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A graphic symbol symbolizing a heart for the Better lives section.

Ingka Group Annual Summary and Sustainability Report FY23

Better lives

​People are at the heart of everything we do. We want to take a leading role in creating a fairer and more equal society and improve the lives of the millions of people that interact with, or are impacted by, our company.

A graphic symbol symbolizing a heart for the Better lives section.
A group of IKEA employees in yellow sweaters carrying a colleague in their arms.

What we are proud of

  • We maintained gender balance (equal representation of men and women) across co-workers and management teams and 41.4% of board members for our three Ingka businesses were women.
  • 83% of co-workers participated in our annual survey which showed a strong overall engagement score of 79%.
  • We supported 99,000 people through our social impact programmes in local neighbourhoods and 1,135 refugees completed our Skills for Employment training in 22 countries.
  • Our fifth annual group-wide gender equal pay assessment showed that we reduced the percentage of co-workers in groups where pay gaps could not be explained by performance, competence or a country’s legal requirements.
Four IKEA employees in a conference room smiling while having a discussion.

Challenges we are addressing

  • We have made good progress on gender balance across our workforce and management but have not yet reached gender balance in our Management Board and Supervisory Board. We are also working to increase ethnic, racial and national diversity at all levels of leadership and management.
  • We conducted a company-wide human rights baseline assessment. This found that we have key policies and procedures in place to protect human rights in our own operations and the wider value chain but more action is needed to further strengthen our approach, for example by extending our grievance mechanism to our value chain.

Progress against targets

Our vision is to create a better everyday life for the many people. We are setting targets and evaluating our performance for how we can become better in four ways: Better homes, Better lives, Better planet and Better company. Below you will find our targets and performance for our work to create better lives. 

Equality, diversity and inclusion

We believe that a better everyday is an equal everyday. Ingka Group is committed to fair treatment and equal opportunities, creating a workplace where people of all backgrounds and identities can thrive and feel supported and valued for who they are. Together we want to create a workplace that is as diverse as the world is, and as inclusive as the world should be.

1.
Achieve gender balance across our business in FY27
Achieved

Performance summary

​We maintained a 50/50 gender balance in our management positions (all levels of management). Although this target was originally for FY22, we continue to measure ourselves against it, reflecting the importance of this issue.

Last updated 2024-01-25
2.
Achieve gender balance across our governing bodies and senior leadership (boards and committees) by FY27
On track

Performance summary

We are progressing well towards our target, with women now making up 38.5% of our Group Management (including our Management Board), 41.4% of board members for our three Ingka businesses and 42.9% of committee members. At country level, women made up 55.8% of registered board members. 45.8 % of country CEOs were women and 61.6% of country retail management teams.

Women accounted for 25% of members on the Supervisory Board. There are currently no women on our Management Board which is a small group of two members.

Our boards and committees are small in size and individual changes can have a large impact on total figures creating significant variations from year to year.

Last updated 2024-01-25
3.
Score 80% on our inclusion index, based on our co-worker survey
Achieved

Performance summary

Our score in FY23 was 80.3% (FY22:81.2%).

Last updated 2024-01-25
4.
Increase ethnic, racial and national diversity at all levels so our workforce reflects the diversity of the communities in which we operate by 2024.
On track

Performance summary

Data from our voluntary and anonymous Diversity & Inclusion survey in FY22 showed that while our overall co-worker population reflects the diversity of the communities in which we operate, further work is needed to increase diversity at all levels of management. We will repeat the survey in FY24.

Last updated 2024-01-25

Health, safety and wellbeing

Across all parts of Ingka Group, our goal is to create a workplace that people are proud to be a part of, where they can grow and develop and feel that they are making a difference. We prioritise our co-workers’ wellbeing, investing in programmes and support to help them thrive at work and at home. Research shows a strong correlation between satisfied co-workers and customer happiness. So, investing in co-workers’ happiness and wellbeing is good for our co-workers and good for business.

1.
Maintain at least an 80% engagement score in our co-worker survey.
On track

Performance summary

Our engagement score was 79% (FY22: 81%, FY21: 80%), almost meeting our target.

