Sustainability report

Better Operations The Better Operations commitment and ambitions are guided by the AAK Group Code of Conduct and the Group Environmental Policy, human rights impact assessments, risk assessments, reporting tools, certifications and audits. Activities are continuously monitored in cross-functional local sustainability teams that have regular global meetings managed by the Global Sustainability Manager. These meetings are arranged to exchange best practice and drive progress. Performance is continuously followed-up by our Global Sustainability, Global Operations and Human Resources teams. Better Solutions The Better Solutions commitment and ambitions are guided by the AAK Code of Conduct for Agents and Distributors, certifications, standards and product gov- ernance procedures such as approval processes and customer complaints systems. In order to understand our customers' needs and to transfer these into value propositions, we have our Go-to-Market teams includ- ing skilled Customer Innovation Managers, Product Managers and Sales Representatives. We work with insights from customer surveys and interviews and develop better alternatives that carry environmental, health and nutritional benefits supported by impact assessments and product master data to measure progress. We also use our global reach to access state- of-the-art research and capability to deliver on taste and texture, strengthening our position in the plant- based industry. The Go-to-Market teams work closely with internal stakeholders both in responsible sourcing and in production to ensure product governance. Strategy & Sustainability Drives AAK’s strategic sustainability ambitions together with internal and external stakeholders CEO/Executive Committee Decides on sustainability ambitions and review progress Sustainability from plant to brand * ESG stands for our Environmental, Social and Governance efforts. It represents how we manage risk and minimize negative impact and drive sustainability from suppliers to customers, ensuring alignment from plant to brand. Board of Directors Overseeing financial and sustainability reporting and disclosure Remuneration Committee Audit Committee Supplier ESG* Customer ESG* Better Sourcing All raw materials Cross-functional ESG* Better Operations All production sites Cross-functional ESG* Better Solutions All value propositions Cross-functional ESG* Evaluating our management approach Going forward, we will continue to focus on evaluating the effectiveness of our management approach, including Policies and Codes, to further improve performance. We will also make sure that our ambi- tions are aligned with our most significant risks and opportunities and that we have effective evaluation mechanisms to assess our governance and progress. AAK Sustainability Report 2020 Reporting framework | 67