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Strong Sustainability Progress: The IKEA Group’s People & Planet Positive strategy on track and delivering good results

Conshohocken, PA, 2015-1-30 — /EPR Retail News/ — The IKEA Group Sustainability Report for fiscal year (FY14*) 2014, released today, shows its People & Planet Positive strategy is on track and delivering good results. Sustainability performance is announced today alongside strong financial results, which show an increase in total sales to EUR 28.7 billion ($32.1 billion**), a 5.9% increase (adjusted for currency impact) from last year.

Sustainability highlights from FY14:

  • During the year, IKEA Group committed to own a further 87 wind turbines, bringing the total to 224***, and installed 150,000 solar panels, increasing the total to 700,000 and taking the company a step closer to producing more renewable energy than the total energy it uses by 2020. By the end of 2015, we aim to have invested and committed to invest EUR 1.5 billion in renewable energy projects.
  • The sales value of products for a more sustainable life at home passed €1 billion, a 58% increase compared with FY13. These products enable people to save or generate energy, reduce water use, cut waste and live healthier lives.
  • 75% of all lighting products sold were LED or compatible with LED bulbs, which use 85% less energy and last 20 times longer than traditional (incandescent) bulbs. The entire IKEA lighting range will convert to LED by September 2015.
  • €66 million saved through energy efficiency efforts in stores and warehouses since FY10.
  • IKEA Group is one of the world’s largest buyers of FSC-certified wood in the retail sector, and 41% of its wood was FSC certified or recycled in FY14. All wood was sourced from suppliers that meet the IKEA forestry standard.
  • The share of cotton from more sustainable sources used in IKEA products reached 76%, meaning farmers use less chemicals and water, whilst increasing their earnings. IKEA is on track to reach its goal of 100% by the end of August 2015.
  • 47% of managers are women.
  • The IKEA Foundation donated €104 million in 2014 to projects that support millions of children in some of the world’s poorest communities.

“Sustainability is a key driver of innovation and an integral part of our business strategy. We see it as a great opportunity to improve our business. That’s why we’ve set ambitious 100% targets, for example for our LED lighting range, important raw materials and renewable energy. We are determined to grow IKEA while also having a positive impact on people and the planet,” Peter Agnefjäll, President and CEO, IKEA Group.

“Through our People & Planet Positive strategy, we want to make IKEA completely sustainable. I’m proud to say that we’re making good progress in transforming the supply of key materials, with over ¾ of our cotton and 41% of our wood now from more sustainable sources, and we’re investing in renewable energy to bring us closer to our goal of being energy independent. And by making energy- efficient LED affordable and attractive, we’ve enabled millions of people to live a little more sustainably,” Steve Howard, Chief Sustainability Officer, IKEA Group.

*FY14 = Financial year 2014 period is September 1, 2013 – August 31, 2014.**Dollar to Euro calculated at $1.12, January 24, 2015. *** This total does not include recent commitments made in FY15 which bring the total to 279.

IKEA US FY14 Highlights

  • IKEA installed additional solar energy systems to more US locations in FY14, with nearly 90% of our buildings outfitted with solar panels. IKEA announced two new stores; Merriam and Miami would open with solar panels. The IKEA Canton, Centennial, and Stoughton stores had their solar energy systems expanded by at least 25%. The IKEA Perryville and West Hampton distribution centers completed phase two of their solar panel installation.
  • The IKEA Merriam store will also have geothermal technology, a heating and cooling system.
  • In April 2014, IKEA US made its first wind farm investment in the US with the purchase of Hoopeston Wind in Hoopeston, IL. When completed, this project will generate enough safe, pollution-free energy to power approximately 30,000 US homes.
  • In the last 18 months, we have dropped the price of our E26 400 lumen bulbs (dimmable and non-dimmable) from $9.99 to $4.49 in order to make LED affordable for the many people; offering the lowest price on the market.
  • For more information on IKEA US community and environment programs,please read here.

For further information, please contact:
Mona Astra Liss, US Corporate PR Director, Mona.Liss@IKEA.com
610.834.0180, ext. 5852
Martina Smedberg, Media relations IKEA Group, Martina.Smedberg@IKEA.com
+46 42 444 77 76

The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. There are currently 315 IKEA Group stores in 27 countries. Additionally, there are 40 IKEA stores run by franchises. There are 40 IKEA stores in the US. In FY 14, IKEA Group had 716 million visitors to the stores and 1.5 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information, please visit www.IKEA.com, facebook.com/IKEAUSA, @IKEAUSANews, @IKEAUSA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSA, www.theshare-space.com, www.theshare-space.com/en/Blog

The IKEA Sustainability Report FY14 is available at www.IKEA.com on each country site (under About IKEA, People & Planet).

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