Climate Change Data

Environmental Metrics

ESG Focus Areas

• Healthy and Nutritious Food
• Thriving Oceans
• People Leadership
• Responsible Production
• Climate Action

Environmental Achievements

• Decreased fish mortality rate from 7% in 2016 to 5.3% in 2017.
• Sea lice counts controlled below local action levels in all operations.
• All operations fully respected fallowing requirements.
• 8% reduction in antibiotic use at a Group level compared to 2016.
• 34 ASC certified sites (11 Norway, 10 Canada, 13 Chile).

Social Achievements

• Zero fatalities in 2017.
• Group absence rate of 2.2% in 2017.
• Lost time injury rate of 5 in 2017.
• 69% of senior management hired from local communities.
• Various community engagement programs in Norway, Chile, and Canada.

Governance Achievements

• No confirmed incidents of corruption in 2017.
• 86% of managers and administrative employees in Cermaq Canada received anti-corruption training, 76% in Chile, and 100% in Norway.

Climate Goals & Targets

Environmental Challenges

• 212,562 fish escaped operations in Chile due to adverse weather conditions.
• Increased sea lice levels in Cermaq Canada due to environmental challenges.
• SRS (Piscirickettsia salmonis) and BKD (bacterial kidney disease) requiring antibiotic use in Chile.
• Climate change impacts on feed supply and production.
• Regulatory risks related to carbon footprint disclosure and CO2 regulations.

Mitigation Strategies

• Identified root causes of fish escapes and implemented corrective actions.
• Used non-medical and chemical treatments for sea lice, focusing on preventive measures.
• Researching effective vaccines for SRS and BKD.
• Implementing site-specific risk assessments and climate change adaptation measures.
• Monitoring regulatory risks and opportunities, ensuring compliance.

Supply Chain Management

Responsible Procurement

• Cermaq Supplier Code of Conduct
• Cermaq Supplier Code of Conduct – Feed suppliers
• Emphasis on certified and sustainable sources of ingredients.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (storms, floods)
• Warmer seawater temperatures
• Ocean acidification
• Impacts on feed ingredients

Transition Risks

• Emission reporting obligations
• Carbon taxes
• Changes in environmental regulations

Opportunities

• Faster growth rates and reduced production costs (with optimal temperatures)
• New farming sites farther north
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards - Core option

Third-party Assurance: Deloitte AS

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 14: Life Below Water

Cermaq's operations and initiatives contribute to these goals through sustainable aquaculture practices, community engagement, and responsible resource management.

Environmental Metrics

ESG Focus Areas

• Fish health and welfare
• Thriving oceans
• People leadership
• Responsible production
• Climate action

Environmental Achievements

• 94% of input materials (by tons used) were recycled at a Group level.
• 14% reduction in antibiotics use at a Group level compared to 2018.
• Decreased sea lice levels in Cermaq Norway and Cermaq Chile.
• Successful evaluations of alternative fish nets in Canada and Chile, reducing environmental impact.

Social Achievements

• One company-wide Health and Safety Day and a company-wide ‘Safety Ideas Contest’ held.
• Increased proportion of female managers to 22 percent in 2019.
• All Cermaq sites operated under area-based management agreements.
• Community engagement programs in all regions, including sponsorships and collaborations.

Governance Achievements

• No confirmed incidents of corruption in Cermaq Group in 2019.
• High percentage of managers and administrative employees received anti-corruption training across all regions.
• 50 ASC certified sites (24 in Norway, 13 in Canada, 13 in Chile).

Climate Goals & Targets

Environmental Challenges

• Increased fish mortality in Cermaq Chile and Canada due to challenging biological conditions and algal blooms.
• High sea lice levels in Cermaq Canada despite the use of a new lice management barge.
• Increased energy consumption due to environmental conditions and operational requirements.
• Three community complaints reported in Cermaq Chile.

Mitigation Strategies

• Implementation of preventive sea lice measures (lice skirts, cleaner fish, etc.).
• Use of a state-of-the-art non-chemical delicing system in Canada.
• Initiatives to reduce energy consumption (synchronized generators, hybrid hydrogen technology, energy-efficient equipment, etc.).
• All complaints were resolved in accordance with Chilean laws and regulations.

Supply Chain Management

Responsible Procurement

• Cermaq Supplier Code of Conduct
• Supplier Code of Conduct – Feed suppliers
• Support for IFFO Responsible Sourcing
• Collaboration with EWOS, Skretting, and Biomar

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in seawater temperatures
• Ocean acidification
• Algal blooms

Transition Risks

• Emission reporting obligations
• Carbon taxes
• Changes in environmental regulations

Opportunities

• Lower carbon footprint compared to other protein sources
• Faster growth rates due to increasing seawater temperatures
• New farming sites in cooler/deeper waters

Reporting Standards

Frameworks Used: GRI Standards, Core level

Certifications: ASC

Third-party Assurance: Deloitte AS

UN Sustainable Development Goals

• SDG 2 Zero Hunger
• SDG 8 Decent work and economic growth
• SDG 12 Responsible consumption and production
• SDG 13 Climate action
• SDG 14 Life below water

Cermaq's initiatives contribute to these goals through sustainable farming practices, community engagement, and climate change adaptation.