Engagement Index - % of co-workers who feel engaged

Result of our engagement co-worker survey

80%
FY21
81%
FY22
79%
FY23
Last updated 2024-01-25
2.
At least 80% of co-workers believe we live our values, based on our co-worker survey.
On track

Performance summary

Our survey shows that 79% of co-workers believe we live our values (FY22: 80%, FY21: 80%); although this is very slightly below our target we are pleased with this strong result.

Values Index - % of co-workers who believe we live our values

Result of our co-worker survey

80%
FY21
80%
FY22
79%
FY23
Last updated 2024-01-25

Skills development

We are on a journey to create a dynamic and democratic learning culture at Ingka Group. We believe everyone can lead, everyone has talent, and everyone is a learner. Regardless of where we come from, and whatever our role, position or assignment, we work hard to make sure all of us at Ingka Group have equal opportunities.

1.
At least 80% of co-workers feel they have good opportunities to develop their competencies.*
On track

Performance summary

74% of co-workers in our survey reported that they have good opportunities to develop their competencies (FY22: 74%).

Last updated 2024-01-25

* We have updated our target to reflect a change in how we track co-worker views on competency development. Our previous target was that at least 80% of co-workers are empowered to develop their competencies.

2.
Upskilling and reskilling training provided to co-workers in our transformation initiatives starting with customer service, facilities and stores.
On track

Performance summary

We continued to run our programmes such as Digital Accelerators and Bootcamps, launched our new onboarding process focused on rapid skills development, and created a skills library to make it easier for co-workers to access learning and development programmes.

Last updated 2024-01-25

Fair income

A fair income is essential to improving the wellbeing of all co-workers and at the heart of building a more inclusive IKEA. We define it as an income that is perceived by co-workers as fair reward for the work they do and which enables them to live a decent life. Fair income is part of our Total Rewards offer which includes: our culture and values, purposeful jobs, choice-driven benefits, supporting wellbeing and sustainability, performance appreciation and safeguarding a decent standard of living.

1.
Equal pay for women and men performing work of equal value in all countries.**
On track

Performance summary

Our latest annual equal pay assessment shows that 3.87 % of co-workers belong to groups where pay gaps cannot be explained by performance, competence or a country’s legal requirements (FY22: 4.84 %).

Last updated 2024-01-25

** Our target on gender equal pay is for our own co-workers.

Human rights

At Ingka Group we put respect for human rights at the heart of our business, integrating it into our strategies, policies and processes based on the UN Guiding Principles on Business and Human Rights. Our respect for human rights encompasses everyone our business touches including our co-workers, customers, workers in our supply chain and our neighbours.

1.
Targets under development
Not applicable
Last updated 2024-01-25

Community impact***

We want to have a positive impact on everyone our business touches and that includes supporting the neighbourhoods in which we operate and where our co-workers and customers live. The Ingka Group Neighbourhoods framework aims to create longlasting social impact in neighbourhoods near our stores and meeting places. It focuses on projects across three areas where we believe we can make the most difference: increasing access to better homes; creating pathways to decent work; and enabling the many people to participate.

1.
Support at least 2,500 refugees through job training and language skills initiatives in Ingka Group units across 30 countries by 2022.
Achieved

Performance summary

We have supported 2,935 refugees through skills for employment programmes in 24 countries. In FY23, 1,135 refugees completed the training. Although we did not meet the target in FY22 as we had originally intended, we were pleased to meet and exceed it in FY23.

Last updated 2024-01-25

*** We are no longer reporting progress against our previous target to develop products and services with local social businesses. As a result of changes in how we source and work with suppliers at Inter IKEA and Ingka Group, it was no longer possible to achieve this target. We continue to work with social businesses in several markets and will start work to develop a new target during FY24.

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Further reading

Better homes
​Read more about our passion for a better life at home that makes us IKEA. Learn how city stores and expanded services help make healthy and sustainable living available for more people.
Better planet
​Read about our commitment to becoming a climate positive and circular business by 2030. Learn how we reduce our climate footprint and make it easier for our customers to act too.
Better company
​Learn how we do business with a humanitarian outlook, honestly and with integrity. Read up on how we deliver on strategic ambitions and goals, financial results, and governance.