Case Study

Deforestation Allegations Trigger Share Selloff of Swedish Oils and Fats Firm AAK

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About this Case Study

The case study examines the market and reputational risks associated with unsustainable sourcing practices in the palm oil industry. It describes the experience of AAK, which faced a 5.5% fall in its share price within 24 hours of allegations about sourcing from protected areas in Indonesia. 

Key outcomes

  • The food and beverage sector is highly dependent on nature and highly exposed to nature risk.
  • AKK’s case highlights the importance of robust supply chain monitoring and fully traceable and deforestation-free sourcing.
  • The case study underscores the growing investor and consumer sensitivity to nature loss and depletion, particularly in industries linked to deforestation.
Download Case Study (Deforestation Allegations Trigger Share Selloff of Swedish Oils and Fats Firm AAK)

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