What if furniture could be better for nature, better for people? What if we could make furniture out of waste? What if old glass could get new life? What if we could collect all these bottles and turn them into something else? Thank you so much, Susan, for the introduction and thank you for having me. 77 years ago, IKEA was founded with a clear vision to create a better everyday life for the many people. And that vision influences everything we do. We know that a better everyday life includes a healthier and more sustainable lifestyle. And we also know that we need to create this for the many people today without compromising with the needs of our future generations. And this vision is more important than ever now when society is facing huge challenges. Our world is rapidly changing. Our climate is changing faster than predicted. We have already increased the average global temperature to one degree Celsius. And limiting the worst effects of climate change. And limiting the worst effects of climate change depends on limiting global warming to 1.5 degrees Celsius. However, if we continue to do business as usual, the CO2 budget for the coming 100 years will be depleted in only 12. And according to IPCC, we need to peak emissions this year and reduce the amount of emissions. We need to reduce the amount of emissions. We need to increase the amount of emissions and reduce the amount of emissions. And we need to increase the amount of emissions in the world. So we need to be able to increase the amount of emissions in the world. So we need to act down. Now, some of you might ask, why is it so important to aim for 1.5 degrees? And could we aim for 2 degrees instead? Well, the simple answer is no. One of many examples, the extreme heatwaves and wildfires that we are seeing already in many parts of the world will just increase. And the difference between 1.5 degrees and 2 degree world is 700 million people or 2 billion people exposed for extreme heatwaves every 20 years. And this is just one of many examples. And it's not only people being affected, but business as well. Just imagine the increased risks and costs with operating in an unpredicted world like this. At IKEA, we source 1% of all commercial wood in the world and 1% of the cotton. Thus, extreme heatwaves will impact our suppliers, customers and hit the resources that are business critical for us. So, simply put, climate change is one of our most important challenges. And two other challenges that we have identified at IKEA is unsustainable consumption and inequality. But we have all heard the saying, with big challenges comes big opportunities. And at IKEA, we have decided to stay optimistic about the future. To address the three challenges, climate change, unsustainable consumption and inequality, we have the IKEA sustainability strategy called People, Planet Positive, which outlines how we can have a positive impact on both people and planets throughout our value chain. And it's divided into three focus areas. The first one, enabling healthy and sustainable living. And it's really that we want to create a health, sustainable living for all of our customers within the boundaries of the planet. Second focus area, circular and climate positive. We are fully committed to tackling climate change. And one of our biggest opportunities is to transform into a circular business. And the third focus area, fair and equal, is about we want to have a positive impact. And the third focus area, fair and equal, is about we want to have a positive impact on all of our stakeholders throughout our value chain. And the topic of today is becoming climate positive. And that's what I'm mainly working on. So, let's deep dive into the second focus area. We have committed to become climate positive by 2030. And it means, for us, it means reducing more greenhouse gas emissions than our value chain amidst, while still growing. And it means, for us, it means, for us, it means reducing more. And we also have a positive impact on climate positive. And we also have a positive impact on climate positive. And we recognize that our responsibility covers the entire life cycle of our product. And our approach to become climate positive also reflects this. So, how do we intend to get there? Well, this graph illustrates just that. We have 2016 as our baseline year. The red line, you see, is the impact IKEA would have if we continue to release emissions in line with the growth. That's not where we want to end up. First of all, we need to drastically reduce our emissions, which is illustrated by the yellow area. And I will deep dive further into that yellow area in my presentation. So, I will leave it for now. The light green area is about the materials we use and how we use them. It's about working with, I mean, improving forest and agriculture management practices to store carbon in the forest or in the soil. And also, by using renewable materials, we can contribute carbon storage in the products itself. The dark green area. The dark green area shows additional reduction we can have in society by going beyond IKEA. So, we are committed to address a larger footprint than our own by collaborating with, for example, our suppliers and customers to reduce their emissions as well. And to just make this concrete, for example, when we are working with our suppliers and tackling or working with our suppliers in the transition, to renewable energy, we tackle the whole sector. And to renewable energy, we tackle the whole site and not only our manufacturing share, regardless if it's 2% or 92%. And on average, we have 25% manufacturing share. So, by collaborating and tackling the whole site, we can have four times bigger reduction in production. And these three areas combined will take us back to the whole site. So, what you are seeing now on the