counting almost
refugees and donated furniture for bedrooms to help 179 000 euros in our range.
support Ukrainian refugees in Prague 9.
Another big project was with Mondelez company,
We also supported Sto Skupin (Hundred groups) as where we furnished two unused factory floors and
we believe the project will help in the long term. converted them into emergency housing for refugees.
Since 90% of the Ukrainians arriving were women with This project was carried out in cooperation with the
children, we saw the lack of capacity in schools and Slovak Red Cross at the cost of 25 193 EUR.

* ¹ Ingka Group Annual Summary and Sustainability Report FY22 42

 Social initiatives local (HU)
► IWAY principles are supported by effective routines Conflicts of interest GRI 2-15
and open dialogue
To ensure that we avoid any conflicts of interest, we
► Business is conducted lawfully and with integrity
hold mandatory ABC training sessions every year. The
Segíts jó Szívvel Alapítvány of children with special educational needs,
► Children are protected, and opportunities for work, term „ABC“ stands for „Anti-Bribery and Corruption,“
For the families and children living in the Family disadvantaged children and children with learning
learning and family life are promoted which covers a range of behaviours that can endanger
Counselling and Child Protection Centre - Family and behavioural problems in Martonvár and Ercs
► Fundamental labour rights are respected the integrity of our organisation. Through these
Transition Home and Children‘s Transition Home in by providing furniture and everyday equipment.
► Workers have time off work, are paid responsibly, measures, we uphold the highest standards of
Óbuda, we have created a set of kits that they use
and have opportunities to develop their skills governance and accountability. This training teaches
in their everyday lives. We also provided the two Anyaoltalmazó alapítvány
us how to manage our business ethically and fairly
institutions with furniture to enhance functionality We transformed the common kitchen and dining ► Workers’ health and safety are protected
and prevent potential conflicts. In training, we learn
and make the shared areas more homely. room of the Soroksár Temporary Home for Families
► Working and living conditions are suitable how to identify and prevent such conflicts, as well
of the Anyaoltalmazó alapítvány. This ensures that
► The planet is protected as how to report them if they do occur.
Harmonikus fejlősés alapítvány families living together can better use these spaces
We helped to renovate and expand the capacity in their daily lives. ► Resources, including water and waste, are managed
Political contributions GRI 415-1
of the Foundation‘s rooms for the development in a sustainable and circular way
► Animals live decent lives We do not give any financial or in-kind political
contributions.
Keeping the IKEA Way in mind, we purchase products
and services from local suppliers when possible. By
Social initiatives local (SK) supporting the communities, we help to create jobs
Approach to tax GRI 207-1

