US Sustainability ReportFY13

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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

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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 dec-laration signing was a call to Congress to address climate changes by promoting clean energy, boosting efficiency and limiting carbon emissions.

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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-prof-its 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.

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 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 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.

IKEA US Support Thousands of Families and Individuals Impacted by Hurricane Sandy

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IKEA and American Forests Disaster ReLeaf plant Trees

IKEA FAMILY members participated in the IKEA and American Forests Disaster ReLeaf program by scanning their FAMILY cards in all IKEA US stores in July 2013 to trigger a donation to this program.

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 )

IKEA brooklyn Store Hosts FEMA

The IKEA Red Hook Brooklyn store community – an area that was particu-larly 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.

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More Hurricane Sandy Initiatives

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IKEA Soft Toys For Education Campaign Raised $16.2 million* (€12.4 million) for UNICEF and Save the Children

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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 $500,000IKEA 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 CommunitiesThe 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 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 redesigned bedrooms, a study area and a common room in a residential treatment center for 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

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A big change driver at IKEA US is our striving to be resource and ener-gy independent. We are working to secure long term access to sustain-able 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 RecyclesIn 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 SavedRepresenting enough saved timber resources to

produce 4,049,333,200 sheets of newspaper!

129,377 Cubic Yards of Landfill AirspaceRepresenting enough airspace to fulfill the municipal

waste disposal needs for 166,151 people for one year!

114,052,230 Kw-Hrs of ElectricityEnough 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 WaterRepresenting enough fresh water to meet the daily

fresh water needs of 2,184,840 people!

IKEA GroupSustainability ReportFY13

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Sustainability Report FoundationpositiveGet all the details about sustainability at IKEA in FY13. Check out our annual report.http://www.ikea.com/ms/en_US/pdf/sustain-ability_report/sustainability_report_2012.pdf

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

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

Read the IKEApeople & planet

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