screen is the IKEA footprint throughout our value chain from sourcing of material to manufacturing and production, how our products are used in our customers' home as well as what happens in the end of their life. And our footprint is approximately 25 million tonnes CO2 equivalents. That number doesn't really say much, not even for me who's working with this topic. But just to put it in relation, it's just as much as 0.1% of the world's greenhouse gas emissions, or just as much as half of Sweden's yearly climate footprint. So, we have a big impact. So, we have a big impact. So, we have a big impact and we also have a big responsibility. Something that many things have a big footprint, especially if you are a global operating company, is transport. In our case, it's only 5% of our footprint. While the largest footprint area is materials that are used when producing IKEA products, for example, a billy bookshelf. And the second largest, which might be a bit shocking, is the energy and electricity and fuels used at our customers' home when they are using IKEA products, for example, light bulb or appliance. So, this really shows the importance of taking a full value chain approach, meaning up and downstream. And this is the footprint that we need to cut in half while growing our business. And last year, we saw a break in the trend when we managed to reduce our climate footprint with 4.3%, while the IKEA retail sale grew with 6.5%. Our footprint is now the same as it was back in 2016, while our business has grown with 13%. So, hopefully, this is the first sign of a trend to decouple growth from emissions. And the two main chain drivers for this achievement was increasingly amount of renewable electricity at our suppliers and improvement in energy efficiency in our lighting and appliance range. But this is just a small step. But this is just a small step. We have so much to do. And there are three key things that will drastically contribute to reduction of our emissions. First of all, enabling sustainable consumption and transforming into a circular business. Secondly, it's to source and use sustainable materials and food ingredients. And thirdly, it's to source and use sustainable energy across our value chain. And now I will deep dive into each of them. We need to transform ourselves and we need to transform our ways of working. Today, the IKEA business model is linear, take, make, sell. The IKEA ambition for 2030 is to become a circular business model with all products from the from the very beginning. From the very beginning are designed to be reused, refurbished, remanufactured and eventually recycled, generating as little waste as possible. And our goal is to have a range with full circular capabilities, but also produced with renewable and recycled materials. And transforming into a circular business impacts every aspect of the IKEA model. From how we're going to be a circular business model. From how we source materials, what products and services we develop, and also where and how we meet the customers and so on. In foreign markets, we are testing furniture as a service, like a leasing model. And we have already started testing refurbishment of some of our bigger products, such as sofas. And some of you might already have heard it, but this year we started or opened up our first software. Second hand store in Eskilstuna, Sweden. And hopefully we'll see more of them in the future. So not a lot of people know this, but IKEA is one of the world's largest food providers. Last year, 680 million of people experienced IKEA food offer either in our stores or bistros. And we want to create a range that is both affordable, healthy and sustainable. Both good for people and planet. And during the two last years, we have introduced some new products. First, that was our veggie dog launched in 2018. First, the first year we sold approximately 10 million of those. And this year in August, we launched Huvedroll, a plant ball for meat lovers. It has the same texture and taste, but not meat. And before telling you the difference in climate footprint, I would like you to guess it. So how many plant balls can you eat while having the same footprint as one traditional meatball? You can write your answer in the chat box. I can read the question again. How many plant balls can you eat while having the same footprint as one traditional meatball? And the right answer is 25. You can eat 25 plant balls and you would have the same climate impact as one traditional meatball. That for me just, mind blowing. Mind blowing. But the IKEA, the famous IKEA meatball is one of our big sellers. We sell approximately six, sorry, one billion of them each year. And just imagine the impact it would have if we converted those one billion to plant balls instead. Big impact. And to be able to limit global warming, we need to stop using fossil fuels. At IKEA, we have decided to phase out coal and oil by 2025 and used 100% renewable energy across our value chain by 2030. But it's not really about the targets, rather how to turn the targets into concrete action. And one thing that we are doing with our suppliers is creating roadmaps. So we have a lot of different ways to be able to be able to be able to meet the target. So we know what energy types they are using and their different sides, how much and for what purpose. So we sit down together, and I really pronounce the together word, and identify improvements and create a portfolio of actions, both short term and long term, for them to be able to meet the targets. And we also recently launched a fund of 100 million euros to speed up the transition towards renewable energy at our suppliers. Making sustainability affordable. Looking at the sustainable development model, something is truly sustainable when the environmental, social and economic