AAK Annual Report 2020

Annual Report 2020 29 AAK Driving sustainability progress Sustainability is at the heart of our purpose, Making Better Happen™. For AAK, sustainability is a journey, not a destination. We always strive to go further, constantly taking new steps to improve and deliver solutions that are more sustainable. We believe that long-term sustainable growth goes hand-in-hand with making a positive impact for all of our stakeholders and minimizing our environmental impact. Our sustainability work is embedded in all parts of the AAK value chain, from the crop all the way to the brand on the store shelf. We know that real change does not happen in iso- lation. Our sustainability solutions are a result of Co-Development with our suppliers and customers. We collaborate with NGOs and local communities and strive to scale up our impact beyond our own opera- tions and supply chain. Plant-based oils and fats play a key role in creating a more healthy, sustainable and just global food system and they are important ingredients in many different foods. Together with our customers and suppliers we bring to market plant-based solutions that offer great taste experiences as well as sustainability benefits. Our global impact and responsibility AAK is a global company with a strong local presence. The raw materials that we source and process are an important part of AAK’s sustainability impact. Our raw materials, especially palm oil, shea and coconut, are to a large extent produced by smallholder farms, creating a better livelihood for people at source. The primary risks for negative impact are related to deforestation, greenhouse gas emissions and human rights violations. Therefore, it is vital that we do our utmost to address environmental and societal issues, both within our own supply chain and as far as we can beyond. Only then can we reach a truly sustainable industry. We engage and collaborate with our customers and suppliers, as well as industry organizations, local governments, NGOs and smallholder initiatives, to constantly improve the impact from our supply chain. AAK’s production is resource intensive, depending on raw materials and energy with a high environmental impact. We continuously work to reduce the environ- mental impact of our operations with improvement projects, benchmarking between sites, and by exchanging best practices. We explore and utilize best available technology and participate in different community engagement projects, always with the aim to become a better neighbor. We believe that our greatest opportunity to make a positive contribution to a sustainable future is to support the transition to a more sustainable global food system. This opportunity relies on our ability to increase the demand for sustainable solutions, manage risk and drive Co-Development with our customers that is good for both people and planet.