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IKEA Australia SUSTAINABILITY REPORT FY12-FY13

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Page 1: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

IKEA Australia SuStainability RepoRtFy12-Fy13

Page 2: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve by 2020, we’re on a journey. our strong values and belief in innovation, togetherness and enthusiasm will ensure we can continue to meet future customer needs and address the higher price of raw materials and energy, while driving down emissions and maintaining our low prices.

3. People & Planet Postive 4. Country Management Statements

5. Who We Are

7. Governance 8. A More Sustainable Life at Home 11. Resource and Energy Independence 17. A Better Life for People and Communities 24. Looking Ahead 25. Useful Links

ContentS

this report has been designed to be viewed online, we have not printed any paper copies. look for the additional online hyperlinks and follow the symbols for more information on our website or to play a short film.

SUStAInABILIty IS At tHE CoRE

of EvERytHInG WE do.

Page 3: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

People&planet wall graphic 360x260 cm_AU.indd 1 10/03/14 5:00 PM

http://www.ikea.com/ms/en_au/pdf/reports-downloads/peopleandplanetpositive.pdf

our people & planet positive strategy will help us become an even more responsible and sustainable company. it sets goals for us to meet by 2020, goals that’ll help us address our changing world while having a better impact on people and the planet.our strategy is made up of three main focuses — each addressing an important area of sustainability in our business:

InSPIRE And EnABLE MILLIonS of CUStoMERS to LIvE A MoRE SUStAInABLE LIfE At HoME. taking the lead in developing and promoting products and solutions that help customers save or generate energy, reduce or sort waste, use less or recycle water — all at the lowest possible price.

StRIvE foR RESoURCE And EnERGy IndEPEndEnCE. Securing long-term access to sustainable raw materials, promoting recycling and using resources within the limits of the planet, producing more renewable energy than we consume and driving energy efficiency throughout our value chain.

tAKE A LEAd In CREAtInG A BEttER LIfE foR tHE PEoPLE And CoMMUnItIES IMPACtEd By oUR BUSInESS. extending our code of conduct throughout our value chain, being a good neighbour, acting in the best interest of children and supporting human rights.

people &planet positive

Strive for reSource and energy independence.

inSpire and enable millionS of cuStomerS to live a more SuStainable life at home.

take a lead in creating a better life for the people and communitieS impacted by our buSineSS.

People & Planet PositiveiKea Group Sustainability Strategy 20208the IKEA Group People & Planet Positive fy13 Progressw

Page 4: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

at iKea, we believe that sustainability should not be a luxury that few can afford, but something for everyone. We want to inspire and enable millions of people to fulfil their needs and to live a more sustainable life at home.

We have a long-term approach towards sustainability. our people & planet positive strategy sets our ambitions for the future and we’re well on the way.

We are seeing a greater demand for sustainability and transparency from our customers and co-workers. We all have a part to play and we hope to make our own small but significant contribution towards a more sustainable future. We have been working hard to lower our own footprint, to reduce our energy and water use, make more from less and to recycle everything else.

We strive to be a good neighbour, and place children at the centre of everything we do.

the task is big, but if we work together anything is possible.

David Hood country retail manager

ikea australia

Sustainability is a part of our roots from our company origins in the farmlands of Sweden. these values are still present in our organisation today and are never more relevant than in today’s business environment where acting on sustainability can save us money as well as help the environment.

our vision is “to create a better everyday life for the many people”, and we aim to achieve this through our version of democratic design by providing well designed, functional, quality and sustainable home furnishings all at affordable prices.

there are huge challenges ahead yet this also creates opportunities as we enter a period of growth for iKea australia, and with that we’ll take our sustainability foundation to the next level.

to us home is the most important place in the world, wherever we are, we act with respect to exert a positive impact on people and on the limited resources of our planet.

Richard Wilson country Sustainability manager

ikea australia

Page 5: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

WHo We aRe

auD Millions

1

total: 135,000 IKEA GroupCo-workers per region

Page 6: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

IKEA fAMILy members

iKea FaMily members in millions

Page 7: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

GovERnAnCE

IKEA Pty Ltd has a unitary board structure. the legal board of IKEA Pty Ltd comprises five directors. three of these, including the Chair of the board, are non-executive directors and two are executive directors. We define an executive as a member of the executive group (known as the Country Management Group), who holds a position of direct influence on operational policies and strategies. our Country Management Group, which reports to our legal board, has 11 executive members. In each of our eight decision groups, one or more executive members are represented.

the Sustainability Manager, who reports directly to the Country Manager, is responsible for our sustainability agenda. the Sustainability Manager works with the rest of the Country Management Group to ensure that sustainability is an integral part of the business plan and daily business operations of iKea australia.

