IKEA Environmental and Climate Change Policy

Table of Contents

• Introduction
• Objective
• Scope
• General Principles
• Environmental Commitments
• Roles and Responsibilities
• Integrity Channel
• Related Documents
• Definitions

Welcome

IKEA is a globally recognized home furnishings company with a vision to create a better everyday life for the many people. We put our words into action with passion, offering design, functionality, quality, accessible prices, and sustainability for all. Sustainability is one of the company's fundamental pillars, aiming to promote a healthy lifestyle and care for the Environment.

Objective

IKEA Global has a firm commitment to combating climate change, which includes reducing emissions, improving the efficiency of natural, water, and energy resource use in operations and activities, and managing waste. In our franchises in Chile, Colombia, and Peru, we embrace the challenges of environmental management from design and construction to store operations, involving our key Stakeholders in this process. The objective of this Policy is to establish a framework for action to manage the environmental impacts of our operations and to anticipate, prepare for, and activate adaptation strategies for risks and opportunities arising from climate change. To this end, the Company focuses on minimizing our greenhouse gas emissions as much as possible, without considering compensation strategies through the purchase of carbon credits. We aspire to go beyond current regulatory compliance in each country where we operate, integrating actions that generate a positive impact on the Environment and promoting a circular economy. We focus on operating with energy efficiency, reusing, recycling, and valuing operational waste; and involving our Co-workers, customers, local authorities, environmental organizations, and communities in these efforts.

Scope

This Policy has a specific scope and is applicable to all of IKEA, requiring implementation and compliance from all Co-workers. Additionally, IKEA promotes compliance with environmental standards and commitments by its Suppliers, in accordance with the 'Supplier Code of Conduct IWAY'.

General Principles

The general principles guiding the behavior of IKEA and our Co-workers in relation to the Environment are as follows:

1. Compliance with legislation and environmental commitments: We demand and promote compliance with Environmental Regulations in all jurisdictions where we conduct our activities, as well as compliance with voluntarily acquired environmental commitments.
2. Environmental Protection: To protect the Environment and reduce negative Environmental Impact, we promote that our activities are carried out in a manner compatible with the Environment of the places where we operate. We adopt initiatives, strategies, and controls in accordance with our risk management.
3. Operational Eco-efficiency: At IKEA, we promote the rational use of natural, water, and energy resources that we employ in our operations, activities, and value chain.
4. Transparency of environmental performance: We promote transparency in our environmental performance, which involves informing our Stakeholders as required by Environmental Regulations and/or voluntarily acquired commitments by the Company.

Environmental Commitments

Offer of sustainable products to our customers

IKEA's global sustainable approach ensures that each product, throughout its lifecycle – from raw material sourcing to final disposal – is aligned with reducing environmental impacts and transitioning towards a circular economy. All products in our stores, designed and produced globally, incorporate some of the following attributes: recyclable materials, durability, sustainable production criteria in collaboration with Suppliers, and/or usability that contributes to the physical and emotional well-being of people. All these components aim to reduce their negative impact and contribute positively to the Environment. This includes responsible sourcing focused on biodiversity protection, the use of renewable and recyclable materials, and ecosystem regeneration; which is required and agreed upon with Suppliers through the 'Supplier Code of Conduct IWAY'. Furthermore, our food products have certifications that guarantee their sustainability – environmentally responsible production methods – quality and responsible agricultural practices, to safeguard the care of the Environment and the health of our customers.

Reduction of greenhouse gas emissions

As part of our comprehensive sustainability vision, IKEA is committed to significantly reducing our greenhouse gas emissions across all scopes. In line with the Paris Agreement, we work to limit global temperature increase to 1.5°C by reducing emissions aligned with science-based targets, as well as by eliminating and/or capturing carbon through forestry and agricultural practices. We commit to annually measure our Carbon Footprint in its three scopes, identifying and managing opportunities to reduce our emissions both in our direct operations and in the value chain. Our focus is on reducing our emissions as much as possible, without using carbon emission credits to meet our climate objectives.

Energy efficiency, water, and renewable energy use

From design and construction to store operations, we apply energy and water efficiency criteria. We employ advanced technologies and practices to minimize energy consumption, progressively increasing the use of renewable energy and reducing our Carbon Footprint. We commit to continuously evaluating new technologies that allow us to advance our objectives, for example, implementing electromobility in our logistics processes. A fundamental component is ensuring that all our operations are certified to high environmental standards, demonstrating functionality in line with energy efficiency criteria and good water resource management practices.

