AAK sustainability report 2018

Gj Energy consumption Per unit processed material 2014 2015 2016 2017 2018 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2.52 2.37 2.33 2.25 Water consumption Per unit processed material MT 2014 2015 2016 2017 2018 1.60 1.20 0.80 0.40 0.00 Total direct CO 2 emissions Per unit processed material 2014 2015 2016 2017 2018 160 120 80 40 0 Key achievements 137 129 127 121 1.30 1.23 1.20 1.19 Environmental efficiency More frequent extreme weather Overall on the AAK scope 2016 production sites, we have seen a good environmental efficiency performance in 2018. Most Key Performance Indicators (KPIs) have improved as we will outline later in this section. However, a few KPIs have been challenging due to unusual weather patterns in some areas of the world as we will explain. According to the 2019 Global Risk Report published by World Economic Forum, extreme weather events rank as the most likely and impactful global risk within the next ten years. Also, at some of our production sites extreme weather events have been experienced in 2018. On the East Coast of the US, January and February were colder than usual. This resulted in an increased energy need in our production, mainly for heating the pipes to keep the oil liquid. At the same time, the hot summer of 2018 in Sweden has warmed the sea water significantly so that it could not be used as cooling water. Therefore, we had to use municipal water for cooling purposes to be able to keep producing. This resulted in a higher water consumption than usual. We have initiated a project to avoid that from happening in the future. The data including the four newest AAK sites in Brazil, China, India and USA (California) represents a new baseline from which we will track performance in the coming years. Based on these events, we have decided to have climate change risk assessment conducted by an external partner for all our production sites before 2020. We have during 2018 already started with some production sites. One of the sites that has been risk assessed was Karlshamn in Sweden. The outcome is for example that coastal flooding was a very high risk for the site. All other risks assessed were scored between very low to medium. Site Karlshamn has a flood emergency plan in place describing all processes that should be followed in case of increase of the water above a certain level. Furthermore, in 2018 we conducted a full water risk assessment of all our production sites. You can read more on this topic on page 47. 2.20 120 1.19 m 3 Contributes to: 41