WHo oWnS US the IKEA Group of companies includes; Range Strategy, Product development and Supply Chain, Retail companies and Industrial Groups.

inter iKea Systems b.V. in the netherlands is the owner of the iKea Concept and the franchisor of all iKea stores worldwide. the iKea Group franchises the iKea concept from inter iKea Systems b.V. and owns several retail companies around the world that act as iKea franchisees in their respective markets, including iKea pty ltd.

iKea pty ltd (in this Report generally referred to as iKea australia), is a privately held company headquartered in Sydney that owns and operates the stores on the australian east coast.

IKEA Group

IntER IKEA Systems B.v.

IKEA Staff

functions

Range StrategyProduct

developmentSupply Chain

IKEA IndustryRetail

FRanCHiSoR

FRanCHiSee

Store

Store

Store

Store

Store

Retail companies

in other countries

IKEA Pty. Ltd

IKEA Australia

Service Office

ABoUt tHIS REPoRt

SCope anD bounDaRieSthis Report describes IKEA Australia’s sustainability activities and performance during financial years 2012 (fy12, i.e. from 1 September 2011 to 31 August 2012) and 2013 (fy13, i.e. from 1 September 2012 to 31 August 2013). Any numerical data refers to the situation within our organisation at the last day of each respective financial year, unless stated otherwise.

this Report only refers to australia east and does not include information about the iKea stores in Western australia or South australia as they are not owned or operated by iKea pty ltd.

The Report also refers briefly to the sustainability work carried out by iKea on a global level, this information is clearly identified.

Finance & administration

Retail logistics

Customer Relations projects

Sustainability property & expansion

Marketing iKea Food

Communication & interior

Design

Legal Board

Executive GroupCountry

Management group

functional Groups

Sales

Governance

Page 8: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

a MoRe SuStainableliFe at HoMe

Page 9: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

MAtERIALS foR tHE fUtUREWe care about what goes in to our products. that’s why we are working with more sustainable materials – those that are renewable, recyclable and recycled. We always try to make more from less. by using materials carefully we keep our prices down and make the best use of resources.

We believe quality and design should be affordable to many. the laMpan table lamp was designed using the five elements of 'democratic design' - form, function, quality, sustainability and a low price. So instead of thinking outside the box, we got rid of it.

tHE StoRy BEHInd oUR PRodUCtSevery iKea product has a story to tell. and like every good story, it starts with a great idea. What’s ours? We want to make everyday life at home better. that’s why we do thousands of home visits every year to learn more about peoples’ needs and dreams. this is the starting point for every product we design.

dESIGnInG Good qUALItyFor us, good design is the right combination of form, function, quality, sustainability and a low price. our product developers and designers have to find the right balance of all these elements when the design process begins. it’s a unique challenge that keeps us innovative.

products and Materials

MoRE fRoM LESSat iKea, we believe in using the fewest resources to make the best possible products, without negatively affecting their functionality or appearance. We work towards using as many renewable and recyclable materials as we can. Wherever possible, waste from one manufacturing process should be used in the production of other items.

1. Recycled pet plastic | 2. Flax | 3. Water hyacinth | 4. Wood 5. Wood plastic composite | 6. Cotton | 7. bamboo | 8. Jute

1.

2.

3.

4.

5.

6.

7.

8.find out more about democratic design8democratic design fy13w

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products and Materials

MoRE SUStAInABLE CottonCotton is one of the most important raw materials for iKea, and we work actively to promote better cotton growing methods. We want all the cotton used in iKea products to be produced in a sustainable manner, taking in to consideration both people and the environment. today more than two thirds of our cotton is from more sustainable sources.IKEA is a founding member of the Better Cotton Initiative (BCI). BCI is a not-for-profit organisation stewarding the global standards for better cotton, to promote measurable improvements in the key environmental and social impacts of cotton cultivation worldwide to make it more sustainable. participants are leading international companies, nGos and the united nations environment programme.our goal is that by the end of Fy15 100% of all cotton in iKea products is from more sustainable sources.

iKea is one of the biggest users of Forest Stewardship Council (FSC) certified wood in the retail sector. by Fy17, we aim for 50% of our projected wood volume to come from more sustainable sources - forests certified to the FSC Forest Management standard and recycled wood.

today, 32.4% of our wood comes from more sustainable sources, up from 22.6% in Fy12.

