AAK ABRSPO AnnualCommunication ofProgress 2020

Particulars
About Your Organisation
1.1 Member NameAAK AB
1.2 Membership number
2-0001-04-000-00
1.3 Membership sector
Palm Oil Processors and/or Traders
1.4 Membership category
Ordinary
1.5 Country
Sweden2.0 Does your company or organisation produce, process, consume or sell any palm oilor any products containing derivatives of palm oil?
Yes
2.1 Please select all description(s) that describe the palm oil-related activities of yourcompany or organisation. Multiple selections are allowed, and not limited to the primarysector of the member's RSPO membership. You will be required to complete the relevant
ACOP section based on your selection(s).
I own and operate oil palm estate(s) and/or palm oil mill(s)I represent a palm oil Independent Smallholder farmer GroupI own and operate independent palm oil mills
I own and operate independent palm kernel crushing plants
I trade or broker palm oil, palm kernel oil or related products
I am a refiner of palm oil or palm kernel oil
I am a processor of intermediate (B2B) palm oil, palm kenel oil or related ingredients
I am a B2B distributor or wholesaler of palm oil, palm kernel oil or related products
I manufacture consumer (B2C) products containing palm oil, palm kernel oil or related products. This includes products manufactured by
3rd party contractors.
I retail consumer (B2C) products containing palm oil, palm kernel oil or related products
I operate food retail outlets that use palm oil, palm kernel oil or related products
I support the sustainable development of the palm oil industry as a conservation and environmental NGOI support the sustainable development of the palm oil industry as a social and human development NGOParticulars

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AAK ABRSPO AnnualCommunication ofProgress 2020

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
Intermediate Products Producer
Power, Energy and Biofuel Processor
Animal Feed Producer
Oleochemicals Producer
Distribution & Logistics
OtherOther-Processor and/or Trader

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2. Palm Oil and Certified Sustainable Palm Oil Consumption
Information in Section 2.0 - Palm Oil and Certified Sustainable Palm Oil Sourcing is amandatory declaration in your ACOP. This includes volume data on palm oil, palm kernel
oil and related products consumed of individual members, sectors and RSPO members asa whole. ACOP reports without reported volume data will be considered as incomplete
and will not be accepted. Incomplete ACOP reports may lead to suspension ortermination of RSPO membership.
2.1 Please include details of all certified and uncertified operations using palm oil, palm
kernel oil and related products, owned and/or managed by the member and/or allentities 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 markets do you sell goods with palm oil and palm oil -related products?
Europe, North America, China,India,Malaysia,Indonesia,Africa, Latin America, Rest of the World
DL.2.0 In order to facilitate ease of reporting and transparency, RSPO members operating
within the palm oil demand supply chain can now choose to report palm oil and palm oil
product volumes on:
an aggregate level (as in previous ACOP reporting cycles)

Processor and/or Trader

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RSPO AnnualCommunication ofProgress 2020

AAK AB

2.2 Volumes of uncertified and certified palm oil, palm kernel oil and related product sourced in the year
Description

Tonnes

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

1023928.0

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

214565.0

Crude palm kernel expeller (tonnes)

0.0

Total

1238493

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

Description

Crude Palm
Crude Palm Kernel Oil
Oil (CSPO) (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

0.00.0Mass Balance (MB)112108.0

51477.0

0.0

Segregated (SG)281636.0

16499.00.0

Identity Preserved (IP)10447.0

0.00.0Total

404191.067976.0

0.0

Processor and/or Trader

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AAK ABRSPO AnnualCommunication ofProgress 2020

2.4 According to the volume information you have provided in Question PT.2.2 andQuestion PT.2.3, your company's certified palm oil, palm kernel oil and related products
uptake is:38.12%
2.4.1 Please provide additional information on your certified palm oil, palm kernel oil andrelated products uptake calculated in PT.2.4. This may include changes due to businessenvironment, evolving nature of operations or variations due to stock positions
No further information to add
2.5 What is the estimated percentage of Certified Sustainable Palm Oil in the palm oil,palm kernel oil and related products sold, traded or processed by your company in thefollowing regions:
Countries/Regions

Percentage

Europe60.0

North America

60.0

Malaysia

30.0

Indonesia

0.0

China

2.0

India

5.0

Latin America

16.0

Africa0.0

Rest of World

0.0

Processor and/or Trader

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AAK ABRSPO AnnualCommunication ofProgress 2020

3. TimeBound Plan
3.1 Which year did your company achieve/obtain (or expects to achieve/obtain) the RSPO
supply chain certification or RSPO 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 has not been met, please explain why.
3.3 Which year did your company achieve (or expects to achieve) 100% RSPO certificationof all palm product processing facilities.
2018
3.3.1 If the previous target year has not been met, please explain why.
It is AAKs ambition to supply chain certify any new acquisitions as soon as possible
3.4 Year expected to only source 100% RSPO-certified palm oil and oil palm products.
2025
3.4.1 If target has not been met, please explain why.
3.5 If the TimeBound Plan commitments declared above do not cover all countries inwhich the member operates, please explain why
Customer demand for RSPO certified products is affected by geographical region as well as individual
sourcing requirements of which may or may not include RSPO certified material, AAK is committed topromoting and offering RSPO certified products to our customers

