In 2016, implementation of the Sustainable Palm Oil Policy is building upon the program of work that was rolled out last year. In practice, the implementation progress during this year has involved a series of connected stages: 23 Review of implementation progress Implementation of the sustainable palm oil policy – driving actual change on the ground with suppliers – is the most crucial, yet often most challenging part of our work. Broad acceptance of a policy is one thing, but changing practices in reality is what AAK is striving for. Proforest is AAK’s key partner and driver in this process. 1. Supplier-level risk assessment The direct supplier-level risk assessment is conducted annually and was updated in the second quarter of this year. It assesses risks associated with all direct suppliers by looking at three main factors: Origins of volumes procured from supplier Volumes procured by AAK Supplier-level risk issues. This third category takes account of matters such as supplier progress on certification, existence and implementation of sustainability policies, stakeholder grievances etc. 2. Geospatial risk assessments Geospatial risk assessments have been carried out on the mills that supply direct suppliers already identified as higher- risk suppliers. This allows us to narrow down and prioritize mills where we will aim to conduct verification assessments by identifying the relative risks of unacceptable environmental impacts such as deforestation, protected area encroachment, cultivation on peat, etc. On June 8 this year World Resources Institute released a palm oil mill risk assessment tool for their Global Forest Watch mapping platform, developed with inputs from our implementation partner, Proforest. This allows for much more rapid geospatial assessments and will enable us to evaluate all mills in our supply chain in this manner, not just the ones belonging to high-risk suppliers. Alongside this development, Proforest has also been improving its own internal capacity to run geospatial risk assessments more rapidly, using a bespoke tool that also allows us to perform more nuanced analyses where necessary. By the end of 2016 we will have analyzed all mills using Proforest’s system or the Global Forest Watch tool (see graph on page 21).
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