Andra AP-fonden expects the companies in which the Fund invests to take responsibility for a business and supply chain that is free from deforestation, land conversion in natural ecosystems and associated violations of human rights, through

a) Policy commitment: a public commitment to a deforestation and land-conversion-free production and supply chain that respects human rights and covers all of the company’s raw materials at high risk of deforestation, in particular cattle for meat and leather, palm oil, soya, timber and wood products, with a target date for deforestation-free and conversion-free operations.

b) Respect for human rights – see also AP2:s Human Rights policy: companies are expected to follow the UN Guiding Principles on Business and Human Rights, the Universal Declaration of Human Rights and the ILO’s Core Conventions. Rights that are particularly associated with deforestation, that companies with activities related to deforestation risk should handle, include rights for indigenous peoples and local communities, including the right to land and to free, prior and informed consent. AP2 has zero tolerance of threats and violence against environmental and human rights defenders.

c) Traceability and due diligence: ensuring sufficient traceability of direct and indirect suppliers in order to identify and manage the risks of deforestation and conversion, and related human rights violations. Companies are also expected to set requirements for suppliers and subcontractors and to have robust due diligence processes in place to continuously review their supply chain to ensure compliance, and to provide an adequate complaints mechanism.

d) Collaboration: participation in collaboration to promote progress for entire sectors within highrisk commodities, to develop best practice and to support initiatives that promote progress and access to data.

e) Transparency: annual public reporting, with relevant metrics for the company’s operations. In the case of in-house cultivation, the company is expected to report on deforestation and changes in the use of land controlled by the company. For procured goods, the company should report on the quantity of purchases of the aforementioned risk products and the proportion that can be considered deforestation-free with full traceability, as well as how this is ensured.