In 2024, we made tangible progress toward our long-term sustainability targets, reducing our environmental impact while supporting our customers and suppliers in their shift to greener practices. Explore how we’re achieving this – and what’s next in our sustainability journey – in our newly-released Sustainability Report 2024.
Sustainability is at the heart of our purpose, Making Better Happen™. We're continuing to push it forward and making good progress.
Over the years, our sustainability approach has evolved, with our commitment now spanning the entire value chain – from plant to brand. There’s a key focus on replacing fossil and animal-based ingredients with plant-based solutions in a range of non-food products within both the Personal Care and Technical Products segments.
In 2024, 37 percent of AAK’s revenue contributed to the UN Sustainability Development Goals, maintaining the same level as in 2023. This percentage is based on product segments and raw materials that directly support sustainability.
Our sustainability efforts were also recognized in 2024 with two award wins – The Sustainability Innovation Award at Food Ingredients Europe, and The Sustainability Pioneer Award at the 2024 Ecovia Intelligence: Sustainable Cosmetics Summit in Paris.
Although we’re making excellent progress, real change takes time and effort, which is why we are continuously focused on lowering GHG emissions, enhancing supply chain trace¬ability, and strengthening our relationships with key partners.
To create lasting results, we must continue to minimize our climate impact, support biodiversity throughout our supply chain, and look out for people.
So, how are we are performing in these key focus areas?
Great progress was made in 2024 towards delivering on our climate targets, which were approved by the Science-Based Targets initiative (SBTi) in 2023.
Scope 1 and 2 emissions, generated from oil processing, have been reduced by 17.9 percent compared to the 2019 baseline — a positive step toward our goal of a 50 percent reduction by 2030.One initiative that contributed to the emissions reduction was the commissioning of our bio-boilers in Aarhus which, when fully operational, are expected to save approximately 50,000 MT of CO₂ annually, equivalent to about a 15 percent reduction compared to the group’s 2023 Scope 1 and Scope 2 emissions.
A reduction in Scope 3 emissions, which are related to our supply chain, is crucial to tackling climate change effectively, as these constitute 93.4 (93) percent of our climate footprint, with 59.3 percent of this from forestry, land and agriculture (so-called FLAG emissions).
In 2024 we quantified Scope 3 FLAG emissions with validated data, achieving a 28.4 percent reduction toward our 2030 target. With a goal of 33 percent, this shows we are on track with our Scope 3 FLAG progress. Key drivers of the progress stems from sustainable sourcing initiatives as well as increased RSPO-certified palm oil uptake (39 percent in 2024, versus the 26 percent in 2019).
Scope 3 non-FLAG is more challenging, with much depending on methane capture from palm oil mill effluent, which is why we are conducting mapping at mill level. Some of our suppliers have introduced methane capture, and AAK is advocating the use of this technology more broadly. This requires action across the industry.
Part of our climate strategy also focuses on increasing the percentage of suppliers which have SBTi commitments. Results reported in 2024 (which covered 2023 emissions), shows that 9.2 percent of our suppliers by volume of emissions currently have SBTi commitments – bringing us closer to our target of 10.4 percent by 2027.
In our efforts to reduce waste, we are aiming for 100 percent waste recycling by 2030. As of 2024, we have achieved a recycling rate of 69.4 percent.
Preventing deforestation and ecosystem conversion are vital to our biodiversity strategy, We collaborate with suppliers, farmers, governments, and NGOs to drive change within our supply chain and across the industry.
By 2025, we are committed to achieving 100 percent verified deforestation-free (VDF) palm supply chains and full traceability to the palm oil source. As of 2024, our global palm traceability to plantation stands at 97 percent, with 91 percent of our palm supply verified as deforestation-free – up from 26 percent in 2019.
This progress in VDF for palm has been driven by enhanced verification through continuous TTP mapping, strategic sourcing, stronger supplier engagement via dialogues and workshops, multi¬stakeholder partnerships, and supporting smallholders with training and resources to adopt sustainable practices.
Also contributing to this was an RSPO uptake of 39 percent, on-the-ground audits and satellite monitoring, which are critical components of our deforestation due diligence, covering 100 percent of the mills in our supply chain for palm and coconut. This meant over 15 million hectares of land was monitored by year-end.
In soy, we have reached 28 percent verified deforestation- and conversion-free (VDCF) supplies. We remain fully committed to maintaining palm and soy supply chains that are confirmed to be free from deforestation and land conversion.
Regenerative farming is another key part of our biodiversity roadmap. We support replanting initiatives within our shea and coconut supply chains and actively collaborate with rapeseed suppliers to advance sustainable farming practices. Our reforestation efforts include the planting of new shea trees, with 13,625 trees planted in 2024 reaching a total of 158,458 trees – representing 105.6% of our 2025 target. In addition, we have distributed 10,015 coconut trees to farmers as at the end of 2024, which is 100 percent of our 2025 target.
At the heart of our sustainability journey is a commitment to building a strong, value-driven culture. That’s why in 2024 we expanded our Culture Journey initiative, focused on strengthening team spirit, inclusion, and collaboration. By embracing diverse perspectives and fostering innovation, we’re creating a workplace where people feel empowered to thrive.
Our commitment to advance the well-being of people and to protect human rights extends beyond our own organization and operations, to our supply chain, and local communities. We embed due diligence processes, proactively addressing challenges, and responding to the evolving expectations of our stakeholders.
We prioritize ethical sourcing, health and safety, and the enhancement of livelihoods across our supply chains. Our Kolo Nafaso program is a great example of this – and was awarded the Sustainability Innovation Award at Food Ingredients Europe in November 2024. The program has built direct trade relationships with nearly 250,000 women in West Africa. This initiative provides a fair and reliable source of income, enabling women to invest in their children’s education and provide food for their families.
Collaboration is essential to driving meaningful change beyond our immediate supply chain. This is why we partner with NGOs, industry associations, and peers to extend our impact.
In 2024, we participated in a working group within the Palm Oil Collaboration Group (POCG) to develop tools to accelerate effective implementation of No Deforestation, No Peat Expansion, No Exploitation (NDPE) commitments, and also collaborated with industry peers in the shea supply chain on a Dutch government-funded project addressing child labor.
The regulatory landscape is evolving rapidly, with new frameworks like EUDR, CSRD, and CSDDD. As these regulations take effect, we remain proactive, embracing the opportunities they bring while addressing the complexities they may introduce.
We remain dedicated to driving positive change. Making Better Happen™ isn’t just our promise—it’s the foundation of everything we do.