Climate Change Data

AAK AB

Climate Impact & Sustainability Data (2009, 2022, 2023, July 2019 to January 2020)

Reporting Period: 2009

Environmental Metrics

Total Carbon Emissions:203,000 tonnes CO2e/year
Renewable Energy Share:32% of total energy use
Total Energy Consumption:3,762 Terajoules/year
Water Consumption:1,755,000 m3/year
Waste Generated:16,072 tonnes/year

ESG Focus Areas

  • Environmental responsibility
  • Social responsibility
  • Economic development

Environmental Achievements

  • 32% of consumed energy comes from renewable resources
  • 40% of AAK’s direct CO2 emission comes from renewable resources
  • 44% of waste used as biomass
  • Reduced gas consumption by 387,000 m3 (AAK NL)
  • Reduced output of phosphorus by 50% (AAK SE)
  • Decreased waste water by 20% (AAK SE)
  • Decreased Chemical Oxygen Demand (COD) by 68% (AAK UK)

Social Achievements

  • Implementation of AAK Code of Conduct
  • Implementation of AAK Supplier Code of Conduct
  • Support for local communities through various initiatives (e.g., health drives, sponsorships)
  • Improved living standards for shea collectors in West Africa through microloans and training
  • 77 work-related accidents registered, resulting in a loss of 907 working days

Governance Achievements

  • Adoption of the GRI framework for reporting
  • Adoption of AAK's Code of Conduct based on international conventions and agreements
  • Joined the UN’s Global Compact initiative
  • Joined Sedex for CSR transparency to customers

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Implementation of AAK Code of Conduct and Supplier Code of Conduct
  • Enhance AAK website with more extensive and dynamic CSR information
  • Increase number of AAK production sites obtaining RSPO supply chain certification
  • Cover all AAK private labels with GreenPalm RSPO certificates
  • Improve sustainability reporting in dialogue with external stakeholders
  • Assess internal value of GRI indicators within AAK organisation
  • Increase number of AAK sites sharing their CSR data with customers at SEDEX

Environmental Challenges

  • Rising energy costs and the link between energy consumption and climate impact
  • Overexploitation of ecosystems and ethical concerns related to raw material sourcing
  • Need for sustainable palm oil production and supply chain management
Mitigation Strategies
  • Ongoing efforts to improve energy processes, increase energy efficiency, and utilize renewable energy sources
  • Active involvement in RSPO and GreenPalm initiatives for sustainable palm oil
  • Implementation of AAK Code of Conduct and Supplier Code of Conduct to ensure ethical sourcing and labor practices
  • Development of the “book and claim” method for trading RSPO certificates

Supply Chain Management

Supplier Audits: 126 HR screened suppliers out of 436 approved suppliers used in 2009 (26% coverage)

Responsible Procurement
  • AAK Code of Conduct
  • AAK Supplier Code of Conduct
  • UN Global Compact principles
  • RSPO membership and GreenPalm program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (40% of production sites), ISO 9001 (60% of production sites), ISO 22000/BRC/HACCP/AIB (70% of production sites), RSPO (20% of production sites)

Sustainable Products & Innovation

  • Low trans fatty acid (TFA) product series
  • Dairy fat alternatives
  • Infant formulas with balanced essential fatty acids

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:343,936 tCO2e/year (Scope 1 & 2)
Renewable Energy Share:70%
Total Energy Consumption:4,644,380 GJ/year
Water Consumption:2,168,147 m3/year (municipal water)
Waste Generated:60,565 tons/year
Carbon Intensity:130 kg CO2e/t raw material

ESG Focus Areas

  • Climate
  • Biodiversity
  • People

Environmental Achievements

  • Reduced CO₂ emissions at Aarhus site by 90% through biomass boiler investment
  • 93% of waste recycled
  • 71% verified deforestation-free palm oil (6% improvement since 2021)
  • 87% traceability to plantation for palm oil
  • 100% of palm supply chain satellite monitored
  • 116,842 trees planted since 2019 (30% increase in 2022)

Social Achievements

  • 293,302 women enrolled in Kolo Nafaso women empowerment program (though this decreased by 17% from 2021)
  • 400 leaders trained about unconscious bias
  • AAKtivate global well-being program rolled out
  • Human rights risk assessment completed and due diligence approach defined
  • SEK 236,000 raised for UNHCR by employees, matched by AAK with an additional SEK 2 million donation to support Ukraine

Governance Achievements

  • ESG targets became a qualifier for Executive Committee’s remuneration in 2021
  • Updated sustainability leadership structure
  • Updated AAK Group Policy and Code of Conduct for Responsible Sourcing of Plant-based Oils launched

