Supplier Forestry Implementation Guidance to

the Forestry Section Ed. 5.4 of IWAY Standard

Approved By: Date: Edition:

IWAY Council 2019.06.05 6

Implementation Guidance to the

Forestry Section Ed 5.4. of the
IWAY Standard

For IKEA Suppliers of

home furnishing products

Related document: IWAY Standard, Forestry Section Ed 5.4.

 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Section One: Introduction

This document is designed to help IKEA suppliers to meet the requirements of the IWAY
Forestry Section edition 5.4, and IoS-MAT-0087 (Plant Materials - Traceability
Requirements). IKEA IWAY Forestry Section is applicable to all solid wood (e.g. roundwood,
sawngoods, glueboard, veneer), industrial and non-industrial bamboo (in this document
referred to as bamboo), rattan, composite materials (e.g. particleboard, hardboard, MDF,
HDF, LDF, OSB), plywood, layer-glued, paper-based materials containing wood fiber, and
wood-plastic composites (hereinafter forestry applicable materials) used in IKEA home
furnishing articles.

The IWAY Forestry Section is aimed at ensuring that IKEA suppliers are not using, for IKEA
production, wood from areas involved in environmentally damaging forestry practices such
as: illegal sourcing and/or harvesting of forestry applicable materials, use of controversial
species, logging causing significant social conflicts, threatening high conservation value
forests, introducing GMO, converting forests in tropical and sub-tropical regions to
plantations or non-forest land.

Known species and origin of forestry applicable materials to the level of detail/ resolution
required by IKEA, and absence of wood from the above sources constitutes the IWAY Must
Forestry requirements. Compliance with IWAY Must Forestry requirements also secures
compliance with the US Lacey Act, EU Timber Regulation, and other similar legislation and
is, therefore, a pre-requisite for business with IKEA.

To enable IKEA suppliers’ control over the compliance of forestry applicable materials, the
IWAY Forestry Section contains requirements towards their wood procurement practices
grouped in the Chapter 15. IKEA General Forestry Requirements, which is applicable and
should be implemented by all suppliers.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Table of contents

1. IWAY Must Forestry Requirements

2. Implementation of Wood from More Sustainable Sources Strategy
3. Procedure for Compliance
4. Responsibility for compliance and competence
5. Informing IKEA Sub-Suppliers about Raw Material Requirements
6. Species & Wood Origin Information
7. Material Accounting System
8. IKEA Forest Tracing Survey
9. Risk assessment
10. Risk Mitigation
11. Segregation

Appendix 1: Application form for implementing internal chain-of-custody system and

product Groups included in the scope
Appendix 2: Template for Communicating IKEA IWAY Must Forestry requirements on
forestry applicable materials.
Appendix 3: Criteria for risk assessment of wood, bamboo and rattan sources.
Appendix 4: Supplier actions to mitigate risks to negligible.
Appendix 5: Physical Separation Wood/Bamboo/ Rattan Processing Procedure Example.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Section Two: Forestry Implementation Guide

Criteria 1.9.1 IWAY Must Forestry Requirements

IWAY Must Forestry Requirements towards Suppliers:
The IKEA supplier only uses in IKEA products approved species with
information on origin of forestry applicable materials, to the level of detail
required by IKEA. Other species are only accepted in case there is written
confirmation issued in advance by the IKEA forestry responsible.
Before its use for IKEA production, High value tropical tree species must be:
i) Certified according to a forest certification system recognized by IKEA;
and
ii) Approved by IKEA.
Information about forestry applicable materials origin and species has to be
collected according to the level of detail required by IKEA before starting up
business with a new sub supplier to IKEA and updated at least prior to each
reporting of Forest Tracing Survey (FTS) to IKEA.
All forestry applicable materials that are non-compliant with the above
requirements must be physically separated and not used for IKEA
Forestry production.
Section
Requirement IWAY Must Forestry Minimum Requirements:
The IKEA supplier complies with the following requirements at all times:
a) compliance with relevant national and international legislation applicable
in the Country of sourcing and harvesting;
b) no sourcing from forestry operations engaged in forest related social
conflicts;
c) no sourcing from Intact Forest Landscapes (IFL) or other geographically
identified High Conservation Value Forests (HCVF), unless the area is
certified by a forest certification system recognized by IKEA;
d) no sourcing from natural forests in the tropical and sub-tropical regions
being converted to plantations or non-forest use;
e) no sourcing from forests with officially recognized and geographically
identified commercial Genetically Modified (GM) tree and bamboo species.

Home Furnishing Suppliers shall, as a minimum, source Paper based

materials as FSC Controlled Wood with a respective claim to be compliant
with the IWAY Must Forestry Minimum Requirements.

For rattan and non- industrial bamboo materials, only criterion a) is

applicable.

Supplier Actions

Compliance with some of the requirements described in the Chapter 15- IKEA General Forestry
Requirements for suppliers reflect compliance also with the IWAY Must Forestry requirements.

Species and origin information (15.5):

IKEA suppliers delivering articles containing forestry applicable materials shall always have updated
information about species and the place of origin to the level of detail/ resolution required by IKEA
from all sources of forestry applicable materials being used in IKEA production.

Detailed routine on how to comply with this requirement is described under the requirement 15.5.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
Material Accounting Balance (15.6):
IKEA suppliers delivering articles containing forestry applicable materials shall always have an up-
to-date material accounting balance showing that there is control over all volumes used for IKEA
production according to description on 15.6.

Compliance with IWAY Must Forestry Minimum Requirements (15.8 and 15.9):
In order to confirm compliance with IWAY Must Forestry Minimum Requirements, IKEA suppliers
have to perform a risk assessment based on the procedure described on req. 15.8 for all sources of
forestry applicable materials whenever information about origin is updated (15.5). All sources of
rattan and non-industrial bamboo are seen as high risk in regards to compliance with IWAY Must
Forestry Minimum Requirements - criteria a).

Sources of forestry applicable materials harvested from areas where potential risks were identified
will have to be controlled, either by mitigating the risks based on the approach described on req.
15.9 or by physically segregating this material and ensuring that it will not be used in IKEA
production as required on 15.10.

Home Furnishing Suppliers shall, as a minimum, source Paper based materials as FSC Controlled
Wood with a respective claim to be compliant with the IWAY Must Forestry Minimum Requirements.

Segregation (15.10)
Any forestry applicable material of unknown specie(s) and/ or origin, unverified material or any
material from high risk sources which was verified as non- compliant with IWAY Must Forestry
Minimum Requirements shall be identified and physically separated from IKEA production in such a
way that it is possible to track it throughout the entire production process.

