AAK ABRSPO AnnualCommunication ofProgress 2019

Particulars
About Your Organisation
1.1 Name of your organisation
AAK AB
1.2 What is/are the primary activity(ies) or product(s) of your organisation?
Palm Oil Grower
Processor and/or Trader
Consumer Goods Manufacturer
RetailerBank and/or Investor
Social and/or Development NGO
Environmental and/or Conservation NGO
Affiliate

1.3 Membership number
2-0001-04-000-00
1.4 Membership category
Palm Oil Processors and/or Traders
1.5 Membership sector
Ordinary

Particulars

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AAK ABRSPO AnnualCommunication ofProgress 2019

Processors & Traders
1. Operational Profile
1.1 Please state your company's main activity within the palm oil supply chain.
Refiner of CPO and PKO
Palm Kernel Crusher
Trader with Physical Possession
Trader without Physical Possession
Integrated Refiner-Trader-Processor
Food and Non-Food Ingredients Producer
Power, Energy and Biofuel Processor
Animal Feed Producer
Oleochemicals Producer
Distribution & Logistics
OtherOther-2. Palm Oil and Certified Sustainable Palm Oil Consumption
Information in Section 2 - Palm Oil and Certified Sustainable Palm Oil Sourcing is a mandatory declaration in yourACOP. This includes volume data on palm oil and palm oil products consumed, to enable the RSPO to accurately
calculate uptake on a member, sector and total level. ACOP reports without reported volume data will be considered
incomplete and will not be accepted.
2.1 Please include details of all operations using palm oil, owned and/or managed by the member and/or all entities
that belong to the group.
Refer to AAK's website for an up to date list of production facilities https://www.aak.com/contact/
2.1.1 In which countries does your company sell goods with palm oil and palm oil products?
Applies globally
2.2 Total volume of all palm oil and palm oil products sourced in the year:

Description

Tonnes

Crude palm oil, including derivatives refined from CPO (tonnes)

1062868.0

Crude palm kernel oil, including derivatives refined from CPKO (tonnes)

311680.0

Crude palm kernel expeller (tonnes)
Total

Processor and/or Trader

0.01374548.0

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RSPO AnnualCommunication ofProgress 2019

AAK AB

2.3 Volume of RSPO-certified palm oil and oil palm products sourced in the year (tonnes):

Description

Crude Palm
Crude Palm Kernel Oil
Oil (CPO) (CSPKO) and Palm Kernel
and CSPOCSPKO
Expeller
Derivatives Derivatives(CSPKE)RSPO Credits from Mill / Crusher

0.0

0.0

0.0

RSPO Credits from Independent Smallholder

0.0

0.0

0.0

Mass Balance (MB)87701.054865.0

0.0

Segregated (SG)249944.014510.0

0.0

0.0

0.0

0.0

337645.069375.0

0.0

Identity Preserved (IP)Total

2.4 According to the volume information you have provided in Question PT.2.2 and Question PT.2.3, your company's
certified palm oil and palm oil products uptake is:29.61%
2.5 What is the estimated percentage of Certified Sustainable Palm Oil in the palm oil and palm oil products sold by
your company in the following regions:Countries/Regions

PercentageEurope

45.0

North America

54.0

Malaysia

0.0

Indonesia

0.0

China

1.0

India

3.0

Latin America

13.0

Africa0.0

Rest of World

0.0

Processor and/or Trader

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AAK ABRSPO AnnualCommunication ofProgress 2019

3. TimeBound Plan
3.1 Which year did your company achieve/obtain (or expects to achieve/obtain) the RSPO supply chain certification orRSPO trader/distributor licence?
2010
3.2 Which year did your company start (or expect to start) to source any RSPO-certified palm oil and oil palm
products?
2008
3.2.1 If the previous target year for PT.3.2 has not been met, please explain why.
3.3 Which year did your company achieve (or expects to achieve) 100% RSPO certification of all palm productprocessing facilities.
2018
3.3.1 If the previous target year for PT.3.3 has not been met, please explain why.
It is AAKs ambition to supply chain certify any new acquisitions as soon as possible
3.4 Which year did your company begin (or expects to begin) sourcing only 100% RSPO-certified palm oil and oilpalm products.
2025
3.5 If the TimeBound Plan commitments declared above do not cover all countries in which the member sells goods
with palm oil or palm oil products, please explain why
Customer demand for RSPO certified products is affected by geographical region as well as individual sourcing requirements ofwhich may or may not include RSPO certified material, AAK is committed to promoting and offering RSPO certified products toour customers
3.6 How does your company proactively promote RSPO and RSPO-certified sustainable palm oil and oil palm
products to your customers?
AAK' s customer base is diverse. Different customers have different needs. We reach out to our customer via our global go-to
market organization. Through our global network of Palm Champions and our Palm Sustainability Task Force, made up of seniorglobal managers we develop initiatives to fit all customer needs and requirements. AAK employees are required to take part in thee-learning which ensures they understand the sustainability issues related to palm oil, the RSPO, the standard and the solutions that
we are able to offer. Next to that AAK has an up to date toolbox with all relevant documents for both internal background as wellas presentations that support our sales teams in their customer engagement. We have a dedicated team in the organization to drive
execution of the AAK sustainable palm strategy, as well as to support our sales teams with specific customer requirements.

