We are reinforcing our commitment to smallholder empowerment alongside Musim Mas and Nestlé.
We have renewed our partnership with Musim Mas and Nestlé for a fourth consecutive year, continuing a transformative landscape initiative in Aceh Subulussalam, Indonesia.
Since 2021, this collaboration has supported the Musim Mas Smallholders Hub — a program designed to train independent oil palm smallholders and Village Extension Officers (VEOs) in sustainable agricultural practices and the principles of NDPE (No Deforestation, No Peat, No Exploitation). With our continued support, the program will enroll an additional 500 smallholders in 2025, bringing the total to 1,750. We’ll also help double the number of VEOs receiving advanced training, equipping 20 more officers with the tools to drive sustainable change on the ground.
For us at AAK, this partnership is an investment in a more inclusive and resilient supply chain. It directly supports smallholders — many of whom face barriers to meeting new regulatory requirements like the EU Deforestation Regulation (EUDR) — by building capacity in good agricultural practices, financial literacy, and business management. It also strengthens gender equity and youth engagement, ensuring the next generation of farmers is equipped to meet global sustainability standards.
This initiative is also closely aligned with our long-term sustainability commitments, particularly our goals around inclusive supply chains and deforestation-free sourcing. The program’s focus on smallholder inclusion, gender equity, and youth engagement reflects our sourcing policy and environmental roadmap, which prioritize capacity-building, regenerative agriculture, and long-term resilience in high-risk landscapes.
AAK's verified deforestation-free palm
By training smallholders and expanding NDPE-aligned education, the partnership contributes to our target of achieving verified deforestation-free sourcing for palm. It also reinforces our commitment to reducing Scope 3 FLAG emissions by 33.3% by 2030, recognizing the critical role smallholders play in upstream emissions.
As we continue co-develop solutions with partners and producers, we’re helping shape a more equitable and sustainable palm oil industry — while advancing our climate and biodiversity goals.
Read more about AAK's smallholder engagement work in our 2024 Sustainability Report.