Sustainability report

Reporting principles Scope and completeness This is AAK’s twelfth sustainability report, covering our activities from January 1 to December 31, 2020. It is prepared in accordance with the GRI Standards: Core option, and aims to provide sufficient and clear information. The environmental data in this report refers to the production sites that were fully opera- tional during 2020. Other core data related to social disclosures, such as employees, gender composition, and age, includes AAK sourcing, sales, and purchasing offices, and is calculated per December 31, 2020 based on payroll information. The scope and completeness of this is continuously reviewed to include relevant activities. Going forward, we will also assess the West African activities further and include significant impact based on ownership and relevancy. Data input and accuracy It is important for AAK that all data based on source documents is traceable to recorded evidence. While we are continuously working to improve data quality, this report is based on information received from our sites and contains results based on local calculations that is then compiled at a global level. During 2020, we have sharpened the process of collating input with more instructions and stricter validation functions. Some data errors were identified during the validation process, mostly connected to calculations, which were adjusted together with the different sites, including adjustments in previous years’ reporting. Restatement of information AAK has improved the disclosure of water consump- tion in line with GRI 303-5 and waste reporting has been re-allocated in order to clarify the distinction between waste and byproducts. To create a strong foundation and prepare to set science-based targets, AAK teamed up with a third party specializing in cli- mate disclosure. The outcome was an improved data collection and a strengthened centralized framework for calculating emissions. This has led to more uniform calculations of scope 1 and 2 emissions in line with the Greenhouse Gas Protocol. Work will continue during 2021 to set science-based targets, including a more recent base year and a management approach including scope 3 emissions. Water consumption Previously, AAK’s water consumption has been calcu- lated from withdrawn volumes of municipal water and groundwater. This year, the use of surface water and seawater has also been included in the report in line with GRI 303-5. The consumed water is now calculated as the difference between the withdrawn water and the discharged water. Seawater and surface water is only used for cooling purposes and discharged to the same source from where it was withdrawn and by this, AAK has aligned the water consumption parameter with the industry approach and clarified the actual water consumption of the company. Waste In order to distinguish byproducts from our disclosed waste volumes, AAK started reporting volume of byproducts separate from the waste statistics during AAK Sustainability Report 2020 68