Environmental Metrics

ESG Focus Areas

• Fish health and welfare
• Thriving oceans
• People leadership
• Responsible production
• Climate action

Environmental Achievements

• Reduced energy consumption and CO2 emissions per ton of fish produced across all regions
• Average sea lice counts were controlled below the local action levels in Cermaq Norway, Cermaq Canada and Cermaq Chile.
• All operations fully respected the fallowing requirements defined in regulations.
• 90% of the input materials (by tons used) were recycled at a Group level.

Social Achievements

• Proportion of management hired from local communities averaged 77 percent, up from 66 percent in 2019.
• Lost time injury rate was 5 in 2020, a decrease compared to 6 in 2019.
• Supported 37 Covid-19 friendly activities, initiatives, and organizations in Canada.
• Donated over 60,000 pounds or 100,000 cans of fresh salmon to food banks across Canada.

Governance Achievements

• There were no confirmed incidents of corruption in Cermaq Group in 2020.
• 43 ASC certified sites (25 in Norway, 8 in Canada, 10 in Chile).

Climate Goals & Targets

Environmental Challenges

• Continued challenging biological conditions in Canada impacting fish mortality.
• Increase in sea lice levels in Canada.
• Increase in antibiotic use in Chile due to SRS and BKD outbreaks.
• Climate change impacts on feed supply and production.
• Extreme weather events causing damage to facilities and increasing risk of fish escapes.

Mitigation Strategies

• Introduced alternative technologies for non-chemical sea lice treatments (cleaner fish, freshwater treatments, thermal treatments, Sea Farms Innovation system).
• Focus on preventive health measures (screening programs, vaccines, functional feeds, water quality monitoring).
• Researching alternative feed ingredients to mitigate limitations in availability.
• Applying site-specific risk assessments and implementing climate change adaptation measures.
• Developing an in-sea closed containment system (Certus) to prevent harmful algae effects.

Supply Chain Management

Supplier Audits: All new feed suppliers screened using environmental, human rights, labor, and societal impact criteria.

Responsible Procurement

• Cermaq Supplier Code of Conduct
• Cermaq Feed Supplier Code of Conduct
• IFFO RS, MSC, Sustainable Fisheries Partnership standards (feed suppliers)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in water temperature
• Ocean acidification
• Algae blooms

Transition Risks

• Emission reporting obligations
• Carbon taxes
• Changes in environmental regulations

Opportunities

• Lower carbon footprint compared to other protein sources
• Faster growth rates due to higher water temperatures
• New farming sites in cooler/deeper waters

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: ASC

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• SDG 2
• SDG 8
• SDG 12
• SDG 13
• SDG 14

Cermaq's initiatives contribute to these goals through responsible production, sustainable practices, community engagement, and climate action.

Environmental Metrics

ESG Focus Areas

• Fish health and welfare
• Thriving oceans
• People leadership
• Responsible production
• Climate action

Environmental Achievements

• Reduced GHG emissions intensity by 30% compared to 2020 (295 kg CO2e/ton fish produced vs 322 kg CO2e/ton fish produced)
• Increased fallow time in Norway to 13 weeks
• 47 ASC certified sites (28 in Norway, 5 in Canada, 14 in Chile)

Social Achievements

• Zero fatalities
• Improved injury rates across all regions
• Continued community engagement programs in all operating regions despite pandemic restrictions

Governance Achievements

• No confirmed incidents of corruption
• Anti-corruption training provided to a significant portion of employees across all regions
• Externally assured sustainability report

Climate Goals & Targets

Environmental Challenges

• High sea lice levels in Canada
• Increased antibiotic use in Chile (30% increase compared to 2020)
• Climate change impacts on feed supply and extreme weather events
• Regulatory risks related to carbon footprint disclosure and carbon taxes

Mitigation Strategies

• Researching alternative feed ingredients
• Implementing site-specific risk assessments and climate change adaptation measures
• Developing an in-sea closed containment system (Certus) to protect fish from harmful algae
• Developing a tool for measuring the carbon footprint of salmon products
• Investing in energy-efficient technologies and alternative energy sources

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Feed Supplier Code of Conduct
• Traceability requirements for feed ingredients
• Commitment to deforestation-free soy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in water temperature
• Ocean acidification
• Impacts on feed ingredient availability

Transition Risks

• Emission reporting obligations
• Carbon taxes
• Changes in environmental regulations

Opportunities

• Faster growth rates due to higher water temperatures
• New farming sites in cooler/deeper waters
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: ASC, BAP, ISO 45001 (Norway), OHSAS 18001 (Canada), BAP (Chile), ISO 22000 (Canada, Norway), IFS (Chile)

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• SDG 2
• SDG 8
• SDG 12
• SDG 13
• SDG 14

Cermaq's five focus areas align with these SDGs.

