WHY IS THE TOPIC IMPORTANT TO ALDI? Introduction At ALDI 1 , we want to make sustainability affordable to all customers. Our aspiration is that our products are made in a sustainable way and that environmental and social criteria are considered in our global supply chains – from raw materials to final production.2 The ongoing destruction of forests is a major global challenge. Agricultural commodities that are associated with a risk to contribute to defo - restation are commonly used to produce day-to- day products. For example, palm oil is found in a wide range of different products, from candles to margarine to baked goods. Soy is used as a main component in animal feed and plays an important role in meat, egg, or dairy sup - ply chains. Timber is used in the production of paper, tissues, furniture, and toys. We started addressing major concerns relating to palm oil, timber and paper products, wood- based packaging already in 2011 and have continued to identify and address other key commodities linked to deforestation and eco - system conversion. This position statement high - lights how we have developed our approach as part of our international Sustainable Supply Chain Strategy and how we intend to address deforestation and conversion risks across a wide range of commodities in our supply chains. is particularly true for tropical forests, which are home to 50% of the total plant and animal bio - diversity on this planet’s land and contain 20% of the world’s freshwater.3 These ecosystems are under threat as defores - tation continues at an alarming rate. The clea - ring of natural forests to create agricultural land is a key driver of global habitat loss. Also, the degradation of forests through unsustainable forest management when harvesting wood, is contributing to this development and is often a precursor of forest conversion. Total emissions from deforestation and forest degradation are estimated to contribute to around 15% of global CO₂ emissions.4 Other natural ecosystems are also affected by land use change, such as peatlands, and savannahs. Their conversion equally contributes to the release of greenhouse gases into the atmosphere, biodiversity loss and the perishing of ecosystem services. As one way to identify and promote the protec - tion of such environmental sites, the concepts of High Conservation Value (HCV) and High Carbon Stock (HCS) have been developed by Non-Governmental Organisations (NGOs) and are widely referred to by certification schemes addressing deforestation and conversion risks. Background Forests are diverse and complex ecosystems that provide a habitat for plants, animals, and people. For local communities, they provide the resources for their livelihoods, food, and medicine. This 1 A LDI refers to the ALDI SOUTH Group (hereinafter also referred to as “ALDI SOUTH”) and the ALDI Nord Group (hereinafter also referred to as “ALDI Nord”). Both are legally independent groups of companies trading under the ALDI brand. The “International Position Statement on Deforestation and Conversion free Supply Chains” is published on the websites of the ALDI companies. 2 A ll measures we are describing in this position statement are applying to our own brand products. 3 h ttps://www.nationalgeographic.org/projects/perpetual-planet/rainforests/ 4 h ttps://www.worldwildlife.org/threats/deforestation-and-forest-degradation Page 2
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