Sustainability report

AAK Sustainability Report 2020 76 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 Promote inclusive and sustainable economic growth, employment and decent work for all Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and pro- duction and endeavor to decouple economic growth from environmen- tal degradation, in accordance with the 10-year framework of programs on sustainable consumption and production, with developed countries taking the lead. AAK has a responsibility to grow responsibly both in terms of expanding volumes, supply chains and production sites. AAK will continue to increase the demand for sustainable palm, especially in developing regions like India and China. The AAK Group Environmental Policy requires environmental assessments before acquisitions or partnerships. Our ability to get new sites on board with the AAK sustainability standards is key to how we are decoupling economic growth from negative environmental impact. AAK has onboarded several new sites during the years, still manag- ing to maintain a positive trend in terms of environmental impact. Indirect AAK Group Policy Responsible Sourcing of Vegetable Oils and AAK Group Policy Sustainable Palm Oil require no deforesta- tion or development of peatland and High Conservation Value areas. Continue to drive progress on verified deforestation-free and conversion-free volumes in palm and soy supply chains. Indirect NO AAK has achieved 50 percent of VDF palm in 2020 and 31 percent of VDF soy. We will continue to work towards achieving our ambition of 100 percent VDF palm and soy supply chains by 2025. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. AAK has a responsibility to ensure a full and productive employment and decent work for all women and men. AAK utilizes market pay data to evaluate pay levels in each country, but will assess the possibility to set up a global gender pay ratio in a new global HR system. Continuously improve the competences and engagement of our people. AAK’s Code of Conduct has been updated and states that hiring, remuneration, etc. are based on objective factors. Direct AAK conducts risk assessments to ensure workplace safety prevention. Direct NO 4 cases of discrimination were reported during 2020. Corrective actions were taken to prevent incidents from happening again. AAK deploys a on-the-job-learning approach that represents a majority of the training. On top of that, we have 10.5 hours of formal training on average per employee. All of AAK’s employees have received regular performance and career development reviews. Target 8.6: Reduce the share of youth (15–24) not in education, training or employment. AAK is working internally with internships and trainees and to build prerequisites to support youth employment in different community engagement projects. AAK has the ability to employ and embrace youth in work or trainee programs. We also accept shorter trainee programs or internships when requested. We will continue with our community engagement programs, aiming at providing skills and better prerequisites for employment. Direct NO During 2020, we had the pleasure of having two internships engaged for shorter tasks and projects in our Global Sustainability team. During 2020, AAK has engaged in community engagement projects in Brazil and Uruguay to enhance the prerequisites for young individuals’ ability to enter the job market.