15. IKEA GENERAL FORESTRY REQUIREMENTS

Criteria 15.1 Implementation of Wood from More Sustainable Sources Strategy

a) The IKEA supplier located in a high risk Country according to IKEA’s risk list
for illegal sourcing and harvesting only use MSS delivered to IKEA.

b) The IKEA supplier located in a low risk Country according to IKEA’s risk list
for illegal sourcing and harvesting complies with the following requirements,
based on the sourcing area:
• Forestry applicable materials from wood/ industrial bamboo sources or paper
mills located in a high risk Country for illegal sourcing and harvesting can
only be accepted, either if supplier is only delivering products from More
Sustainable Sources to IKEA, or if materials are received from sub suppliers
that comply with the following conditions:
‐ Carry a formal FSC claim: FSC 100%; FSC mix 100%; FSC mix credit,
FSC recycled 100% (any claim accepted for paper), FSC recycled
Forestry credit; Or
Section ‐ Have documented proof from sub-suppliers for 100% recycled
Requirement content in non-FSC material; Or
‐ If the material is being sourced from smallholders engaged in
responsible forestry initiatives identified and approved by IKEA.
• Forestry applicable materials from wood/ industrial bamboo sources or paper
mills located in a low risk Country for illegal sourcing and harvesting can be
accepted, if the supplier is only delivering products from More Sustainable
Sources to IKEA, if received as FSC Controlled Wood or, as a minimum, if it
is proven to be compliant with IWAY Must Forestry Minimum Requirements.

Wood from More Sustainable Sources requirement is not applicable to rattan

and non-industrial bamboo materials.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Supplier Actions

The classification of Countries as High Risk or Low Risk for illegal sourcing and harvesting is available
in Wood Tracing System (WTS) home page.

The practical implementation of this requirement varies depending on both the Country where the
IKEA supplier is located and on the Countries from where the forestry applicable materials’ are being
sourced from.

Approach for IKEA suppliers located in a high risk Country for illegal sourcing and
harvesting:
Suppliers located in a high risk Country can only deliver to IKEA products with 100% MSS,
independently whether the forestry applicable materials are being sourced from high or low risk
Countries.

Approach for IKEA suppliers located in a low risk Country for illegal sourcing and
harvesting in case of receiving forestry applicable materials from:

 High risk Countries - Must use in IKEA products only forestry applicable materials being claimed
as FSC to IKEA or received under the following risk mitigating conditions:

1. FSC certified with one of the following claims: FSC 100%, FSC mix 100%, FSC mix credit, FSC
recycled 100% (any FSC recycled claim accepted for paper) or FSC recycled credit claimed on the
invoice to the IKEA supplier.
2. 100% recycled forestry applicable materials for non-FSC material with a documented proof
from a sub-supplier.
3. Wood from smallholders engaged in responsible forestry initiatives identified and approved by
IKEA.

The FSC certified material will only be considered as Wood from More Sustainable Sources (MSS) in
case it is claimed to IKEA as an FSC certified product.

The materials used by small volume suppliers or suppliers falling under special cases will be accounted
as MSS only if it is under the IKEA verified chain-of-custody scope.

IKEA suppliers located in a low risk Country and sourcing minor & small components from high risk
Countries with FSC Controlled Wood claim, in exceptional cases, can get a release from MSS 100%
endorsed by IKEA Wood Supply & Forestry Council.

 Low risk Countries - Must use in IKEA articles forestry applicable materials that at least meet
IWAY Must Forestry minimum requirements. Paper based materials must be received, as a
minimum, as FSC Controlled Wood and have to be compliant with IWAY Must Forestry Minimum
Requirements.

Timeline for fulfilment of More Sustainable Sources Strategy based on Country risk level:

A new IKEA forestry applicable home furnishing supplier or an active supplier becoming forestry
applicable located in a high risk Country has maximum 12 months to secure 100% MSS (counted
from the date when the Purchase Agreement - PuA is signed). Local WS&F Specialist/ Forestry
Manager shall define, together with business team, the amount of time to be given to the supplier
to reach 100% MSS based on the supplier conditions and complexity of the supply chain.

If the IKEA supplier is located in a low risk Country and sourcing from a Country that IKEA re-
classifies as high risk, maximum 12 months from the date when the decision was communicated by
WS&F Council is given for the supplier to secure that all the material sourced from this Country will
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
be received under the same mitigating conditions as described above for high risk Countries or to
switch the sourcing to a low risk Country.

A new IKEA supplier situated in a low risk Country but sourcing from a High Risk Country has
maximum 12 months to secure that the material sourced from this Country will be received under
the same mitigating conditions as described above for high risk Countries or to switch the sourcing
to a low risk Country (counted from the date when the Purchase Agreement - PuA is signed).

Extension of the timeline to reach 100% MSS can be given only in exceptional cases and it is only
valid after formal approval from the WS&F Council.

Categories of Wood from More Sustainable Sources (MSS):

1) Wood and industrial bamboo from forests verified as responsibly managed according to a forest
certification system recognized by IKEA and delivered with a respective claim.

IKEA supplier needs to:

• Have a valid FSC Chain-of-Custody or other chain-of-custody certificate recognized by IKEA,
covering in its scope the production for IKEA;
• Only use in IKEA production forestry applicable materials which are received as FSC or FSC
Controlled Wood certified;
• Deliver to IKEA only products accompanied by the respective formal claim on the sales
documents.

FSC claim is normally placed on the sales documents to IKEA (invoices or statement of compliance)
and includes the supplier FSC Chain-of-Custody certificate code and a statement of type of FSC
system and FSC certified volume. E.g. “FSC 100%”, “FSC mix 100%”, “FSC mix credit”, “FSC
recycled 100%”, “FSC recycled credit” (refer to the ECIS/ EDI routine for examples of FSC claims).
FSC CW material share in FSC % claimed articles is not considered as MSS.

2) For suppliers with an implemented internal chain-of-custody endorsed through a valid

confirmation letter by IKEA, forestry applicable materials can be considered as MSS under one of
the following conditions:
2-a) If forestry applicable materials are received from forests verified as responsibly managed
according to a forest certification system recognized by IKEA but not delivered to IKEA with a
respective claim under the condition of being approved by IKEA as a small volume supplier or
as a special case; And/or
2-b) If forestry applicable materials are received from smallholders engaged in responsible
forestry initiatives identified and approved by IKEA.

The internal chain-of-custody can be applicable to IKEA suppliers only using forestry applicable
materials which are being received from sub-suppliers with a formal FSC claim (FSC 100%; FSC mix
100%; FSC mix credit, FSC recycled 100% (any FSC recycled claim accepted for paper), or FSC
recycled credit), or if the material is being sourced from smallholders engaged in responsible forestry
initiatives identified and approved by IKEA, and could be issued to suppliers with one or more of the
following conditions:

• Suppliers using small volumes of forestry applicable materials for IKEA production.
• Special cases whenever IKEA suppliers have no possibility to be certified according to 3rd party
chain-of-custody standard.
• Suppliers sourcing from IKEA supported small holder initiative without external chain-of-custody.

