Supply Chain

Supply chain covers activities related to the sourcing of raw materials that AAK uses in its production plants. Sustainable sourcing of raw materials is the backbone of AAK’s business and a key element of the AAKtion program. The combination of the right raw materials and value-adding functionality is key to the wide range of solu­tions offered. Just as it is vital for AAK to obtain the right raw materials, AAK places equal emphasis on sustainable growing and procurement. For this reason AAK has implemented a Supplier Code of Conduct that, among others, applies to AAK’s direct raw material suppliers worldwide.

Natural raw materials
AAK’s core business is speciality vegetable oils that meet the needs of the food, confectionery and cosmetics industries. Sourcing renewable raw materials from around the globe, the broad product portfolio is manufactured at AAK’s produc­tion plants in Europe, Asia and the Americas.

Raw materials are obtained from rapeseed, palm oil, soya beans, shea kernels, sunflower seed, olives and many other sources. Drawing on the company’s extensive knowledge and more than a century of experience, the properties of vegetable oils are exploited to add value to the products of customers within the company’s target industries.

AAK Supplier Code of conduct - a prerequisite
Introduced in late 2009, the AAK Supplier Code of Conduct is now implemented with all direct raw material suppliers. The Supplier Code of Conduct is an integral part of the approval system of new raw material suppliers and compliance of the Code is a prerequisite for final approval. In West Africa, the Code has been implemented in a different way due to various linguistic and cultural challenges. Because ethical requirements in business relations are not a widespread tradition in the region, more meetings and explanations are required to achieve the necessary understanding.

The AAK Supplier Code of Conduct stipulates requirements with regard to the following:

• Human rights 
• Child labour 
• Working hours 
• Working environment
• Environment 
• Forced labour 
• Discrimination
• Housing
• Young workers
• Remuneration 
• Freedom of association
• Corruption 
• Notification 
• Workplace violence

Supply chain objectives 2016+
Palm oil traceability
2016: Maintain full traceability to palm oil supplier mills
2017: All palm oil supplies 100 percent traceable to plantation level

Palm oil compliance
2016: Qualitative risk assessment completed with all suppliers
2016: Geospatial risk assessment completed with all supplier mills
2016: Complete at least five onsite verifications of supplier mills

Palm oil RSPO certification
2018: All crude palm oil purchased as RSPO certified
2020: All palm oil, palm kernel oil and derivatives purchased as RSPO certified

Shea supply chain
2016: 100,000 women enrolled in AAK’s women’s groups program in West Africa

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