Progressing on responsible sourcing

scaling up our commitment to sustainable coconut oil

All about better sourcing of coconut

Coconut oil is a key raw material for AAK and a key source of income for thousands of smallholder farmers worldwide.

Our milestones and roadmap to 2025

Our milestones and roadmap to 2025 shows our progress in the journey towards sustainable coconut, as well as our ambitions still ahead. 

For a larger image of the coconut milestones and roadmap, please click here

Sustainability KPIs for coconut

Deeply understanding our supply base

Traceability is a key challenge in the coconut supply chain. At AAK, we buy crude and refined coconut oil and are therefore dependent on our suppliers to act in accordance with sustainable practices. 

We hold our coconut suppliers responsible for traceability through our supplier score cards, a new initiative launched in 2020. The score cards will be vital to drive progress in 2021 and onwards. The score cards are aligned with the key aspects of the Sustainable Coconut Charter. 

In 2020 we achieved 95 percent traceability to crushing plant and 20 percent traceability to the first subnational level. 

Engaging with suppliers and farmers

We have been able to progress our bilateral supplier engagement activities and have now engaged suppliers covering 96 percent of total volumes. 

Additionally, we have experienced both progress and challenges in our Rainforest Alliance coconut supply chain. In 2020, we received the first certified and fully segregated volumes of Rainforest Alliance coconut oil at our factory in Karlshamn, Sweden. At the same time, due to the pandemic, we experienced difficulties in meeting auditing schedules in the field. We are working with Rainforest Alliance to catch up on lost time. We are reporting on the number of smallholders that achieved the Rainforest Alliance certification in our supply chain and are growing this number with market demand. In 2020, 81 farmers were certified. 

Driving impact beyond our supply base

In November 2020, AAK joined the Sustainable Coconut Charter as a founding member, together with the United States Agency for International Development (USAID), Green Invest Asia, leaders from Barry Callebaut, Friesland Campina, Harmless Harvest Thailand, Jacobs Douwe Egberts, Nestlé, and Unilever. AAK encourages other supply chain partners to support the charter going forward.