Since we began working with World Wide Federation (WWF) in 2002, we have helped to increase FSC certified forest areas by around 35 million hectares (an area the size of Germany), in the countries where we work together.

products and Materials

RESPonSIBLE foREStRy All suppliers must meet our dedicated IWAy forestry Standard, designed to ensure wood is logged legally and doesn’t have a negative impact on the environment. We suspend deliveries from suppliers who fail to meet the IWAy forestry Standard and we stop working with them if they repeatedly fail to meet the standard.

We Love Wood shortw

Learn more about the Better Cotton Initiative8

IKEA and Cottonw

Page 11: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

eneRGy inDepenDenCeReSouRCe anD

Page 12: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve
Page 13: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

dIRECt EnERGythroughout Fy12 and Fy13, we have continued to use less energy despite increases in the amount of goods sold and customer numbers. this is a result of some small investments in more efficient LED commercial lighting, but it is as much about truly understanding how our stores and warehouses operate and function to save even more.

our ultimate goal is to be become energy independent by 2020, by producing as much renewable energy as we consume across our global operations.

FY12 FY13

Rhodes 335.5 306.9

tempe 906.8 672.6

Richmond 463.1 485

Springvale 52.8 41.1

logan 113.5 116.6

Total IKEA Australia 1,871.7 1,622.2

Gas is used for hot water and heating (excluding IKEA Logan which has no heating).All our electricity is derived from coal (non-renewable sources).

upgraded our building Management Systems for greater control of circuits.

LED spotlights fitted throughout the warehouse, loading bay and to illuminate the ‘iKea’ wordmark.

Motion sensors fitted to all infrequently used areas.

Replaced customer lift drives to more efficient cooler running drives.

Changed our car park cleaning routines so we don’t have to switch on 1,000+ fluorescent tubes.

better use of natural light for room sets and installing skylights.

Proof that all these little things do add up to big savings!

these are some of the things we have done across our stores to reduce our energy consumption:

Gas consumption (MWh)

FY12 FY13

Rhodes 4,349 3,893

tempe 6,036 5,351

Richmond 3,838 3,478

Springvale 5,691 4,563

logan 4,608 4,740

Total IKEA Australia 24,522 22,025

energy

total electricity consumption (MWh)

FY12 FY13

Rhodes 84,911 85,191

tempe 79,135 97,177

Richmond 77,017 82,342

Springvale 62,365 63,261

logan 76,158 85,642

Total IKEA Australia 379,586 413,613

Goods sold (m3)

SolaR Hot WateRWe have installed evactuated tube solar hot water collectors on all of our stores and the Service Office.

the round tube design allows heat to be captured more efficiently to harness the sun's energy. this provides hot water used in our kitchens and wash facilities.

When there's no sunshine, the water is heated by a low energy heating element.

Page 14: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

A SMALL CHAnGE CAn MEAn A BIG CHAnGE

by 2016 our entire lighting range will switch to leD offered at the lowest prices

Fy12 = 93.3 Fy13 = 76.4

across iKea australia our average Co2 emmissions have dropped by 18%

FY12 FY13

Rhodes 0.06 0.05

tempe 0.09 0.06

Richmond 0.06 0.05

Springvale 0.09 0.07

logan 0.06 0.06

Average IKEA Australia 0.07 0.06

FY12 FY13

Rhodes 6,240.0 5,723.4

tempe 8,888.2 7,715.5

Richmond 5,366.2 5,114.1

Springvale 8,227.5 6,187.2

logan 6,680.1 6,870.2

Total IKEA Australia 35,401.9 31,610.3

FY12 FY13

Rhodes 73.5 67.2

tempe 112.3 79.4

Richmond 69.7 62.1

Springvale 131.9 97.8

logan 87.7 80.2

Average IKEA Australia 93.3 76.4

total energy consumption/m3 goods sold (MWh)

total Co2 emissions from store operations (tonnes)

total Co2 emissions from store operations/ m3 goods sold (kg)

energy

total energy consumption (MWh)

FY12 FY13

Rhodes 4,684 4,200

tempe 6,943 6,023

Richmond 4,301 3,963

Springvale 5,744 4,604

logan 4,857 4,722

Total IKEA Australia 26,529 23,512

find out more about our LEds herew

Page 15: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

oUR WAtER ConSUMPtIonaustralia is the driest continent in the world that's why we've been working hard to reduce our demand on reticulated water and installed rainwater harvesting tanks in all our stores.

each tank at our stores can hold a capacity of 1 million litres of water. this is just an example of what we are doing to minimise our demand.

