” GreenPalm – the inclusive supply chain option During 2014 we oversaw the trade of 3,421,809 certificates, maintaining the impressive levels from the previous year. The premiums paid for Palm Kernel Oil certificates during 2014 remained high following their rise during 2013. The price was volatile, trading between $40 and $80 during the year. Premiums paid back to RSPO certified growers totalled $35 million during 2014. Adding that to the premiums paid previously gives a cumulative total of $87 million. GreenPalm continues to link independent smallholders to the global marketplace and we were very pleased to conclude the trade of 100 percent of all the certified groups Palm Kernel Expeller certificates to a Dutch cheese manufacturer. The GreenPalm option is geographically neutral and any RSPO certified grower, no matter what scale of operation or location, can be linked to the demand regions so that they can be rewarded for their sustainable achievements. It is the only fully inclusive option available and it will continue to drive the RSPO to complete its vision – to transform markets to make sustainable palm oil the norm. Bob Norman General Manager GreenPalm Supporting the production of sustainable palm oil Food manufacturers and retailers have a simple way to reward palm oil producers for adhering to sustainable and responsible practices, and to tell their customers that they do so. It is an exclusive, RSPO-endorsed, web-based platform for trading in sustainable palm oil certificates, called the GreenPalm Program. Organized by Book & Claim Ltd, an AAK subsidiary, the platform makes it possible for food manufacturers to pay palm oil producers directly for producing RSPO certified sustainable palm oil (CSPO). There are three obvious advantages to this: Manufacturers of consumer products get a simple way to support sustainable palm production Smallholders who lack access to a certified supply chain can obtain a premium for their efforts No requirements for supply chain certification makes this the fastest way to engage in the support of sustainable palm oil The GreenPalm Program supports the production of sustainable palm products that meet the requirements defined in the Principles and Criteria of the Roundtable on Sustainable Palm Oil (RSPO). AAK sustainable palm oil commitments AAK’s Sustainable Palm Oil Policy has been developed significantly over the past year, with contributions from various stakeholders. In a dynamic environment, commitments from customers and suppliers relating to sustainable palm oil have seen parallel development. AAK’s policy is consistent with a wider market move, and puts AAK at the forefront of palm sustainability. AAK’s policy is founded on the following pillars: support for the Roundtable on Sustainable Palm Oil (RSPO) traceability no deforestation no development of peatland free, prior and informed consent (FPIC) AAK has clear definitions for traceability, peatland development and FPIC. For deforestation and FPIC we rely on RSPO definitions, supplementing the High Conservation Value (HCV) RSPO definition used for deforestation with AAK’s progress report on sustainable palm oil – September 2014 AAK’s progress report on sustainable palm oil – January 2015 AAK’s progress report on sustainable palm oil – August 2015 The Co-Development Company High Carbon Stock (HCS), but mindful that there is as yet no common industry definition of HCS. Until a common framework has been developed, AAK will apply the HCS framework and identification tool that have been developed by Greenpeace and others. We seek constantly to improve our policy as further issues and demands emerge, at the same time being mindful that implementation is even more important than words. AAK’s policy is to communicate progress as a minimum annually in our Corporate Social Responsibility report. However, we report more frequently as appropriate. AAK’s progress reports and palm oil policy can be found at www.aak.com under Documentation/Policies. 20
AAK - Sustainability Report 2014/2015
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