• criteria is based and requirements environment, social and 8SGDWHRI$$.¶V 6XVWDLQDEOH3DOP2LO3ROLF\ ,Q-XQHZHVDZWKHQHHGWRODXQFKDSROLF\VSHFL¿- FDOO\IRFXVLQJRQRXUFRPPLWPHQWWRZDUGVREWDLQLQJDIXOO\ VXVWDLQDEOHSDOPRLOVXSSO\FKDLQ'XULQJRXUPRYHWRZDUGV DIXOO\VXVWDLQDEOHSDOPRLOVXSSO\FKDLQZHKDYHRYHUFRPH PDQ\FKDOOHQJHVDQGDFKLHYHGVLJQL¿FDQWSURJUHVVWRZDUGV RXUREMHFWLYHV ,Q-DQXDU\ZHXSGDWHGRXUSDOPRLOSROLF\7KHPDLQ FKDQJHVDUH 7UDFHDELOLW\WRSODQWDWLRQ$$.ZLOODFKLHYHIXOOWUDFHDELOLW\ WRSODQWDWLRQDVVRRQDVSUDFWLFDOO\IHDVLEOHZLWKDQDPEL- WLRQRIDFKLHYLQJWKLVJRDOLQZKLOHVWLOOUHJXODUO\ FRPPXQLFDWLQJRQSURJUHVV 1HZFRPPLWPHQWWRVXSSRUWVPDOOKROGHUVGXULQJRXU MRXUQH\WRZDUGVDIXOO\VXVWDLQDEOHVXSSO\FKDLQZHKDYH UHFRJQLHGWKDWWKHPDQ\VPDOOKROGHUVWKDWFRQVWLWXWH DVLJQL¿FDQWSURSRUWLRQRIWKHSDOPRLOSURGXFWLRQQHHG VSHFLDOIRFXV 6PDOOKROGHULQFOXVLRQLQWKHVXSSO\FKDLQLVDNH\LVVXH ZKLFKLVZK\ZHLQRXUUHYLVHGSROLF\KDYHLQFOXGHGDQHZ FRPPLWPHQWWRVXSSRUWVPDOOKROGHUV 2XUXSGDWHGSDOPRLOSROLF\LVDYDLODEOHDW$$.ZHE Revised January 2017 committing to our Supplier Code of Conduct and this Sustainable Palm Oil policy,questionnaire and relating to quality management, food safety,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 for palm oil suppliers on RSPO membership, signing and our general 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|
AAK Sustainability Report 2016/2017
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