Suppliers meeting one or more of the criteria above can fill in an application form and should define
the scope of the CoC system (Appendix 1) including what forestry applicable materials they plan to
use and what products are covered, showing that at least IKEA products are included. Both
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
documents should be sent to the local WS&F Specialist for evaluation.

Classification of a supplier as a small volume supplier or as a special case shall be made by the local
WS&F Specialist based on a combination of criteria that can include: e.g. the volume of forestry
applicable materials used annually by the supplier, the share of forestry applicable materials in the
product and forestry applicable materials’ share in PuA.

If approved, supplier will receive IKEA’s endorsement through a valid confirmation letter submitted
by the IKEA local WS&F Specialist. The letter is valid for 1 year and all the volume under the internal
chain-of-custody scope can be counted as MSS for IKEA.

If supplier is planning to start using new sources of forestry applicable materials or materials which
are not included in their approved scope of internal CoC, an updated application form and scope of
the internal CoC should be prepared and send to the IKEA local WS&F Specialist for re- assessment.
The new source/ material can only be mixed in a product which is being counted as MSS to IKEA
after formal re- approval is received.

3) Pre- and post-consumer reclaimed wood, bamboo and/or rattan material (hereinafter recycled)
in uncertified products:

In order to be able to deliver MSS under this category, an IKEA supplier needs to be receiving
forestry applicable materials with recycled content under the following definitions:

Pre-consumer reclaimed (also known as post-industrial): Material that is diverted from a potential
waste stream and reclaimed during secondary manufacturing or further downstream industry
processes, in which the material has not been intentionally produced, is unfit for end use and not
capable of being re-used on-site in the same manufacturing process that had generated it. This
includes damaged stock, rejected products, overstock, off cuts, shavings, and the like, generated
during secondary manufacture or subsequent steps in manufacturing an end product. Sawmill by-
products (like chips, sawdust, slabs) are not included.

Post-consumer reclaimed: Material that is reclaimed from a consumer or commercial product which
had completed its life cycle after intended use by individuals, households or by commercial, industrial
and institutional facilities in their role as end-users of the product. This includes commercial transport
packaging (pallets, crates, cases, cable drums); construction and demolition debris (doors, flooring,
old cabinets, moldings, and dimensional lumber, discarded wood packaging e.g. pallets and cable
drums), etc.

Both FSC CoC certified and non- certified suppliers can deliver MSS to IKEA under this category, but
only the recycled share in the uncertified wood product will be considered as MSS (e.g. for
particleboard produced with 10% recycled material under the IKEA definition, only 10% of the
particleboard volume used will be considered as MSS).

In order to account this material as recycled, the recycled content in the incoming material shall be
established through collection of relevant documentation from the manufacturers (may include
production records, certificates, or Environmental Product Declarations (EPD) clearly stating the type
and average content of recycled in the material shipped during the specific period. Whenever the
above documents are unreachable or do not contain needed information, written statements issued
by manufacturers can be accepted.

Documented evidence on recycled content in the material accounting record shall be updated by
IKEA suppliers at least before every Forest Tracing Survey (FTS) reporting to IKEA, and retained in
the material accounting system for at least five years being provided upon request to the IKEA
auditors during IWAY Forestry audits.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
Same applies to the IKEA supplier production records showing how much of the incoming material
from each of the applicable manufacturers had been actually used in IKEA products during the
specific period.

Criteria 15.2. Procedure for Compliance

The IKEA supplier of forestry applicable materials has a written procurement
and handling procedure in place that describes routines to fulfil IKEA General
Forestry Section
Forestry Requirements for suppliers (IWAY requirements 15.1 to 15.10).
Requirement
Person(s) responsible for the implementation of each requirement are
identified in the procedure.

Supplier Actions

The Procedure for Compliance is a fundamental aspect of a robust procurement and handling system.
It shall be established in written by the forestry responsible at the supplier and describe all actions
to be taken in order to fulfill and maintain compliance with the IKEA IWAY Must and General Forestry
requirements (15.1-15.10).

The procedure needs to clearly state, as a minimum, what are the actions which will be taken in
order to fulfill each requirement, including indication of specific working routines, tools or systems
to be used (where applicable), timeframes for implementation and updates, as well as position of
the responsible person in the organization.

The personnel responsible for the implementation of each requirement shall have the description of
these responsibilities clearly stated in their work instructions and should be included in the training
schedule required in 15.3.

Suppliers only delivering products claimed to IKEA as FSC can use their internal routines approved
by FSC in order to show compliance with points 15.6 and 15.10 (‘Material Accounting System’ and
‘Segregation’).

Criteria 15.3. Responsibility for compliance and competence

The IKEA supplier of forestry applicable materials has competent and overall
responsible person(s) assigned by the management to secure the
implementation and maintenance of the requirements.
A training plan is established and implemented for relevant person(s)
covering the responsibilities stated in the written procedure for compliance.
Forestry Section
Records of training provided are available.
Requirement
The IKEA supplier maintains complete and up-to-date records, covering all
applicable requirements.
All records and reports, including purchase and sales documents, training
records, production records and volume summaries are kept for at least 5
years.

Supplier Actions

Responsibility for compliance

There shall be a person who has been given in written (by the management) the responsibility to
implement and maintain the requirements of the IKEA IWAY Forestry Section.
The responsible person shall:

• Understand the IKEA IWAY Forestry Section and related documents, guides and tools and possess
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
information needed to control the compliance of the forestry applicable materials used for IKEA
production (e.g. tree, rattan and bamboo species approved for IKEA production, risk identification
tools, Wood Tracing System, etc.);

The supplier shall secure that compliance with IWAY Forestry requirements can be verified at all
times. A back-up person must be assigned by the supplier based on the need.

Training
Depending on whether separation is required or not, the relevant personnel may be limited to wood
procurement and incoming wood registration responsible only, or expanded to the management,
raw material receiving and handling personnel, foremen in different stages of processing, warehouse
personnel, etc.

Those new in the position shall be trained before they start fulfilling their responsibilities. For the
ongoing personnel the training must be renewed at least once a year or when the IWAY Forestry
Section is updated. Records of trainings should contain, as a minimum, the date of the training,
name/ position of the participants, description of training content and signature of the participants,
and it shall be kept by the supplier and provided to IKEA upon request.

The organization shall maintain complete and up-to-date records covering all applicable
requirements. Retention time for all records and reports, including purchase and sales documents,
training records, production records and volume summaries shall be at least 5 years.

15.4. Informing IKEA Sub-Suppliers about Raw Material

Criteria
Requirements
The IKEA supplier communicates IWAY Must Forestry Minimum Requirements
in written form to all own suppliers before starting business with them. The
Forestry Section communication is done in such a way that ensures that the IKEA sub-supplier
Requirement has understood the requirements, agreed to implement them and further
communicate them down the supply chain.