Water consumption (m3)

FY12 FY13

Rhodes 26,792 37,794

tempe 21,702 20,543

Richmond 8,070 7,358

Springvale 30,193 30,098

logan 3,768 8,137

Total IKEA Australia 90,525 103,930

A LIttLE GAdGEt tHAt MAKES A BIG dIffEREnCEAll mixer taps sold in IKEA stores now have an aerator, a little device built into the tap that mixes the water with air.

this reduces the water consumption by 50% compared to traditional taps, while the water flow stays the same. Using less water also means consuming less energy.

FY12 FY13

Rhodes 0.32 0.44

tempe 0.27 0.21

Richmond 0.10 0.09

Springvale 0.48 0.48

logan 0.05 0.10

Average IKEA Australia 0.25 0.26

Water

Water consumption / m3 goods sold (m3)

our GRanSKÄR mixer tap features cold start energy-saving technology.the tap automatically releases cold water when you lift the lever straight up, avoiding wasting hot water and saving the energy used for water heating.

Updated electrically controlled toilet flushing devices to give better control of water usage.

Installation of rainwater tanks used in cooling towers, toilet flushing and irrigation.

use of water tolerant native plants for landscaping.

Installation of water efficient taps and showers.

these are some of the things we have done in our stores to reduce our water consumption:

Page 16: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

WAStE & RESoURCE RECovERy

in all parts of our business, we aim to take a lead in turning our waste into resources, our people and planet positive goal is to divert 95% of all our waste from landfill by FY15.

We have invested in our own equipment to efficiently compact and bail all our used cardboard, plastic strapping and soft plastics for recycling. We also separate out metals, hard plastic and of course co-mingled recycling - drink containers, aluminium and tin cans.

all our stores offer customer recycling stations for the return of used packaging, alkaline batteries, flourescent and CFL light bulbs all of which are sent for recycling.

Recycled materials (tonnes)

FY12 FY13

Cardboard and Paper 2466 2886

Wood 281 639

Steel 141 193

Plastics 209 219

Organics 43 83

Co-mingled 19 37

Total IKEA Australia 3,159 4,057

total waste production/m3 goods sold (kg) total waste production (tonnes)

FY12 FY13

Rhodes 1,148 1,135

Tempe 1,265 1,485

Richmond 1,166 1,218

Springvale 869 886

Logan 1,154 1,222

Total IKEA Australia 5,602 5,946

Fy12 = 3,159 Fy13 = 4,057

as a signatory of the australian packaging Covenant we have committed to recycling more, avoiding the impacts of litter and reducing the environmental impacts of consumer packaging by designing packaging that is more resource efficient and more recyclable.

FY12 FY13

Rhodes 14 13

Tempe 16 15Richmond 15 14

Springvale 14 14

Logan 15 15

Total IKEA Australia 74 71

Waste

8find out more on our commitment to the APC and to view our Action Plan

in the past year we have started separating all our organic food waste for recycling from both our customer and co-worker restaurants and bistros.We also collect 100% of our used coffee grounds to give away to all gardening green thumbs from our stores. used coffee grounds are nitrogen rich and an excellent fertiliser for your garden.We’re even re-using the ‘pick & Mix’ tubs to put the coffee grounds in.

oRGAnICS

in Fy13 we increased the amount we recycled by almost 29% compared to Fy12!

Page 17: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

people anD CoMMunitieSa betteR liFe FoR

Page 18: IKEA Australia€¦ ·  · 2014-05-09people & planet positive, our Global Sustainability Strategy, contains many ambitious targets and performance indicators we are working to achieve

Read the full IWAy standard8

iWay - the iKea Code of Conduct

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Suppliers

WILd CAUGHt fISHall herring products in our Swedish Food Market come from sustainable fisheries. In FY14 we’ll introduce Marine Stewardship Council (MSC) certification for herring and other wild caught seafood.

