Sustainability report

AAK Sustainability Report 2020 Reporting framework | 75 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 6.3: improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally. AAK’s processing lead to water discharge that needs to go through a water sanitation process. Increase the knowledge and engagement on our sites to work more preventatively with water consumption. Direct Water discharge is mitigated and controlled and should continuously be reduced. Direct NO AAK mitigate water discharge annually. During the last 5 years the water discharge has decreased with 20 percent . Target 6.4: By 2030, substantially increase water use efficiency across all sectors and ensure sustainable withdrawals and supply of fresh- water to address water scarcity and substantially reduce the number of people suffering from water scarcity. AAK withdraw water for cooling purposes that is returned to its source. AAK also withdraw municipal water and groundwater for use in products, such as margarine. Direct To ensure sustaina- ble water withdraw- als AAK continuously check if any volumes are withdrawn from areas with water stress and try to reduce municipal water use. Direct NO During 2020 no water withdrawals reported was withdrawn from areas with water stress. AAK reduced the total water consumption per processed unit with 63 percent compared with 2019. Going forward AAK will further assess the impact on withdrawal of freshwater to ensure sustainable withdrawals. Ensure access to affordable, reliable, sustainable and modern energy Target 7.1: By 2030 ensure universal access to affordable, reliable and modern energy services. AAK can have an impact on access to better cooking solutions in our shea supply chain. Since the shea season 2016/2017, AAK is collaborating with customers to train women in construction techniques to build improved cook stoves with locally available materials in West Africa. Direct NO The cook stoves have been assessed to be 33–65 percent more energy efficient than the traditional alternative. AAK and its customers have so far constructed more than 7,000 cook stoves. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. AAK has an impact on share of renewable energy based on its procurement of green electricity. Our impact is driven by a possibility to ensure a circular approach, long-term availability of sustainable biomass and local infrastructure development. AAK will continue to explore sus- tainable ways of utilizing sustainable biomass in its production. Direct Our ambition is to have 100 percent renewable electricity by 2025 and to keep searching for better energy sources for our boilers in line with ongoing infra- structure develop- ment, availability of sustainable biomass and more circular solutions. Direct YES 23 percent of secondary energy use in AAK is renewable. This is an increase by 1 percent compared to 2019. 26 percent of the direct energy use in AAK stems from biomass. This is an increase by 2 percent compared to 2019. 14 percent of AAK's purchased electricity is renewable in 2020. Target 7.3: Improvement in energy efficiency. AAK's activities are energy intensive. An improvement in energy efficiency has a significant impact on AAK’s environmental footprint. Energy efficiency initiatives at different stages of the Kolo Nafaso supply chain. AAK shall continue to benchmark, exchange best practices and utilize best available technology to contin- uously improve energy efficiency. Indirect The energy efficiency in our operations is measured on a regular basis to ensure continuous improvement. Continue to focus on developing solutions with energy-saving benefits in the user phase. Direct YES Energy consumption per processed unit decreased by 5.4 percent compared to 2019.