IKEA Approach in High Risk Areas • • • • The supplier in the lead 100% FSC in 2017 Audits every year Supply Chain Audits for uncertified suppliers and supply chains • New supply chains require approval • Stop deliveries if IWAY Must violation • Partnership with external organisations (WWF) Forestry Barcelona 150415 Overall purpose © Inter IKEA systems B B.V. 2012 WWF Forestry projects – what is the purpose? Objectives and scope Forestry Barcelona 150415 Objectives and scope: Forestry Barcelona 150415 © Inter IKEA systems B B.V. 2012 Other forestry projects IKEA Approach in High Risk Areas • • • • • • • • Forestry The supplier in the lead 100% FSC in 2017 Audits every year Supply Chain Audits for uncertified suppliers and supply chains New supply chains require approval Stop deliveries if IWAY Must violation Partnership with external organisations (WWF, (WWF FSC, FSC CBs…) CBs ) On the ground capacity (Foresters) Barcelona 150415 Forestry Barcelona 150415 Forestry Barcelona 150415 IKEA Approach in High Risk Areas • • • • • • • • • Forestry The supplier in the lead 100% FSC in 2017 Audits every year Supply Chain Audits for uncertified suppliers and supply chains New supply chains require approval Stop deliveries if IWAY Must violation Partnership with external organisations (WWF) On the ground capacity (Foresters) Training of business teams and suppliers Barcelona 150415 Training Forestry y on the business agenda g with suppliers pp Presentation Post- activity Pre-activity & Face-to-face Forestry Barcelona 150415 How much do you know about the supply chains g to delivering your supplier? Forestry Barcelona 150415 9 IKEA Approach in High Risk Areas • • • • • • • • • • Forestry The supplier in the lead 100% FSC in 2017 Audits every year Supply Chain Audits for uncertified suppliers and supply chains New supply chains require approval Stop deliveries if IWAY Must violation Partnership with external organisations (WWF) On the ground capacity (Foresters) Training of business teams and suppliers Support for certification and backward integration Barcelona 150415 Backward Integration with FSC Shandong province Hard wood and layer glued Turn over 36M USD Capacity commitment 16 years with IKEA Forestry Barcelona 150415 Forest in Russia (Siberia) 8,000 ha leased forest Sawmill investment Forestry Forest lease contract till 2060 LOG output 40K m3 /Y current Barcelona 150415 FSC IKEA Support • Training T i i tto company’s ’ staff t ff • HCVF Identification • Forest management plan • IKEA budget – 20,000 USD Forestry Barcelona 150415 Benefits & Future • Better forest management • All solid wood FSC from FY14 FULL VALUE CHAIN CONTROL SECURIN G CAPACIT Y • FSC dowels for ICOMP SUSTAINABILITY • Wood component from RU Forestry Barcelona 150415 IWAY FSC IKEA Approach in High Risk Areas • • • • • • • • • • • • • • Forestry The supplier in the lead 100% FSC in 2017 A dit every year Audits Supply Chain Audits for uncertified suppliers and supply chains New supply chains require approval Stop deliveries if IWAY Must violation Partnership with external organisations (WWF) On the ground capacity (Foresters) Training of business teams and suppliers Support for certification and backward integration gy Test new technology Networking Close contact with authorities Continuous learning and improvement Barcelona 150415
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