13 Social respect and environmental responsibility are key principles for Ferrero. How is this reflected in your choice of suppliers? Ferrero’s fundamental principles relating to sourcing from suppliers are excellence in raw materials quality and compliance with the internationally recognized social, ethical and environmental standards. We believe that sustaining longterm and trust-based relationships with suppliers are keys to drive continuous improvement towards sustainable supply chains and high quality raw materials sourcing. AAK is one of Ferrero’s important long-term suppliers with a long history of mutual respect and shared common objectives of responsible sourcing. Being an integral partner towards sustainable sourcing, AAK endeavours to adhere to the stringent requirements of our Ferrero Codes of Business Conduct and Code of Ethics, and to promote the shared values in advancing Ferrero’s sustainable supply chain commitments. AAK has committed to partner with Ferrero in meeting the Ferrero Palm Oil Charter. What does that mean? Moving beyond certification, Ferrero launched a Palm Oil Charter in 2013 to strengthen the commitment to responsible sourcing of palm oil. The Charter has ten specific criteria to address the leading causes of deforestation and to create a balance between the conservation of the environment, community needs and economic benefit and viability. Ferrero has agreed with suppliers, including AAK, to meet the targets of the Charter. To achieve sustainable supply chains becomes extremely challenging when a single actor takes on the journey alone, which is why it is inevitable to work closely together with suppliers to ensure continuous progress. As one of Ferrero’s major long-term suppliers, AAK was among the very first suppliers to support Ferrero in achieving our objective of reaching 100 percent sustainable and segregated RSPO palm oil by the end of 2014. AAK is also one of our key partners in supporting the implementation of the Ferrero Palm Oil Charter and ensuring ‘No deforestation – No peatland – No exploitation’ palm oil in our products. AAK rewarded with Sustainable Ingredient Award Lipex SheaLight from AAK Personal Care was named best Sustainable Ingredient at the Sustainable Beauty Awards held in Paris in November 2014. The Sustainable Beauty Awards highlight those who are at the forefront when it comes to sustainability in the beauty industry. The Sustainable Ingredient Award goes to a cosmetic ingredient that makes a significant difference in terms of environmental and/ or social footprint. As the winner, Lipex SheaLight from AAK Personal Care meets both requirements. Lipex SheaLight is made using shea butter and ethanol from renewable sources, environmentally acceptable catalysts and low energy processes – all to minimize environmental impact. Since shea is a non-cultivated, wild crop there is no land use consumption in its production. The manual harvesting reduces the use of fossil fuels, and provides needed income to the rural women who perform the harvest in West Africa. Third party certification of AAK production plants 91 percent of AAK plants are certified to one or more internationally recognized food safety standards (FSSC 22000/ISO 22000/BRC) 90 percent of sites handling palm oil have RSPO Supply Chain Certification. 100 percent certified expected in mid-2015 63 percent of sites are quality management certified according to ISO 9001 45 percent of sites are environmentally certified according to ISO 14001 In addition, various production plants are also certified according to other standards such as national energy standards, the KRAV organic standard, feed safety, health and safety, Halal and Kosher production. ” Mutual respect and shared objectives of responsible sourcing
AAK - Sustainability Report 2014/2015
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