Sustainability report

AAK Sustainability Report 2020 80 Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally. AAK’s impact is to ensure that our raw materials are not contributing to deforestation or conversion, and that biodiversity and tropical ecosystems are protected. AAK will continue to work on increasing the awareness and the demand for sustainable palm, espe- cially in developing countries, with focus on RSPO-certified volumes, as well as progressing on our verified deforestation-free supply chains commitment. AAK signed the Sustainable Coconut Charter in 2020. Part of the Charter is a commitment to mitigate climate change through sustainable land use on plantation level. Indirect AAK Group Policy Responsible Sourcing of Vegetable Oils, and AAK Group Policy Sustainable Palm Oil require no deforestation or development of peatland and High Conservation Value areas. Indirect YES The goal is to achieve 100 percent verified deforestation-free and conversion-free palm and soy supply chains by 2025, Status 2020: 50 percent and 31 percent, respectively. 100 percent of our suppliers have signed the AAK Group Policy Sustainable Palm Oil and all relevant employees have passed our e-learning modules AAK Palm oil policy and action, and Responsible sourcing of shea. AAK achieved 100 percent traceability to mill and 70 percent  traceability to plantation. RSPO-certified palm increased to 38 percent , representing an increase by 23 percent since 2019. To increase the demand for certified sustainable palm, we include sales of RSPO-certified in our ambition of percent of revenue connected to the SDGs. Target 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land degradation-neutral world. AAK’s impact is to prevent the nega- tive impact of agricultural expansion, to ensure further degradation of soil is prevented, and that desertification is combatted. Through education and training of farmers and partici­ pating in landscape programs, we can make a positive impact. Through our tree planting partner- ships we are contributing to the reforestation of shea parklands and agroforestry system and help fight desertification in the area. Direct NO During the 2019/2020 season, we started to invest in tree planting and tree planting trainings in the shea belt. Since season 2020/2021, we are supporting the “Action for Shea Parkland Management” driven by the Global Shea Alliance. So far, we have planted more than 38.000 trees and we have set the ambition to plant 150,000 trees until the end of season 2024/2025. Promote just, peaceful and inclusive societies Target 16.5: Substantially reduce corruption and bribery in all their forms. AAK can impact employees, sup- pliers and business partners not to take part in any form of corruption by applying the regulations defined in our Group Code of Conduct. We can also evaluate compliance and stop cooperation if any risk or incident takes place. Corruption and bribery is part of our Group Code of Conduct and our Code of Conduct for Suppliers of Raw Materials. AAK provides mandatory e-learning courses for all employees at increased risk of encountering corruption. Training on our Code of Conduct for Agents and Distributors was an ambition for 2020 which was postponed due to Covid-19. It will be developed and launched during 2021. Direct NO 53 percent of relevant employees passed the anti- corruption training in AAK during 2020. 94 percent of our agents and distributors have signed the AAK Code of Conduct for Agents and Distributors and all key suppliers have signed the Code of Conduct for Suppliers of Raw Materials with specific requirements on anti-corruption. 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