dimensions are aligned. Something is not sustainable when it's good from an environmental and social perspective, but extremely expensive. So the economic dimension is a key factor when we talk about sustainability at IKEA. Because we truly believe that sustainable living shouldn't be a luxury for the few, but should instead be normalized. And we are known for being a low-priced company. And the low price is how we will enable healthy and sustainable living for the many. The many being the key. Because the more people we reach, the bigger impact we can have. And just to summarize everything. Climate change is one of our most important challenges and one of our worst crises. But also our biggest opportunity to create a better future. A future that is better for people and better for nature. And the beauty of the future. And the beauty in this is that we are all united under the same targets. Limiting global warming to 1.5 degrees Celsius. And the business sector has a key role to play in this. And I will now share three takeaways or key advices that all businesses need to do. First of all, set bold and ambitious targets in line with science and allocate required resources. And a key part is to know your footprint across your value chain, meaning both up and downstream when setting the targets. And if you want to create real and lasting change. You must know what is causing the problems in the first place and address them at its core. Secondly, sustainability is not something that you can work with in parallel with your existing models. But it must be integrated into the core of your business. And depending on your circumstances. And depending on your circumstances. You might even have to go beyond the integrative approach to a transformative approach where sustainability drives new business models, strategies and the services you provide. Thirdly, going beyond your business. Doing more in your network and contributing to further. further reduction. And also to be able to achieve 1 and 2. You must collaborate with your suppliers, partners, customers, NGOs, competitors. Collaborate across industries. And really use your company's network to accelerate change both inside and outside of your company. And use it to create a new company. And use it to create a new company. And use it to create new solutions. Use it to co-invest in already existing solutions. Or use it to inspire others to start their journey. Or use it to inspire them to join yours. And hopefully I inspired at least some of you. And thank you so much for listening. And I think that it's time for some questions now. Right, Pedro? Yes. Yes. We have. And actually, I must admit, there came a lot of questions along the way. Oh, yeah, yeah. So I'm really looking forward to balance some of them with you. First of all, I got particularly inspired. So I think you have a fan here. Perfect. Now, I think they vary for a couple of different areas. I will start with one of them that got repeated in different formats. But in essence, it's about how do you balance your business goals with your sustainability goals? Because normally in some companies that might seem like an antagonism, you're talking about sustainability goals. What is your take on that? How does IKEA does that? I think, I mean, something that I need to make clear here is that we are facing huge challenges. And right now, I mean, prices on climate solutions have decreased drastically. So we are really seeing it as an opportunity to provide more lower price to our customers because, I mean, sustainability is often, or right now, actually, is the cheapest option. It hasn't been in the past five years or four years, but it's happening a lot of things. And I think that we see it as a lot of things. And I think that we see it as a big opportunity and not an obstacle. Okay. Thank you. And actually, when you know, we talked a lot about the integration between your sustainability into the organization. How do you know when that is the case? How do you verify or how do you acid test that now, yeah, we're fully integrated or are we thinking like that? Yeah, that's a really good question. And I have a metaphor that I use to describe the importance of integrating sustainability into each part of the organization. And for now, I can call it just the spider to starfish. Okay. I haven't come up with a better name. But many organizations intend to have a sustainability team that drives the whole sustainability agenda in the organization. And has sporting a little bit here and there. That's the spider. A centralized head with legs in each part of the organization and kill the head of that spider. That was dramatic. But all the work disappears. And that's not how you create real lasting change. Instead, you want to move over to become a starfish. A starfish has vital organs in each arm. Chop off one arm, it grows back again and it doesn't affect the other one. Split it in the middle, you get two starfish. And when your organization becomes like a starfish, then you know that sustainability is fully integrated. And I hope that that makes sense. It makes a lot of sense for me and I hope that it makes sense for you as well. It makes sense for you as well. It makes sense for me and actually I might steal that one and use it another time. I think it's great. Now, it's clear that IKEA is quite far on that sustainability agenda and some of our listeners might not be as far as you are. And that also might apply to some of your suppliers. So the question came from Pia on how do you ensure that your suppliers also buy into the sustainability agenda? Have you done anything different than before? Do you set different KPIs? Or what levers do you use for that? Or what levers do you use for that? And I know you mentioned a bit of that, but I think if... Yes, of course. I