Improving practices on the ground through supplier engagement
AAK works with its partner Proforest to identify priority
suppliers, and then works with them to improve practices
in environmental management, labor and other
social issues.
Our approach to engagement includes:
Conducting outreach workshops with mills, where we
help them to understand our Sustainable Palm Oil
Policy and requirements to ensure compliance;
Technical training, where we train mill employees on
specific aspects of our requirements, such as labor;
Detailed site assessments where the mill is visited,
gaps are identified, and action plans are created to
improve practices.
In 2018, AAK focused on revisiting mills where site
assessments had been conducted in previous years.
Our partner Proforest revisited seven mills to follow
up on how they were doing on their timebound action
plans.
Several mills were found to have made considerable
improvements. Highlights include:
The installation of effective greenhouse gas (GHG)
management and monitoring systems;
Development of policies on peat management,
workers’ rights and health and safety, and/or
increased awareness of these policies among
workers;
Development of clear grievance procedures for
workers;
Improvements in workers’ accommodation.
However, other mills were found to be struggling to
implement necessary changes due to operational
changes, and these mills will receive further visits in
early 2019 to ensure that improvements are made.
In 2019, AAK will continue to engage with mills to drive
implementation and transformation on the ground.
Supplier engagement
92 96
79 88
4 0 0 7 0 0 12 40 0 20 82 0 23 104 7
2014 2015 2016 2017 2018
120
100
80
60
40
20
0
Mill
engagement
Suppliers informed
about AAK’s Palm
Oil Policy
Signed AAK’s Palm
Oil Policy
Cumulative number
of on-site audits
Cumulative number
of mills that attended
a Proforest/AAK
workshop
Number of follow-up
visits
RSPO status
We see a lower volume
due to volume growth
in regions where RSPO
needs to gain momentum
Relatively stable share of
RSPO certified sourced
volumes compared to
previous year, despite
volume increase
Volumes
from RSPO
members
CSPO
demand
Book&Claim
Mass Balance
Segregated
%
%
75
2014
27
2014
90
Feb
2018
94
Aug
2018
84
Feb
2019
29
2018
87
Aug
2016
33
2017
92
2016
33
2016
88
2015
29
2015
100
80
60
40
20
0
100
80
60
40
20
0
2
6
19
2
6
21
1
9
23
0
12
21
0
14
15
Alongside the follow-up visits in October 2018, AAK and Proforest conducted training in Peninsular
Malaysia on human rights and workers’ rights. A total of 42 participants (comprising mainly senior/middle
management
or technical staff) from 22 mills were present.
32
%
2014
88
Feb
2018
90
Aug
2018
86
Feb
2019
Aug
2016
2015 2016
100
80
60
40
20
0
Higher priority suppliers invited to workshops facilitated by Proforest.
Palm Oil
Policy
Has aligned Policy
(verified by Proforest)
3 8 8 9 8
Volumes covered by
signed Supplier Code
of Conduct:
% 85
2014
97
Feb
2018
99
Aug
2018
94
Feb
2019
Aug
2016
2016
86
2015
100
80
60
40
20
0
Supplier
Code of
Conduct
Supplier code of conduct