IKEA USA

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Jan 14, 2016 - towards investments in renewable energy, and a $436 million commitment from the. IKEA Foundation to suppo
A MESSAGE FROM STEVE “We are going all-in to have a positive impact on people and the planet. We’ve achieved a lot in FY15, and we are raising our voice on climate change, the most important issue our society faces today. By taking action and encouraging others to do so, we can create a better everyday life for the many people.” STEVE HOWARD Chief Sustainability Officer, IKEA Group

IKEA USA

FY15

SUSTA IN A BILITY SUM M A R Y

MORE SUSTAINABLE LIFE AT HOME Veggieballs We introduced veggieballs to our food range. With just half the saturated fat and a carbon footprint that is 30 times less than that of a traditional meatball, this is another step towards making our food range healthier and more sustainable. We want to inspire and enable a more sustainable life at home for the many people That is why we are developing products and services that enable our customers to use less water and energy, reduce waste and live healthier lives.

In fiscal year 2015, we became the first major retailer in the US to sell only LED bulbs and lighting. LED bulbs use up to 85% less energy than traditional incandescent light bulbs and last up to 20 years!

More sustainable cotton Now all of the cotton we use for IKEA products comes from more sustainable sources. This means that the farmers supplying cotton use less water, chemical fertilizers and pesticides, while increasing their profits.

RESOURCE AND ENERGY INDEPENDENCE We want to become resource and energy independent That means helping to transform the industry for our key raw materials like cotton and wood, investing in renewable energy and becoming more efficient in our operations and supply chain. And it means making every product more sustainable while keeping the quality, function, form and affordability our customers love.

$1.1 billion1 for climate action This $1.1 billion investment is made up of a $654 million commitment from IKEA Group towards investments in renewable energy, and a $436 million commitment from the IKEA Foundation to support communities most impacted by climate change. 1

Euro to dollar calculated at $1.09, January 14, 2016

90% In fiscal year 2015, we made our second investment in renewable energy with the purchase of a 165-megawatt wind farm in Cameron, TX. Together with our wind farm in Hoopeston, IL, they will generate 3-4 times the amount of renewable energy used in our US operations.

BETTER LIFE FOR PEOPLE AND COMMUNITIES We want to create a better life for the people and communities impacted by our business That includes everyone involved in our business, from our suppliers’ co-workers to our own co-workers, our customers and the communities around us.

10% increase in sales of IKEA products in the US that contribute to a more sustainable life at home, compared with fiscal year 2014. Our LEDARE LED bulbs are our best selling of these products.

90% of our buildings in the US are outfitted with solar panels.

In fiscal year 2015, 83% of waste in our US stores and distribution centers was recycled or turned into energy.

2.4 million trees IKEA US has planted over 2.4 million trees through American Forests to help absorb CO2 and offset the emissions from our operations.

Living wage not minimum wage On January 1, 2016, the average minimum hourly wage paid in IKEA US stores increased from $10.76 to $11.87, a $1.11 or 10.3% increase.

100%

In fiscal year 2015, IKEA US partnered with Feeding America through our Feeding the Future campaign to help provide over 3 million meals for children and their families in our local communities.

83%

IKEA US received a 100% perfect score from the Human Rights Campaign Foundation on its 2016 Corporate Equality Index (CEI).

4,300

In fiscal year 2015, 4,300 care packages were created by US stores to be used in emergency situations by local American Red Cross chapters.

$1 million in makeovers Since 2011, we’ve donated over $1 million in products, design expertise, and manpower to over 160 charities in the US.

© Inter IKEA Systems B.V. 2015.

wind turbines.

314

Committed to own and operate

saved through energy efficiency measures since FY10.1, 7

$145 million

invested since 2009.7

$1.6 billion

announced for investments in wind and solar power, building on the

$654 million

Sustainability should not be a luxury for the few, but affordable for the many. With billions of visitors to our stores and IKEA.com, we can enable many people to live a more sustainable life at home.

KE progra A Foundatio n fund mmes s to opport unities create new the wo for som r munitie ld’s poorest e of c s build r , helping th omem to esilien ce to c chang li e and improv mate e their lives.

IKEA F OUND SUPPO ATION FAMIL RTS I COMM ES AND UNITIE S The I

donated by the IKEA Foundation through the Brighter Lives for Refugees campaign. This will provide lighting, renewable energy and education for refugee children and their families.7

$11.8 million

If all IKEA FAMILY members changed a bulb to LED, it would save enough electricity to power over 600,000 homes for a year5

in h e for xamp ange to ta , c str l on e an lead kle gov g pol d cal ing ern icies ling me nts from .

1

committed by the IKEA Foundation to support families and communities most impacted by climate change.7

$436 million

See how we’re going #AllIn

$1 CLI .1 BIL L MA TE ION F We ACT ’r O clime goin ION 6R g a ,7 all te c by

In our own operations. 2 Cotton from more sustainable sources includes cotton grown to the Better Cotton Standard; by farmers working towards Better Cotton; and more sustainable cotton from the USA (such as the ‘e3 Cotton Program’). 3 More sustainable sources for wood are currently defined as FSC™-certified or recycled wood. 4 At tier 1 home furnishing suppliers. 5 Compared to a traditional incandescent bulb. Calculation based on the electricity consumption of an average European household. 6 In 2015, IKEA Group committed $654 million and the IKEA Foundation committed $436 million for climate action. 7 Euro to dollar calculated at $1.09, January 14, 2016.

om lim nd g c ion a nity t r and n i l k e at tu Tac innov ppor s bett eeds. o s n an er ine It’s r bus ustom u c o et me

Our entire lighting range is now converted to energy efficient LED.

100%

ENABLING MORE SUSTAINABLE LIVING

increase in energy efficiency at suppliers compared with FY12.4

18%

tners re susur par o With o aterials m emism n g i t n ut g maki and c ply chain. e l b a n sup tai in our s n o i s

of our wood came from more sustainable sources, and we are aiming for 100% by FY20.3

50 %

E INABL A T S U S MORE ERIALS AND MAT CHAIN Y L P P e SU we ar

Now all of the cotton we use for our products comes from more sustainable sources.2

100%

ING M O BEC ERGYENT EN END ves dri P e E l. ng IND ate charenewaake

solar panels on our buildings.

700,000

of our energy consumption by 2020.

%

100

Will produce renewable energy equivalent to

WILL STRENGTHEN ECONOMIES AND BUILD A CLEANER, FAIRER AND MORE PROSPEROUS FUTURE FOR ALL.

TACKLING CLIMATE CHANGE ON A GLOBAL LEVEL