Circular economy and waste management

Our objective is to become a circular company and achieve 'zero waste to landfill'. To this end, we manage waste efficiently through reduction, reuse, and recycling, as well as through minimizing waste. In our stores, we manage the sale of displayed or returned products at special prices in the 'Opportunities Zone', a business line we will continue to strengthen in Chile, Colombia, and Peru. Additionally, in our food units – bistro restaurant and Swedish market – we reduce waste by giving away unsold but edible products for free. Organic waste is sent for composting, thus reducing waste sent to landfills. We prioritize waste reduction in all our operations, and when not possible, we ensure correct segregation for subsequent recycling or reuse. In the case of hazardous waste, we guarantee its final disposal in accordance with the applicable regulations in each country. To achieve this work, it is crucial to make investment decisions that allow us to have adequate spaces and infrastructure for efficient waste management. Embracing the concept of a circular economy is possible, among other things, thanks to the commitment of our Co-workers, whom we train and actively involve in waste characterization and seeking opportunities to give them a second life. We are aware that the role of our customers and Suppliers is crucial to achieving the ambitions we have set; therefore, we will continue to advance through training and promoting sustainable practices.

Roles and Responsibilities

The Company must provide leadership and guidance in establishing an environmental strategy and goals, as well as ensuring that the necessary resources are allocated. To ensure the effective implementation of this Policy, the following roles and responsibilities are established:

• IKEA Global will define the macro strategy and, in the region, the General Manager of IKEA Chile, Colombia, and Peru, along with the Sustainability team, will be responsible for defining specific commitments and action plans.
• The Regional Sustainability team will be responsible for coordinating, training, and monitoring the progress of established goals.
• Store teams will be responsible for providing waste segregation tools and allocating budget to achieve the zero-waste-to-landfill goal.
• The Recovery team will be responsible for recovering display products or those returned by customers for sale through the 'Opportunities Zone'.
• The Food team will manage the free distribution of products nearing their expiration date.
• The People & Culture team will work to disseminate the relevance of these topics among our Co-workers.
• IKEA Co-workers play a fundamental role by integrating actions and strategies to reduce our negative Environmental Impact into their daily activities. Each Co-worker is responsible for actively participating in environmental training and awareness programs, as well as implementing sustainable practices in their daily work. Monitoring and evaluating progress towards our objectives, ensuring compliance with current Environmental Regulations and promoting continuous improvement, is a shared responsibility. The collaboration and commitment of the entire Company are fundamental to achieving our 'Net Zero and beyond' goals.

Integrity Channel

The provisions of this Policy are part of the Company's Crime Prevention Model. Co-workers must channel complaints regarding any activity contrary to this Policy through the Integrity Channel. The communication channels for the Integrity Channel are:

• For Chile: i) via email to contactochile@gerenciadeetica.com; ii) by phone at 800726100; and, iii) through the online platform provided by each Company, and; iv) in person, by visiting the offices of the Ethics Management or the Ethics Officer.
• For Peru: i) via email to contactoperu@gerenciadeetica.com; ii) by phone at 080018479; and, iii) through the online platform provided by each Company.
• For Colombia: i) via email to contactocolombia@gerenciadeetica.com; ii) through the online platform provided by each Company; and, iii) by contacting in person or via video call the Ethics and Governance Management.

Related Documents

• Code of Integrity.
• IKEA Sustainability Policy.
• Supplier Code of Conduct IWAY.

Definitions

The words and terms defined below, when capitalized as in their respective definitions that follow, whether or not necessary according to the rules of orthography for the use of capitals, and regardless of where in this Policy they are used, or if used in a person, number, mood, tense, or grammatical variable, as necessary for their proper understanding, shall have the meanings ascribed to them below:

• "Paris Agreement" means the agreement of the United Nations Framework Convention on Climate Change, which establishes measures for the reduction of greenhouse gas emissions.
• "Integrity Channel" means the set of means that the Company makes available to its Co-workers or third parties, through which they can directly contact the Ethics Management to raise concerns, or make inquiries or complaints related to ethical issues or Environmental Regulations.
• "Co-worker" means: i) any person linked to a Company by an employment contract; ii) any person acting on behalf of a Company regardless of the nature of the relationship they maintain with them; and, iii) all members and advisors of the Board of Directors, management board, or any other superior collegiate management body that corresponds to a Company under applicable law.
• "Company" means the IKEA company to which what is stated in this document can be applied for a specific case.
• "Stakeholder" means any group identified as such by the Company, which may affect and/or be affected by the development of the latter's activities, whether directly or indirectly, which is why they should be considered in the Company's management. IKEA's main Stakeholders are Co-workers, customers, local authorities, non-governmental organizations, and the communities with which it interacts.
• "Carbon Footprint" means the set of greenhouse gas emissions produced, directly or indirectly, by people, organizations, products, services, events, in terms of CO2 equivalent, and which serves as a management tool to understand the behaviors or actions that contribute to increasing emissions, how they can be reduced, and how to use resources more efficiently.
• "IKEA" means Ikso SpA (Chile), IKSO S.A.S (Colombia).
• "Environmental Impact" means any change in the Environment, whether adverse or beneficial, generated as a result of the activities that a Company carries out.
• "Environment" means the environment in which IKEA operates, including air, water, soil, natural resources, flora, fauna, human beings, and the interrelationships between them.
• "Environmental Regulation" means any binding norm that establishes an environmental and climate change legal statute applicable to a Company.
• "Supplier" means any natural or legal person that supplies goods or services to any Company.

Version Control