Circularity impacts every aspect of IKEA’s operations – from designing products with circular capabilities and responsibly sourcing materials to redefining how they engage with customers and beyond. IKEA is committed to reducing reliance on virgin resources, driven not only by environmental considerations but also by the need to build a resilient supply chain. This approach helps lower long-term costs, ensuring affordability for future generations while securing the availability of secondary raw materials. A standout example is IKEA’s commitment to more sustainable mattress production. With annual sales exceeding 12.4 million units, the company recognizes both its responsibility and its opportunity to innovate in mattress design and end-of-life disposal. Guided by IKEA’s circular design principles, the company is redesigning mattresses to facilitate recycling and aims to integrate at least 20% recycled polyurethane foam by 2025. To strengthen its recycling capabilities and secure access to secondary raw materials, IKEA has invested as a minority stakeholder in RetourMatras. In 2023, RetourMatras dismantled over 1 million mattresses, preventing more than 76 million kilograms of CO2 emissions compared to incineration. This initiative also recovered approximately 16 million kilograms of materials for reuse, effectively replacing fossil-based alternatives. This systemic approach not only mitigates the risk of resource scarcity and allows IKEA to adapt to evolving regulations but also drives growth and differentiation, solidifying IKEA’s position as a leader in the competitive marketplace. Source: IKEA. (n.d.). A circular IKEA – making the things we love last longer; consultations with IKEA.CASE STUDY IKEA’s circular vision – building a resilient supply chain Despite increased investment and efforts to embed resilience into strategic planning, many companies still perceive significant gaps in their ability to effectively navigate uncertainties and emerging threats. The following section delves into the current state of resilience preparedness, examining where companies stand in their resilience journeys and identifying opportunities to strengthen their resilience leadership capabilities.As the stakes for both the public and private sectors continue to rise, organizations need to shift their focus towards managing investment risks with greater precision and foresight. This involves a careful reassessment of assumptions to ensure their accuracy, and a closer examination of decision- making processes to gauge long-term impacts. Granularity, stage-gate processes (or phased review processes) and adaptability are emerging as key approaches in this shift. Granularity enables organizations to break down complex strategies into smaller, more manageable parts, providing a clearer view of risks and opportunities. Stage-gate processes facilitate periodic evaluations at key decision points (enabling decision-makers to evaluate investments against criteria and decide whether to proceed, adjust or stop), ensuring flexibility and minimizing exposure to unforeseen risks. Adaptability, meanwhile, ensures that companies remain agile and can pivot their strategies in response to evolving market conditions or disruptions. By integrating these methods, organizations can not only mitigate risks more effectively but also position themselves for sustainable growth in an increasingly uncertain world.Resilience should not be treated as an isolated concern – rather, it needs to become a core component of long-term strategic thinking. In practice, however, this is the exception rather than the norm today. According to the survey, resilience- related KPIs are only partially integrated into strategy for 55% of companies, and nearly 20% of respondents do not integrate them at all. This lack of strategic alignment suggests that resilience is still being treated as a secondary concern rather than a core business priority. Despite resilience being frequently treated as a secondary concern, some companies stand out as exemplary models prioritizing future-proofing by actively embedding resilience into their broader strategies. These companies prioritize a proactive, offensive approach over reactive, defensive measures. IKEA exemplifies this by continually incorporating sustainability into its strategic vision as a core enabler of resilience (rather than treating it as a separate, standalone objective). 1.3 Making resilience a core component of long term strategic thinking Resilience Pulse Check: Harnessing Collaboration to Navigate a Volatile World 8

Resilience Pulse Check 2025