Climate Change Data

Iceland Seafood International hf.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:32,329 tonnes CO2 eq.
Scope 1 Emissions:2,372 tonnes CO2 eq.
Scope 2 Emissions:1,483 tonnes CO2 eq.
Scope 3 Emissions:24,598 tonnes CO2 eq.
Renewable Energy Share:47%
Total Energy Consumption:8,626 MWh
Water Consumption:106,000 m3
Waste Generated:5,407 tons
Carbon Intensity:9.2 MTCO2e/Revenue EUR m

ESG Focus Areas

  • Sustainable sourcing
  • Energy use
  • Greenhouse gas emissions
  • Water use
  • Waste
  • Employee satisfaction
  • Sustainable procurement
  • Occupational health and safety
  • Fair labour practices
  • Human rights
  • Code of Conduct
  • Data ethics
  • Supplier Code of Conduct

Environmental Achievements

  • 30% increase in recycling rate in 2022
  • €1m invested in solar cell installations
  • 47% of energy from renewable sources

Social Achievements

  • Ethics Group Code of Conduct implemented
  • Group monitoring on employee satisfaction
  • Resources donated to Ukraine

Governance Achievements

  • Group Code of Conduct implemented
  • Started creating value from waste
  • Started strategic supplier sustainability assessment

Climate Goals & Targets

Short-term Goals:
  • Reduce Scope 1 and Scope 2 emissions by 17% by 2026
  • Increase the share of renewables to 80% in 2026
  • 90% of Group waste recycled, excluding organic waste. 60% of Group waste recycled including organic waste by 2026
  • 40% of seafood sold will be certified sustainably sourced by 2026
  • 50% of water used will be reclaimed by 2026
  • 80% of employees reached through employee satisfaction surveys by 2026
  • 50% of suppliers evaluated by 2026
  • 100% of employees regularly trained in Group Code of Conduct by 2026
  • 100% of suppliers committed to Supplier Code of Conduct by 2026

Environmental Challenges

  • Unprecedented cost increases and high volatility of raw material and other key input factors
  • Post Covid-19 impacts and geopolitical turmoil caused major disruptions in various supply chains
  • Diminishing consumer purchasing power and high seafood prices impacted demand negatively, especially in Q4
  • Extreme price increases of salmon in the first half of the year had significant impact on margins and profitability
  • Supply disruptions and tariffs/restrictions imposed on Russian catches are keeping pressure on prices
  • The situation in Ukraine had a negative impact on pelagic sales
Mitigation Strategies
  • Investment in sustainability, such as solar panels and waste and water management
  • Investment in automation and increased operational efficiency
  • Investment in branding and marketing activities
  • Secured a three-year loan extension from Arion Bank Iceland
  • Continued issuing bills locally
  • Spanish operation is financed by local banks
  • Price increases have been rolled back to a degree and have partly been absorbed
  • Value-added production will likely move closer to the consumer
  • Production in Europe will become more competitive as an investment in automation and more efficient production will play a key role
  • Developing alternative sourcing strategies
  • Securing significant amount of new business
  • New production equipment that transformed production with both a substantial increase in throughput and a reduction in production costs

Supply Chain Management

Supplier Audits: Started systematic assessment of suppliers' CSR using EcoVadis

Responsible Procurement
  • Sustainable procurement plan
  • EcoVadis partnership for CSR assessments

Climate-Related Risks & Opportunities

Physical Risks
  • Ocean acidification
  • Extreme weather events

Reporting Standards

Frameworks Used: Nasdaq’s Nordic and Baltic stock exchange’s voluntary non-financial guidelines for Environmental, Social, and Corporate Governance (ESG)

Certifications: MSC, ASC

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:23656 tCO2e/year
Scope 1 Emissions:2420 tCO2e/year
Scope 2 Emissions:662 tCO2e/year
Scope 3 Emissions:20573 tCO2e/year
Renewable Energy Share:63%
Total Energy Consumption:9085 MWh/year
Water Consumption:126131 m3/year
Waste Generated:5168 tons/year
Carbon Intensity:4 tCO2e/FTE, 7.2 tCO2e/Revenue

ESG Focus Areas

  • Climate Change
  • Sustainable Sourcing
  • Waste Management
  • Water Usage
  • Employee Well-being
  • Supply Chain Sustainability
  • Governance
  • Human Rights

Environmental Achievements

  • 63% of electricity use from renewable sources
  • -55% reduction in Scope 2 emissions
  • 82% of waste reused or recycled
  • 712 MWh of our own electricity produced from solar panels in Madrid and Barcelona

Social Achievements

  • Implemented a new Sustainability Policy
  • Implemented a Supplier Code of Conduct
  • Improved employee engagement through anonymous surveys (although participation rate decreased)

Governance Achievements

  • Implemented a Group Code of Conduct
  • Completed a Double Materiality Assessment (results pending)
  • 40% of board seats occupied by women

Climate Goals & Targets

Long-term Goals:
  • 100% of employees regularly trained in Group Code of Conduct
  • 100% of suppliers committed to Supplier Code of Conduct
  • 50% of largest suppliers' sustainability aspects mapped
Medium-term Goals:
  • 50% of water reclaimed
  • 90% of Group waste recycled or reused
  • 80% of employees reached through satisfaction surveys
Short-term Goals:
  • Reduce Scope 1 emissions to 2500 tCO2 eq.
  • Reduce Scope 2 emissions to 500 tCO2 eq.
  • Increase share of renewables to 80%

Environmental Challenges

  • Decreased purchasing power due to inflation negatively impacting demand
  • High salmon prices negatively impacting Irish and Spanish businesses
  • Lower demand leading to lower margins and inventory write-offs
  • High financial costs due to rising interest rates
  • Geopolitical turmoil affecting operational environment
  • Reduced Irish whitefish sourcing post-Brexit
  • Difficulties securing raw materials
Mitigation Strategies
  • Sale of Iceland Seafood UK Ltd to simplify operations
  • Two successful rounds of share capital increases
  • Investment in solar cell technologies
  • Switching to renewable energy sources in Ireland
  • Implementation of a new Sustainability Policy and Supplier Code of Conduct
  • Double Materiality Assessment to identify material ESG topics
  • Credit insurance for the vast majority of receivables

Supply Chain Management

Supplier Audits: 14 suppliers assessed by EcoVadis

Responsible Procurement
  • Supplier Code of Conduct
  • EcoVadis assessment of suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events affecting seafood availability and transportation
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: Nasdaq ESG Reporting Guide

Certifications: MSC Chain of Custody, ASC Chain of Custody (where applicable)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • 2023 Nasdaq ESG Transparency Badge
  • Bronze medal from EcoVadis