IWAY – the IKEA supplier code of conduct

IWAY is an important part of our supplier management system. It includes the IWAY Standard – the IKEA supplier code of conduct – and common ways of working for all IKEA organisations, suppliers, and service providers.

The IWAY Standard is built on 10 IWAY Principles, which reflect our goals and outline our expectations for our business partners. Each of the 10 principles is further supported by IWAY requirements.

IWAY standards are based on a staircase model: Must, Basic, Advanced and Excellent. IWAY Must and IWAY Basic represent the minimum requirements that all suppliers and service providers working with IKEA must implement. IWAY Advanced and IWAY Excellent are the expectations that we make to individual agreements with our business partners that are willing to continually improve and develop beyond Must and Basic.

The IWAY Standard consists of the:

IWAY General Section which applies to all IKEA business partners.

IWAY Accommodation Section which includes requirements to suppliers providing housing arrangements for their workers.

IWAY Animal Welfare Section which applies to the handling of animals and animal-based products in the IKEA value chain.

IWAY Digital Platform Work Section which contains additional requirements specific to digital platforms. These requirements are secured for platform workers that perform services for, or on behalf of, IKEA.

IWAY Forest Materials Section which contains additional requirements to the General Section that are specific to forest materials. This Section applies to suppliers using virgin and pre-/post-consumer recycled forest materials for IKEA.

IWAY Land Transport Section which contains additional requirements to the IWAY General Section that are specific to land transport.

IWAY Ocean Transport Section which contains additional requirements to the IWAY General Section that are specific to ocean transport.

How we work with IWAY

Developing together with the IKEA suppliers and service providers is at the heart of the IWAY approach. It creates the foundation for the relationship and collaboration between IKEA and each supplier. Every IKEA supplier and service provider commits to following the IWAY standards by signing a business contract that includes IWAY. Together, we work closely to continuously improve practices and ensure sourcing of materials and products is done correctly and aligns with the overall IKEA actions on sustainability.

Implementing IWAY

The IWAY System provides clear processes that make it an integral part of business operations at IKEA, as well as with our suppliers and service providers. IWAY requirements focus on results and outcomes achieved by suppliers when implementing them, rather than on how the requirements are implemented. Our suppliers are in the lead in implementing the IWAY requirements, adapting them to their unique context and integrating them into their daily operations. Of course, the ways of working may vary across industries, regions, and business setups, but the ultimate outcome from working with IWAY remains the same: protecting children’s rights, health and safety at work, social insurance for all workers, good working conditions, business ethics, prevention of environmental pollution, the welfare of animals, energy and resource management and optimisation, and more.

Support and collaboration with IKEA teams

We have competent and experienced teams in many regions and countries around the world that support, challenge, and actively work with all our suppliers and service providers close to the business. One of our main focuses is developing and maintaining the competence of the IKEA teams on the IWAY System and sustainability topics over time.

Verification and follow-up

The IWAY System is an important part of our supplier management system in the IKEA due diligence process for identifying, preventing, mitigating and accounting for the impacts of the IKEA operations in the value chain. A risk-based approach allows IKEA teams to prioritise activities and focus on outcomes and impacts in the value chain.

The IWAY System has processes for verifying and following up on compliance with the IWAY requirements at our suppliers and service providers. IWAY verification activities complement the implementation and development activities. They are performed by approved IKEA auditors and independent third-party auditors and can be announced or unannounced.

Peer-to-peer learning

We focus on empowering IKEA suppliers and service providers to take ownership in implementing IWAY at their operations and part of the IKEA value chain, based on their individual business and regional setups. IKEA teams are there to support our suppliers in implementing IWAY through, for example, capacity-building and learning activities.

Read more on how we work with IWAY across the IKEA value chain