and income for people and contribute to the growth Tax is a core part of our corporate responsibility and
Second Life of Trees Project of Christmas Trees, where we downcycled Christmas and well-being of the area. This support also helps to governance. It is fully integrated into our governance
We donated 61 BILLY libraries filled with IKEA trees into wood chips, and then new particleboards reduce carbon footprint by reducing transportation structure. Our principles are as follows: a) we are fully
products (TJENA box, play dough…) to schools and were produced with the help of the IKEA Industry. and logistics costs. committed to complying with relevant tax laws and
kindergartens for children with disabilities. These From that, we made our iconic Billy bookcases. regulations. b) we conduct intragroup transactions on
In the Czech Republic, 27% of our procurement
BILLY libraries were part of the project - Second Life an arm‘s length basis and fully comply with transfer
budget is spent on local suppliers, while in Hungary
pricing jurisdiction. c) we do not have tax-initiated
and Slovakia, the proportion is 26% and 27%,
operations in tax havens. d) if the government offers
respectively. We are committed to continuing work
tax incentives, it must be done transparently and
with local suppliers and contributing to the growth
consistent with statutory frameworks. e) we are
IWAY
GRI 2-23 of the communities where we operate.
committed to be transparent about our approach GRI 204-1
GRI 2-24 to tax and the tax we pay.
Requirements for product and service
The IWAY, or IKEA‘s method of responsible ► Securing decent and meaningful work information and labelling GRI 417-1
GRI 2-25 Tax governance, control, and risk management
procurement for products, services, materials, ► Respecting children‘s rights
and components, establishes specific standards and General requirement: Manufacturers must attach GRI 207-2
► Improving the welfare of animals that are Finance Commitee is ultimately responsible for setting
protocols regarding environmental, social, and labour instructions for use, handling, and safety warnings to
present in the IKEA value chain the tax control framework. Tax Council is appointed by
conditions, along with animal welfare. We want to their products, which must be understandable and
the Finance Committee. Group Tax is responsible for
build long-term relationships with suppliers, service clear to consumers and other end-users. Additionally,
The IWAY principles and requirements are based on setting tax policies and strategies. CFO is accountable
providers and other contracting parties that share our manufacturers must inform consumers in a way that
internationally recognised standards and principles. for implementing the group rules on tax, and
vision. That‘s why we have developed IWAY, the IKEA is understandable to the general public about the
Finance Manager is responsible for the execution
Way of Responsibly Procuring Products, Services, essential features of the product and its packaging
Model: Must, Basic, Advanced and Excellent. IWAY of tax matters. Local tax co-workers are continuously
Materials and Components. IWAY defines what we from a waste management perspective, including the
Must and IWAY Basic are the minimum requirements trained in tax to have up-to-date information, and
expect from suppliers in the IKEA value chain when product‘s reusability, recyclability, and options for
that need to be in place for all suppliers and service regular meetings with Group tax are held, too.
taking care of people, the planet, and animals. further treatment.
providers who do business with IKEA. Our ambition,
together with our business partners, is to continually (2) * On the product or its packaging, or on the
We aim to always positively impact people, society Country-by-country reporting GRI 207-4
improve and develop beyond the minimum, to reach packaging material, the manufacturer indicates
and the environment by finding the balance between
IWAY Advanced and IWAY Excellent levels. in a clearly visible and comprehensible manner the
economic growth and protecting nature. We also want Country-by-country Reporting data published on
low-waste, durable or reusable nature of the product
to give people good jobs that are important and make EU Directive (EU 2021/2101), in line with the legislation
The IWAY Standard is built on 10 IWAY Principles. and the packaging material used as packaging,
them feel valued. Our suppliers and value chain are and OECD guidelines. All necessary data was collected
The principles define the IKEA standpoint on its composition of materials relevant to waste
a fundamental part of achieving this ambition. and reported by INGKA Group. The data are presented
responsibly procuring products, services, materials, management, and its distribution with a deposit
based on the template referred to the EU Directive
and components. Each of the 10 principles is, in turn, or deposit fee.
Through IWAY, we strive to create impact with the exception of the „Number of Employees“.
supported by IWAY requirements.
in 4 main areas: In such cases, headcount is used instead of
► Improving environmental impacts full-time equivalents.

44
DICTIONARY,
GRI INDEX

46
DICTIONARY GRI INDEX
Biodiversity: Biodiversity refers to the variety of living atmosphere (Source: Oxford Languages, 2022) GRI 2: General Disclosures 2021
species on Earth, including plants, animals, bacteria, GRI 2-1 Organizational details (Page 11)
and fungi (Source: National Geographic, 2022) Recycling: reprocessing of sector or components GRI 2-2 Entities included in the organization’s
of products that have become waste, to make new sustainability reporting (Page 11)
Circularity: principle of retaining the value of materials (Source: GRI, 2021) GRI 2-3 Reporting period, frequency and contact point
products, materials, and resources and redirecting (Page 7)
Renewable energy: energy coming from a source GRI 2-7 Employees
them back to use for as long as possible with the
GRI 2-12 Role of the highest governance body
lowest carbon and resource footprint possible, such that is capable of being replenished in a short time
in overseeing the management of impacts (Page 7)
that fewer raw materials and resources are extracted through ecological cycles or agricultural processes
GRI 2-22 Statement on sustainable development
and waste generation is prevented (Source: GRI, 2021) (Source: GRI, 2021)
strategy (Page 6)

