Ingka Holding

Lobbying
Showing leading practice in this area, Ingka Holding has conducted an industry association review for the trade associations it belongs to on climate issues and discloses a clear action plan to address misalignments.

Sustainability strategy and accountability
The company discloses its process for identifying and prioritising its most relevant sustainability impacts, and reports progress against all the targets it has set.

Ecosystem conversion and restoration
The company discloses details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.

GHG emissions
The company actively reduces its scope 1 and 2 greenhouse gas emissions and has established a time-bound target to further decrease them. It consistently reports progress against these scope 1 and 2 targets. Furthermore, the company’s scope 1 and 2 emissions targets are aligned with a 1.5-degree trajectory. Additionally, the company also reduces its scope 3 greenhouse gas emissions.

No leading practices were identified in the social inclusion and community impact area.

Act ethically
The company has a publicly available policy prohibiting bribery and corruption, expressing zero tolerance towards such practices. It also enforces the IWAY Standard for business partners, which includes stringent measures against illegal activities such as law-breaking, document falsification, deception, and corruption. Non-compliance with these standards results in material breach conditions, granting the company the right to terminate all contracts and cancel orders with any supplier or subcontractor without compensation.

Provide and promote decent work
The company publicly commits to respecting worker health and safety and extends this expectation to its business relationships, as detailed in its public policy statements. It conducts thorough risk assessments on potential suppliers, evaluating them on human rights aspects including health and safety, and only engages with those meeting mandatory criteria. Suppliers are continually monitored and managed for compliance. Additionally, the company is a signatory to the Women’s Empowerment Principles (WEP) since 2018, aiming for gender balance by the end of FY22. It reports achieving a 50/50 gender balance in management positions, with 38.0% of its Group Management and 45.8% of country CEOs being women.

Respect human rights
The company has institutionalised a human rights policy, endorsed by its highest governance body, committing to respect the rights of all co-workers and affected groups. Its guidelines strictly prohibit child labour and forced labour, ensuring no work below the minimum legal age and no bonded or prison labour. The company also upholds the freedom of workers to associate, unionise, and engage in collective bargaining, alongside enforcing a zero-tolerance policy against discrimination, violence, and harassment in the workplace. These policies extend to all business relations.

Stakeholder engagement
While the company discloses material topics relevant to its stakeholders, it has an opportunity to disclose more comprehensive details about its engagement plan including an overview of the issues raised or its process for engaging with stakeholder groups, including frequency and channels.

Sustainability strategy and accountability
While the company has set some targets, it does not disclose group-wide targets on all key sustainability topics for the most material parts of its value chain. No evidence was found that the company links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Ecosystem conversion and restoration
The company discloses that it is working to responsibly source some materials and food, but no evidence was found that the company commits to achieving zero conversion throughout its supply chains for all its relevant high-risk commodities or all material realms (i.e., land, freshwater and marine). The company indicates that it uses FSC-certified paper packaging in its brands, however, no evidence found that the company provides qualitative evidence of achieving zero conversion throughout its supply chain. The company does not have time-bound targets to achieve conversion-free supply chains.
The company does not disclose commitments nor activities to minimise ecosystem conversion.

GHG emissions
The company has an opportunity to disclose a time-bound target to reduce its scope 3 greenhouse gas emissions, report progress, and align its targets with a 1.5-degree trajectory.

Impact and dependencies assessment
While the company discloses working with guidance with frameworks such as the SBTN and the TNFD, the company has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Key areas and species
The company does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Resource exploitation and circularity performance
No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Solid and air pollution
The company is not reducing the production of hazardous substances and does not commit to avoiding the development or marketing of new chemicals or products with SVHC (substance of very high concern) properties. Additionally, it is not reducing the production of hazardous waste. The company has an opportunity to disclose quantitative evidence regarding plastic use reduction and the use of sustainable packaging, and it does not report on the amount of plastic waste generated or the proportions directed to or diverted from disposal. It also does not report metrics on air pollutants, nor set time-bound targets to reduce them.

Water
The company reports an increase in water use, and has an opportunity to disclose more information on its targets to reduce water use. The company discloses that 30% of its sites are operating in high/extremely high areas of water stress. However, no evidence found that the company discloses the proportion of withdrawals from water-stressed areas across its own operations. The company does not disclose other relevant information related to water, in its operations or supply chains.

Indigenous Peoples’ and land rights
The company does not show if it is committed to respecting Indigenous Peoples’ rights or land rights of local communities.

Safe, clean, healthy and sustainable environment
The company has an opportunity to commit to respecting local communities’ right to a safe, clean, healthy and sustainable environment, and to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders. Moreover, it should track its actual or potential negative impacts on the health of local communities.

Act ethically
The company has established an Anti-Bribery and Corruption Framework and provides an anonymous reporting channel via its Group Trust Line. However, it lacks a clear description of processes to identify bribery and corruption risks within its operations. The company also has an opportunity to clarify its handling of external grievances and to formalise its stance on political contributions and lobbying activities, which currently lacks detailed policy statements and expenditure disclosures.

Provide and promote decent work
The company reports its lost time accident frequency rate but does not disclose comprehensive details on work-related fatalities, high-consequence injuries, or overall injury types and hours worked. It highlights its Responsible Wage Practices approach, focusing on fair incomes and living wages, yet lacks clarity on whether all workers receive a living wage and does not provide a time-bound target for this goal. The company states a commitment to equal pay and conducts gender pay assessments, but fails to publish the pay ratio between men and women across employee categories. The company has an opportunity to enhance transparency by providing comprehensive health and safety data, specifying how it ensures living wages across its operations, and disclosing detailed gender pay ratios.

Respect human rights
The company has publicly committed to non-discrimination, and avoidance of forced and child labour while recognising freedom of association and collective bargaining rights, albeit conditionally based on local laws. The commitment’s wording and the conditional nature of collective bargaining rights reflect an incomplete alignment with universal human rights standards. Despite identifying a spectrum of human rights risks pertinent to its industry, the company does not provide a clear description of how it assesses these risks across its operations or in its supplier engagements. The company has an opportunity to enhance its transparency by clearly describing its human rights risk assessment processes, publicly disclosing assessment results, and establishing a robust, globally consistent system for remediation.