Sustainability report

AAK Sustainability Report 2020 Reporting framework | 79 Take urgent action to combat climate change and its impacts Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning. AAK’s raw materials, transport and production sites have an impact on the climate. Based on our rough assessment, 95 percent of our impact is related to the supply chain, 4 percent to our primary energy consumption, and 1 percent to our purchased energy. AAK has a positive impact with our solutions. Providing plant-based solutions with functionality and flavor. AAK is adapting to climate change, growing our portfolio of solutions for plant-based foods. During 2020, AAK has seen an increasing demand for plant-based alternatives. Investments were made to build a Plant-based Foods Global Center of Excellence in the Netherlands. We also partnered up with Good Food Institute (GFI) India and joined the innovation platform MISTA in San Francisco, USA. Our volumes within Plant-based Foods more than doubled Indirect Raising more internal awareness about climate change. Apply our climate change score cards on our sites. Direct (scope 1+2) and Indirect (scope 3) YES GHG emissions per processed unit increased by 4.9 percent compared to 2019. However, absolute emissions decreased by 1.5 percent compared to 2019. During 2020, AAK signed the Science Based Targets initiative (SBTi). This means that we are committed to reduce GHG emissions consistent with keeping global warming at 1.5˚C above pre-industrial levels. Climate change physical risk has been assessed on all sites and corrective actions have been initiated. AAK has revisited the scope 3 risk assessment to understand the impact of our key raw materials better and we will engage with our supply chain to reduce greenhouse gas emissions in line with the science-based target method. Additional climate change risk assessments will be initiated in our supply chain going forward. The revenue connected to our plant-based solutions is included in our ambition, percent of revenue connected to the Sustainable Development Goals. 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