Supplier Actions

The IWAY Must Forestry Minimum Requirements shall be communicated by IKEA supplier in written
form to all own suppliers of applicable materials (first tier sub-suppliers to IKEA).
The written communication preferably takes place via contracts but can also be done through other
documents such as a ‘Communication Letter’. The communication shall clearly state that:

• Forestry applicable materials originated from sources not in compliance with IWAY Must Forestry
Minimum Requirements are not accepted;
• All applicable sub-suppliers undertake the responsibility of maintaining a material accounting
record controlling their raw material’ inputs and outputs;
• All applicable sub-suppliers shall inform IKEA supplier about any changes in species or wood
harvesting geography as soon as it happens to enable timely update of the information;
• Based on the risk assessment, IKEA reserves the right to perform audits at direct suppliers and
full audits at selected sub-suppliers and their supply chains, as part of the Company’s due
diligence system.
• All applicable sub-suppliers are responsible to transfer all the requirements on all applicable
materials further down supply chain by informing respective IKEA sub-suppliers about the above-
mentioned conditions.

Copies of the signed, dated and stamped communication showing that all IKEA first tier sub-suppliers
of forestry applicable materials had read, understood, and agreed to implement the IWAY Must
Forestry Minimum Requirements should be retained at IKEA supplier (verified by IKEA during IWAY
 Supplier Forestry Implementation Guidance to
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Forestry audits) and at the next tier sub- suppliers (verified during wood supply chain audits).

The communication to all sub suppliers must be renewed at least every 24 months or whenever the
Forestry Section to the IWAY Standard is updated.

See Appendix 2 for a best practice example.

Criteria 15.5. Species & Wood Origin Information

The IKEA supplier collects from all sub-suppliers evidences indicating
forestry applicable materials’ origin and species (or list of species for
composite materials, rattan and non-industrial bamboo) being used for IKEA
production. The origin information should follow the level of detail required
by IKEA. The IKEA supplier collects the information above from new sub-
suppliers of forestry applicable materials before starting business with them.
Species and origin data is updated whenever sub-suppliers change the
harvesting areas or at least prior to each reporting of Forest Tracing Survey
(FTS) to IKEA.
Forestry Section
Requirement
For recycled materials, it is not required to collect and report data on species
and place of origin.

If the IKEA supplier uses forestry applicable materials containing pre/ post-
consumer reclaimed materials for IKEA, the average recycled content is
identified via written communication with the manufacturer at least prior to
each reporting of Forest Tracing Survey (FTS) to IKEA. The evidences clearly
state the type and average content of recycled material used during the
specific period.

Supplier Actions

IKEA suppliers delivering articles containing forestry applicable materials shall always have
information about species and the place of wood, paper based materials, bamboo or rattan origin
from all sources of applicable materials being used for IKEA production. Not having information on
species or origin according to the level of detail/ resolution required by IKEA from an ongoing source
being used for IKEA constitutes IWAY Must violation (see 1.9.1).

Before starting-up business with new sub-suppliers of forestry applicable materials, this information
has to be collected by the IKEA supplier, while from ongoing sub-suppliers information on wood
origin and species needs to be updated whenever they change the harvesting geography, or at least,
before each Forest Tracing Survey (FTS) reporting to IKEA.

The level of detail/ resolution required on forestry applicable materials origin depends on
the material type and risk level in the Country of harvesting.

For Paper based materials and Paper based coverings:

Paper based
Paper Pulp Wood species
Production unit coverings
Material mill mill and country
location producer
location location of origin
location

IKEA supplier, sub-

Paper supplier or Paper mill N/A YES NO NO
inside EU
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Paper based
Paper Pulp Wood species
Production unit coverings
Material mill mill and country
location producer
location location of origin
location

IKEA supplier, sub-

supplier and Paper mill
Paper N/A YES YES NO
outside EU, but Pulp mill
inside EU

IKEA supplier, sub-

Paper supplier, Paper mill and N/A YES YES YES
Pulp mill outside EU

IKEA supplier, sub-

Paper based supplier or Paper based
YES NO NO NO
coverings coverings producer
inside EU

IKEA supplier, sub-

supplier or Paper based
Paper based
coverings producer YES YES NO NO
coverings
outside EU, but paper
mill inside EU

IKEA supplier, sub-

supplier, paper based
Paper based
coverings producer, YES YES YES NO
coverings
paper mill outside EU,
but pulp mill inside EU

IKEA supplier, sub-

supplier, paper based
Paper based
coverings producer, YES YES YES YES
coverings
paper mill and pulp mill
outside EU

Based on the Production Unit location, level of detail/ resolution on origin information required to be
collected by IKEA suppliers is described.

For Solid Wood, Wood based board materials, Bamboo and Rattan:

Species and Sub-region

Region within Region
Material Country of within
Country risk level*
origin Country

Low risk NO
Solid wood,
YES YES
Plywood, Veneer High Risk YES

Wood based
YES YES NO
board material

Bamboo Low risk NO

YES
(industrial and YES
non-industrial) High Risk YES

YES Low risk NO

Rattan YES
High Risk YES

* Risk to be considered for all 5 IWAY Must forestry minimum requirements.

 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
For all the forestry applicable materials other than paper, the IKEA supplier is required to have the
knowledge of the Country of origin and region(s). However, for solid wood material, plywood, veneer,
rattan and bamboo, the sub-region(s) is also required whenever any high risk is detected in the
region of sourcing. Only Country and regions within the Country have to be known for all types of
wood based board materials.

Origin of all forestry applicable materials can be established through collection of relevant
documentation in Country of origin (may include transport licenses, contracts, harvesting permits,
bills of landing). Whenever the Country of origin is considered as low risk for illegal sourcing and
harvesting or if all material is purchased from high risk Countries as FSC 100%, FSC Mix 100% or
FSC Mix credit and the above documents are unreachable or information is not complete, written
wood origin self-declarations from respective sub suppliers of forestry applicable materials describing
place of harvesting to the level of detail/ resolution required by IKEA can be accepted as evidences.
For paper based materials, self-declarations should be from the paper mill if pulp mill is not the first
tier sub supplier.

To avoid use of controversial tree, bamboo, and rattan species, IKEA has established a list of species
acceptable for IKEA products (updated version is published on WTS homepage). An IKEA supplier
who plans to use for IKEA production forestry applicable materials made of species absent from the
list of approved species shall inform IKEA local WS&F Specialist in advance and start using new
species only after obtaining a written confirmation letter. Using a tree, bamboo or rattan specie(s)
without having a confirmation letter issued in advance by IKEA WS&F Specialist or using species
originating from Countries where they are prohibited to be harvested constitutes an IWAY Must
violation.

The confirmation letter shall be kept at IKEA supplier and provided to the auditor during the IWAY
Forestry audit. Note that the confirmation letter from IKEA local WS&F Specialist only covers
environmental aspects and does not ensure the compliance of wood with technical specifications for
the product.

