US Sustainability Report - Ikea

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More than a year past Hurricane Sandy, IKEA US programs have made a difference in the ... larly hit hard by Sandy – ho
US Sustainability Report FY13

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Introduction At IKEA, our vision is to help create a better everyday life for the many people. This direction motivates and leads us forward - in all that we source, produce and sell to our customers, as well as do for our co-workers. We are committed to not being wasteful and we always strive to make more with less. We also look at ways we can impact our stores’ communities in a positive way through donations, products and support. Our goal is to be 100% resource and energy independent by 2020 and our solar, geothermal and EV programs support this focus. This 2013 fiscal year (September 1, 2012-August 31, 2013), our energy efficient initiatives, Hurricane Sandy and other community programs clearly show our involvement on a local and national level. (Front Cover Picture: IKEA Brooklyn co-workers and IKEA US Service Office co-worker (5th from right) all involved in Hurricane Sandy recovery efforts.)

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IKEA Signs CERES Declaration On April 10, 2013, IKEA along with other major brands including Intel, Starbucks and others, signed a ‘Climate Declaration’ in coordination with BICEP Business for Innovative Climate and Energy policy. This document asserts that tackling climate change is one of the greatest economic opportunities of the 21st century. This started a 100 day campaign in which other businesses were encouraged to sign the Declaration as a call to action. At the event in Washington, D.C., several signatories of the Climate Declaration discussed how extreme weather events like Hurricane Sandy have affected their businesses, their communities and exposed the country’s vulnerability to climate change. This declaration signing was a call to Congress to address climate changes by promoting clean energy, boosting efficiency and limiting carbon emissions.

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IKEA US Support Thousands of Families and Individuals Impacted by Hurricane Sandy More than a year past Hurricane Sandy, IKEA US programs have made a difference in the lives of thousands through the donation of IKEA home furnishing products as well as cash donations. These programs have assisted those effected in New York, New Jersey and Connecticut; states where IKEA has five stores and a distribution center. The following is a brief review of key Hurricane Sandy IKEA US support programs.

Global Green and IKEA US Join Together for Solar Installation Global Green USA and IKEA US teamed together to install a solar roof on the Red Hook Community Center, marking this as the first official recipient of a “Solar for Sandy” installation in Brooklyn, New York. This initiative demonstrated how IKEA is working with non-profits to rebuild communities that were impacted by the superstorm. The Red Hook solar project is one of five planned Global Green USA solar recovery installations announced at the June 2013 Clinton Global Initiative America to help communities increase their resiliency and provide emergency services, including lighting, mobile phone charging, basic heating or cooling, and critical services such as refrigeration. In addition to providing back-up power and emergency services in case of future natural disasters, the solar installation will also provide every-day energy and lower the community center’s energy bills. The Red Hook solar installation is one of many ways in which IKEA has given back to communities.

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IKEA, American Red Cross and Save the Children – Working Together In the days following the Hurricane Sandy storm, IKEA worked through the American Red Cross and Save the Children, to donate 10,000 blankets, towels, pillows and pillow cases, wash clothes and towels, 5,800 blue bags and 2,000 children’s soft toys to shelters to help make families and individual’s stay

p ic - more comfortable. In-kind donations to just the Red Cross amounted to over $450,000. Additionally, IKEA co-workers that were impacted by the storm received support from their fellow co-workers and from IKEA.

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More Hurricane Sandy Initiatives IKEA Brooklyn Store Hosts FEMA The IKEA Red Hook Brooklyn store community – an area that was particularly hit hard by Sandy – hosted FEMA and the Small Business administration enabling community members to fill out applications to receive aid. The Brooklyn store also donated products to flooded local fire companies.

Stephen Siller Tunnels to Towers Foundation In June, 2013, IKEA worked with the Stephen Siller Tunnels to Towers Foundation to provide home furnishings to those severely impacted. IKEA donated hundreds of mattresses, dining room sets and sofas to help Sandy victims rebuild their homes in impacted areas like Staten Island, Long Island and Gerriston Beach.

