“We’re going all-in to transform IKEA into an even more sustainable business that’s fit for the 21 st century. We made great progress in FY14, but we’ve got a lot more to do. We have a huge opportunity to make a positive difference for people and the planet, and when we all work together, there is no limit to what we can achieve.” A message from Steve Steve Howard Chief Sustainability Officer, IKEA Group IKEA US Sustainability Summary FY14 We want to inspire and enable people to live a more sustainable life at home We offer affordable home furnishings that help people save energy and water and reduce waste. They may seem like small things – but they all add up! LED lighting is a breakthrough technol- ogy that we have fully embraced at IKEA. In our range, we have both LED bulbs and lamps with LEDs already built in. By 2016, all the lighting that we sell will be LED. More Sustainable Life@Home Co-worker Activity We gave LED bulbs to 815 of our co- workers. LED lighting uses 85% less energy than incandescents, reducing the impact on the environment while saving money. With such great advantages, we wanted our co-workers to experience the benefits of LED lighting, too! 2016 11,419 LED bulbs We gave away 11,419 LED bulbs to co-workers across the country to help them live a more sustainable life at home. Here’s what a couple of them said: “Switching all the bulbs in my home to LED has drasti- cally reduced my electric bill.” - Dennis, IKEA Orlando “I love the quality of the LED lights.” – Katie, IKEA College Park $4.49 IKEA US made LED bulbs more affordable for our customers by lowering the price of our E26 400 lumen bulb from $9.99 to $4.49. A MORE SUSTAINABLE LIFE AT HOME We want to become resource and energy independent Our goal to be 100% renewable by 2020 was created by our desire to contribute towards positive change for our environment. We made our first wind farm investment in the US with the purchase of Hoopeston Wind in Hoopeston, Il- linois. When completed, this 98-mega- watt wind farm will generate enough safe, pollution-free energy to power approximately 30,000 US homes. Increased solar energy efforts In FY14, we installed additional solar energy systems to more US locations, including our two newest stores in Mer- riam, Kansas, and Miami, Florida. Now, nearly 90% of our buildings are outfitted with solar panels. 30,000 homes 25% In FY14, the IKEA Centennial and Stoughton stores had their solar energy systems expanded by at least 25%. 4,299 tons of CO2 The IKEA Perryville distribution center completed phase two of their solar panel installation. Including the existing system, the total panels will now generate enough clean electricity, yearly, equivalent to reducing 4,299 tons of carbon dioxide (CO2). 80% In FY14, 80% of waste in our US stores was recycled or turned into energy. We want to minimize waste generated from our operations and ensure that as much as possible is recycled. We strive for zero waste to landfill wherever possible. RESOURCE AND ENERGY INDEPENDENCE We want to create a better life for people and communities touched by our business While we work on a global level to improve the lives of people in developing countries, we also want to be a good neighbor in our local communities. In 2014, an estimated 68,500 unac- companied children fled from Central America to the US to seek refuge from difficulties in their countries. We do- nated children’s furniture to Save the Children’s assistance centers in the Rio Grande Valley of Texas to create a more comfortable space for some of these children while they are in transition. Soft Toys for Education Campaign From November 10, 2013, through Janu- ary 4, 2014, for every soft toy sold, IKEA Foundation donated $1 to UNICEF and Save the Children to give children in developing countries access to a quality education. Over $1 million was raised in the US. 68,500 children 2 times Customers had the opportunity to “give twice” in each of our stores – to donate $1 to education by buying a soft toy, and to donate the soft toy itself to a child in need. By the end of the campaign, thousands of soft toys were donated to local charities. $13.6 million Globally, the campaign raised $13.6 million for UNICEF and Save the Children programs in Africa, central and eastern Europe, and Asia. 50,000 trees Through a $50,000 donation to American Forests’ Disaster ReLeaf program, we helped plant 50,000 trees in the US. Some of these trees were in Asbury Park, New Jersey, where we helped restore an urban forest hit hard by Hurricane Sandy. A BETTER LIFE FOR PEOPLE AND COMMUNITIES