Sustainability report 2019

47 Mitigating risks in a dynamic environment During 2018, AAK used the Aqueduct tool to create a global water risk map covering all production facilities. 0HGLXP WR KLJK ULVN ZDV LGHQWL¿HG DW D QXPEHU RI locations. In order to further investigate these risks, and to work in a more preventative manner, AAK initiated a program to conduct climate change risk assessments for all production facilities by 2020. This will be followed by the implementation of more detailed action plans in cooperation with a third party who has solid experience with our production facilities. The assessments target risks related to extreme weather phenomena such as high sea water levels, storms, tornadoes, water-stressed areas, and unforeseen temperature shifts. The purpose of the assessments is to evaluate climate risks at each production site and to review the mitigating actions which have been implemented to reduce the risk for property damage and business interruption. During 2019, 56 percent of our production sites were visited as part of the assessment. The results show that water (high water level/heavy rain) and storms/torna- does are the main contributor to the overall risk score for the production sites. Based on recommendations from the third party these nine sites have been engaged LQ DQ LPSURYHPHQW SURJUDP WR IROORZ XS RQ LGHQWL¿HG risks. AAK has created a global risk map of all our produc- tion facilities to visualize the combined climate risk exposure. None of our sites are exposed to extremely high risk. The highest combined inherent risk has been LGHQWL¿HG DW WKH SURGXFWLRQ VLWHV LQ =KDQJMLDJDQJ &KLQD where water exposure presents the greatest risk, and in Louisville, USA, where the greatest risk is exposure to tornadoes. In Zhangjiagang, the inherent risk has been taken into account in the design of the site, including raised ground level, and mitigating actions have been implemented to reduce the risk to a medium residual risk level. In Louisville, the new wastewater treatment facilities have been constructed to withstand higher windspeeds, and emergency planning has been updated to handle more severe weather (tornadoes) and to limit personal and property damage. While these improvements are a positive step forward, we are aware that climate change is a dynamic risk which we must continuously mitigate. Note that only nine production sites have been assessed during 2019. The remaining production sites are not included on the global risk map. Low risk Low risk to medium risk Medium to high risk High risk Extremely high risk Contributes to: