The IKEA Sustainability Report FY22 IKEA Global reduced 1.4 million tons of carbon emissions for the Earth last year Promoting the concept of Green and Healthy Home

HONG KONG SAR - Media OutReach - 19 April 2023 - IKEA has been committed to promoting global sustainability by incorporating various environmental protection features into our products' functionality and manufacturing processes. In FY2022, IKEA globally reduced its carbon footprint by 5% compared to the previous year, and by a significant reduction of 12% compared to the FY2016 baseline which in other words, has approximately reduced 1.4 million tons of carbon emissions. This achievement is equivalent to planting 140 million trees on Earth. IKEA Global has also increased the use and coverage of renewable energy to 64%, creating a more environmentally friendly home-living for the public.^[1] To echo with Earth Day, we are pleased to release the IKEA Sustainability Report FY22 and announce our annual sustainability activities in Hong Kong, reaffirming IKEA's commitment and strategies in achieving healthy and sustainable living, circular and climate positive, as well as fair and equal.

Adrian Worth, Managing Director of IKEA North Asia, DFI retail group, said, "In the face of the global warming crisis, IKEA has been devoting effort in formulating proactive and comprehensive sustainability strategies to provide the public with a healthier and more equal living from the domestic life perspective. In recent years, IKEA Hong Kong has launched creative and forward-looking initiatives which made remarkable achievements. More and more co-workers and customers recognise our vision and join hands with us in fulfilling our social responsibility of protecting the environment."

Those initiatives include:

• Hong Kong's First IKEA Microsite on Carousell: Collaborating with Hong Kong's popular online marketplace Carousell to build a limited-edition IKEA microsite, where a collection of display items and discontinued models can be found at discounted prices. This collaboration builds up consumers' awareness of reusing and reducing waste and achieves a sustainable consumption pattern.
• 'Light Up Hope' programme: IKEA joined forces with local charitable organisation A Plastic Ocean Foundation to organise the Light Up Hope programme to help improving the living conditions of families in Hak Pak Nai, which have long been suffering from natural disasters caused by climate change, by providing these households with electricity safety inspection, energy-efficient lighting as well as climate disaster education. 120 households in Ha Pak Nai benefit from the scheme.
• UNDER HAVET Marine Conservation Exhibition: The Ocean Exhibitions at four of our Hong Kong stores were presented in a fun comic-book style allowing children and adults to learn that ordinary items around us can be the source of marine pollution and how simple daily practices can help conserving the ocean. The exhibition also shares IKEA's approach to regenerating marine pollutants to contribute to marine conservation. These include the recycling of marine plastic waste into recycled polyester, which is then used to produce eco-friendly toys.
• Blue Bag Fund: IKEA set up the Blue Bag Fund in 2019. For every IKEA blue bag (FRAKTA bag, M or L size) sold, IKEA donates HKD/MOP $1 to the fund to support our community projects, such as helping redesign the centres of two NGOs - Good Shepherd Sisters and Fountain of Hope in Macau. In 2022, IKEA donated over $800,000 to the Blue Bag Fund, supporting varied activities.
• IKEA Tsim Sha Tsui Plan and Order Point: The Tsim Sha Tsui Plan and order point embodies the theme of healthy and sustainable living, selling over hundreds of sustainable furniture and accessories that match the concept of green and low carbon. This encourages customers to cultivate daily practices of waste reduction and resource conservation. Customers will learn tips about sustainability and concepts about green living from the labels posted in the surroundings.
• Introducing Food Waste Handling Machine: We have installed a food waste handling machine in the Tsuen Wan store and the Kowloon Bay store, allowing co-workers to get informed about the latest situation efficiently and convert food waste to water. 5,000 kg of food waste is being processed every year, reducing the landfill's pressure.

To encourage customers to join IKEA in promoting healthy living and sustainable development, here are five tips to help consumers practice green living while purchasing our furniture products:

1. Choose energy efficient LED light bulbs: Not only do LED light bulbs use up to 85% less energy than incandescent bulbs, but they last up to a 20-year lifespan. IKEA Hong Kong sold over 610,000 LED light bulbs in the past two years, saving energy consumption.
2. Choose taps with energy-saving water nozzles: Water resources issue has always been a concern. IKEA revamps the hand showers' design by adding washers into all showers which reduces almost 30% of water consumption. We also added water and energy-saving devices in the kitchen tap which reduces water usage by nearly 50%. The new ÅBÄCKEN water nozzle can even control the water flow rate, effectively saving 95% of water usage. In 2022, IKEA Hong Kong sold over 4,000 taps and water nozzles, helping consumers protect precious water resources in their daily lives.
3. Choose HOPPVALS cellular blind: Summer is coming and there will be a surge in electricity demand. By choosing energy-efficient cellular blind, you can also contribute to environmental protection. The design inspiration of cellular blind comes from the honeycomb structure of bees that forms a heat-insulating layer to reduce the amount of heat entering indoors and families' expense on air conditioning. In the past two years, IKEA Hong Kong has sold over 7,000 HOPPVALS cellular blinds which helps facilitate families to save electricity effectively.
4. Choose plant-based food: IKEA continues to research and invent 'plant-based food' which are both environmentally friendly and delicious. In 2020, we launched plant ball. These plant-based foods require less resources that produce fewer carbon footprints. In the past three years, the sales of plant balls at IKEA Hong Kong have reduced 6 million kilograms of global carbon emissions, that is equivalent to planting over 64,000 trees, providing the public with another option to build a healthy lifestyle. There is also an Earth Day 15% off promotion of selected plant-based food series until 26 April 2023, to encourage customers in choosing plant-based food.
5. Second Life for Furniture: A collection of display items and discontinued models are available at discounted prices in IKEA's Bargain Corner, which provide consumers with alternative options when shopping for new furniture for the home. This also gives these functioning used products in good condition a second life, to reduce discard and waste, and achieve a sustainable consumption pattern.

In the coming year, IKEA will continue to promote sustainable development through different activities and strategies, including promoting more sustainable home décor and continuing the Light Up Hope programme to build a strong and sustainable community with our customers and alleviate the climate crisis.

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