Impacts and priorities in key raw material supply chains
Palm oil
Soybean
Shea
Rapeseed
Coconut
29
(QJDJLQJZLWKVXSSOLHUVDQGIDUPHUVis the second
pillar of our approach. As a processor, AAK’s role in
the value chain is in the middle. We usually work with
suppliers, but in selected regions, or when sourcing
certain raw materials, we have a more direct connection
to the farmers, producers or harvesters.
We need to understand the suppliers we work with
and their commitment to sustainable development as
well as their willingness to drive progress. We require
our suppliers to adhere to the Code of Conduct for
Suppliers of Raw Materials and to have their own
sustainability policies in place.
Together with key partner suppliers, we co-develop
trainings and workshops covering a range of topics
including good agricultural practices, safety, labor and
human rights. Our collaborations can also include
on-the-ground engagements as well as audits or
assessments to identify areas for improvement and
to support our suppliers in their drive for continuous
improvement. We see this as an important way we
can drive transformation and implement change in our
supply chain.
Driving further impact beyond our supply base is
relevant when issues have complex underlying causes.
In such cases, we believe it is most effective to work
directly with the stakeholders who are in the position
to build understanding and drive effective responses.
To stimulate wider change within the industry, AAK
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base at a regional, jurisdictional and business sector
level.
Examples of such efforts can be seen in our collabo-
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Sabah or the mobilization of local villages in Burkina
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include industry collaborations such as the Roundtable
on Sustainable Palm Oil, the Global Shea Alliance and
the new industry meeting on the sustainable development
of the coconut industry.
To maximize our impact on the raw material industries,
and to work in a holistic way with the challenges we
face, we engage with our supply chains on three levels:
1) Understanding our supply base
2) Engaging with suppliers and smallholders
3) Driving impact beyond our supply base
Understanding our supply base LVDFULWLFDO¿UVWVWHS
in driving sustainability. At the core of our responsible
sourcing activities stands a risk assessment which
helps us identify and prioritize the most important issues
we face in each individual supply chain. Priorities are
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the general risk in the supply chains, and the potential
positive impact AAK can have.
In order to understand who we are buying from (and
who they are buying from), we work closely with our
sourcing and trading team and suppliers to obtain the
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chain, achieving traceability can require collaboration
across multiple stakeholders. In addition to understanding
the supply base, we assess if the volumes we
buy meet the AAK Code of Conduct for Suppliers of
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the AAK Group Policy: Sustainable Palm Oil.
High
priority*
Low
priority
Indirect impact
* Based on volumes and social/environmental risks in supply chain
Direct impact