crease on the previous year’s volume. Coupled with the volume growth, we see that premiums SDLGIRU3.2FHUWL¿FDWHVURVHGUDPDWLFDOO\GXU- LQJ3.2FHUWL¿FDWHSUHPLXPVWRSSHGDW FHUWL¿FDWH 3.2FHUWL¿FDWHWUDGHVKDYHFRQWULEXWHGWR VLJQL¿FDQWUHZDUGVEHLQJUHWXUQHGWR5632 FHUWL¿HGJURZHUV$WWKHHQGRIDWRWDORI $52 million had been paid to growers through GreenPalm versus $33 million at the end of 2012. Bob Norman General Manager GreenPalm AAK’s policy is to ensure traceability in our palm oil supply chains. Our short-term objective is to achieve traceability to mill by the end of 2014, and traceability to plantation level by the end of 2017, as the basis for assuring supplier compliance with this and related policies. Our selection and approval criteria for palm oil suppliers is based on RSPO membership, our Supplier Code of Conduct and our general questionnaire and requirements relating to Quality Management, Food Safety, Environment, Social and other issues. We conduct audits of our suppliers and their supply chains regularly, also with external third party auditors. This policy applies to all palm oil origins. However, because Indonesia and East Malaysia are the focus of current industry sustainability concerns about deforestation and the destruction of peatland, AAK is prioritizing its efforts through traceability analysis and additional supplier audits when sourcing from Indonesia and East Malaysia. This is to assure that no sourcing is made from plantations or companies originating palm oil from areas that are not consistent with our commitments in this policy. If AAK becomes aware of a supplier violating or breaching AAK’s Supplier Code of Conduct or these policy commitments, AAK will take appropriate action to investigate the issue and seek to work with the supplier to resolve it. If no adequate resolution can be found, AAK will terminate commercial relations with the supplier. As a minimum, AAK will publicly communicate progress relating to implementation of this and related policies in its annual Corporate Social Responsibility report. Yours faithfully $$.$%SXEO AAK Responsible growth | 17 GreenPalm – supporting independent smallholders 5632FHUWL¿HGJURXSVRILQGHSHQGHQWVPDOO- holders from Indonesia and Malaysia have MRLQHG7KDLODQGLQVHOOLQJWKHLUFHUWL¿HGSURGXF- WLRQYLD*UHHQ3DOPFHUWL¿FDWHVGXULQJ %X\HUVKDYHEHHQDEOHWRUHZDUGWKHJURXSV ZKRDFKLHYHG5632FHUWL¿FDWLRQGLUHFWO\ WKURXJKWKH2II0DUNHW'HDOIDFLOLW\20' RIIHUHGE\*UHHQ3DOP20'VDOORZVSHFL¿F EX\HUVWRGLUHFWO\VXSSRUWVSHFL¿FVHOOHUVRI FHUWL¿FDWHVDQGLQGRLQJVRDGGDOHYHORI traceability to the claims or statements they can make. The OMD facility is available to any Green- Palm member who wishes to know which RSPO FHUWL¿HGSURGXFHUWKH\DUHVXSSRUWLQJ 7KHYROXPHVWUDGHGIRU¿QLVKHGDW PLOOLRQFHUWL¿FDWHV$VLJQL¿FDQWLQFUHDVH LQYROXPHZDVVHHQLQ3.2FHUWL¿FDWHV±DS- proximately 519,000 represents a 40 percent in- “ “ AAK sustainable palm oil commitments AAK’s Sustainable palm oil policy has been GHYHORSHGVLJQL¿FDQWO\RYHUWKHSDVW\HDU with contributions from various stakeholders. In a dynamic environment, commitments from customers and suppliers relating to sustainable palm oil have seen parallel development. AAK’s policy is consistent with a wider market move, and puts AAK at the forefront of palm sustainability. $$.