• criteria for palm oil suppliers is based on RSPO membership, signing and Revised January 2017 committing to our Supplier Code of Conduct and this Sustainable Palm Oil policy, and our general questionnaire and requirements relating to quality management, food safety, environment, social and other issues. Our mechanisms for implementation of these commitments include supplier engagement at different We also conduct site-based assessments of our suppliers and their supply chains regularly, including with external third-party assessors. • This policy applies to all palm oil, palm kernel oil and their derivatives at all origins. 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 within the framework of our grievance process, and will seek to work with the supplier to resolve it. If no adequate resolution can be found, AAK will terminate commercial relations with the supplier. AAK will regularly communicate progress relating to the implementation of this and related policies in its Progress report on sustainable palm oil. Yours faithfully, AAK AB ( publ.) Arne Frank, President and CEO January 2017 AAK AB (publ) Skrivaregatan 9 SE-215 32 Malmö SWEDEN Phone +46 40 627 83 00 Fax +46 40 627 83 11 info@aak.com www.aak.com 556669-2850 SE5566692850001 5HJLVWHUHGRI¿FH0DOP| Ja Our selection and approval and engagement levels.AAK AB Revised January 2017 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 where 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 leading vegetable oil in terms of production volume and consumption. 3DOPRLOLVDOVRWKHPRVWHI¿FLHQWYHJHWDEOHRLOZLWKDSURGXFWLRQYROXPHSHUKHFWDUHDOPRVWVLWLPHVJUHDWHU than the volume produced per hectare for rapeseed and ten times greater than for soy. Hence, it is a very 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 its role in supporting the move towards 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 to be very HQJDJHGLQWKH5632DQGLWV%RDUG$$.UHFRJQLHV5632FHUWL¿FDWLRQDVWKHRQO\HVWDEOLVKHGDQG stable systematic organization and standard for sustainable palm oil. RSPO is not perfect. However, it is important to have one well-established recognized system rather than a series of individual systems and RUJDQLDWLRQVZKLFKDGGFRPSOHLW\DQGPLJKWSUHYHQWSURJUHVVWRZDUGVDIXOO\VXVWDLQDEOHSDOPRLOVXSSO\ FKDLQ$$.LVFRPPLWWHGWRLQFUHDVLQJWKHYROXPHRI5632FHUWL¿HGUDZPDWHULDOWKDWLWSXUFKDVHVZLWKWKH XOWLPDWHREMHFWLYHWRDFKLHYH5632FHUWL¿FDWLRQRIDOOSDOPRLOSDOPNHUQHORLODQGGHULYDWLYHVSXUFKDVHG • We also see a need for further progress towards full sustainability in the palm oil supply chain, beyond the FXUUHQW5632FHUWL¿FDWLRQUHTXLUHPHQWV$$.LVWKHUHIRUHDOVRFRPPLWWHGWRVRXUFLQJSDOPRLOWKDWKDV been produced without deforestation or destruction of peatland, and where plantation development only takes place with the free, prior and informed consent (FPIC) of any affected local community. • AAK’s policy is to ensure full traceability in our palm oil supply chains. This means having traceability to mills and traceability to plantation level. Traceability is fundamental to our risk management-based assessment and as the basis for assuring supplier compliance with the requirements in this and related policies. • More than 40 percent of the global palm oil production comes from smallholders. AAK recognizes that smallholder inclusion in the palm oil supply chain is a key issue requiring action on a number of fronts. AAK’s policy is to initiate projects which encourage and support smallholders to make practical, stepwise FKDQJHVWREHVWSUDFWLFHWKDWZLOOVXSSRUWVPDOOKROGHUVWRZDUGVDFKLHYLQJ5632FHUWL¿FDWLRQDQGWRZRUN ZLWKLQWKH5632WRLPSURYHVPDOOKROGHUDFFHVVWR5632FHUWL¿FDWLRQ AAK AB (publ) Skrivaregatan 9 SE-215 32 Malmö SWEDEN Phone +46 40 627 83 00 )D info@aak.com www.aak.com 556669-2850 SE5566692850001 5HJLVWHUHGRI¿FH0DOP| Uppdatering av AAK:s policy för hållbar palmolja I juni 2014 såg vi att det var nödvändigt att lansera en särskild policy för att uppnå en helt hållbar leveranskedja för palmolja. Under övergången till en helt hållbar leveranskedja för palmolja har vi klarat många utmaningar och gjort stora framsteg för att uppnå våra mål. ,MDQXDULXSSGDWHUDGHYLYnUSDOPROMHSROLF\'HIUlPVWD förändringarna är: Spårbarhet till plantage: AAK kommer att uppnå full spårbarhet till plantage så snart detta är praktiskt möjligt. Vi har som målsättning att uppnå detta mål under RFKNRPPHUUHJHOEXQGHWDWWNRPPXQLFHUD ut de framsteg som görs. Ett nytt åtagande om att stödja småjordbruk under vårt arbete för att uppnå en helt hållbar leveranskedja har vi insett att det krävs ett särskilt fokus på det stora antal småjordbruk som står för en betydande del av palmoljeproduktionen. Det är viktigt att involvera småjordbruken i leveranskedjan. I vår reviderade policy har vi därför infört ett nytt åtagande om att stödja småjordbruk. 9nUXSSGDWHUDGHSDOPROMHSROLF\¿QQVSn$$.VZHEESODWV
AAK:s hållbarhetsrapport 2016/2017
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