Trade and Latin names for each species have to be specified in wood, bamboo and rattan origin
documents. In exceptional cases when indication of Latin names is not a legal requirement in the
Country of origin and there is no possibility to get this information from official documents, IKEA
supplier shall require from sub-suppliers to specify Latin names of species naturally growing in the
area where wood was harvested. However, if the same species with different Latin names (sub-
species) are present in the same habitat, both of them shall be indicated in wood origin documents
and in FTS reports.

High value tropical tree species (such as teak, meranti, mahogany, etc.) in addition, must be covered
with a valid FSC claim from sub-supplier and an approval from IKEA is required before its use in the
IKEA range.

Wood, bamboo and rattan origin and species composition of pre- and post-consumer reclaimed
(hereinafter recycled) material in the forestry applicable materials do not need to be established.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Criteria 15.6. Material Accounting System

For all products containing forestry applicable materials supplied to IKEA, the
IKEA supplier establishes a material accounting record to ensure that the
outputs are correspondent to the relevant inputs. The records are generated
from the IKEA supplier’s management data and contain at least the following
information:
a) Register of inputs received
b) Input still in stock
c) Inputs used in production
d) Output dispatched to IKEA
e) Output still in stock
f) Conversion factor for each product

Forestry Section
The registry of inputs received includes delivery dates, material types,
Requirement species (or list of species for composite material, rattan and non-industrial
bamboo), delivered volume, place of origin to the level of detail required by
IKEA and certification claims (when available). For composite materials,
plywood and layer glued, name and site (city, country) of the manufacturer
is also included. For rattan, the names and sites (city, country) of all tier sub-
suppliers are also required.
For recycled materials, it is not required to collect and report data on species
and place of origin.

The IKEA supplier that has a recognized 3rd party verified chain-of-custody
and only delivers articles claimed to IKEA as FSC can use their internal
accounting system to comply with this requirement.

Supplier Actions

Suppliers shall establish and maintain a material accounting system to ensure that all forestry
applicable materials, including semi-finished products, components, finished products for producing
IKEA articles are well recorded and connected to information related to production data and
attestation of relevant legal trade documents, forestry applicable materials origin & specie(s)
information.
IKEA expects data and information to be all the time updated and available.

The register shall demonstrate that the quantities of output products sold to IKEA are compatible
with the quantities of inputs, any existing inventory, their associated output MSS claims, and the
conversion factor(s) by product. Supplier can also use same conversion factor(s) for a product group,
depending on their production process.

The suppliers shall specify the methodology for calculating the conversion factor(s) and ensure that
conversion factor(s) are kept up to date and well-explained in the suppliers’ material accounting
system.

IKEA sub-suppliers and all upstream tiers in supply chains shall have material accounting system
including at least points a, d and f from above list of information.

Suppliers shall distribute the above requirements on material accounting system to upstream sub-
suppliers. IKEA expects suppliers from time to time to verify the information & data from upstream
sub-suppliers’ material accounting system with highest accuracy to supplement wood origin reports
and support IKEA to exercise due diligence system.

The Accounting system should be updated as soon as forestry applicable material enters the
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
manufacturing site. Wood, bamboo and rattan origin information should be updated in case of
changes in the harvesting geography or at least before every Forest Tracing Survey collection.
Information about specie or species´ composition in the board material also has to be updated at
least before every Forest Tracing Survey reporting to IKEA.

Suppliers with a recognized 3rd party verified chain-of-custody and only delivering articles claimed to
IKEA as certified can use their internal FSC accounting system to comply with this requirement.

Criteria 15.7. IKEA Forest Tracing Survey

The IKEA supplier using forestry applicable materials produces and keeps on
file the most recent IKEA Forest Tracing Survey (FTS) report. The report
Forestry Section contains information on all sources of forestry applicable materials used in
products delivered to IKEA during the reporting period. The frequency of FTS
Requirement
reporting is determined in the Guidance. The first FTS reporting from IKEA
home furnishing suppliers is required before the production of first batch of
products for IKEA.

Supplier Actions

Forest Tracing Survey (FTS) is provided through the online form at Wood Tracing System webpage
(https://ikeawoodtracing.net/web/). Access to the system is given by the local WS&F Specialist in
the region.

Starting-up suppliers shall have FTS covering production for the first tertial uploaded in WTS before
the production of first batch of products for IKEA and Plant Reports and Plant declarations shall be
with status Ready in Connect.

Ongoing suppliers should report FTS tertially or every time a new source of forestry applicable
material is started or origin and/or species information is updated. Connect should be updated
accordingly in those cases.

IKEA WS&F managers can change FTS reporting frequency for certain categories of suppliers in
exceptional cases by issuing special letters.

FTS should be filled in based on the data from the Material Accounting System, covering the volumes
from all sources of forestry applicable materials used for IKEA production and delivered to IKEA
throughout the reporting period based on invoices. FSC volumes in FTS must be consistent
with volumes sold to IKEA with FSC claims.

Depending on the forestry applicable material type, data shall be inserted as follows:

 For every source of solid wood, veneer, plywood, layer- glued, and industrial bamboo materials
the report shall include sub supplier name and location, volume per each combination of
material type, species, Country and region of origin and compliance status. Sub-regions of
origin shall always be listed for the regions of high risk according to p. 15.8. Manufacturer
name and location shall be declared for plywood and layer- glued material.

 For every source of board materials the sub supplier location, volume per each combination of
board manufacturer, material type, Country of wood origin and compliance status should be
provided. Species and regions of wood origin shall be listed;

 For every source of non-industrial bamboo materials used for IKEA production, the report shall
include bamboo volume (in kg or m3) per each combination of input material types (bamboo
slat, bamboo cane, bamboo skin etc.), bamboo species, sub-suppliers, country, region and
sub-region of origin and compliance status.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
 For every source of rattan materials used for IKEA production, the report shall include rattan
volume (in kg) per each combination of input material types (rattan cane, rattan core, rattan
skin, etc.), rattan species, sub-suppliers, Country, region and sub-region of origin and
compliance status.

 For paper based materials the supplier shall report the quantity of paper (indicated in net
tonnage or in net square meters used in products delivered to IKEA for each combination of
paper quality description, paper grammage, compliance status, sub-supplier, paper mill and/or
paper based covering producer (according to the level of detail described in 15.5). In case the
paper based material is specified in the products Technical Description (TED) material
description the reporting starts with the TED material description. City, Country and Parent
company of the production units should be declared whenever indicated in the WTS reporting
interface.

IF THE IKEA SUPPLIER, SUB SUPPLIER, PAPER MILL AND, WHEN APPLICABLE, PAPER BASED
COVERING PRODUCER IS SITUATED OUTSIDE EU the pulp mill, tree species and origin of wood shall
also be declared.

Proportion of certified input used in the articles delivered to IKEA with the FSC claim during the
reporting period shall be stated together with the CoC certificate code of the source (sub-supplier).

FSC Mix % inputs should always be reported in two rows: one for the FSC CoC certified volume share
and another one for the Controlled Wood share.