Climate Goals & Targets

Long-term Goals:
  • Climate neutrality by 2050
Medium-term Goals:
  • 50% reduction in absolute Scope 1 and 2 GHG emissions by 2030
  • 46% reduction in absolute Scope 3 non-FLAG GHG emissions by 2030
  • 23% reduction in absolute Scope 3 FLAG GHG emissions by 2030
  • Reduce annual energy consumption per processed unit by 2.5% by 2030
  • Reduce freshwater consumption by 50% by 2030
  • 100% waste recycled by 2030
  • Human rights due diligence embedded across all sites by 2025
  • Human rights due diligence embedded across all key raw materials by 2025
Short-term Goals:
  • 50% of revenue contributing to SDGs by 2025
  • 100% renewable electricity by 2025
  • 100% verified deforestation-free palm and soy by 2025
  • 10% of suppliers by emissions to have science-based targets by 2027
  • 100% traceability to plantation for palm by 2025

Environmental Challenges

  • Supply chain disruptions due to the war in Ukraine and global pandemic
  • Increased market prices for plant-based oils
  • Rise in protectionist measures
  • Security situation in Burkina Faso jeopardizing Kolo Nafaso program
  • Recycling of spent bleaching earth
Mitigation Strategies
  • Successfully managed supply chain risks
  • Continued preference for suppliers supporting AAK’s sustainability drive
  • Strive to maintain Kolo Nafaso operation in feasible regions
  • Working to find replacements for bleaching earth
  • Engaging in industry working groups to develop solutions for compliance with EU deforestation due diligence regulation

Supply Chain Management

Supplier Audits: 463 audits in 2022

Responsible Procurement
  • AAK Group Policy and Code of Conduct for Responsible Sourcing of Plant-based Oils
  • Supplier self-assessments
  • Supplier scorecards
  • Supplier training

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Drought
  • Tropical cyclones
  • Wildfires
  • Water scarcity
  • Extreme heat
Transition Risks
  • Carbon pricing
  • Regulations
  • Technology investments
  • Market changes
  • Reputation risks
Opportunities
  • Energy consumption reduction
  • Waste reduction
  • Circularity
  • Sustainable alternatives to boilers
  • Increased demand for plant-based foods

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Certifications: ISO 14001, ISO 50001, FSSC 22000, BRC, ISCC, RSPO

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)
  • Goal 5 (Gender equality)
  • Goal 8 (Decent work and economic growth)
  • Goal 1 (No poverty)
  • Goal 2 (Zero hunger)
  • Goal 15 (Life on land)
  • Goal 6 (Clean water and sanitation)
  • Goal 17 (Partnerships for the goals)

AAK's contributions to SDGs are detailed in the report, focusing on minimizing climate impact, poverty reduction, and women empowerment.

Sustainable Products & Innovation

  • AkoPlanet portfolio of plant-based oil and fat solutions

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:6,817,620 tCO2e (Scope 3 emissions in scope of targets)
Scope 1 Emissions:260,834 tCO2e
Scope 2 Emissions:55,107 tCO2e
Scope 3 Emissions:4,113,416 tCO2e
Renewable Energy Share:64.4%
Total Energy Consumption:5,412,930 GJ
Water Consumption:29,253,255 m3 (total withdrawal)
Waste Generated:28,858 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate
  • Biodiversity
  • People

Environmental Achievements

  • Completed installation of new bio-boilers at Aarhus, Denmark site, expected to decrease site's carbon footprint by 90% and reduce over 45,000 tons of carbon emissions annually.
  • 83% of palm supply chain verified as deforestation-free.
  • 61% of waste recycled (reduction of 52.4% compared to 2022).
  • 144,833 shea trees planted (96.5% of 2025 target).

Social Achievements

  • 8 percentage points increase in employee engagement score since 2017.
  • 36% of female managers (4 percentage points increase vs. prior year).
  • 241,188 women enrolled in Kolo Nafaso program.
  • Lost time injury frequency rate: 0.46 (0.6 in 2022).

Governance Achievements

  • SBTi approved emission reduction targets.
  • Updated Anti-Corruption Policy, Anti-Money Laundering Policy, and Sanctions Policy.
  • ESG targets became a qualifier for the Executive Committee’s remuneration in 2021.

Climate Goals & Targets

Long-term Goals:
  • Climate neutrality (2030-2050 commitments under development).
Medium-term Goals:
  • 50% reduction in absolute Scope 1 and Scope 2 GHG emissions by 2030.
  • 33.3% reduction in absolute Scope 3 FLAG GHG emissions by 2030.
  • 46.2% reduction in absolute Scope 3 non-FLAG GHG emissions by 2030.
  • 95% inclusion index rate by 2030.
  • Attrition rate lower than 8% by 2030.
  • 100% recycled waste by 2030.
  • Human rights due diligence embedded across all key raw materials by 2025.
Short-term Goals:
  • 100% renewable electricity by 2025.
  • 100% verified deforestation-free palm by 2025.
  • 100% verified deforestation and conversion-free soy by 2025.
  • 10% improvement in employee engagement score by 2025.
  • 150,000 shea trees planted by 2025.
  • 10,000 coconut trees planted by 2025.

