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IKEA's Commitment to Fair Value Chain

Jul 4, 2025

Summary

  • The meeting reviewed IKEA's global approach to building a fair and equal value chain, with a focus on promoting human rights, gender balance, fair wages, children’s rights, and work with social entrepreneurs.
  • Ambitions for 2030 were discussed, aiming for positive societal impact across all elements of the value chain, including co-workers, suppliers, customers, and communities.
  • Notable initiatives include the rollout of a Responsible Wage Practices Framework, active advocacy for human rights due diligence, and continuous improvements in inclusion and social entrepreneurship.
  • The discussion covered how global challenges such as inequality and climate change are influencing IKEA’s operational priorities and practices.

Action Items

  • No specific action items were assigned in the transcript provided.

Promoting a Fair and Equal Value Chain

  • IKEA recognizes its responsibility to respect human rights and improve the well-being of everyone in its value chain—including co-workers, suppliers, customers, and communities.
  • By 2030, IKEA aims to contribute to a fair and equal society by embedding human rights and fostering resilient societies.

Responsibility and Ethical Business Practices

  • The company commits to responsible growth, ensuring people throughout its operations can thrive, with a focus on those most vulnerable.
  • Ethical business practices are prioritized, aiming for decent, meaningful work and an inclusive culture.
  • IKEA advocates for fairness at the policy level through collaboration with policymakers and partners.

Human Rights Advocacy and Due Diligence

  • IKEA supports mandatory human rights due diligence legislation such as the EU Corporate Sustainability Due Diligence Directive (CSDDD).
  • The organization participates in joint statements with business, trade unions, and civil society to promote stronger regulations and better governance.

Children’s Rights

  • IKEA commits to safeguarding children's rights across all stages of their value chain, from sourcing and production to marketing and sales.

Fair Wages and Living Standards

  • A new Responsible Wage Practices Framework and Assessment Methodology is being rolled out, focusing on equality, fair pay, dialogue, and living wages.
  • The framework has been validated across 65 units in 22 countries and is being implemented throughout the IKEA value chain.

Gender Balance and Inclusion

  • Ongoing initiatives promote gender equality and balanced representation within IKEA’s global and market-level operations.
  • Inclusion strategies focus on creating safe, welcoming environments and equal opportunities for all co-workers.

Support for Social Entrepreneurs

  • IKEA partners with social businesses to develop global products and create job opportunities for marginalized groups.
  • There are ongoing programs and investments aimed at supporting entrepreneurship and economic inclusion.

Addressing Inequality and Global Challenges

  • The company acknowledges rising global inequality, exacerbated by climate change, economic instability, and geopolitical conflicts.
  • IKEA recognizes the risk that these challenges pose to vulnerable populations and commits to addressing systemic risks and supporting fair transitions.

Business Culture and Ethics

  • IKEA’s way of doing business is grounded in company values, business ethics, and comprehensive business requirements that shape behavior internally and externally.

Decisions

  • Support for mandatory human rights due diligence legislation — Supported due to its potential to improve governance, human rights, and business impact across the value chain.

Open Questions / Follow-Ups

  • How will progress and impact of the Responsible Wage Practices Framework be measured and reported going forward?
  • What additional actions are planned to further support vulnerable communities as inequalities increase?