Supplier management In addition to palm oil, shea and rapeseed, AAK processes a range of other raw materials. While AAK’s engagement in palm oil and shea is evident, the work to enhance sustainability aspects covers all the raw materials in the company’s supply chain. AAK’s supplier approved process is globally based on the same principles. The Supplier Code of Conduct is a fundamental tool for assessing suppliers. In this context, AAK has decided to work within its sphere of influence, i.e. to focus on those whom AAK has the best chance of influencing – AAK’s direct raw materials suppliers. Still, by urging suppliers to positively influence their suppliers, AAK aims to broaden the company’s sphere of influence and inspire other players in the supply chain to act responsibly. ” Responsible sourcing – an integrated part of the operations Food producers and consumers have grown increasingly aware of the importance of responsible sourcing. What implications has this had on AAK and its sourcing activities? We have increased our requirements and demands on all suppliers; we have, in all areas of our sourcing operations globally, increased our controls; and we have been implementing 16 our Code of Conduct as a mandatory requirement to be qualified as a supplier to AAK. In addition, we have established a palm oil policy with significant and elevated requirements towards plantations and the upstream supply chain. This constitutes a certain set of procedures, including audits which take place in collaboration with Proforest. As for AAK’s shea sourcing operations in West Africa, we have been upgrading our people’s health and safety practices through training and improved awareness. Further, we are expanding our women’s groups programs in both Burkina Faso and Ghana, with significant contributions to the local communities. In regards to coconut oil sourcing we follow a tight supplier approval system to ensure there’s compliance with our Code of Conduct and quality assurance system. This could include physical audits of our suppliers’ plantations to make sure harvesting is done responsibly. We also prioritize the sustainability aspect of soybean farming. What role does AAK’s Sourcing & Trading function play when it comes to responsible sourcing? AAK’s global sourcing entity has adopted all policies and systems into daily routines, and periodically review practice and operating procedures. Responsible sourcing is as such an integrated part of our operations and all our doings that we apply as our commitment. As such, we don’t see responsible sourcing as a CSR activity, but rather as an integrated part of the way we do business. AAK’s work with shea kernels in West Africa has over the last couple of years shown an incredible development, particularly in regards to the company’s women’s groups program. Where do you see the program within the next two or three years? The program will keep increasing in importance for the local communities. We have seen a well-accepted model across the region. It is a unique model that is improving as we operate. The size has grown to a level that provides a significant impact. As we operate we learn and improve, while being confident that we are making a difference where it matters most. We have proven that we have a superior and very sustainable structure when it comes to future growth and improvement. Torben Friis Lange President AAK Asia and Chairman Global Sourcing and Trading
Hållbarhetsrapport 2015/2016
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