Sustainability report 2019

Over the years, AAK has established long-standing relationships with customers built on mutual respect and a detailed understanding of customer needs. Knowing your customers means knowing your markets, and that gives AAK a head start when responding to market WUHQGV )URP WLPH WR WLPH $$. KDV HYHQ VHW QHZ WUHQGV through the development of cutting-edge solutions. Oils and fats from AAK perform valuable functions in customers’ products and sustainable value-adding EHQH¿WV 7KH\ PD\ HQVXUH WKH ULJKW PHOWGRZQ SURSHUW\ FDUU\ ÀDYRU VXSSO\ HVVHQWLDO IDWW\ DFLGV SURYLGH structure, responsible supply chains and much more. In each case, AAK’s understanding of customers’ require- ments is crucial when developing the right solution. In cooperation with our customers’ key people, our experts test applications, co-develop product and supply chain solutions, and explore new production methods. We always aim to be a leading and knowledgeable partner on sustainability to our customers. 5632 VXSSO\ FKDLQ FHUWL¿FDWLRQ Percent of production sites processing palm oil 2015 2016 2017 2018 2019 100 80 60 40 20 0 100 100 100 100 92 )RRG VDIHW\ FHUWL¿HG Percent of production sites 2015 2016 2017 2018 2019 100 80 60 40 20 0 Key achievements 100 100 100 100 100 Sedex* members and passed SMETA audit Percent of production sites 2015 2016 2017 2018 2019 100 80 60 40 20 0 82 76 60 69 69 7KLUG SDUW\ FHUWL¿FDWLRQV At AAK, we understand the value of having independent organizations review our processes to verify that the ¿QDO SURGXFW FRPSOLHV ZLWK VSHFL¿F VWDQGDUGV IRU VDIHW\ quality, and environmental protection. The level of food VDIHW\ DQG 5632 VXSSO\ FKDLQ FHUWL¿FDWLRQV RQ RXU production sites remained high during 2019. Code of Conduct for Agents and Distributors After successfully implementing our Code of Conduct with all employees, and our Supplier Code of Conduct with our raw material suppliers, we began implementing our Code of Conduct for Agents and Distributors. In 2019, we achieved 98 percent implementation, 93 percent among our agents, and 99 percent of our distributors signed the Code of Conduct. To ensure that we continuously develop our business relationships on common values, we will further build on the ability to train our business partners. Our Customer achievements Increasing demand for sustainable products AAK will always make sure that sustainable options are available and that we enhance the value of these types of solutions. We produce different sustainability communication materials for customers, such as progress reports and presentations, and we continuously work to expand our employees’ knowledge to increase the demand for sustainable products. Employee skills and product governance Our skilled Customer Innovation (CI) and sales teams make sure that requirements are understood and that we meet our customers’ needs. This is done by following up on the approval process of the products, ensuring integrity, safety and feasibility of the products through to trials and launch. The sales team is also there together with the quality department to follow up on any product failures or complaints that will be logged according to our customer complaints procedure. 19 * Sedex is a global membership organization to manage performance around labor rights, health and safety, environment and business ethics and SMETA is the corresponding audit.