Market Response to Changing Legislation Case Study IKEA and Lacey Act

The World Resources Institute

Forest Legality Alliance

Adam Grant – Senior Associate

WRI

Presentation Outline

• WRI’s The Forest Legality Alliance (FLA)

• Summary FLA’s Market Support Tools for Legality

• Case Study – IKEA’s response to the Lacey Act

WRI’s Forest Legality Alliance

• Launched in June 2010

• Secretariat (WRI, EIA &

USAID)

• Membership Partners: any

organization or business

with a stake in having or

providing information to

support legal forest product

supply chains

The Advisory Board

FLA Context : Changing Market Needs

• Move from voluntary to mandatory: the need to mainstream

legality and risk considerations

• Information gaps on demand and supply sides exist

• A need to change and adapt to legislation – the Lacey Act

and EUTR

• Access to ALL information is key

• SMEs need support

The Forest Legality Alliance

• Build awareness of forest legality issues and

support supply chain efforts to deliver legal wood

and paper products

• Develop tools to help all parts of supply chains

• Conduct feasibility demonstration studies

Launched this week - forestlegality.org

Market Responses to the Lacey Act

IKEA’s response to the Lacey Act: Due care systems for composite materials in

China

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Fresh Wood Raw Material Usage FY2010

IKEA FY11 Key Figures

World Resources Institute

IKEA FY11 Key Figures Solid Wood and Board material

• 371 suppliers

• 130 of them have FSC CoC certificates (75 in FY10)

• 3234 sub-suppliers

• 27 wood species

• 51 countries of origin

IKEA Composite Raw Material Sources in China

IKEA Internal Tracking Software Systems

FTS

WTS

World Resources Institute

Role of Independant Certification

IKEA outsources

auditing and control

to a third party for

reasons of

credibility, cost and

competence

It is normally not possible or

meaningful to trace individual

products back to the forest

However.....

IKEAS Proposed Risk Assessment Approach

Lacey Act Declaration Form–IKEA Connect System

The World Resources Institute Forest Legality Alliance

www.forestlegality.org

Thank You

Adam Grant – agrant@wri.org