Species and origin information for the pre- or post-consumer recycled wood do not need to be
reported. Recycled content in the applicable materials (i.e. board materials and paper) shall be
stated by IKEA suppliers per manufacturer and material type as an average value accumulated over
the reporting period that may cover 4 months, 8 months, or all 12 months of a single financial year.

IKEA supplier shall also match for the relevant materials the default conversion factors in FTS with
the actual ones and introduce a correction if needed.

Suppliers should provide evidences of origin, specie(s), recycled content and copy of FSC material
balance upon request from IKEA to confirm information filled in FTS.

Criteria 15.8. Risk assessment

The IKEA supplier identifies any high risk sources using criteria defined by the
Forestry Section
relevant IKEA Organisation. The identification of high risk sources accompanies
Requirement
each update of origin of forestry applicable materials.

Supplier Actions

Before forestry applicable materials from new sources are purchased, the IKEA supplier needs to
define whether additional verification of compliance with IWAY Must Forestry Minimum Requirements
is needed by classifying the source as High or Low risk following the approach outlined by IKEA in
the Appendix 3. All sources of rattan and non-industrial bamboo are seen as high risk in regards to
compliance with IWAY Must Forestry Minimum Requirements - criterion a), and therefore risk
mitigating actions will be required according to 15.9.
Risk assessment should be documented (in a way making clear what was the assessment date, what
kind of high risk is identified by IKEA supplier, who is the sub-supplier and which Country/region/sub-
region it applies for) and renewed for all ongoing supply chains as soon as the wood origin information
is updated.
In case of FSC Controlled Wood or FSC Chain-of-Custody and Controlled Wood certified inputs
confirmed by the claim, supplier shall perform a risk assessment as well.
The risk identification is based in the origin of forestry applicable materials. Information about regions
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
and sub-regions classified by IKEA as High risk can be found online in the IKEA Wood Tracing System
(WTS) found at https://ikeawoodtracing.net/web/ (access is provided by IKEA local WS&F Specialist).

Whenever the risk level for the regions in a specific Country is not defined by IKEA, an IKEA supplier
needs to demonstrate how alternative sources of information were used to make a decision about
the risks. Such sources may include (but are not limited to) the online resources and risk registers
listed on Appendix 3.

Criteria 15.9. Risk Mitigation

The IKEA supplier applies mitigation actions to any source identified as high
risk, to confirm compliance with IWAY Must Forestry Minimum Requirements
Forestry Section
and according to routines described by the relevant IKEA Organisation.
Requirement
Verification of high risk sources accompanies each update of origin of forestry
applicable materials.

Supplier Actions

The purpose of verification is to define if forestry applicable materials coming from High risk sources
are still acceptable to be used in IKEA production or not.

Receiving wood and/or industrial bamboo under the risk mitigating conditions below or delivering it
to IKEA as MSS automatically changes the risks to negligible for the criteria b,c,d, and e of the IWAY
Must Forestry Minimum Requirements:

1. FSC certified with following claims: FSC 100%, FSC mix 100%, FSC mix credit, FSC recycled
100% (any FSC recycled claim accepted for paper) or FSC recycled credit claimed on the invoice
to the IKEA supplier.
2. 100% recycled forestry applicable materials for non-FSC material with a documented proof
from a sub-supplier.
3. Wood from smallholders engaged in responsible forestry initiatives identified and approved by
IKEA.

More information on the relevant verification procedures are described in the Appendix 4.

An IKEA supplier shall ensure that all identified High risk sources being used for IKEA production are
covered with documented proof of compliance with IWAY Must Forestry Minimum Requirements. If
the compliance cannot be confirmed, refer to 1.9.1 for further actions.
Any new High risk sources shall be verified before the forestry applicable material is actually
purchased for IKEA. Risk verification shall be documented and renewed every time forestry applicable
materials’ origin is updated.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Criteria 15.10. Segregation

The IKEA supplier identifies and physically separates from IKEA production
any applicable material of unknown origin and/ or species, unverified
material or any material from high risk sources which was verified as non-
compliant with IWAY Must Forestry Minimum Requirements, in such a way
that it is possible to track it throughout the entire production process and
ensure that this material is not mixed in IKEA production.
Forestry Section The IKEA supplier has a written routine that describes how other
Requirement unacceptable materials are segregated from IKEA production.
The IKEA supplier with an implemented internal chain of custody identifies
and physically separates other materials which do not qualify as MSS
through the whole production process.
The IKEA supplier with a recognized 3rd party verified chain-of-custody and
only delivering articles claimed to IKEA as FSC can use its internal
segregation procedure to comply with this requirement.

Supplier Actions

Implementation of physical separation requires availability of a written separation procedure

describing the approach, and clearly allocating the responsibilities. The valid approach shall secure
absence of mixing acceptable and unacceptable materials at any stage of the production process.
The most common separation method is called ‘batch’ or ‘lot’ processing. For example, when a lot
of acceptable wood is going through a given processing phase, unacceptable wood cannot be
processed until the previous lot duly identified, documented, and controlled, moves to the next phase
(see Appendix 5 for an example of physical separation procedure).

IWAY Must (1.9.1) requires physical separation throughout the entire production process of any
forestry applicable material which specie(s) and/or origin cannot be demonstrated according to the
level of detail/ resolution required by IKEA or which compliance could not be verified through the
risk mitigation procedures. Use of such wood for IKEA constitutes an IWAY Must violation. Forestry
applicable materials from high risk sources not verified as compliant with IWAY Must Forestry
Minimum Requirements according to 15.8 and 15.9 is potentially non-compliant, and therefore has
to be physically separated from IKEA production as well.

New suppliers or active suppliers starting ranges of products containing wood and/or industrial
bamboo in high risk Countries (which have maximum 12 months to secure 100% MSS) should
maintain written separation procedures already before first delivery to secure that only acceptable
material is used for IKEA production.

IKEA suppliers maintaining internal chain-of-custody shall be able to confirm with documents and
demonstrate in practice the use of only FSC 100%, FSC mix credit, FSC recycled, non-certified 100%
recycled as well as MSS from smallholders in IKEA production and that there is no other forestry
applicable materials being mixed throughout the entire production process.

Suppliers with an IKEA recognized 3rd party verified chain-of-custody and only delivering articles
claimed to IKEA as certified can use their FSC segregation procedure to comply with this requirement.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Appendix 1: Application form for implementing internal chain of

custody system and product Groups included in the scope

Sup No. & Name: Category: _ _

FYXX RWE Volume (m3):

Materials to be used in IKEA production：

Solid wood Plywood

Veneer Layerglued

Bamboo Board materials (PB, MDF,HDF, OSB)

Paper Wood-plastic composite

Materials sourcing (could be one or more from below):

1. FSC supply chain information:

Material type: _
a. Sub-supplier name and CoC code: _
b. Wood/ bamboo origin (Forest Bureau/logging Company) and FM/CoC code:

Material type: _
a. Sub-supplier name and CoC code:
b. Wood/ bamboo origin (Forest Bureau/logging Company) and FM/CoC code:

2. Wood/ bamboo from small landowners engaged in sustainable initiatives with

IKEA:
Material type:
Project name:

3. Is there any forestry applicable material planned to be used for IKEA which is not
FSC CoC certified and is not coming from small landowners’ initiatives with IKEA?
Which one(s)?

