Sustainability report

AAK Sustainability Report 2020 74 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 Target 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adapta- tion to climate change, extreme weather, drought, flooding and other disasters and that progres- sively improve land and soil quality. AAK is connected to both small- scale speciality raw material production systems as well as large-scale agricultural commodity production systems. AAK will continue working together with its suppliers and partners to ensure the protection of ecosys- tems and biodiversity. AAK will continue to engage with our deforestation free palm and soy supply chains in order to achieve its 2025 commitment. Indirect YES In 2020, AAK has committed to 100 percent verified deforestation-free (VDF) palm and soy supply chains by the end of 2025. In 2020, we achieved 50 percent VDF for palm and 31 percent VDF for soy. Protection of specific ecosystems like Leuser and Tesso Nilo in Indonesia are part of the key initiatives. Ensure healthy lives and promote well-being for all at all ages Target 3.2: End preventable deaths of new-borns and children under 5 years of age. AAK is supporting the global infant population with safe, proven, essential lipids. A Health & Nutrition platform has been established to further support the progress. Direct YESYES Production facility has improved its capabilities to support our partners with infant nutrition. The revenue connected to our infant for- mula is included in our ambition, percentage of revenue connected to the Sustainable Development Goals. Achieve gender equality and empower all women and girls Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision making in political, economic and public life. AAK is increasing the number of female leaders in traditionally male dominated contexts, such as West Africa. We offer leadership training to female supervisors in our Kolo Nafaso program. AAK aims to ensure equal remuneration for men and women for work of equal value. AAK is committed to ensure a stable and long-term business relationship with its Kolo Nafaso members and to educate and empower them to become even stronger business- women. AAK is committed to attracting, developing, and retaining an inclusive and diverse workforce. We believe that inclusion and diversity drive innovation. Direct Direct AAK is conducting a women survey related to the Kolo Nafaso program to track progress and potential complaints at women level every two years to ensure positive impact is achieved. Direct YES The number of female managers increased by 33 percent in West Africa compared to 2019. In 2020, the women survey had to be delayed due to Covid-19. The survey will take place in 2021. During 2020, AAK initiated a Diversity & Inclusion program to drive further progress. 23 percent of AAK's employees are female and 28 percent are on managerial level. Ensure access to water and sanitation for all Target 6.1: By 2030, achieve univer- sal and equitable access to safe and affordable drinking water for all. AAK partners with and supports organizations that ensure access to safe and affordable drinking water in rural communities in Ghana. We supported the Emergency Water Fund in 2020. AAK will further support its partner Saha Global and fund new water businesses in Kolo Nafaso communities in 2021. Progress will be tracked in our Kolo Nafaso dashboard. Indirect NO In the season 2020/2021, we have supported the Emergency Water Fund to provide free drinking water to communities in Ghana. Going forward, we will be investing in local water businesses with the ambition to reach 6,500 people by the end of season 2024/2025.