Contributes to:
Palm – progressing towards full sustainability
Responsible sourcing of palm oil remains a crucial
activity in our sustainability journey. The scale of the
crop globally, as well as environmental and social challenges
in each particular region, requires a consistent
and structural approach and collaboration across the
supply chain.
2020 marks the deadline for companies to demonstrate
deforestation-free palm oil supply chains. Ten
years after this target was set, the complexity of the
challenge has become apparent: the palm oil supply
chain often involves thousands of companies and
millions of growers. As such, we often have no direct
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change.
Understanding our supply base
Understanding our supply base is a critical step in
furthering sustainability, providing the baseline by which
we prioritize the action we take both within and beyond
our supply chains. Thus, we work closely with our
suppliers and stakeholders to obtain traceability data.
Achieving traceability to plantation (TTP) requires
sector-wide efforts by companies and other stakeholders,
which AAK acknowledges and commends.
Palm oil supply chains involve millions of small
producers, many of whom are not responsible for
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approach to TTP, which maps plantations where there is
a risk of deforestation at village level.
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cation remains one of the most reliable ways to ensure
that palm oil production meets high environmental
and social standards. The adoption of the new RSPO
principles and criteria in November 2018 has further
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part of our shared responsibility policy and to stay in line
with end-user and customer demand.
Additionally, we monitor progress in our supply base
in accordance with the framework laid out in the no
deforestation, no development on peat, and no exploitation
(NDPE) implementation reporting framework.
One new and important KPI for AAK, which we are
developing together with Proforest, is to understand the
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approach combines our RSPO-segregated volumes
with estimates based on an equal weight from each mill
in our supply base.
Engaging with suppliers and farmers
Because of our position in the value chain, our suppliers
play a critical role in driving the implementation of our
policies. This year, we have developed supplier score
cards together with Proforest as part of our effort to
strengthen our supplier engagement work. These score
cards enable our internal organization and our suppliers
to better understand the current status of where each
supplier stands in regard to meeting the AAK sustainable
palm criteria, as well as potential gaps that need to
be closed.
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