¶VSROLF\LVIRXQGHGRQWKHIROORZLQJSLOODUV support for the Roundtable on 6XVWDLQDEOH3DOP2LO5632 traceability no deforestation no development of peatland IUHHSULRUDQGLQIRUPHGFRQVHQW)3,& $$.KDVFOHDUGH¿QLWLRQVIRUWUDFHDELOLW\SHDW- land development and FPIC. For deforesta- WLRQDQG)3,&ZHUHO\RQ5632GH¿QLWLRQV VXSSOHPHQWLQJWKH+LJK&RQVHUYDWLRQ9DOXH +&95632GH¿QLWLRQXVHGIRUGHIRUHVWDWLRQ ZLWK+LJK&DUERQ6WRFN+&6EXWPLQGIXOWKDW WKHUHLVDV\HWQRFRPPRQLQGXVWU\GH¿QLWLRQ of HCS. Until a common framework has been developed, AAK will apply the HCS framework DQGLGHQWL¿FDWLRQWRROWKDWKDYHEHHQGHYHORSHG by Greenpeace and others. AAK’s policy is to communicate progress as a minimum annually in our Corporate Social Responsibility report. We seek constantly to improve our policy as further issues and demands emerge, at the same time being mindful that practical application is at least as important DV¿QHZRUGV $$.$%SXEO Jungmansgatan 12 SE-211 19 Malmö Sweden Phone +46 454 820 00 info@aak.com www.aak.com 5HJLVWHUHGRI¿FH0DOP| Company no. 556669-2850 SE556669285001 A company in the AAK Group Arne Frank, President and CEO June 2014 AAK Group Policy: Sustainable palm oil Sustainable sourcing of raw materials is part of the backbone of our strategy. Raw material sourcing is also an area in which we want to make a clear difference to the environment and to the local communities where the raw materials are grown and harvested. Just as it is vital for us to obtain the right raw materials, we place equal emphasis on sustainable growing and procurement. Our Supplier Code of Conduct includes a requirement for all raw material suppliers and their supply chains to adhere to fundamental UN Global Compact principles of labour and human rights, environmental protection and anti-corruption and to national laws in the country in which the supplier conducts its activities. AAK recognizes that palm oil is the world’s highest volume vegetable oil with around 32 percent of JOREDOVXSSO\3DOPRLOLVDOVRWKHPRVWHI¿FLHQWYHJHWDEOHRLOZLWKDSURGXFWLRQYROXPHSHUKHFWDUH almost six times greater than the volume produced per hectare for rapeseed, and ten times greater than for soy. Hence it is a critical raw material in feeding an ever-growing global population. Therefore, producing palm oil sustainably is of utmost importance to all of us. AAK is committed to our role in supporting the move toward full sustainability in the palm oil industry. 6SHFL¿FDOO\$$.PDNHVWKHIROORZLQJFRPPLWPHQWV AAK is a founding member of RSPO, the Roundtable on Sustainable Palm Oil. We continue WREHYHU\HQJDJHGLQWKH5632DQGLWV%RDUG$$.UHFRJQLHV5632FHUWL¿FDWLRQDVWKH only established and stable systematic organization and standard for sustainable palm oil. RSPO is not perfect. However, it is important to have one well-established and recognized system rather than a series of individual systems and organizations, which add complexity and might prevent progress toward a fully sustainable palm oil supply chain. AAK is com- PLWWHGWRLQFUHDVLQJWKHYROXPHRI5632FHUWL¿HGUDZPDWHULDOWKDWLWSXUFKDVHVZLWKWKH XOWLPDWHREMHFWLYHRIDFKLHYLQJ5632FHUWL¿FDWLRQIRUDOOSDOPRLOSXUFKDVHG We also see a need for further progress toward full sustainability in the palm oil supply chain, EH\RQGWKHFXUUHQW5632FHUWL¿FDWLRQUHTXLUHPHQWV$$.LVWKHUHIRUHDOVRFRPPLWWHGWR sourcing palm oil that has been produced without deforestation¹ or the destruction of peatland ², and where plantation development only takes place with the free, prior and informed FRQVHQW)3,&RIDQ\DIIHFWHGORFDOFRPPXQLWLHV ï'H¿QHGDVQRFRQYHUVLRQRI+LJK&RQVHUYDWLRQ9DOXHV+&9VRU+LJK&DUERQ6WRFN+&6IRUHVW $$.$%SXEO Jungmansgatan 12 SE-211 19 Malmö Sweden Phone +46 454 820 00 info@aak.com www.aak.com 5HJLVWHUHGRI¿FH0DOP| Company no. 556669-2850 SE556669285001 A company in the AAK Group ² Of any depth The Group Policy on Sustainable palm oil is available on www.aak.com.
AAK - Sustainability report 2013/2014
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