Sustainability report

AAK has a target to reduce GHG emissions per processed unit of raw material by 22 percent by 2030 (baseline 2012). The result for 2020 was a 4.9 percent increase, mainly due to reduced processed volumes. However, our absolute emissions decreased by 1.5 percent compared to 2019. Reduction in absolute emissions In total, AAK generated 358,110 tonnes of CO 2 e in 2020 (including scope 1 and 2 emissions). Compared to 2019, the scope 1 absolute emissions decreased by 2.3 percent in 2020 for all sites, whilst 2016 sites decreased absolute emissions by 5.7 percent. This demon- strates progress but also that new AAK sites still have work to do to attain the same resource efficiency and improvement level as the more established ones. The scope 2 emissions (indirect emissions from energy suppliers) come mainly from electricity (88 percent) and represent 27 percent of total emissions. This share of emissions will be brought down with our ambition to have 100 percent procured renewable electricity by 2025. Other air emissions Due to the Group’s use of fuels, its production sites emitted 307 tonnes NOx (nitrogen oxide) and 26 tonnes SOx (sulfur oxide). There were 259 tonnes VOC primarily emitted from sites that run extraction and solvent fractionation processes. VOC decreased by 28 percent between 2019 and 2020, mostly due to a decreasing amount of volume processed. Going forward, we will continue to mitigate these types of air emissions and we are also planning to assess biogenic* CO 2 e emissions. Going forward Having committed to set science-based targets, our work during 2021 will focus on developing new GHG targets and roadmaps to help us achieve sufficient reduction levels in line with the Paris Agreement. Setting the foundation for effective greenhouse gas mitigation Minimizing our environmental impact AAK has operations all over the world. Our production is resource intensive and our continued respon- sible growth is depending on our ability to balance a rapidly changing business environment with continu- ous reduced environmental impact. This impact is managed in line with commitments defined in our Envi- ronmental policy, risk assessments, best practice sharing and by applying best available technology. The performance in our key para­ meters may suffer during the on-boarding process of new sites, but it should always lead to improved results in the long term. AAK realizes the urgency of dealing with global warming and we want to move faster to limit our effect on climate change by setting ambitious greenhouse gas reduction goals. AAK has committed to the Science Based Target initiative and going forward we will work harder to reduce our greenhouse gas emissions (GHGs) in line with the Paris Agreement. Here we present the results of our key environmental performance indica- tors during 2020 and some of our plans for the future. 400 350 300 250 200 150 100 0 NO x SO x VOC Direct emissions Tonnes 2016 2017 2018 2019 2020 Scope 1, GHG emissions Total 250,119 tonnes CO 2 e Tonnes CO 2 e kg CO 2 e/t raw material New sites before acquisition New sites after acquisition 2016 sites CO 2 (kg) per tonne processed material. All owned sites CO 2 (kg) per tonne processed material. 2018 sites 300,000 250,000 200,000 150,000 100,000 50,000 0 120 100 80 60 40 20 0 2016 2017 2018 2019 2020 Scope 2, GHG emissions (market based) 107,990 tonnes CO 2 e % 1% Heating 11% Steam 88% Electricity * Biogenic CO 2 emissions are defined as CO 2 emissions related to the natural carbon cycle and processing of biologically-based materials. AAK Sustainability Report 2020 42 -2.3% +0.3% Contributes to: