Sustainability report

AAK Sustainability Report 2020 22 While not perfect, we believe that the RSPO certifica- tion remains one of the most reliable ways to ensure that palm oil production meets high environmental and social standards. In 2020, we have accelerated our commitments to continue being a driving force to meet the challenges. to initiate supplier engagement, via our grievance management process. By managing and speeding up the process, we aim to contribute to the preser- vation of tropical rainforests. • We significantly increased our verified deforest- ation-free volumes from 26 percent in 2019 to 50 percent. • We increased our traceability to plantation from 55 percent in 2019 to 70 percent in 2020. • In 2020, 38 percent of our sourcing volumes were RSPO-certified, a 23 percent increase compared to 2019. Our production site in Zaandijk, the Netherlands, Merksem, Belgium, and Hull, United Kingdom, almost have a 100 percent RSPO-certified supply base. We have also set up a segregated supply chain into the US to enable customers there to buy segregated RSPO-certified palm oil. Engaging with suppliers and farmers For AAK, 2020 was characterized as a year to partner with customers on verified deforestation-free ambi- tions and to jointly engage suppliers on satellite monitoring and smallholder engagement programs. We have also deepened the understanding of neces- sary activities, roadmaps and specific timelines. We also accelerated our supplier engagement across all regions. Our global sourcing and trading teams have further embedded sustainability in their way of working. Some of our actions to increase traceability and the understanding of our palm supply base in 2020: • We pilot-tested satellite monitoring in the first quarter of 2020, to understand the insights and outcomes of this monitoring work. This led to the decision to invest in full-scale monitoring of our global supply base with two service providers, Earthqualizer and Satelligence. Agreements have been signed and the satellite monitoring now covers 100 percent of our supply chain. As of January 2021, we receive updates every two weeks. This allows us to react more quickly to alerts of land clearance AAK is committed to a 100 percent sustainable palm oil supply chain by 2025; verified deforestation-free and conversion-free, and with full respect of human rights. • 100 percent Verified deforestation free by 2025 • 100 percent Deforestation monitoring as from 2021 onwards