At AAK, we have the same better sourcing approach for all our key raw materials. It is our aim to fully integrate sustainability in our way of working across the global teams that are responsible for sourcing raw materials, for shipping, logistics, and with customers. In this way, we help connect our customers’ brands to the plants which supply the raw materials.
To maximize our impact on the raw material industries, and to work in a holistic way with the challenges we face, we engage with our supply chains on three levels:
Deeply understanding our supply base
We are improving traceability and monitoring of our raw materials, linked to countries, regions, jurisdictions, and ultimately the production base and farmers. This is needed for risk assessment, which helps us to identify and prioritize the most important issues and the positive impact AAK can have.
Engaging with suppliers and smallholders
We assess suppliers via supplier questionnaires and monitoring. We aim to increase suppliers’ and farmers’ understanding of and their current commitment to sustainable development. Suppliers must adhere to the AAK Group Code of Conduct for Suppliers of Raw Materials and we ask them to sign specific policies (e.g. the AAK Group Policy Sustainable Palm Oil). Our focus is to progress from signing towards full implementation, including the roadmaps and action plans suppliers have in place and how we can help to make transformation happen. Furthermore, we are working with supplier score cards, which serve as a monitoring and engagement tool.
Audits are conducted in the supply chain based on risk, performance and priority aligned with sourcing and trading. External audits are being conducted by the relevant auditing bodies related to specific certification standards (RSPO, Rainforest Alliance, ProTerra and ISCC).
Driving impact beyond our supply base
Many of these sustainability issues are complex and require wider transformation at a regional or landscape level, even beyond AAK’s supply base. AAK is actively participating in many industry initiatives. To mention a few: board member of the Global Shea Alliance, the RSPO Board of Governors and Market development standing committee, partnerships with Solidaridad and Forever Sabah, signatories of the Sustainable Coconut Charter.