IKEA Supports Save the Children Early Learning Centers Working with Save the Children, a long term partner of IKEA, support was given to damaged child care facilities and early learning centers throughout New Jersey and New York. In June 2013, IKEA co-workers from local stores and the Service Office, together with co-workers from Save the Children, pitched in to make over a hard hit facility in Brooklyn. In August, through Save the Children, IKEA donated furnishings and children’s play products to 39 child care and early learning locations in New Jersey and New York.

A p ic ture and c o p y IKEA and American Forests Disaster ReLeaf Plant Trees t o b e IKEA FAMILY members participated in the IKEA and American upForests Disaster ReLeaf program by scanning their FAMILY cards in dat- all IKEA US stores in July 2013 to trigger a donation to this ed by program. the As a result of this donation, urban trees that were destroyed by Sandy, were replaced and new ones were planted in Asbury Park, NJ.

Additionally, The IKEA Plant Tree Program has resulted in the planting of over 2.3 million tress with American Forests throughout the US. This initiative has been in existence since 1988 as an IKEA customer store donation program; one that includes an IKEA match dollar donation. (To view the video on the Hurricane Sandy US IKEA programs, click here: http://youtu.be/dNoOu36wHNM )

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IKEA Soft Toys For Education Campaign Raised $16.2 million* (€12.4 million) for UNICEF and Save the Children IKEA customers and co-workers continued to partner together with the IKEA Foundation to raise $16.2 million as a FY 13 donation to UNICEF and Save the Children to support projects that enable children in developing countries access to a quality education. This donation enabled the implementation of 18 projects in 16 countries. UNICEF’s share went to Schools for Africa projects in seven countries and two projects in Russia and China. Save the Children’s share supported education for children in some of the most marginalized groups (minorities and children with disabilities) in Asia (Bangladesh, China, Cambodia, Indonesia, Myanmar, Philippines) and Eastern Europe (Lithuania and Romania). In the US, IKEA raised over $1.2 million through soft toys sales. Since its launch in 2003, the IKEA Soft Toys for Education campaign has raised $74 million and impacted 10 million children in 46 countries with 90 projects.

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UNICEF Holiday Card Sales Donation Almost $500,000 IKEA and UNICEF have partnered since 1988, bringing cheerful greetings through the sale of UNICEF holiday cards sold at all IKEA stores. This past FY13, UNICEF holiday cards (from September 15 – January 31, 2013) resulted in the sale of 40,218 boxes at a contribution of $456,217 to UNICEF. IKEA matches $1 for every box of UNICEF holiday cards sold. Where the money can go when you buy a $10 box of cards: • The purchase of this box of cards can help UNICEF provide 47 doses of polio vaccine for a  child, advancing the global effort to eradicate this devastating disease, forever. • The purchase of this box of cards can help UNICEF provide 1 child with skipping ropes,  promoting physical activity, particularly for girls. • The purchase of this box of cards can help UNICEF provide 1 child with a pencil and  exercise book, opening up a world of possibilities through education. • The purchase of this box of cards can help UNICEF provide Vitamin A doses to boost 54   children’s immune systems and preserve their sight for an entire year. • The purchase of this box of cards can help UNICEF provide six boxes of crayons for a  classroom, so children can explore their imaginations with color.

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IKEA Life Improvement Challenge Supports Local Communities The IKEA Life Improvement Co-worker Challenge is one way IKEA US stores are making a difference in the lives of their local communities. Since 2011, IKEA co-workers have nominated local charities to receive furnishing makeovers for spaces that improve the lives of deserving organizations in their local communities. To date, there have been 120 local charities in the US that have benefited from this program. Using IKEA knowledge of life at home, this campaign supports creating functional and inviting A p icture a n d c o p y spaces. Some examples of Life Improvement Challenge winners in FY 13 included a safe house makeover for homeless women and children in Burbank, CA. Co-workers in Schaumberg, Illinois t o b e u p dated by the redesigned bedrooms, a study area and a common room in a residential treatment center for 16 th o f decem b er children affected by severe abuse and neglect. In Orlando, FL, IKEA US furnished a drop in-center that provides shelter for homeless LGBT youth. There was a total of 39 IKEA Life Improvement projects in FY13 at US store market locations. For more information, visit www.ikea-usa.com for additional inspiring stories about the Life Improvement Co-worker Challenge.

