Traceability progress – through cooperation with our suppliers The overall global percentage for traceability to mill of palm, palm kernel and residual oils remains very high at 98 percent. 22 The variations in traceability data reported is due to a combination of including new acquisitions into our program and the natural variation always present when taking a snapshot of a process. The focus within the marketplace on securing traceability to mill is now widely recognized and supported by more actors within the upstream part of our supply chains. The challenge on achieving traceability to the mill level still generally concentrates around palm kernel and residuals. Since our last progress report the focus on traceability has increased among our suppliers and this is part of the reason why we can keep our strong position on traceability in general. We welcome the increasing amount of transparency among the larger players in the marketplace, and this will for sure make it easier for stakeholders to obtain traceability figures needed. By working closely especially with suppliers of technical oils, we are now able to demonstrate very strong progress on this category. In order to ensure that our suppliers are committed to work towards sustainability standards, we have engaged with each one asking them to acknowledge and sign our palm oil policy. This is now a key requirement for becoming a supplier of palm oil to AAK and will ensure that all new suppliers are committed to work towards the standard which is stated in our Sustainable Palm Oil Policy. An important lesson which we have learnt in transforming our palm oil supply chain has been the need for informing our suppliers why we are working towards a higher standard and how this affects the way they do business with AAK. This we have now taken to a level beyond immediate suppliers and in May 2016 AAK together with Proforest and a key supplier hosted our first supplier mills’ engagement workshop in Malaysia. Traceability to mill status – August 2016 Overall progress 98% 3% 2% 95% Indirectly traceable Traceable to known source Palm oil from origin 98% 2% Palm kernel oils 93% 5% 2% Palm oil – others 71% 29% Residuals 98% 2%
Hållbarhetsrapport 2015/2016
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