Sustainability report 2019

Supplier engagement in 2019 Key achievements Shea direct engagement on women’s groups level 1XPEHU RI ZRPHQ HQUROOHG LQ %XUNLQD )DVR DQG *KDQD 250,000 200,000 150,000 100,000 50,000 0 2013 36,579 2011 7,613 2012 14,304 2015 94,473 2016 119,527 2017 131,607 2018 134,261 2019 230,876 2014 54,919 Shea Palm Coconut Soybean 27 Palm oil traceability Traceability to mill Palm oil supplier engagement AAK supports the United Kingdom Modern Slavery Act 2015 and its objective to eradicate forced labor and KXPDQ WUDI¿FNLQJ LQ FRPSDQLHV DQG WKHLU VXSSO\ FKDLQV The core of the act is a requirement for companies to publish an annual statement in which they explain the steps they have taken to prevent and combat human ULJKWV DEXVH VXFK DV VODYHU\ DQG WUDI¿FNLQJ LQ WKHLU supply chain – and in their own entities. The Act is applicable to companies doing business in the UK and consequently includes AAK. The AAK Statement on the Modern Slavery Act can be found at AAK’s website under Sustainability. AAK Statement on Modern Slavery Act Progressing on responsible sourcing Our goal is to achieve responsible sourcing by building strong and resilient partnerships with suppliers and customers, in order to protect our customers and our reputation as well as to mitigate risks and issues linked to the raw material supply chains we manage. Working towards continuous improvement on environmental, social and ethical performance indicators is an important part of our work. We prioritize our efforts based on risks as well as the impact we can make. In 2019, we have made strong progress in our different supply chains. A key achievement is that we have further increased our direct engagement with shea-collecting women in West Africa to reach more than 230.000 individuals, representing an increase of 72 percent since 2018. We have performed a risk assessment for rapeseed and progressed on supplier engagement on palm, coconut, soy and shea. We have achieved Rainforest $OOLDQFH FKDLQ RI FXVWRG\ FHUWL¿FDWLRQ IRU WKH VXSSO\ RI FHUWL¿HG FRFRQXW RLO LQWR 6ZHGHQ DQG ZH KDYH VWDUWHG to focus on the impacts beyond the AAK supply chain by rejuvenating the trees in the landscapes we source from for our shea and coconut supply chains. 2010 4,300 2009 2,250 Guiding principles* for responsible VRXUFLQJ ZLWKLQ $$. United Nations Global Compact Principles International Labor Organization (ILO) 'HFODUDWLRQ RQ )XQGDPHQWDO 3ULQFLSOHV DQG Rights at Work Sustainable Development Goals (SDGs) AAK Code of Conduct for Suppliers of Raw Materials AAK Statement on Modern Slavery Act *The guiding principles form the foundation for AAK’s Policy for Responsible Sourcing of Vegetable Oils and the Code of Conduct for Suppliers of Raw Materials 98% 98% Signed or aligned palm oil policy