Sustainability report

AAK Sustainability Report 2020 30 Progressing on responsible sourcing of rapeseed and sunflower As there are many parallels in the rapeseed and sunflower supply chains, we are grouping them together in our responsible sourcing approach but will report progress separately. Deeply understanding our supply base The production of rapeseed and sunflower has a relatively low risk for sustainability issues such as deforestation. However, there are some other key risks, namely: • Traceability in a commodity-based supply chain • Transparency on field-level practices • Biodiversity At most points of origin, sustainability concerns related to rapeseed and sunflower production are mitigated to some extent by good agricultural practices. They are supported by strong legal frameworks and environ- mental incentive schemes. However, transparency and reliable data is currently still a challenge. At AAK, we use Life Cycle Assessments (LCAs) to analyze the impact of rapeseed supply chains globally, as well as in comparison to other oil crops. These studies have shown that the environmental impacts of, for example rapeseed, are strongly correlated with the amount and type of fertilizer used as well as to the yield of crop per hectare. Contributes to:

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