Coffee, tea and chocolate

all coffee sold and served at iKea has been utZCertified since 2008. UTZ Certified is a leading independent certification scheme for coffee, tea and chocolate bars that have been grown with care for people and the planet.

All tea and chocolate will be UTZ Certified by the end of Fy14 and Fy15 respectively.

100% UtZ CERtIfIEd CoffEE

WoRKInG WItH oUR LoCAL SUPPLIERS. in the last year we have worked with eight of our local australian suppliers to ensure they meet our iWay requirements, including retail suppliers, support personnel and food suppliers. australia has well established industry governance, standards and procedures, but so rigorous is our iWay auditing process that there were always little improvements to be found.

Read the full IWAy standard8

REdUCInG EnERGy And WAtER In oUR SUPPLy CHAInReducing energy and water use in our own buildings is important and we’re already on the way, but we can make an even bigger difference by working with suppliers to do the same. Reducing water and fossil fuel use in the supply chain is good for the planet and can reduce costs for iKea, our suppliers and our customers. We focus on:

Measuring suppliers’ sustainability performance through the Supplier Sustainability index and using that data in our product development.

encouraging and enabling suppliers to improve energy efficiency, use alternative fuels and generate renewable energy through our Suppliers Go Renewable program.

Supporting better water management to reduce consumption, improve quality and increase recycling, focussing on the waterintensive textiles sector.

WE SoURCE oUR SALMon RESPonSIBLyWe worked with WWF to support the development of responsibility standards for farmed salmon, an important product for iKea. We believe the newly established aquaculture Stewardship Council (aSC) will improve environmental and social standards in the farmed salmon industry. All salmon products to come from ASC-certified sources by 2015.

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BEnEfItS SUPPoRtInG WoRK / LIfE BALAnCE

IKEA seeks to be an employer of choice, so we aim to offer competitive and transparent benefits to at-tract, motivate and retain talented people who contribute to our ambition to become the leader in life at home. We offer all our co-workers, regardless of contract type, substantial additional benefits, including:

Some of the most generous parental leave provisions in australia. all permanent co-workers, both male and female with more than 2 years continuous service are entitled to 26 weeks with full pay or 52 weeks on half pay.

Financial support for further external education or training, including degrees and certificate courses.

the possibility of receiving leave of absence for travel or study linked to personal development.

Rhodes tempe Richmond Springvale logan Service Office

Service Centre

average iKea au

i am proud of the way iKea works with sustainability. 90% 83% 84% 76% 86% 78% 81% 83%

i feel a responsiblity to minimize the negative impact on the environment in my daily job.

86% 78% 77% 74% 75% 73% 72% 76%

Within my department, sustainability is a natural part in our everyday work.

82% 70% 69% 71% 75% 46% 61% 68%

Within my department, we take concrete actions in line with the iKea sustainability direction.

76% 60% 62% 60% 70% 49% 46% 60%

voICE SUStAInABILIty RESULt fy13

LIStEnInG to oUR Co-WoRKERS

every year, we engage our co-workers in a survey called VoiCe, to gather feedback on how iKea co-workers view aspects of their employment at iKea, so we can identify what motivates them and what we can do better.

"In all facets of the business the ambition to improve the lives of the many is evident, including the environment created for the co-workers where coming to work is comfortable, inspiring and a place to develop and learn, improving one's own life and skills. for me, being an IKEA co-worker is knowing that I am playing a part in a bigger picture, making a difference in small and big ways."erin Kiernan, Visual Merchandising co-worker, iKea logan

Co-workersand Benefits

find out more about what makes IKEA a great place to workw

52% of co-workers are female 48% of

co-workers are male

29% of senior managers are female

53% of middle managers are female

71% of senior managers are male

47% of middle managers are male

fy13fy13

oUR MoSt vALUABLE RESoURCE

We want co-workers that share our values to stay and grow with us, both as individuals and in their professional roles, so that together, we remain committed to creating better everyday lives for ourselves and our customers. this is why we want safe and healthy working conditions, sound benefits and career development based on equal opportunities and strong values.

dIvERSIty

We are convinced that iKea becomes more creative and dynamic with a diverse workforce so we value co-workers with different backgrounds and experience. For example, iKea australia has a sound gender balance across our co-workers.

