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AAK - Sustainability report 2013/2014

Supplier management – a global approved process In addition to palm oil, shea and rapeseed, $$.SURFHVVHVDUDQJHRIRWKHUUDZPDWHUL- als. While AAK’s engagement in palm oil DQGVKHDLVHYLGHQWWKHZRUNWRHQKDQFH VXVWDLQDELOLW\DVSHFWVFRYHUVDOOWKHUDZ PDWHULDOVLQWKHFRPSDQ\¶VVXSSO\FKDLQ Until 2010, AAK operated two different supplier approval practices. Since then the company has been working toward integrating them into one common practice, based on quality, food safety, environmental and ethical requirements. 14 | AAK Responsible growth Today, AAK’s supplier approved process is globally based on the same principles. The Supplier Code of Conduct is a fundamental tool for assessing suppliers. In this context, AAK has decided to work within its sphere of LQÀXHQFHLHWRIRFXVRQWKRVHZKRP$$. KDVWKHEHVWFKDQFHRILQÀXHQFLQJ±$$.¶V direct raw materials suppliers. Still, by urging VXSSOLHUVWRSRVLWLYHO\LQÀXHQFHWKHLUVXSSOLHUV AAK aims to broaden the company’s sphere RILQÀXHQFHDQGLQVSLUHRWKHUSOD\HUVLQWKH supply chain to act responsibly. Continuous work toward an ethical supply chain AAK’s raw materials are derived from renewable sources that originate in a large number of countries around the world and we are very conscious of our obligation to source raw materials in a responsible and sustainable way. As a leading supplier of high value-added vegetable oil solutions we take a holistic approach to ethical sourcing of our raw materials and continue to increase our focus on social and environmental issues in the supply chain. Our approach includes responsible purchasing practices, community development programs, economic, social and environmental standards for suppliers and engagement with industry collaborations as well as a strong focus on work safety, child labour and regulatory requirements. We use our AAK Supplier Code of Conduct to secure commitment and ensure compliance with our customers’ and our own demands. 6RXUFLQJZLWKPLQLPDOLPSDFW We are committed to reduce our carbon footprint, also in our sourcing activities and we seek to optimize our logistics and supply chains in a way that impacts our carbon footprint as little as possible for all of our sourcing needs. We aim to keep sourcing all raw materials with minimal impact, for example rapeseed for our local requirements as close to our crushing in Sweden as possible, this in order to reduce our carbon footprint. The increased interest and commitment from women’s groups toward our West African shea project, Kolo Nafaso, assure AAK that the approach and work toward a streamlined and transparent supply chain is successful. Growth in the agricultural sector in Africa has a crucial role to play in improving the incomes of people. Torben Friis Lange President ACM and Sourcing & Trading Technology must be balanced with long-term views of sustainable practices that are good for the health of people and land and we are fully committed to persistently work toward a PRUHVXVWDLQDEOHDQGHI¿FLHQWVXSSO\FKDLQ EHQH¿WWLQJERWK$$.DQGDOOWKHZRPHQFRO- lecting shea kernels and their families. Our Kolo Nafaso project in Africa is audited by a third party auditor, something we could extend to other sourcing activities as well. We continue to be fully committed and engaged with RSPO, however we have seen the need for further progress toward full sustainability in the palm oil supply chain, beyond the FXUUHQW5632FHUWL¿FDWLRQUHTXLUHPHQWVDQG the AAK Sustainable palm oil policy has been updated accordingly. &RPPLWPHQWWRQRGHIRUHVWDWLRQ We have additionally partnered with Proforest who will support AAK in delivering on our commitment to no deforestation in our palm oil supply chain. Our sustainable palm oil policy will continue to be developed based upon our dialogue with our key stakeholders and the development in the sustainable palm oil market. ,QWKHSDVW\HDUVZHKDYHEHHQDEOHWRLQÀX- ence and change our key sourcing activities to an extent that meets our customers’ expectations, but we recognize that we have to do much more and continuously focus on improving our supply chain, from security of supply and consistent quality to sustainability and ethical practices. We will continue to build our sourcing operations based on social and ethical norms and always with respect for people involved in our operation and supply. “ “


AAK - Sustainability report 2013/2014
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