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IKEA Supports Resource and Energy Independence A big change driver at IKEA US is our striving to be resource and energy independent. We are working to secure long term access to sustainable raw materials, promoting recycling and using resources within the limits of the planet. One area we are actively focusing on is energy production. • Over the next few years, we will produce renewable energy equivalent  to 70% of the energy used in all of our buildings. By the year 2020,  we will produce as much renewable energy as we consume in our  operations. • At the present time, of our 44 IKEA locations, 39 have installed solar  panels. We have invested over 150 million dollars in the US - over the  past 3 years, and at this time, we have nearly 90% of our buildings  outfitted with solar panels. This positions us as one of the largest  private owners of solar power generation in the United States.  Additionally, in 11 of our US stores, IKEA has installed EVs (electrical  vehicle charging stations). This is another program to support  customers in being energy efficient. • Reduction of energy use is important. Our October 2012  announcement - that we will sell and only use LED lighting by 2016  is soon to be a reality in all IKEA US stores. Using and selling only LED  lights in IKEA US stores saves up to 11% of energy use per year. • Geothermal installation is another business decision to be energy  efficient. Every new IKEA US store will be geothermal. Currently,  our newest store in Denver, CO has both geothermal and solar. Our  second geothermal installation will be installed in our new Kansas City  store, opening Fall 2014 in Merriam, KS. We intend to install more

geothermal units as we expand. This is an important technology that aids both heating and cooling, taking advantage of the stable temperature in the ground. Generating enough renewable energy to power our operations means we can count on access to low energy prices. And that helps keep our prices low.

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IKEA To Sell Only LED Lighting By 2016 IKEA announced October 1, 2012 it was shedding new light on home sustainability practices with a bold move to go 100% LED by 2016 - and turn the world in a new direction by becoming the first US home furnishing retailer to sell only LED bulbs and lamps. LED lighting consumes 85% less energy than incandescent bulbs and can last up to 20 times longer. • Supporting the LED light revolution, IKEA has been  converting its full lighting range to LED by 2016, meaning  IKEA will sell only LED bulbs and LED lamps to enable  millions of people to live a more sustainable life at home  and save money on their energy bills. • IKEA will be selling the LED bulbs at the lowest price on the  market, thus making it affordable for the many people.  Additionally, IKEA is changing more than one million light  sources inside the IKEA stores to LED and other more  efficient lighting. “LED is a light revolution. With household electricity bills continuing to rise rapidly and global energy consumption increasing, a small LED bulb can have a very big impact. It uses much less energy than a traditional bulb and brings a lot of home furnishing potential to the home. Building on our belief that everyone should be able to afford to live more sustainably at home, we will make sure our LED prices are the lowest on the market,” says Steve Howard, Chief Sustainability Officer, IKEA Group.

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IKEA US Recycles

In 2013, in the U.S. as a whole, we recycled 35,185 tons of cardboard/ paper, scrap metals, plastics, wood, and glass. These recycling efforts conserved the following resources: 326,823 Mature Trees were Saved Representing enough saved timber resources to produce 4,049,333,200 sheets of newspaper! 129,377 Cubic Yards of Landfill Airspace Representing enough airspace to fulfill the municipal waste disposal needs for 166,151 people for one year! 114,052,230 Kw-Hrs of Electricity Enough power to fulfill the annual electricity needs of 9,504 homes! Avoided 90,804 Metric Tons (MTCO2E) of GHG Emissions The recycling of these materials prevented these GHG emissions! 163,863,000 Gallons of Water Representing enough fresh water to meet the daily fresh water needs of 2,184,840 people!

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For more information, see IKEA-USA.com, facebook.com/IKEAUSA, @DesignByIKEA, and http://pinterest.com/IKEAUSA/.

IKEA Group Sustainability Report FY13

Read the Sustainability Report

People & Planet Positive

IKEA Foundation

Get all the details about sustainability at IKEA in FY13. Check out our annual report. http://www.ikea.com/ms/en_US/pdf/sustainability_report/sustainability_report_2012.pdf

Visit the People & Planet Positive section of IKEA.com. http://www.ikea.com/ms/en_US/ this-is-ikea/people-and-planet/index.html

Discover what IKEA Foundation is doing to improve the lives of children around the world. http://www.ikeafoundation. org/programmes/soft-toys/

© Inter IKEA Systems B.V. 2013