Sustainability report 2019

Rapeseed – an important raw material for AAK Today, rapeseed oil is an important vegetable oils used in food as well as biodiesel. Rapeseed has become the oil plant of Northern Europe. Outside Europe, the dominant producers are Canada, China and Australia. Rapeseed production continues to be impacted by multiple factors, drought and excessive rains, as well as regulatory related reduction in use of plant protection products. Rapeseed is a very important raw material for AAK and is one of a few raw materials that AAK is crushing in its own facilities. Understanding our supply base In order to deepen our understanding of the global rapeseed (canola) industry, AAK has commissioned Proforest to conduct a risk analysis for this supply chain. 7KH ¿QGLQJV UHYHDOHG WKDW UHODWLYH WR RWKHU YHJHWDEOH oils processed by AAK, the production of oilseed rape does not have sustainability issues such as deforesta- WLRQ KXPDQ ULJKWV DEXVHV RU VLJQL¿FDQW IDUPHU OLYHOLKRRG challenges. At most points of origin, sustainability impacts related to rapeseed production are mitigated to some extent by good agricultural practices, supported by legal frameworks and environmental incentive schemes in AAK’s main sourcing origins. At AAK, we use Life Cycle Assessments (LCAs) to analyze the impact of our rapeseed supply chains globally, but also in comparison to other oil crops. With full insight into the climate impact of our supply chains we can work towards minimizing that impact and offer our customers the best solutions. These studies have shown that the environmental impacts of rapeseed are strongly correlated with the amount and type of fertilizer used, relative to the yield of crop. AAK will use these insights from Proforest to set ambitions for the work around rapeseed sustainability in 2020 and beyond. Engaging with suppliers and farmers Much of the rapeseed used in AAK’s products is grown in Sweden, where farms have increased their output in recent years. Through close cooperation with the farmers, AAK is able to maintain control of the entire value chain, from the production of raw material to ¿QLVKHG SURGXFWV 7KH UDSHVHHG PHDO WKDW UHPDLQV DIWHU oil extraction is used as animal feed. In 2019, we experienced a growing demand for sustainable rapeseed. The demands include locally JURZQ DQG WUDFHDEOH UDSHVHHG IRU WKH 8. RU IRU FHUWL¿HG sustainable rapeseed in general. The focus market for this development was Europe. We have engaged with our UK suppliers to increase traceability and we have DFKLHYHG ,6&& FHUWL¿FDWLRQ IRU RXU .DUOVKDPQ IDFWRU\ DOORZLQJ XV WR VXSSO\ FXVWRPHUV ZLWK FHUWL¿HG PDWHULDO 38 Contributes to: