Sustainability report 2019

32 Responsible sourcing of shea Shea as raw material The fruit produced by the shea tree is a very sustainable crop, the cultivation of which requires no fertilizers or pesticides. Growing wild in an area known as the shea belt, which stretches across western Africa, the shea tree is an important source of income for the communi- ties that live in this area. Traditionally, it is women who collect the shea fruit and process the kernels it contains. Income earned from the crop provides women with funds to alleviate poverty and hunger, to invest in children’s education and capital to support other income-generating activities. Understanding our supply base AAK has more than 60 years of experience sourcing shea kernels from West Africa. Working in close coop- eration with shea traders and women’s groups, AAK has built a solid and durable sourcing set-up across the shea production areas as well as logistical hubs in the coastal areas. Together with our partner Proforest, we have conducted a risk assessment of the general shea VXSSO\ FKDLQ $$. KDV LGHQWL¿HG DQG LV ZRUNLQJ RQ WKH following priorities for responsible sourcing throughout our traditional supply chain as well as throughout our direct sourcing supply chain Kolo Nafaso: Environmental 6KHD WUHHV DUH ORVW GXH WR XVH DV ¿UHZRRG SODQQHG burnings, grazing of cattle and the expansion of living and farming areas due to population growth Water used to boil shea kernels. Health and safety Snake and scorpion bites during harvest /RQJ ZDONV WR ¿HOGV DQG SDUNODQGV Exposure to the sun ([SRVXUH WR RSHQ ¿UHV GXULQJ ERLOLQJ SURFHVV Economic Lack of transparency due to middlemen in traditional supply chain Engaging with suppliers and farmers in the traditional supply chain Our general shea dashboard helps guide our comp- liance and sustainability work in West Africa (please also see our shea post-harvest progress report, available at our website). The 2019 shea crop was larger than average from a volume perspective. This has caused multiple changes in AAK’s supply chain, including the addition of 91 percent of suppliers who have signed up and aligned their way of working with our Code of Conduct for Suppliers of Raw Materials. In 2020, AAK will engage with suppliers more closely in order to train them in how to apply the Code in prac- tice, with focus on strong business ethics, traceability and labor rights. The safety of our employees in West Africa has been an important focus area in 2019. We have greatly improved safety training for drivers and workers at the yards. Though we have continued to experience a UDWKHU ODUJH QXPEHU RI WUDI¿F DFFLGHQWV HDFK LQFLGHQW has been followed by safety training and repetition of best practice behaviors. It should also be noted that WKH WUDI¿F LQ :HVW $IULFD LV PRUH GDQJHURXV WKDQ LQ IXOO\ LQGXVWULDOL]HG FRXQWULHV 7KH ¿QDO /RVW 7LPH ,QMXU\ 5DWH for West Africa in 2019 was 5. A safety group has also been initiated in order to enforce corrective actions and WR LQFUHDVH IRFXV RQ VDIH GULYLQJ DQG WUDI¿F ULVNV IXUWKHU 7KH ¿UVW UHVXOWV ORRN SURPLVLQJ DQG DZDUHQHVV WRJHWKHU with leadership focus will help this even more. Contributes to: