Sustainability report

AAK Sustainability Report 2020 78 Ensure sustainable consumption and production patterns Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. AAK is part of the raw material and food processing industry using agricultural products relying on natural resources. We continuously try to raise awareness about sustainable management and natural resources both internally and externally together with customers. Direct Our current priority is to drive progress on verified deforest- ation-free palm and soy supply chains. Going forward, we shall focus more on circular solutions and recycling to further improve resource management. Direct NO During 2020, AAK has educated customers, especially within Personal Care and Plant- based Foods, on the environmental footprint of the company's rapeseed products. Since 2019, AAK has reduced waste intensity per processed unit by 50 percent . Target 12.3: By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post- harvest losses. AAK has an impact on how to reduce food losses by utilizing its valuable sidestreams to produce healthy and nutritious solutions. We are making animal feed solutions from our food oil production side- streams in Karlshamn, Sweden. Direct The revenue connected to our animal feed that originates from AAK sidestreams is included in our ambition, percent of revenue connected to the Sustainable Development Goals. Target 12.5: Reduce waste. As part of the processing industry, we are creating waste from our processes, including sidestreams. Continuous work is ongoing to increase utilization of sidestreams and prolonged shelf life of solutions. Direct Continuous work to prevent waste, increase recycling, and investigate the value of our side- streams with a more circular approach. Direct YES Waste going to landfill decreased by 16 percent compared to 2019. The amount of recycled waste increased by 42.2 percent compared to 2019. This is mainly due to a move to by-products and better alternatives in process aids. Waste intensity per processed unit decreased by 50 percent compared to 2019. Target 12.6: Integrate sustainability in reporting cycle. We have an impact on how we communicate progress and drive sustainability internally in a transparent manner towards our stakeholders. Published sustainability reports annually since 2009 and palm oil and shea progress reports twice a year since 2014. Direct NO During 2020, AAK has continued to improve the sustainability reporting in line with GRI Core level and embedded further information on climate risk into our Annual Report. Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sus- tainable development and lifestyles in harmony with nature. Human behavior and post-harvest processes have been identified as hot spots of environmental footprint in the shea supply chain where AAK can have a positive impact. Our trainings include: steaming of kernels instead of boiling them; increasing resource efficiency and reducing energy use; sensitivity train- ing to take care of new seedlings and not cutting down shea trees. Direct NO We have an ambition to refresh our trainings for a minimum of 95 percent of groups every four years. The season 2020/2021 is our baseline season. So far, we have refreshed 18 percent of groups in 2020. We have experienced delays with the trainings in 2020 due to Covid-19 and were unable to fully catch up. But our 2023/2024 ambition remains relevant, and we will continuously report our progress in our Kolo Nafaso shea dashboard. 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