Sustainability report

AAK Sustainability Report 2020 Reporting framework | 73 End poverty in all its forms Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages liv- ing in poverty in all its dimensions according to national definitions. A significant share of the raw materials sourced by AAK is produced by smallholder farmers. We are e.g. providing pre-financing to shea-collecting women in West Africa through our Kolo Nafaso program. Further increase smallholder inclu- sion in our supply chains, improved smallholder support, partly in the form of training and/or certification with focus on our palm, coconut and shea supply chains. Direct YES AAK has 321,443 women engaged in its Kolo Nafaso supply chain and 4,300 smallholder farmers engaged in its palm supply chain. The number of women in our Kolo Nafaso supply chain has increased by 39 percent since 2019 and smallholder engagement projects are running for palm oil in Malaysia and Mexico; for coconut in Indonesia; and for shea in Burkina Faso, Ghana, Ivory Coast and Nigeria. Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance. Access to financial services through our Kolo Nafaso program. AAK is including smallholders in our palm supply chain and support smallholder programs aimed at training and/or achieving RSPO certification. Continue to support the Forever Sabah program in securing land titles for smallholder farmers in Sabah, Borneo in order to enable access to community services (water) and to work towards becoming RSPO-certified. Direct/ indirect AAK furthermore continues to work with the NDPE framework. Indirect NO 800 farmers involved in the Forever Sabah program. 2,300 farmers involved in Latin America. AAK’s new ambition is to equip a minimum of 95 percent of Kolo Nafaso women’s groups with an individual financial solution until the end of the shea season 2024/2025. For the shea season 2020/2021, AAK achieved 84 percent by the end of 2020. Going forward, we will enable the traceable Kolo Nafaso volumes to be included in our percentage of revenue connected to the Sustainable Development Goals. Zero hunger Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round. AAK offers interest-free micro credits to all 321,443 members of its Kolo Nafaso program. AAK will continue to increase the number of members having access to pre-financing in its Kolo Nafaso program. Direct NO 321,443 members of the Kolo Nafaso program have access to micro credits. This is an increase of 39 percent since 2019. 19 percent of households who take pre- financing use it to buy food products during the lean period. Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and oppor- tunities for value addition and non-farm employment. AAK is supporting smallholder education in good agricultural practices through its Kolo Nafaso program. AAK will continue to educate smallholders in West Africa, Indonesia and Mexico in good agri- cultural practices. We will continue to support smallholder farmers to achieve RSPO or Rainforest Alliance certification. Direct NO The Kolo Nafaso program grew by 39 percent in 2020 compared to 2019, offering training to an additional 90,567 women. 38 percent of households receiving pre- financing are using it to invest in agricultural activities. 100 percent of the coconut smallholders that are part of our Rainforest Alliance supply chain have been trained in good agricultural practices. For the Mexican smallholder project, field schools have been established and standard operating procedures developed. UN SDG UN SDG sub-targets AAK’s impact Increasing positive impact Direct/ Indirect impact Reducing negative impact Direct/ Indirect impact Business- critical SDG Progress and supporting key performance indicators