Sustainability report

AAK Sustainability Report 2020 6 AAK’s role in the value chain Our responsibility The illustration on the next page shows the steps involved to provide our products and services. It demonstrates how AAK is in the middle of the value chain, sourcing multiple raw materials globally that are processed into various customer solutions. As a result, we have a core responsibility to manage and mitigate the impact of our sourcing, operations and solutions. AAK has production facilities in many countries. This makes us an important employer and contributor in the local communities in which we operate. The processing activities are resource intensive and we must continuously work to minimize our environmen- tal impact. Our sourcing also has a global base. The plant-based oils we develop for our customers are based on raw materials that originate from around the world. A significant proportion of our raw materials are sourced from some of the world’s poorest regions and communities, where oil crops provide a livelihood to millions of people. With this global reach and impact comes a big responsibility. Our response to this responsibility is determined by evaluation of risks and opportunities, alignment of priorities with key stakeholders, and our ability to exert influence. The most significant topics that we need to manage are outlined in the boxes referring to Better Sourcing, Better Operations, and Better Solutions. The topic boundaries and the management approach of the risks involved can be found in their respective sections of the report. A resilient company We are continuously improving the resilience of the company with the future in mind. The value chain of edible oils and fats is connected to risk related to land use, increasing population, decarbonization, deforesta- tion, land conflict, human rights abuses, and now, the impact of the Covid-19 pandemic. Whilst facing these challenges, we have defined a new purpose and a model to drive sustainable progress, emphasizing our role and responsibility to manage risks and build resilience in the value chain and support our stakeholders in Making Better Happen™. We have committed to making our palm and soy supply chains verified deforestation-free, to making human rights impact assessments across the supply chain, and to assess and address climate change risks in our operation. Climate change risk assessments will also be carried out in our supply chain going forward. A catalyst for change AAK believes that we have a major role to play in driving wider acceptance of plant-based foods. Our focus will be to ensure that consumers do not have to compromise on taste, texture and other sensory expe- riences when switching to plant-based alternatives. In this way, we will act as a catalyst to shift consumer demand towards more sustainable, resource-efficient food sources. We intend to be part of the solution for a world under pressure. At AAK, we recognize that our respon­ sibilities in the value chain go far beyond our own operations and that every step is connected to multiple stakeholders around the world. We actively manage risks and opportu- nities and AAK can play an important role in the future as a catalyst for change.