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fy12 fy13

Rhodes 9,566 32,627

tempe 36,827 33,113

Richmond 24,683 28,143

Springvale 34,718 24,353

logan 38,771 43,883

Soft toyS foR EdUCAtIonSince 2003, iKea has run a global campaign called Soft toys for education. For every soft toy or children's book sold within an eight week campaign starting in november every year, we donate €1 (approx. au $1.50) to the iKea Foundation.

in Fy13 the iKea Foundation donated €10.1M (approx. $15.5M auD) through the campaign which was split between Save the Children and uniCeF to support children’s education around the world.

over Fy12 and Fy13 iKea australia contributed €306,684 ($460,026 auD) to the Soft toys for education Campaign.

this campaign has supported at least 11 million children since it began in 2003.

total toys and books sold in IKEA Australia

fy12 = 144,565

fy13 = 162,119

€306,684 RAISEd!

people andCommunities

the iKea Foundation has increased its donations by 21% since 2012 and expanded its reach to 35 countries—helping millions of children in over a third of the world’s poorest countries. the Foundation’s donations are funded from the IKEA group's profits; last year’s (FY13) donation represents more than 3% of profits.

dESIGnInG A BEttER HoME foR REfUGEE CHILdREn

in 2012, iKea began working with Refugee Housing and UNHCR to use our flat pack, design and logistics expertise to fund the development of a shelter for refugees fleeing conflict or disaster. The average time spent in a refugee camp is 12 years, while many of the shelters or tents currently used in refugee camps have a lifespan of as little as six months before they need to be replaced. iKea is developing a safer, more durable transportable emergency shelter made from an innovative polymer that requires no additional tools to build and includes features such as solar lighting and insulation. prototypes are currently being tested at the Dollo ado refugee camp in ethiopia.

Find out more about the Soft toys for education Campaign and read stories from iKea co-workers who have visited projects funded by the campaign.

8

follow the design process herew

ABoUt IKEA foUndAtIon the iKea Foundation is a registered charity that aims to improve opportunities for children and youth in the world’s poorest communities by funding holistic, long-term programs that can create substantial, lasting change. the Foundation works with strong strategic partners applying innovative approaches to achieve large-scale results in four fundamental areas of a child’s life: a place to call home; a healthy start in life; a quality education; and sustainable family income. Currently-funded programs will benefit an estimated 100 million children by 2015. IKEA foundation

facebook page8

IKEA foundation website8

CREAtInG A BEttER LIfE

We want to take the lead in creating a better life for the people and communities touched by our business. this has always been part of our approach, and it is even more important today as our business continues to grow around the world.

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Amount donated through IKEA fAMILy card swipes (AUd)

fy12 fy13

berry Street (ViC) $21,226 $24,521

young Care (QlD) $25,327 $22,774

bear Cottage (nSW) $24,369 $27,212

uniCeF (Cambodia) $68,838 $71,982

total $139,760 $146,489

iCARE - Co-WoRKERS HELP CHILdREn RECEIvE An EdUCAtIon In CAMBodIACurrently, less than a quarter of children between the ages of three and five have access to quality early childhood development opportunities. the lack of pre-schools in Cambodia, especially in rural areas, means that many children are deprived of this critical education jump start.

Since 2010, iKea australia has committed to work together with uniCeF to establish 150 community pre-schools in rural areas through workplace giving.

Every IKEA store in Australia, as well as the Service Office, now has a UNICEF Ambassador who travelled to Cambodia to experience first-hand the impact of our donations to this cause. the role of that ambassador is now to promote our partnership and the work undertaken to all our co-workers.

to date, 31% of our co-workers support this project through iCare - our workplace giving program. Since 2010, iCare funding has contributed towards supporting 142 schools benefitting approximately 3,550 children (based on an average of 25 pupils per school).

$58,117 fy12-13 donations from iCare Workplace Giving

10 CEntS CAn MAKE A dIffEREnCE each time our customers swipe or scan their iKea FaMily membership card, 10 cents are donated to charities that work towards the development of children and young people*. of these ten cents, 50% is distributed to uniCeF australia supporting our Cambodia pre-school project, while the other 50% is donated to one of three local charity organisations, depending on which State the card is swiped or scanned.