Other reasons for not implementing the FSC Chain-of-Custody standard:

 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

 With this letter IKEA approves the supplier to deliver the articles listed in the product group
scope below by implementing the internal chain-of-custody system;

 This letter is valid for 12 months from the date of issuance and can be re-issued after
assessment of the wood sourcing at the end of the validity date. Supplier is responsible for
contacting the local WS&F Specialist before the expiration date requesting a new
assessment;

 In case supplier starts producing new articles or using new sources of raw material not
described in the application approved by IKEA, an updated application should be send for
assessment and approval to the local WS&F Specialist.

 IKEA WS&F Specialist holds the right to remove this confirmation letter based on the audit
results or changes in the sourcing of raw materials.

A signed copy of this letter should be kept on supplier’ file and presented to the auditor during an
IWAY Forestry and/or Wood Supply Chain Audit performed by and/or on behalf of IKEA.

Product Groups included in the scope of internal chain-of-custody

MSS type (FSC 100%,

Product Materials FSC Mix 100%, FSC Mix Conversion Any
NO. credit, FSC Recycled, Species
name type Factor Outsourcing?
IKEA small holder
project, recycled, etc.)
1
2
3
4

PLA WS&F Specialist (name, date, signature)

 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Appendix 2: Template for Communicating IKEA IWAY Must Forestry

Requirements on forestry applicable materials

The Supplier/ Seller (Full Name) confirms to the Buyer (Name) that the delivered forestry raw
material(s) contain the following species and originates from the harvesting areas listed below:

Specie Trade Latin Harvesting Area

Material Type
Name Species
Country Region(s) Sub- Region(s)

The Supplier/ Seller confirms that all forestry applicable materials meet the following conditions:
 Legal status and exact location of logging can be confirmed by the documents. The documents will
be provided by the Seller within 48 hours upon the Buyer’s request.

Solid wood, bamboo cane in industrial applications, composite materials, plywood, layer-glued,
paper-based materials containing wood fiber, and wood-plastic composites meet the following
conditions:
• Not from forestry operations engaged in forest related social conflicts;
• Not from Intact Forest Landscapes (IFL) or other geographically identified High Conservation Value
Forests (HCVF), unless the area is certified by a forest certification system recognized by IKEA;
• Not from natural forests in the tropical and sub-tropical regions being converted to plantations or
non-forest use;
• Not from forests with officially recognized and geographically identified commercial Genetically
Modified (GM) tree and bamboo species.

For all products for IKEA, the Seller undertakes that a material accounting record shall be
established and maintained to ensure that the products delivered are correspondent to the
relevant inputs. The Seller undertakes to inform all own suppliers about the above mentioned
conditions in written and maintain the documented evidence of that. The Seller also
undertakes to inform the Buyer about any changes in species or harvesting geography.

As part of IKEA’s due diligence system to check compliance with the legislation, IKEA reserves
the right to perform audits at IKEA direct suppliers and full audits at selected supply chains
based on the risk assessment. Furthermore, the Seller agrees to be audited by IKEA on wood
origin issues.

Date of signature: Signature of the supplier/Seller: _

 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Appendix 3: Criteria for risk assessment of wood, bamboo and rattan

sources.

Details on how to extract the information from the primary sources can be given by the IKEA
regional WS&F Specialist.

Low risk Primary sources of information

1. All forestry applicable materials not https://ikeawoodtracing.net/web/
falling into one of the high risk categories
below.

High risk Primary sources of information

2. Wood and industrial bamboo from
regions with high risk of illegal sourcing
or harvesting.
All sources of rattan and non-industrial
bamboo are seen as high risk in regards
to compliance with legality requirement.
https://ikeawoodtracing.net/web/ (IKEA List of High
Risk Countries)
http://www.illegal-logging.info/
http://www.transparency.org/
http://www.globalforestregistry.org/map

3. Wood and industrial bamboo from https://ikeawoodtracing.net/web/

regions with identified Intact Forest
Landscapes (IFL) or other geographically
identified High Conservation Value
Forests (HCVF).
4. Wood and industrial bamboo from
regions with forestry related social
conflicts (including Countries with UN
Security Council or EU ban on timber
exports imposed, and Countries
designated as a source of conflict
timber).
5. Wood and industrial bamboo from
natural forests in the tropical and sub-
tropical regions with high rate of
conversion to plantations or non-forest
use.
6. Wood and industrial bamboo from
regions containing officially recognized
and geographically identified commercial
GMO plantations.
http://hcvnetwork.org/ http://forestportal.efi.int/
http://gis-lab.info/projects/ifl2/index.php
http://commodities.globalforestwatch.org
http://www.globalforestregistry.org/map
https://ikeawoodtracing.net/web/
http://pcr.uu.se/research/smartsanctions/spits_sanc
tions_list/
http://eeas.europa.eu/cfsp/sanctions/index_en.htm
http://www.globalforestregistry.org/map
https://ikeawoodtracing.net/web/
http://commodities.globalforestwatch.org/#v=home
http://www.globalforestregistry.org/map
https://ikeawoodtracing.net/web/
http://www.globalforestregistry.org/map

Negligible risk
High Risk sources mitigated through the actions described on Appendix 4.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Appendix 4: Supplier actions to mitigate risks to negligible.

Criteria Supplier Actions

Wood, bamboo and/ or rattan from regions with  Secure that all wood and/or industrial
high risk of illegal sourcing or harvesting in bamboo materials used in IKEA products is
accordance with national and international received under the risk mitigating
legislation. conditions described in 15.1 for suppliers
sourcing from high risk Countries or delivered
to IKEA as MSS; and
 Considering the complexity of the wood,
bamboo and/or rattan supply chain and
specificity of the risk, implement reasonable
and proportional actions to secure the
compliance with the legislation (e.g. collecting
additional documents proving legality, auditing,
etc.)
IKEA WS&F Specialist can request additional
mitigation actions.
Wood and industrial bamboo harvested from Wood and/or industrial bamboo shall be
regions containing Intact Forest Landscapes received under the risk mitigating
(IFL) or other geographically identified High conditions described in 15.9, delivered to
Conservation Value Forests (HCVF) IKEA as MSS, or supplier shall:
Provide evidence that the wood is sourced
outside nationally/regionally recognized and
geographically identified high conservation
value forests or Intact Forest Landscapes
or
Provide evidence that the forest area is FSC
Forest Management (FM) certified and HCVF
identification had taken place.
Wood and industrial bamboo from regions with Wood and/or industrial bamboo shall be
logging operations engaged in significant received under the risk mitigating
social conflicts conditions described in 15.9, delivered to
IKEA as MSS, or supplier shall:
Provide evidence that the wood is sourced
outside the conflict area(s) or not from the
parties involved
or
Provide documented evidence of the process by
which any disputes are being resolved.
No wood sourcing is accepted from the
Countries with UN Security Council ban or
EU sanctions on timber exports imposed.
Wood and industrial bamboo from natural Wood and/or industrial bamboo shall be
forests in the tropical and sub-tropical regions received under the risk mitigating
with high rate of conversion to plantations or conditions described in 15.9, delivered to
non-forest use IKEA as MSS, or supplier shall:
Provide evidence that the logging operation is
not converting the area to plantation or non-
forest use (e.g. forest management plan or
other land use plan).
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
Criteria Supplier Actions