Climate Change: Term that refers to long-term shifts Renewable material: material that is derived from GRI 201 ECONOMIC PERFORMANCE
in temperatures and weather patterns plentiful resources that are quickly replenished by GRI 201-1 Direct economic value generated and
(Source: UN, 2022) ecological cycles or agricultural processes, so that the distributed (Page 14)
services provided by these and other linked resources GRI 201-3 Defined benefit plan obligations and other
Climate Footprint: a measure of the total amount are not endangered and remain available for the next retirement plans (Page 33, 34)
of carbon dioxide (CO2), methane (CH4), nitrous oxide generation (Source: GRI, 2021)
(N2O), hydrofluorocarbons (HFCs), perfluorocarbons GRI 301 MATERIALS
Scope 1 emissions: greenhouse gas (GHG) emissions GRI 302 ENERGY (Page 17, 25, 26, 27)
(PFCs) and sulphur hexafluoride (SF6) emissions
GRI 303 WATER (Page 17)
defined by Kyoto protocol, calculated as carbon from sources that are owned or controlled by the
GRI 304 BIODIVERSITY (Page 28)
dioxide equivalent (CO2e) organization (Source: GRI, 2021)
GRI 305 EMISSIONS (Page 17, 25, 27)
GRI 306 WASTE (Page 29)
Climate Positivity: saving or reducing more GHG Scope 2 emissions: greenhouse gas (GHG) emissions GRI 401 EMPLOYMENT (Page 34)
emissions than generating that result from the generation of purchased or GRI 404 TRAINING AND EDUCATION (Page 31, 36)
acquired electricity, heating, cooling, and steam GRI 405 DIVERSITY AND EQUAL OPPORTUNITY
CO2e (equivalent of carbon dioxide): measure consumed by the organization (Source: GRI, 2021) (Page 38, 39)
used to compare the emissions from various types GRI 413 LOCAL COMMUNITIES
of greenhouse gas (GHG) based on their global Scope 3 emissions: other indirect greenhouse gas
warming potential (GWP) (Source: GRI, 2021) (GHG) emissions not included in energy indirect
(Scope2) GHG emissions that occur outside of the
Greenhouse gas (GHG): gas that contributes to the organization, including both upstream and
greenhouse effect by absorbing infrared radiation downstream emissions (Source: GRI, 2021)
(Source: GRI, 2021)
Value Chain: Range of activities carried out by
IWAY: the IKEA way of responsibly sourcing products, the organization, and by entities upstream and
services, materials and components downstream from the organization, to bring
the organization’s products or services from their
Kyoto Protocol: protocol adopted in 1997 that conception to their end use (Source: GRI, 2021)
operationalizes the United Nations Framework
Convention on Climate Change by committing Vulnerable group: group of individuals with a specific
industrialized countries and economies in transition condition or characteristic (e.g., economic, physical,
to limit and reduce greenhouse gases (GHG) emissions political, social) that could experience negative
in accordance with agreed individual targets impacts as a result of the organization’s activities
(Source: UN, 2022) more severely than the general population
(Source: GRI, 2021) Date of publication:
LGBT+: This acronym stands for lesbian, gay, bisexual
and transgender people, as well as all other sexual Water stewardship: use of water that is socially If you have questions about the report, contact
orientations and gender identities equitable, environmentally sustainable, and the press department of the IKEA Czech Republic,
economically beneficial, achieved through Hungary and Slovakia.
Net-zero: a target of completely negating the amount a stakeholder-inclusive process that involves
of greenhouse gases produced by human activity, to acility- and catchment-based actions Petr Šašek
(Source: GRI, 2021) Market Communication coordinator
be achieved by reducing emissions and implementing
e-mail: petr.sasek@ingka.ikea.com
methods of absorbing carbon dioxide from the
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