CEO Arne Frank: Responsible growth the foundation for future success AAK Responsible growth | 1 On behalf of the entire AAK family, I would OLNHWRZHOFRPH\RXWRWKH$$.6XVWDLQ- DELOLW\UHSRUW7KLVLVRXU¿IWK report and with it, we aim to present our FRUSRUDWHVRFLDOUHVSRQVLELOLW\&65RE- MHFWLYHVDFWLYLWLHVDQGDFKLHYHPHQWVLQD transparent way. 2XUYLVLRQDW$$.LVWREHRXUFXVWRPHUV¶¿UVW choice for value-added vegetable fats solutions. In order to achieve this vision, we have put forth a company program, AAKtion, to guide us. The execution of AAKtion is built upon our model for responsible growth. For us, responsible growth is about acting responsibly towards all of our key stakeholders – investors, global and local customers, suppliers, employees and the local communities in which we operate. A continuously growing population puts pressure on natural resources, climate change and a growing demand for food. To manage these challenges, it is critical that we utilize our resources optimally and see responsible behavior as both our shared and individual responsibility. To guide and to drive our responsible behavior as a business and as an organization, we have developed a Responsible growth model. To GULYHSURJUHVVZHIRFXVRXUHIIRUWVZLWKLQ¿YH DUHDV0DUNHWSODFH6XSSO\FKDLQ(QYLURQPHQW Workplace and Community. We continuously set and achieve ambitious objectives within each of these areas based on both internal and external performance benchmarking, best practice sharing and a highly engaged global organization. Trusted supplier Analyses of our business clearly indicate that food safety is a top concern for our customers and their stakeholders. This conforms to our own assessments. AAK production sites are IRRGVDIHW\DXGLWHGDQGFHUWL¿HGLQDFFRUGDQFH with one or more internationally recognized food safety standards. Our 2012 acquisition of Oasis Foods Company in New Jersey is undergoing WKLVSURFHVVDQGZLOOEHIRRGVDIHW\FHUWL¿HG during 2014. Ethical supply is another key priority for both our customers and ourselves and we share our ethical information and ethical audit reports through the Sedex platform. 6XVWDLQDEOHVRXUFLQJ We continue to increase our focus on social and environmental issues in the supply chain. Over the last two years, we have focused on implementing our Supplier Code of Conduct addressing labour and human rights, environment and anti-corruption. Today, virtually all of our raw material suppliers have approved and signed our code. In West Africa we persistently work toward DPRUHVXVWDLQDEOHDQGHI¿FLHQWVXSSO\FKDLQ EHQH¿WWLQJERWK$$.DQGWKHKXQGUHGVRIWKRX- sands of women who collect shea kernels. Our special Kolo Nafaso project, which focuses on support, training and trading directly with the women, continues to progress. Our objective of enrolling at least 30,000 women in 2013 was exceeded by more than 20 percent. We will continue to progress and enroll more women in 2014. We fully support and continue to be very engaged in the Roundtable on Sustainable Palm 2LO5632:HDOVRFRQWLQXHRXUHQJDJHPHQW in GreenPalm, the simplest way to get involved and an excellent tool to ensure support to independent smallholders. However, the RSPO requirements have been widely criticized for not effectively addressing CO2 emissions caused by deforestation and plantation development on peatlands. AAK shares this view and as a consequence we have adjusted our palm oil policy to also include requirements for no deforestation and no development on peatlands. 5HVRXUFHHI¿FLHQF\ 2XUFRQWLQXHGIRFXVRQUHVRXUFHHI¿FLHQF\SURG uced impressive results during 2013. Despite a focus on shifting our product portfolio to more re- ¿QHGSURGXFWVWKDWLQJHQHUDOZLOOUHTXLUHPRUH resources per produced unit, we have managed WRDFKLHYHYHU\VLJQL¿FDQWLPSURYHPHQWVIRU PDQ\NH\HI¿FLHQF\SDUDPHWHUV(QHUJ\DQG water consumption, water discharge and CO2 emissions all fell to between 10–18 percent per produced unit, achievements delivered by a very dedicated and highly responsible global operations organization. This is, of course, something we are very proud to share with you. 6DIHW\DQGHGXFDWLRQDUHNH\ Our relentless pursuit to create a safer workplace and our work towards a zero injuries workplace also paid off during 2013. Our global safety teams meet regularly to share best practice, to UH¿QHVDIHW\VWDQGDUGVDQGWRGRRQVLWHVDIHW\ audits at each other’s sites. These efforts have resulted in a 14 percent reduction of our global Lost Time Injury Rate at our production sites, dropping from 1.4 to 1.2. The negative impact of corruption is gaining more and more attention globally, both from stakeholders and from tightened legislation. %XVLQHVVHVDOORYHUWKHZRUOGDUHHSRVHGWR corruption risks on a daily basis. We are already addressing anti-corruption in our Code of Conduct, our Supplier Code of Conduct as well as in our Code of Conduct for our Agents and Distributors. We have now decided to raise the bar by launching an anti-corruption e-learning program for our employees in order to increase their awareness of corruption and to give them knowledge about how to deal with it. /RFDOHQJDJHPHQW As a global company, AAK contributes to the development of the local communities in which we operate by creating jobs, paying taxes and doing business with local enterprises. In addition, we endeavour to be a good corporate citizen by taking issues such as health and safety, diversity, labour standards and our environmental impact seriously. However, we realize that there are a variety of different ways to further engage actively with the local communities in which we are situated. I am pleased to see the many ways in which our employees truly engage with their local communities. The initiatives presented in this report are only a fraction of those implemented by our employees. New AAK family members When welcoming new employees and partners to the AAK family through acquisitions, our Responsible growth model is used to align business practices to ensure continued responsible growth. Although new members might bring valuable inspiration to our dynamic model, we do need an overall global consistency and a global alignment to the AAK way of responsible growth. )XWXUHVXFFHVV We are proud to share with you, in this Sustain- DELOLW\5HSRUWRXUVLJQL¿FDQWSURJUHVVDFURVVDOO RIRXU¿YHIRFXVDUHDV2XUIXWXUHSHUIRUPDQFH and the development of our business and or - ganization, continue to be based upon our Responsible growth model. Simply because we see it as the foundation for our future success. Simply because responsible growth is our way of doing business. Arne Frank CEO
AAK - Sustainability report 2013/2014
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