Wood and industrial bamboo harvested from
regions known as containing GMO plantations
Wood and/or industrial bamboo shall be
received under the risk mitigating
conditions described in 15.9, delivered to
IKEA as MSS, or supplier shall:
Provide documentation that the wood is
sourced outside officially recognized genetically
modified tree plantations
or
Provide results of tests of material samples
made by authorized laboratories showing no
GMO.
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard

Appendix 5: Physical Separation Wood/Bamboo/Rattan Processing

Procedure Example

PROCESSING PROCEDURE STEP 1:

Ensuring Wood/Bamboo/Rattan Origin when purchasing Logs or Sawn Timber or Cane

When buying wood for IKEA production, it is essential that all necessary wood origin documentation is
secured. For each purchase of timber, the necessary wood origin documents, which demonstrate the
exact address of the harvest site as well as verify the legality of the harvest, must include the following:

- All invoices of log or sawn timber or cane purchase

- C ontracts
- Customs Declaration Forms
- Forest Police Inspection Reports
- Government Logging Grants and Concessions
- Certificate of Origin

PROCESSING PROCEDURE STEP 2:

Sawmill Cutting Form (for bamboo and rattan read splitting unit in the below text) and Plank
(for bamboo read slat and for rattan skin/core in the below text) Identification

The next step in your processing is to cut the purchased logs into planks or cane into slat/skin/core.

As each plank comes off the log at the sawmill, and after the bark is trimmed from the sides, the
planks need to be stacked carefully in a single location. There needs to be a single worker dedicated
to marking each plank with a plastic tag which has been marked with the “batch number.” The worker
also needs to tally the total volume of the batch on the sawmill cutting form. A batch is defined as a
group of planks, of same species, that all come from the same purchase invoice (wood origin
documents). Any planks of same species, but from different wood origin documents, must have their
own different batch number. No more than one species may be assigned to a single batch number.

Again, each plank needs to be measured for width, tallied on the sawmill cutting form, and then marked
with the plastic tag for identification.

Coded number

The coded number stamped on the tag is the BATCH NUMBER. Batch numbers consist of two
components. The first is a code that can identify the type of wood origin. The second component of
the coded should represent the date in which the batch was processed and the number of the batch.
Every single plank in the entire production facility, including those that have been in storage for some
time, need to be marked with a plank identification tag. All planks being dried in kilns are part of wood
stock and, so, must be marked with batch number. Information about wood in kiln dry are recorded
into “Kiln Dry In/Out Form”. This information is essential for warehouse management and production.

PROCESSING PROCEDURE STEP 3:

Assigning Job Numbers and Developing the Product Job Card

Job Numbers

It is very important that you assign Job Numbers correctly. Job number will be assigned to the Purchase
Order to make sure that one job number is for one item in one Purchase Order of one customer. If the
Purchase Order for one item for one customer is big (in time or capacity), staff must divide that
Purchase Order into some job numbers in the principle of one job number should not last longer than
two months and not be more than 20 of 40 feet containers.

Product Job Card

 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
A product job card needs to be made once, for each job number that your factory is processing. This
card is used to calculate how much wood is planned for fulfillment of a job according to expected waste
percentage. The card can also be used to record actual waste percentages during production. Thereafter,
the planned and actual quantifications can be compared in order to further refine expected waste
percentage figures. If another new job number has the same product, then only some data need to be
changed so that you have a new Job Card

PROCESSING PROCEDURE STEP 4:

Material Request and Issue

The next step in managing your Processing Procedure system is to make a material request based on
the total amount of material, in appropriate thickness that is needed for the Job being processed. In
order to request material from the dry timber storage, the production manager/planner should fill out
a material request form and issue to the timber storage manager.

PROCESSING PROCEDURE STEP 5:

Preliminary Pallet Note

Once the wooden plank/rattan/bamboo material enters the production facility, all wood must be kept
on pallets or similar and each pallet labeled with a pallet note. The first step in processing is to cut the
planks to length. For this step in processing, Preliminary Pallet Note is used. The function of preliminary
pallet note is to identify and register the content of a pallet.

PROCESSING PROCEDURE STEP 6:

Tracking through Processing Steps, Processing Step Pallet Note

Processing Step Pallet Note needs to be used for all material. Since all pieces of wood/bamboo/rattan
need to be kept on pallets, Processing Step Pallet Note is used to identify each pallet. It is important
for each machine station (or bamboo/rattan weaver) to have two pallets. When starting the processing
step, all material should be on the original pallet (pre-processed material) with the Processing Step
Pallet Note. The second pallet should be empty. The worker should process each piece of item, moving
them to the second pallet until all pieces from the original pallet have been processed and the original
pallet is empty. The pallet note should then be moved to the second (post processed piece) pallet and
appropriate notations made on the note denoting whether any pieces were rejected or not. The total
number of pieces, post- processing should be recorded as well as total number rejected.

PROCESSING PROCEDURE STEP 7:

Assembly Tracking

After all items have been thoroughly processed, they await assembly. In order to keep track of wood
material entering the assembly area, the Assembly Note is used. The Assembly Note lists all items
required for a certain product and provides space for the workers to list the total number of pieces of
each item brought into the well-marked Assembly Area for use in assembly of the final product. The
note also allows for keeping track of the total amount of product or parts assembled.

PROCESSING PROCEDURE STEP 8:

Post-Assembly Tracking

Finishing Pallet Note is used to identify the contents of a pallet which contains either
assembled products or parts of finished product.

PROCESSING PROCEDURE STEP 9:

Tracking Shipped Container(s) of Job Numbers

At the delivery day, the packed products are loaded in containers for shipment. Job numbers that
 Supplier Forestry Implementation Guidance to
the Forestry Section Ed. 5.4 of IWAY Standard
have shipped products are recorded for IKEA’s Inspection.

PROCESSING PROCEDURE STEP 10:

Timber and Rejected/Surplus Items, Parts, Products

After finishing a job number, the data of all wood items, parts or products which were rejected and
thus called “reduction,” must be collected. Such data includes: volume of planks remaining after
cutting, number of items, parts, and finish products.