Processor and/or Trader

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AAK ABRSPO AnnualCommunication ofProgress 2019

4. Actions For Next Reporting Period
4.1 Please outline activities that your company will take in the coming year to promote the production or consumptionof certified sustainable palm oil (CSPO)
Continue to focus on our sales teams and customer innovation teams to ensure they understand the full story of palm oil throughaccess to the right tools and training, & are able to engage their customers on the topic of sustainability. Actively participate insustainability outreach and engagement groups in US, China and India.

Processor and/or Trader

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AAK ABRSPO AnnualCommunication ofProgress 2019

5. Shared Responsibility
The Board of Governors of the Roundtable on Sustainable Palm Oil (RSPO) approved new Shared Responsibility rules on31 October 2019, requiring all members to share sustainability requirements and obligations. Reporting of Shared
Responsibility indicators will be done through several channels, including ACOP. As the implementation of Shared
Responsibility reporting is still on-going and in development, the Shared Responsibility section in ACOP is not yet final
and may change in future ACOP cycles. For more information on Shared Responsibility, please go tohttps://rspo.org/news-and-events/news/what-are-the-new-shared-responsibility-rules or email the ACOP team at
acop@rspo.org
Labour & Labour Rights
5.1 Does your company have a publicly-available policy covering Labour & Labour Rights?
Yes
5.1.1 Does the policy cover:No discrimination
Wage and working conditions
Freedom of association
No child labour
No harassment
No forced or trafficked labour

5.1.2 Has your company previously uploaded or linked its Labour & Labour Rights policy in previous ACOP
reporting cycles?
Yes
Ethical Conduct & Human Rights
5.2 Does your company have a publicly-available Policy covering Ethical Conduct & Human Rights?
Yes
5.2.1 Does the policy cover:
Recruitment
Contractors
Sub-Contractors & Third-Party Contractors

5.2.2 Has your company previously uploaded or linked its Ethical Conduct & Human Rights policy in previous ACOP
reporting cycles?
YesLand Use
5.3 Does your company have a publicly-available Policy covering Land Use?
Yes
5.3.1 Does the policy cover:Free Prior and Informed Consent (FPIC)
Compensation

5.3.2 Has your company previously uploaded or linked its Land Use policy in previous ACOP reporting cycles?
Yes

Processor and/or Trader

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AAK ABRSPO AnnualCommunication ofProgress 2019

Occupational Health & Safety
5.4 Does your company have a publicly-available Policy covering Occupational Health & Safety?
Yes
5.4.1 Has your company previously uploaded or linked its Occupational Health & Safety policy in previous ACOP
reporting cycles?
Yes
Climate Change & Greenhouse Gas (GHG)
5.5 Does your company have a publicly-available policy covering Climate Change & Greenhouse Gas (GHG)?
NoComplaints & Grievances
5.6 Does your company have a Complaints & Grievances Mechanism?
Yes
5.6.1 Is your Complaints & Grievances mechanism in line with the RSPO's grievance mechanism? For details of theRSPO's grievance mechanism, please go to https://askrspo.force.com/Complaint/s/
Yes
Smallholders
5.7 Does your company support oil palm independent smallholder groups?
Yes
5.7.1 Does this support cover:
Fair and transparent dealings with Smallholders
Improved Smallholder livelihoods

5.7.2 How is your company supporting them?
AAK contributes to the Jurisdictional RSPO Certification Approach in Sabah, with specific focus on smallholders in the 4 trial
district areas. An focus of the work supported has involved land tenure and developing Facilitated Land Application Process forvillage wide applications to the Lands and Surveys Departments. One land rights have been confirmed the 20 pilot villages in the 4district areas will embark on becoming RSPO certified AAK continues to work with Solidaridad to run a project in Mexico tosupport 3 Social Agroindustries groups. These are groups of smallholder cooperative who also own and operate their own
independent palm oil mills. Farmer Field Schools to be established to demonstrate best management practices and to prepare thegroups for eventual RSPO certification.

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AAK ABRSPO AnnualCommunication ofProgress 2019

6. Challenges
6.1 What significant obstacles or challenges has your company encountered in the promotion of certified sustainablepalm oil (CSPO)? What efforts has your company taken to address these obstacles or challenges?
Awareness of RSPO in the market
Difficulties in the certification process
Certification of smallholders
Competition with non-RSPO members
High costs in achieving or adhering to certification
Human rights issues
Insufficient demand for RSPO-certified palm oilLow usage of palm oil
Reputation of palm oil in the market
Reputation of RSPO in the market
Supply issues
Traceability issues
No challenges faced
OthersOthers
6.2 In addition to the actions already reported in this ACOP report, what other ways has your company supported thevision of the RSPO to transform markets to make sustainable palm oil the norm?
Engagement with business partners or consumers on the use of CSPOEngagement with government agencies
Promotion of CSPO outside of RSPO venues such as trade workshops or industry associations
Promotion of physical CSPO
Providing funding or support for CSPO development effortsResearch & Development support
Stakeholder engagement
No actions takenOthers

Others
6.3 If your company has any other publicly-available reports or information regarding its palm oil-related policies andactivities, please provide the links here
AAK's Palm Progress Reports can be found here https://www.aak.com/sustainability/

Processor and/or Trader

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