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Forestry Brussels 210415

Wood is part of the IKEA identity

More than half of all products in our range are wood based


b

18,6 million m3

RWE/year


Let’s estimate:18,6 million m3 RWE

= 465 000 Timber Trucks (24 meter long)

= 11160 Kilometers (distance Älmhult – Surabaya)

= 1 % world industrial wood consumption

3


Total volume of wood in IKEA: 15,5 million m3 RWE

Solidwood 42,3% Board material 57,3%Bamboo 0,4%

360 suppliers, 3031 sub-suppliers

25 wood types (genus level)

48 countries of origin.

IKEA FY14 Forestry Key Figures Solid wood and board materials

25.8

7.9

7.0

6.5

6.56.14.9

3.23.1

2.82.7

2.4

1.91.6

1.6 1.21.21.1

0.922.2

Poland

Lithuania

Sweden

Germany

Russia

Romania

China

France

Italy

Belarus

CzechRepublicLatvia

Slovakia

UnitedStates


Combating illegal logging

• FLEGT VPAs enable legality and SFM• Laws against illegal wood can level the

playing field• Companies’ due diligence can reduce the

market for illegal timber considerably– Mobilise all businesses!

• Technology improves the performance of authorities and companies’ DDS

• Cooperation is the key


However...• No FLEGT licensed wood so far• Uneven implementation of the EUTR• EUTR is difficult to implement for

companies and hard to enforce for authorities (DDS).

• Companies have not been mobilised fully (Especially not SMEs)

• Becoming a barrier to trade• Investment in technology is needed


• EU Timber Regulation• US Lacey Act• Australia• Switzerland• Japan

Demand Side Laws on Legality of Wood

Demand Side Laws on Legality of Wood


“Making everyday life of the

many people better does not

mean selling more book

cases tomorrow, it is rather

improving forest

management that impacts

the life of the many people

and communities dependent

on forests what helps us

realize the IKEA business

idea”.

NAMEproduct

description

€000

Peter AgnefjällSeptember 2014


IKEA requirements on wood

I Minimum requirements

II Wood from more sustainable sources


Approved Species

Known Origin

Minimumrequirements


Development FY10-14wood from more sustainable sources

0

200

400

600

800

1000

1200

1400

1600

FY10 FY11 FY12 FY13 FY14

15,8% 16,2%22,6%

32,4%

41,4%

MSS


20


Role of certification• IKEA considers the legal due diligence

systems in certification best practice• Control points are in the right place. In

the forest or where the wood leaves the forest

• IKEA due diligence integrates both FSC and PEFC approaches to ensure legality


FSC and traceability• FSC Chain of Custody does not mean

physical traceability• Considerably reduces the risk of unwanted

wood entering the supply chain• One up – one down.

Sawmill

Sawmill

Sawmill

Sawmill

Sawmill

Component factory

Component factory

Trader

Component factory

Furnitureproducer

Furnitureproducer

Chain of custody

”Forest Tracing”


It is normally not possible to trace individual product back to the forest


Materials of wood origin in a modern simple chest of drawers

Board, 3 typesPaper core foil, 3 types*Paper core edge band*

7 compositewood based materials


Material sourcing for a simple product

Furniture producer

Board mill

Paper mill

Pulpmill

Board mill

Paper mill

Pulpmill

Board mill

Paper mill

Pulpmill

Foil millPaper

millPulpmill

Foilmill

Foilmill

Foilmill

IKEA

x 3-5

x 2-3

x 2-3

x 2-3x 1-2

x 2-2x 3-4

x 3-4

x 2-3x 3-4

x 3-4x 2-3x 2-3

x 2-3

x 2-3x 50-60

x 50-60

x 50-60x 50-60

x 50-60

x 50-60

x 50-60


IKEA Approach in High Risk Areas• The supplier in the lead

– Commitment, standard, tools

• 100% FSC in 2017• Audits every year• Supply Chain Audits for uncertified suppliers and supply chains• New supply chains require approval• Stop deliveries if IWAY Must violation• Partnership with external organisations (WWF)• On the ground capacity (Foresters)• Training of business teams and suppliers• Support for certification and backward integration• Test new technology• Networking• Close contact with authorities• Continuous learning and improvement


Timber Retail Coalition(IKEA, Kingfisher, Carrefour, M & S)• Logical to expand the scope but hand-in-

hand;• Uniform enforcement• Harmonised performance• Recognition of certification (Chain-of-

custody)– Best Practice DDS– Contributing to sustainable forest management

EUTR

20


Focus!Forms of Illegal logging in the Russian Far East

• Outright timber theft by wildcat logging brigades (becoming less common)

• “Illegal logging with paperwork” is now more popular:

• Overlogging on timber leases or logging of high-grade in place of low-grade material

• Abuse of “Intermediate” and “sanitary” logging

• Export of stolen timber under the “mask” of timber lease documents

Source: B. Milakovsky, WWF Amur

wood is part of the ikea identity · russia romania china france italy belarus czech republic...

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