Sustainability report 2019

8 President and CEO: Sustainability – a key enabler for future success At AAK, we deliver plant-based oils and fats solutions with care for the planet and the people that we reach through our business. I am proud to share the progress we have made during 2019 in this annual Sustainability Report. Our achievements are the result of a tremen- dous amount of dedication from AAK colleagues and collaboration partners around the globe. Sustainability – part of our DNA Sustainability has been at the core of AAK for many years. It has a strong alignment to who we are and how we run our business and our company. We also see it as fundamental to our continued development and future success. Drawing on a diverse range of raw material sources, AAK has a responsibility and a role to play in enabling sustainable foods to consumers. By ensuring responsible supply chains, minimizing our environmental impact and by being a knowledgeable partner on sustainability we can provide value-adding sustainable solutions to our customers and thereby consumers. In 2019, we initiated a strategy process to identify opportunities for future growth, and sustainability was FRQ¿UPHG DV RQH RI WKH NH\ HQDEOHUV JRLQJ IRUZDUG Three-year plans are initiated in order to strengthen VXVWDLQDELOLW\ DV DQ HQDEOHU ZLWK IRFXV RQ RXU VLJQL¿FDQW impact in our supply chains and prerequisites to grow in a sustainable manner. The AAK materiality analysis was also revisited during the year and new information was collected from important stakeholders regarding how we can improve and enable their sustainability ambitions. This groundwork and valuable insights combined with continued support of the ten principles of the UN Global Compact and the Sustainable Development Goals will be our guiding stars and support our role in creating value-adding sustainable oil solutions going forward. Ambitions and achievements during 2019 The AAK ambitions have been met in many ways during 2019. Our colleagues are making efforts to create a safe workplace, education of our employees is strengthening skills and people’s engagement show how we can act as catalysts for sustainable change in societies where we operate. These are efforts where the impact is hard to measure but we know it’s there and that it’s VLJQL¿FDQW )XUWKHUPRUH , ZRXOG OLNH WR HPSKDVL]H VRPH VSHFL¿F DPELWLRQV DQG DFWLYLWLHV WKDW GHPRQVWUDWH LPSRU - tant steps not only for AAK but also for our customers, our suppliers and our planet. A leading and knowledgeable partner on sustainability Together with an increasing concern about health and the environment, AAK has seen the demand for plant- based foods grow over the last few years. During 2019, we launched AkoPlanet ™ , a portfolio with solutions for plant-based foods that are good for both people and the environment. This important step will lift our capabilities to respond to a fast-moving market segment not only with our solutions but also with our knowledge and experience with sustainable value-adding solutions and impactful work carried out in our supply chains. Sustainability progress for all key raw materials We have for many years been working on achieving sustainable development in our supply chains. We see this experience as a great strength of the company, demonstrating our ability to upscale initiatives that VKRZ VLJQL¿FDQW SRVLWLYH LPSDFW $ JUHDW H[DPSOH RI this is our direct shea sourcing program Kolo Nafaso in West Africa. During 2019, we have grown this initiative tremendously and today more than 230,000 women shea collectors are engaged in the program with DFFHVV WR SUH ¿QDQFLQJ WUDLQLQJ DQG ORJLVWLFDO VXSSRUW A journey that has given us valuable experience to further apply and build on. Minimizing our environmental impact Our ambition to minimize our environmental impact is shown in our ever-expanding efforts to prevent the negative effect of our production sites. We have seen LPSURYHPHQWV IRU WKUHH VLJQL¿FDQW UHVRXUFH HI¿FLHQF\ indicators during 2019. The total energy consumption per processed unit decreased by 7 percent, and the water consumption per unit processed material decreased by 2.3 percent compared to 2018. In addition, we reduced our greenhouse gas emissions per processed unit raw material by 4.4 percent. Work is now ongoing to identify further improvements to reduce our environmental impact.