Driving further impact beyond our supply base
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approach in the Malaysian state of Sabah, where only
20 percent of the independent smallholders hold the
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20 percent of the 53,000 independent smallholders
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Sabah’s work in 2019 has been the development of the
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We also support a unique project in Mexico together
with Solidaridad, the objective of which is to develop
the sustainability of three palm oil social enterprise
cooperatives, with the ultimate ambition of achieving
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smallholder members who produce their own palm fruits
and own and operate their own mills. Early meetings
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schools have been established with focus on implementation
of standard operating procedures and good
practices for palm oil processing as laid out by the
RSPO.
In order to build and deepen common understanding
of issues, industry collaboration is necessary. AAK has
had a seat on the board of governors since the founding
of the RSPO. This organization has played a foundational
role in the understanding of sustainable palm
production as well as in its contribution to sector-wide
transformation.
31
Traceability
Global
98%
Europe 100%
USA 100%
Latin
America
Asia 89%
Traceability
to mill
100%
Traceability
to plantation
Global
55%
Europe
USA
Latin
America
Asia
65%
43%
56%
45%
Supplier engagement Why palm oil?
Code
of Conduct
98%
Signed or aligned
palm oil policy
98%
Mill engagement among higher priority suppliers
2015 2016 2017 2018 2019
Cumulative number of on-site audits
Cumulative number of mills that attended a Proforest/AAK workshop
Number of follow-up visits
120
100
80
60
40
20
0
24
104
9
Palm oil is an important raw material and crop in order
to meet the growing demand for vegetable fats & oils.
AAK continues to use palm oil because the crop has the
highest yields compared to any other vegetable oil per
ha, it contributes to global food security and it provides an
income directly to local communities, since 40 percent of
the palm is being produced by smallholders. Next to that
it has unique functional and nutritional characteristics.
Palm oil can be produced in a sustainable way, without
the negative and social impacts. This requires a market
transformation across all stakeholders of the palm oil
value chain. AAK has been at the forefront of this change,
as co-founder of the Roundtable of Sustainable Palm Oil
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sustainable palm oil.
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palm oil policy is based on the following elements:
We aim to have a palm oil supply chain that is free from
deforestation (high conservation value areas, as well
as high carbon stock), development on peatland and
exploitation of people and human rights.