AAK sustainability report 2018

31 Palm – progressing towards full sustainability Sustainable sourcing of palm oil remains a crucial activity in our responsible sourcing journey and our engagement with suppliers. The scale of the crop globally as well as the multiple challenges ranking from environmental to social in the different regions ask for a consistent and structural approach and collaboration across the supply chain. With the new RSPO standards approved in November 2018, we move into a new phase. The bar has raised again to meet the needs of its members reflecting amongst others, the zero deforestation commitments. Very important elements in AAK’s Sustainable Palm Oil Policy are to work with the RSPO, to work with its direct and indirect suppliers as well as to ensure the smallholders to remain part of its supply base. As part of our continuous improvement journey we have published our universe of mills list and a grievance addendum at our website. The grievance addendum lists the companies that we have recorded a grievance against. This list will be updated and published on a more regular basis and highlights grievances in AAK’s supply base as well as those linked to group or parent companies. We believe that with this initiative we better meet increased transparency needs of our customers, their customers and other stakeholders. Increased transparency Contributes to: % Traceability Traceability to mill remains relatively high including all palm oil and palm related products. Traceability to plantations decreased due to incre- ased volumes in markets that do not buy RSPO segregated palm oil yet. % To plantation Feb 2016 99 97 95 78 98 97 98 96 97 96 Aug 2014 19 2014 Aug 2016 27 Feb 2018 Feb 2017 35 Aug 2018 Aug 2017 28 Feb 2019 Feb 2018 Aug 2018 Feb 2019 Aug 2016 28 Aug 2015 26 2016 Feb 2015 22 2015 100 80 60 40 20 0 100 80 60 40 20 0 To mill 31