Environmental Challenges

  • Growing demand for plant-based food.
  • Regulatory changes (EUDR, CSRD, CSRDDD).
  • Negative perception of palm oil.
  • Political instability in Burkina Faso impacting Kolo Nafaso program.
  • Decreased renewable electricity share to 64.4% in 2023.
Mitigation Strategies
  • Collaboration with industry associations (RSPO, POCG, FEDIOL, Sustainable Coconut Partnership).
  • Proactive adaptation to changing regulatory landscape.
  • Fact-based evidence to address negative palm oil perceptions.
  • Continued engagement with supply chain.
  • Investing in renewable energy generation.

Supply Chain Management

Supplier Audits: 62 in 2023

Responsible Procurement
  • AAK Group Code of Conduct
  • AAK Group Policy and Code of Conduct for Responsible Sourcing of Plant-based Oils
  • Supplier scorecards
  • SEDEX SAQ
  • Third-party certifications (RSPO, ProTerra, Rainforest Alliance, ISCC)

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Drought
  • Wildfires
  • Tropical cyclones
  • Tornadoes
  • Increased sea level
  • Contamination of land
Transition Risks
  • Carbon pricing
  • Regulations
  • Technology investments
  • Market changes
  • Failure to meet climate ambitions
Opportunities
  • Energy consumption reduction
  • Waste reduction
  • Circularity
  • Sustainable alternatives to boilers
  • Increased demand for plant-based foods

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, EU Taxonomy

Certifications: FSSC 22000, BRC, ISO 14001, ISO 50001, SMETA, RSPO

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 5 (Gender Equality)
  • Goal 1 (No Poverty)
  • Goal 2 (Zero Hunger)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 15 (Life on Land)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 17 (Partnerships for the Goals)

AAK's commitments and ambitions across Climate, Biodiversity, and People are aligned with these SDGs.

Sustainable Products & Innovation

  • Plant-based alternatives to fossil-based ingredients.

Awards & Recognition

  • EcoVadis Silver Medal

Reporting Period: July 2019 to January 2020

Environmental Metrics

ESG Focus Areas

  • Sustainable sourcing of shea
  • Women's empowerment
  • Supply chain transparency
  • Environmental sustainability

Environmental Achievements

  • Planted 4,700 shea seedlings in Burkina Faso
  • ISCC-EU certification for shea supply chain from Benin, Burkina Faso, and Ivory Coast

Social Achievements

  • Increased number of women enrolled in Kolo Nafaso program by 72% to 230,876
  • Expanded Kolo Nafaso program to Ivory Coast
  • Opened 4,249 bank accounts for women's groups
  • Partnered with Beiersdorf for sustainable shea sourcing, benefiting 10,000 individuals

Governance Achievements

  • 91% of West African suppliers signed the Code of Conduct for Suppliers of Raw Materials
  • 100% of relevant employees in West Africa received training on anti-corruption, competition law, shea, and CSR

Climate Goals & Targets

Long-term Goals:
  • Contribute to the long-term flourishing of the shea belt
Medium-term Goals:
  • Further grow Kolo Nafaso program while managing organizational growth
Short-term Goals:
  • Improve quality of shea kernels in Nigeria

Environmental Challenges

  • Structuring the conventional shea supply chain in Nigeria
  • Lack of infrastructure and security issues in Nigeria
  • Competition in the Ghanaian shea market
  • Socio-cultural challenges in establishing Kolo Nafaso in Ivory Coast
  • Ineffective bonus system in Kolo Nafaso program
Mitigation Strategies
  • Establishing a new sourcing office in Nigeria
  • Providing educational material to improve shea kernel processing
  • Direct sourcing at AAK yard in Tamale, Ghana
  • Recruiting local extension officers in Ivory Coast
  • Building trust with communities in Ivory Coast
  • Improving the bonus and banking system in Kolo Nafaso

Supply Chain Management

Responsible Procurement
  • Code of Conduct for Suppliers of Raw Materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISCC

Certifications: ISCC-EU

UN Sustainable Development Goals

  • SDG 5: Gender equality
  • SDG 8: Decent work and economic growth
  • SDG 13: Climate action
  • SDG 15: Life on land

Kolo Nafaso program empowers women, creates jobs, promotes sustainable shea farming practices, and contributes to the conservation of shea trees.

Awards & Recognition

  • 2019 Sustainable Beauty Award (Sustainability Pioneer Category)