AAK Annual Report 2020

AAK Annual Report 2020 33 Therefore, the way forward is not to stop using palm oil but to make it sustainable. Because the palm oil supply chain involves millions of smallholder farmers, the challenges can only be solved by working together in cross-industry initiatives. In 2020, we have taken important steps on the journey toward more sustainable palm oil: • Committed to a palm oil supply chain that is 100 percent traceable to plantation and 100 percent verified deforestation-free by 2025. • Accelerated our sourcing strategy, stepped up our supplier monitoring and engagement, and strength- ened our processes for proactively addressing non-compliance. • Implemented the full-scale satellite monitoring of our global palm oil supply base. The new service will provide real time insights in areas connected to our supply chain. We use this information to verify deforestation-free and to reach out to suppliers to further investigate and take the appropriate actions. What we do in Kolo Nafaso represent the strong interconnection between our business and the Sustainable Development Goals. The initiatives in the Kolo Nafaso program contribute, directly or indirectly, to nine of the SDGs. Highlights from 2020 Empowering women in Kolo Nafaso We are especially proud of our program in West Africa, Kolo Nafaso. At the heart of this program is a long-term sustainability partnership, where we source directly from women – in a way that empowers them to make their own investment choices, whilst earning a fair income. During 2020, more than 90,000 women joined the program, which means we are now reaching 321,443 women in total. This is business, not charity. The support we give is connected to our daily business, guaranteeing we’re there for the long term. But we know that we can – and should – be doing so much more to make livelihoods better and more sustainable for many more local communities around the world. To make this happen, we’re taking what we’ve learned in West Africa to other geographies and continue to focus and scale up our positive impact. For more information about the progress, please see our Sustainability Report. The road to sustainable palm oil As a stakeholder in the palm oil sector, it is equally important to protect forests and the animals that live there as it is to give the millions of people in these regions the possibility of a better livelihood. Palm oil is a very versatile crop. It is free from unhealthy trans-fatty acids; it is the most effective plant-based oil in terms of yield per hectare – alter- native crops require more than five to ten times larger area to grow; it is more affordable compared to other crops; and it is an important part of the diet for the world’s population. Palm oil also brings economic benefits and better livelihoods to poorer communities around the world. Kolo Nafaso Kolo Nafaso is AAK’s verified shea sustainability program that focuses on • poverty alleviation, and • women empowerment, through direct trade, interest-free micro credits, and training.