Since Fy14 all local donations have be directed to our new national Charity partner HeartKids australia

*up to a total of au$150,000 a year

people andCommunities

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people andCommunities

In nEW SoUtH WALES

bear Cottage is a children’s hospice that helps families cope with an extremely challenging situation of caring for a child who has a life-limiting illness.While staying at bear Cottage, children receive medical care in a welcoming and homelike setting in which children can laugh and play, far removed from a hospital environment.

in addition to the $51,581 donated to bear Cottage in Fy12 and Fy13 from iKea FaMily card swipes, iKea Rhodes and tempe supported bear Cottage in donating furniture to the family rooms and picture frames for fundraising activities.

tempe donations fy12-13: $28,750Rhodes donations fy12-13: $7,637

In qUEEnSLAnd

young Care work to provide choice in care and housing for young australians who have round-the-clock care needs. thousands of young australians with severe disabilities currently living in aged care simply because there are few alternatives. their belief is that all young people deserve to live young lives, and that aged care is not appropriate for them.

in addition to the $48,101 donated to youngcare in Fy12 and Fy13 from iKea FaMily card swipes, iKea logan hosted youngcare’s ‘ping-pong-a-thong’ fundraising event along with products and furniture.

iKea tempe continues to be the major sponsor of Marrickville Festival

build it Keep it – supporting family sleep over at the Sydney opera House

School Fence art – sponsored participating local schools with materials

Supported interior design students studying at enmore taFe and SWSi taFe

Logan donations fy12-13: $40,000

In vICtoRIA

berry Street work with children, young people and families with the most challenging and complex needs. these children and young people have often suffered great distress and significant harm growing up in families where violence, neglect, abuse, trauma and poverty have prevented them from having a good childhood.

in addition to the $45,747 donated in Fy12 and Fy13 from iKea FaMily card swipes, iKea Richmond and Springvale supported berry Street in donating furniture to homes accomodating refugee children in Gippsland, along with two school makeovers at Shepparton Spring parks and Clayton South primary Schools.

Donated products and time to the noble park campus where nine co-workers volunteered to redecorate classrooms and create more inspirational learning environments for the students

Goods donated for a playroom in a Women’s Domestic Violence Crisis Centre

Supported the Melbourne Girls College pedal

34 dinnerware sets + 200 mugs donated to a food shelter offering free hot meals to homeless and elderly

Springvale donations fy12-13: $49,342Richmond donations fy12-13: $19,964

iKea australia strives to be a good neighbour contributing positively to the local community and a workplace where co-workers feel proud and involved.

We focus our community support on projects that can help improve the environment in which children and young people can achieve their potential through learning and development.

We also support organisations and initiatives that contribute to comfortable, happy, safe and sustainable homes.

throughout Fy12 and Fy13 iKea australia formed partnerships with a range of local not-for-profit organisations and schools in addition to one nominated local charity in each state; iKea tempe and iKea Rhodes supported bear Cottage, iKea Springvale and iKea Richmond supported berry Street and iKea logan supported youngcare.

LoCAL CoMMUnIty InvoLvEMEnt

Being a Good neighbour - the following local activities are just some of the ways in which our IKEA stores are lending a hand to support local schools and not-for-profit organisations:

two home makeovers of victims of the 2011 floods

Donated discontinued kitchen doors to local schools for their woodwork classes.

Continued support of the Gallery of Modern art for their Fiona Hall: Fly away home kids activity

Donated new furniture to the pCyC after they suffered a fire, and did the same for a family who lost their home in a fire

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Looking Ahead iKea australia

Fy14

From Fy14, every co-worker will have access to a day’s paid community volunteer leave a year so that we may continue to be a good neighbour and support charities and non-profit organisations local to our stores.

We have begun working with our new national Charity partner HeartKids australia. over the next three years we aim to support them in helping improve the lives of children and families affected by childhood heart disease.

We expect to finalise the installation of solar panels to all our stores and warehouses to achieve our ambition of using 100% renewable energy by 2020.

We will continue to invest in new technology and adopt behaviours that support the control of more efficient energy and water consumption.

Work to engage with our customers on living a 'More Sustainable Life at Home' and find ways to help them save time and money on energy, water and smart waste sorting solutions.

We will improve our recycling rate at all locations, finding new ways to recycle more materials and continue to focus on sorting and separating at the source, reducing our costs and keeping trucks off the road.