Generally, IKEA will conduct IKEA factory inspections on suppliers before their first shipment. IKEA factory inspections adopt IWAY (IKEA Way Of Purchasing) implementation standards. The IWAY standard covers IKEA's minimum requirements in the following three areas: external environment, social responsibility and working conditions (including child labor), and wooden products.

Teaching requirements: IKEA should impart the IWAY standard to IKEA’s suppliers. Suppliers should effectively teach the contents of IWAY standards to their employees and downstream suppliers, and ensure that they correctly implement all requirements.

Start-up requirements: Potential IKEA suppliers, before establishing a business relationship with IKEA, must fulfill these start-up requirements: no forced or bonded labor, no child labor and no use of materials from virgin forests or high-level protected areas. Forest wood. Suppliers of solid wood, veneer panels, plywood and multi-layer plywood to IKEA must ensure the implementation of a complete forest tracking system document.

IKEA factory audit: IKEA should use IWAY audit standards as a prerequisite for selecting suppliers. IKEA suppliers should support IKEA factory audits by IKEA internal auditors or auditors from independent audit institutions recognized by IKEA. IKEA reserves the right to conduct unannounced IKEA factory inspections to verify the implementation of IWAY standards. IKEA suppliers should allow auditors to conduct separate interviews and investigations with their employees, and should retain and provide all required documents and records to auditors. All non-conformities found during the IKEA factory inspection will be included in the IKEA factory inspection report and submitted to the supplier.

Corrective measures: If any non-compliance is found during the IKEA factory inspection, IKEA will require the supplier to provide a detailed improvement plan. The improvement plan must be submitted to IKEA within one month after the IKEA factory inspection. The plan must include how the nonconformity will be corrected, who will be responsible, and the timeline. IKEA will evaluate and approve improvement plans from suppliers.

Pass IKEA factory audit: IKEA will follow up and investigate and confirm whether the supplier has completed necessary corrective actions in accordance with the improvement plan and timetable that has been audited by IKEA. When all non-conformities are corrected and the supplier passes the IKEA factory inspection, the supplier is deemed to have met the IWAY standards.

Suppliers must sign an agreement with IKEA and commit to continuous improvement. IKEA will conduct re-factory inspections at least every two years to ensure that IKEA suppliers maintain IWAY compliance status.