mean, just taking it from an IKEA perspective, we have really good relationship with our suppliers on average 12 year. And just as I mentioned in my presentation, we know we have the data. So we know what is affecting their footprint. And we are really sitting down together to identify improvements. And create the actions needed. And create the actions needed. And all of our suppliers, and I think all companies out there really want to do good. It might lack the expertise or financial muscles to do so. And that's where we step in and support our suppliers the most to come with expertise. Or if it comes to the case that they would need financing, that can also be an option. So I think... And we do have KPIs, of course, that we follow up both internally, but also externally as well. Okay. You know, I think that... And Vu asked a question here saying, you know, a lot of those figures... Sorry. Oh, sorry. But I think that maybe it would be good to add... I mean, not all companies are as big as IKEA. And there are smaller companies that maybe haven't had the same collaboration over so many years. And I think one thing that smaller companies can do is... I mean, first of all, the three key things that I stated. But when it comes to suppliers, it's one finding new suppliers to have a part of your contract or have it part of your code of conduct or at least having the dialogue to see what plans does the supplier have to be able to contribute in a positive way and start the dialogue from there. And if you are too small to move a supplier, partner up with other companies that are also using the same to be able to create some leverage. I mean, we are a small, small customer in the steel industry, for example. So that's a little bit how we are working. So you also are in that position sometimes. That's also what you're saying. Of course. Exactly. Okay. That is great. And I think now... Sorry to interrupt you before, but Envu, she asked, you know, given the trend, the organizational pressure, a lot of cost reduction in the supply chains. Has there been any increase on your inbound supply chain costs while attempting to be climate positive? And if yes, now how do you deal with that? And of course, you don't need to enter exact numbers. But have you seen an increase in your inbound costs or a decrease once you started the whole climate positive agenda? I think the thing is that we have been working with sustainability for many years. And it's quite rooted in our DNA to be as efficient as possible to be able to lower costs. But we have also, in many cases, been the pioneers. For example, I mean, just Inka went out and said, that we're going to have renewable electricity back in 2010 when it wasn't really the cheapest option. So, of course, that was the case back then. But today, as I mentioned before, many of the solutions are also actually the climate friendly solutions are also the cheaper option in the long term. In many parts of the markets, we are seeing that renewable electricity is cheaper than the fossil alternatives. And that's what we are trying to leverage now to be able to drive the low price agenda even more. So that means that you also leverage the maturity of the things along your supply chain to balance out your costs. So there are some parts that are much more mature, you invest on that. But also, you don't become less sustainable. I mean, you still invest in the other parts, even though they're more expensive. But in the end of the day, they kind of balance each other out. Exactly. Okay. Now, maybe another question also relating to the trade-offs between, and I know you mentioned trade-offs, but the question from Jakob is more on how do we evaluate and implement the changes that you want where sustainability sometimes might also be in competition with a growth of a new store or a strategic must-win battle of somewhere else in the organization? So how do we evaluate them? So how do we evaluate them against each other? Because they're quite different things, right? Yeah, it is. And it's a really good question. And to be honest, now on top of my head, I will not deliver a good answer to that question. But something that we have realized, and even more now during the crisis that we are around COVID, is that this is not a nice thing to have, this is a must-do for us to be able to survive in the future. So of course, sometimes it will be trade-offs where it might become a bit more expensive. But I will stop there. I think just to follow up on actually, you just mentioned the adaptation on the HOKO feet and what happened. And something that we ask also other speakers, when we're talking about adaptation and agility and ability to answer, I know that those topics might be a bit more far from each other, the sustainability and the other one. But have you seen any impact on, for example, working closer to your suppliers because of your sustainability? You become more agile? Or have you seen any of that? I mean, agile in form of production? No, no, no, no. I mean, more on transparency and rapid decision-making, being able to adapt to a new situation. Yeah, but I would say so. Because to be able to work with the sustainability agenda and especially with the climate agenda is that you need to have a science-based approach. So we have, and together with our suppliers, as I mentioned, we collect data, which also becomes much easier for us to identify improvements when it comes to both energy efficiency or decision-making, because then we know which decisions will have a big impact. And then it becomes much easier for different stakeholders to take decision because they know the impact of it. Okay. Fantastic. Thank you very much, Siva. I personally, I'm looking forward to try the new meatballs next time I go to IKEA. Super. And thank you for joining us today.