25 Supplier engagement workshops The supplier risk assessment enables the identification of priority suppliers to work with, where AAK has some leverage to influence change. Typically, a supplier will not be an individual palm oil mill, but a processor or refiner that has its own supply base of mills. An effective mechanism to engage with mills is to provide awareness-raising and capacity-building The first workshop was hosted by a key supplier in May 2016, also involving AAK together with Proforest. Senior representatives of 20 palm oil mills were invited to the workshop which took place in Port Klang, Malaysia. The objectives were to share with mill representatives the sustainability policy requirements, to learn about the challenges that individual mills are facing in their supply chains, and to discuss the on-going program to undertake verification assessments with a sample of the mills. The workshop provided a successful platform for future capacity building with the mills, in order to ensure compliance with AAK’s policy. Subsequent workshops will complement the on-going program of verification assessments. workshops. AAK has together with Proforest now embarked upon a process with a key AAK supplier in Malaysia to run a series of workshops for the mills that supply it, in order to communicate the key palm oil policy commitments and how changes can be implemented by the mill in its own operations and supply base. Implementation dashboard AAK has been developing a dashboard for internal tracking, in even more details, the implementation of the Sustainable Palm Oil Policy amongst suppliers. It will allow the internal Palm Sustainability Task Force to assess implementation progress regularly against a number of headline KPIs. Initial KPIs include: Percentage of suppliers with Palm Oil Policy signed; Percentage of suppliers with RSPO membership; Traceability to mill; Traceability to plantation; Tracking of non-compliances raised during verification assessments; Closure of non-compliances This approach is being reviewed and strengthened during 2016. As part of AAK’s sustainable palm implementation program, the grievance procedure is a guide to how grievances raised by external parties will be handled by AAK. The procedure is applicable to AAK palm oil operations worldwide and to all third-party suppliers. It should be noted that AAK has a commitment to the RSPO grievance process that it will follow in the event of any grievance being raised through that mechanism. AAK’s grievance procedure is an additional approach to ensure all grievances raised are approached in a timely and systematic manner. If a supplier breaches AAK policies and is not able to resolve the issue related to the grievance, AAK will terminate commercial relations with that supplier. The AAK grievance procedure works alongside the supplier risk assessment and is updated on a monthly basis, whereas the risk assessment is more strategic in outlook and is renewed annually. AAK also takes a proactive approach to grievances, instead of waiting for stakeholders to highlight a problem or concern. This means regularly reviewing all supplier information which is in the public domain and monitoring the RSPO complaints panel and complaints tracker together with Proforest. By being aware of issues which may affect the AAK supply chain, AAK can take appropriate and timely action. Grievance activities
Hållbarhetsrapport 2015/2016
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