AAK’s sustainability strategy is clear. We focus on the areas where we have the most profound impact. In 2023, we made considerable progress towards our sustainability targets while enabling our customers and suppliers to evolve towards greener practices. Furthermore, we acknowledge our responsibility to drive global sustainable food systems and advance the shift from fossil-based to sustainably sourced alternatives within the non-food segment.
AAK’s purpose, Making Better Happen™, guides us and brings a holistic approach to the way we think and act as an organization and how we work with sustainability.
Driving sustainability in food systems and beyond
As the global population grows, so does the demand for food, presenting a significant challenge to produce food sustainably without harming the environment or compromising on availability, affordability, or taste.
By providing plant-based solutions that enhance the taste and texture of food and extend its shelf life, AAK occupies a central role in facilitating the shift towards sustainable food systems. Furthermore, we also play a key part in enabling the transition away from non-food fossil-based ingredients towards options that are sustainable, renewable, and biodegradable.
Sustainability is a journey pursued together with others
At AAK, we work hand-in-hand with our customers to address global challenges and support their sustainability ambitions, while setting rigorous sustainability targets for ourselves. Our sustainability efforts focus on three key areas— climate, biodiversity, and people—where we believe we can deliver the most substantial impact, driving transformation across the industry and achieving enduring, scalable outcomes. KPIs, strategic roadmaps, and comprehensive action plans illustrate the detailed implementation of these core priorities across our operations and along the entire
value chain.
Our emission reduction targets approved by SBTi
As part of our commitment to sustainability, we have set ambitious climate targets for 2030, encompassing both our sourcing practices and operational activities. We are proactively cutting emissions in these areas, shifting towards renewable energy sources, and investing in initiatives aimed at reducing our carbon footprint. In December 2023, we were informed that the Science Based Targets Initiative (SBTi) had approved
our emission reduction targets. This endorsement underscores our commitment to making a significant impact on global climate change. AAK is at the forefront of this movement, being among the first to receive approval for the Forest, Land, and Agriculture (FLAG) targets, which align with the objectives of the Paris Agreement.
Committed to deforestation-free supply chains
There is a growing trend towards adopting a flexitarian diet, and reducing meat consumption in favor of plant-based options to lower emissions. Optimizing land use is crucial and this dietary shift is driven by the recognition that plant-based foods require significantly less land to produce the same amount of calories compared to meat. However, the efficiency of utilizing our available land resources differs across crops, with sustainable palm oil distinguishing itself positively in this aspect. Celebrated for its high yield and versatility, palm oil is crucial in addressing future food demand and substituting more environmentally harmful alternatives.
Our commitments to sustainable agriculture and deforestation-free supply chains are central to our strategy. We aim to shift perceptions around palm oil's environmental impact. By 2025, we are committed to achieving 100 percent traceability to the palm oil source, as well as maintaining palm and soy supply chains that are verified free from deforestation and conversion. In 2023 our global palm traceability stands at 93 percent, and our verified deforestation-free status for palm has reached 83 percent. This progress reaffirms our commitment to sustainable practices and responsible sourcing throughout our value chain.
People
Making Better Happen™ starts with our own operations and team, ensuring our commitment is reflected in everything we do. We emphasize human rights, employee safety, and well-being, promoting a diverse and inclusive workplace. In 2023, we devoted considerable effort to our culture transformation initiative, aimed at strengthening team spirit. This initiative not only advances our culture but also consolidates teams, maintaining our competitive edge. It encourages diverse viewpoints, nurtures innovation, and fuels our collective success, positioning AAK as an outstanding place to work.
Within our supply chains, our emphasis lies on ethical sourcing, health and safety, and improving livelihoods, all part of a unified strategy. In 2023, embedding the respect for human rights throughout our business and supply chain was our number one people priority.
Going forward
AAK continues to proactively adapt to the changing regulatory landscape, preparing for new legal standards such as EUDR, CSRD, and CSRDDD. The EU Deforestation Regulation aims to reduce imports of products linked to deforestation by the end of the 2024. AAK supports this initiative but is actively engaged in finding solutions to the practical challenges it creates. These include the volumes of disclosure per shipment,
human rights and legal due diligence considerations, and the handling of by-products and oleochemicals.
Our commitment to positively transforming the global food supply chain is increasingly recognized, yet there is more ground to cover. Making Better Happen™ is more than just a motto; it's a continuous journey involving the entire supply chain, from farm to table.
Johan Westman, President and CEO
