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AAK - Sustainability report 2013/2014

Partner for responsible sourcing of palm oil “ 18 | AAK Responsible growth Sustainability is a dynamic objective An additional key contribution to our understanding with our key stakeholders covering investors, suppliers, customers, partners and NGOs. Their knowledge and opinions have been very valuable in the on-going development of our sustainable palm oil policy and will continue to be an important source for our future development Sustainability through teamwork 6LQFH0D\$$.KDVSDUWQHUHGZLWK Proforest in the implementation of AAK’s UHVSRQVLEOHVRXUFLQJREMHFWLYHVIRUSDOP RLO3URIRUHVWLVDQLQWHUQDWLRQDOO\UHFRJ- QLHGLQGHSHQGHQWRUJDQLDWLRQGHOLYHULQJ VXVWDLQDEOHQDWXUDOUHVRXUFHPDQDJHPHQW Proforest was established in 2000 and works alongside producers, industry, governments, NGOs and communities to help them understand and address their sustainability challenges, bridge their differences and arrive at effective, integrated solutions. Proforest operates WKURXJKIRXUUHJLRQDORI¿FHVORFDWHGLQWKH8. 0DOD\VLD%UDLODQG*KDQDDQGVSHFLDOLHVLQ the agricultural and forestry sectors. Proforest has been working in the palm oil sector since 2004, focusing on both long-term programs to improve the sustainability of the sector, and working with corporate partners at both producer level and downstream with processors, consumer goods producers and retailers. Proforest has also provided technical support to the RSPO since its inception. More VSHFL¿FDOO\3URIRUHVW¶VFRQVXOWDQF\VXSSRUWLQ the palm oil sector includes helping with policy development, working with growers and producers to assist them in meeting sustainability requirements, and long-term programs to work toward responsible sourcing objectives. ,PSOHPHQWLQJWKHSDOPRLOSROLF\ Proforest’s consultancy reputation is built on a combination of technical strength and a practical approach, and these are the factors that will characterize the support for AAK, as they continue their program for the responsible sourcing of palm oil. The scope of the partnership will cover a range of activities to support implementation of the responsible palm oil VRXUFLQJSROLF\LQFOXGLQJJHQHUDOVWUDWHJLF DQGSROLF\OHYHODVVLVWDQFHKHOSLQJ$$.WR ensure that the Group’s targets for traceability DUHDFKLHYHGDQGLPSOHPHQWDWLRQRID risk-based program of supplier assessments. Neil Judd Director Proforest “ We continue to get an even better understanding of how we can ensure sustainability of our activities, including responsible sourcing of palm oil. To continuously build this understanding, we monitor the development in the global palm oil supply chain from plantation to consumer. To ensure that we are well prepared to meet the needs of our customers, we monitor the situation at our suppliers, our competitors and our customers, as well as the retailers’ and the consumers’ situation and proactively manage our supply base. Developing our policy and putting it into action has been driven through a cross-functional and cross-border cooperation. In 2013 we established a Palm Sustainability Task Force with members of the functions being key to ensure the sustainability of our palm oil. The objective of this task force is to develop our policy, to ensure delivery upon our commitments in our policy and to stay ahead of the market needs. The task force has members from Sourcing & Trading, Operations, Sales & Marketing and CSR and they meet frequently. Recently our external partner Proforest joined the task force. Our global Sourcing & Trading team is playing a key role in delivery on our policy commitments. The team has been working proactively with our global supply base for palm oil. This is to ensure that all of our suppliers understand is the continuing engagement within the area. our commitments and the requirements they need to meet in order to continue to be part of our supply chain. Our global Operations team has ensured WKDWDOORXUVLWHVDUH5632FHUWL¿HGDQGPDQ- age our supply on a daily basis according to market needs. Further in 2013 we established a Sustainable Palm Oil Champions network with the objective to ensure that we track and adjust to trends in the local markets globally, that our sales people everywhere are well aware of our sustainable palm oil solutions for our customers, and that they share best practices from more developed sustainable palm oil markets with less developed ones. The network has members from all of our sales regions around the world and they meet on a monthly basis.


AAK - Sustainability report 2013/2014
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