Processor and/or Trader

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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 consumption of certified sustainable palm oil (CSPO)
During 2020 AAK updated it's strategic direction and sustainability has been identified as a playing akey role, including the sourcing of raw materials. AAK announced that 100% of it's global supply basewill be covered by supplier monitoring utilising the latest satellite technology and the most completemaps and group ownership dataset available.
AAK employees are required to take part in the e-learning, which is currently being updated, which
ensures that 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 well as presentations that support our sales
teams in their customer engagement.
AAK is also investing in resource and expanding the dedicated sustainability team to drive executionof AAK's palm acceleration plan, as well as to support our sales teams with specific customer
requirements.
AAK is also active in NASPON, China & India Sustainable Palm Oil initiatives to stimulate moreawareness and ultimate uptake of RSPO CSPO.

Processor and/or Trader

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AAK ABRSPO AnnualCommunication ofProgress 2020

Shared Responsibility
The Board of Governors of the Roundtable on Sustainable Palm Oil approved new Shared
Responsibility rules on 31 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 Respobsibility
section in ACOP is not yet final and may change in future ACOP cycles. For more
information on Shared Responsibility, please go to https://rspo.org/news-andevents/news/what-are-the-new-shared-responsibility-rules or email the ACOP team at
acop@rspo.org
Labour & Labour Rights
1.1 Does your company have a publicly-available policy covering Labour & Labour Rights?
Yes
1.1.1 Does the policy cover:No discrimination
Wage and working conditions
Freedom of association
No child labour
No harassment
No forced or trafficked labour

Ethical Conduct & Human Rights
1.2 Does your company have a publicly-available Policy covering Ethical Conduct &Human Rights?
Yes
1.2.1 Does the policy cover:
Recruitment
Contractors
Sub-Contractors & Third-Party Contractors

Land Use
1.3 Does your company have a publicly-available Policy covering Land Use?
Yes
1.3.1 Does the policy cover:Free Prior and Informed Consent (FPIC)
Compensation

Occupational Health & Safety
1.4 Does your company have a publicly-available Policy covering Occupational Health &Safety?
Yes
Shared Responsibility

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AAK ABRSPO AnnualCommunication ofProgress 2020

Climate Change & Greenhouse Gas (GHG)
1.5 Does your company have a publicly-available policy covering Climate Change &Greenhouse Gas (GHG)?
Yes
1.5.1 Does the policy cover:Identification and assessment of GHG
Monitored implementation plan to reduce or minimise GHG emissions

Complaints & Grievances
1.6 Does your company have a Complaints & Grievances Mechanism?
Yes
1.6.1 Is your Complaints & Grievance mechanism in line with the principles of the RSPO's
grievance mechanism, which are the elements of fairness, transparency, and impartiality?
Yes
Smallholders
1.7 Does your company support oil palm independent smallholder groups?
Yes
1.7.1 Does this support cover:
Fair and transparent dealings with Smallholders
Improved Smallholder livelihoods

1.7.2 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 anddeveloping Facilitated Land Application Process for village wide applications to the Lands and SurveysDepartments. During 2020 it had been the intention to guide the smallholders in the trial areas
through the RSPO certification process, but has been delayed by Covid 19
AAK continues to work with Solidaridad running a project in Mexico to support 3 Social
Agroindustries groups. These are groups of smallholder cooperative who also own and operate theirown independent palm oil mills. The planned Farmer Field Schools did take place all be it in a reduced
format and under strict Covid 19 protocols

Shared Responsibility

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AAK ABRSPO AnnualCommunication ofProgress 2020

Sustainable Palm Oil Policy
1.8 Does your company have a publicly-available Policy covering the implementation of
RSPO Shared Responsibility principles?
NoWaste Management
1.9 Does your company have a waste management plan?
Yes
Water Management
1.10 Does your company have a water management plan?
Yes
Energy Use
1.11 Does your company have an energy use plan covering fossil fuels and renewableenergy?
Yes
RSPO Services and Support
1.12 Does your company provide services and support to the RSPO, eg. participation in
RSPO Working Groups and Task Forces
Yes
Shared Responsibility Resourcing1.13 Does your company have a plan to commit resources to ensure effective
implementation of RSPO Shared Responsibility principles?
Yes

Shared Responsibility

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AAK ABRSPO AnnualCommunication ofProgress 2020

Challenges and Support
1.1 What significant obstacles or challenges has your company encountered in thepromotion of certified sustainable palm 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 oil
Low 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
1.2 In addition to the actions already reported in this ACOP report, what other ways has
your company supported the vision of the RSPO to transform markets to makesustainable 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 efforts
Research & Development support
Stakeholder engagement
No actions takenOthersOthers
1.3 If your company has any other publicly-available reports or information regarding its
palm oil-related policies and activities, please provide the links here
AAK's Palm Progress reports can be found here:
https://www.aak.com/sustainability/better-sourcing/palm/all-about-better-sourcing-of-palm/

Challenges & Support

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