Environmental Metrics

ESG Focus Areas

• Healthy and safe products
• Fish health and welfare
• Ocean biodiversity
• Feed and materials used
• Emissions and climate action
• Community partner and value creator
• Attractive workplace

Environmental Achievements

• 94% fish survival rate
• 0.35 kg CO2e per kg salmon (among the lowest of protein sources for human consumption)
• 100% feed ingredients sourced responsibly
• All operations fully respected the fallowing requirements in Chile and Norway
• Zero non-compliances with the health and safety requirements of products and services in any operating region
• Zero sea lice count for Coho salmon in Chile

Social Achievements

• Active partnerships and engagement replacing in-kind or financial contributions
• Various forms of co-production (seaweed, kelp, mussels, etc.) emerging, reducing the footprint of operations through circular production
• No community complaints in 2022
• Successful recruitment of young people from local communities through the “Steigen model” in Norway
• Various initiatives to promote talent and offer constant professional development in Chile (digital platform with training courses, career development program)

Governance Achievements

• Externally assured report by Deloitte
• Zero confirmed incidents of corruption in Cermaq Group in 2022
• Anti-corruption training delivered regularly to employees
• All whistle blowing reports in 2022 were assessed and closed in accordance with procedures

Climate Goals & Targets

Environmental Challenges

• Lagging behind the ambition of the Paris agreement to limit temperature rise
• Speed of loss of global biodiversity increasing
• Geopolitical landscape changes destabilizing global energy and food markets
• Limited access to electricity and lack of infrastructure in some remote regions impacting progress on climate action
• Increased competition for renewable energy
• Challenging regulatory and political situation in BC, Canada
• Sea lice is a challenge for the industry worldwide
• Difficult to align national, regional, and local political and stakeholder interests in creating predictability for local value creation
• Increased volatility in food and feed prices due to climate change and global instability
• Concerns raised by stakeholders on status of the sea floor in fjords
• Six cases of environmental non-compliances closed with a fine in Cermaq Chile

Mitigation Strategies

• Setting ambitious climate goals (35% GHG emission reduction by 2030)
• Electrification of sea sites and boats and purchasing certificates for renewable energy
• Working on innovative approaches to address limited access to electricity
• Dialogue with feed suppliers to reduce the footprint of feed production
• Optimizing logistics operations with focus on shortest, fastest, and lightest routes to market
• Modal shifts (truck to train) and reducing air freight
• Exploring technologies like iFarm, closed cages, co-production with kelp, and submersible pens
• Active partnerships and engagement with local communities
• Researching alternative feed ingredients
• Internal awareness campaign focusing on recycling waste in Chile
• Agreement with Vartdal Plast for packaging made from circular raw materials in Norway
• Site-specific risk assessments for weather patterns and temperatures
• Building facilities in line with strict regulatory quality requirements
• Developing an in-sea closed containment system
• Addressing environmental non-compliances and taking corrective actions

Supply Chain Management

Responsible Procurement

• Code of conduct for feed suppliers requiring soy not from deforested areas
• Engagement in Cerrado Manifest to prevent deforestation
• Assessment of new feed suppliers using environmental, human rights, labour, and societal impact criteria

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions damaging hatcheries and fish farm sites
• Increased risk of fish escapes
• Consequences related to employee safety
• Warmer seawater temperatures affecting salmon farming locations and increasing disease-causing pathogens
• Higher water temperatures raising salinity and hypoxia risk
• Ocean acidification affecting environmental conditions and availability of marine ingredients

Transition Risks

• Impact on cost and availability of feed ingredients
• Changes in regulations increasing costs

Opportunities

• Higher water temperatures enhancing growing conditions for salmon farming
• Changes in sea water temperatures allowing for new farming sites
• New species cultivation
• Farmed fish having a relatively low carbon footprint compared to other protein sources

Reporting Standards

Frameworks Used: GRI Standards (2021), CDP, Science Based Target initiative (SBTi), UN Global Compact

Certifications: ASC, BAP, ISO 22000, IFS

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• 2
• 8
• 12
• 14
• 13

Goals aligned with healthy and nutritious food, thriving oceans, people leadership, responsible production and climate action

Environmental Metrics

ESG Focus Areas

• Climate change
• Water and marine resources
• Biodiversity and ecosystems
• Resource use and circular economy
• Own workforce
• Workers in the value chain
• Affected communities
• Customers and consumers
• Fish health and welfare
• Political engagement

Environmental Achievements

• Reduced total water use by 9.7% from fiscal year 2022 to fiscal year 2023
• Reduced Feed Fish Dependency Ratio for fish oil (FFDRo) from 2.5 in 2022 to 2.4 in 2023
• 100% of sea sites managed in coordination with neighboring sites
• Chile successfully valorized 100% of sludge generated in its on-land production process since 2021

Social Achievements

• Achieved a lower injury rate than the average for the aquaculture industry
• Zero fatalities in FY2023
• More than 3,500 visitors at Cermaq’s Arctic salmon center
• Active in presenting work opportunities at schools and universities to attract women

Governance Achievements

• Implemented ISO 22000 in Canada and Norway, and IFS standards in Cermaq Chile for food safety
• Zero non-compliances with health and safety requirements in 2023
• Zero market recalls of unsafe products or market health alerts during 2023-2024

Climate Goals & Targets

Environmental Challenges

• Political uncertainty in BC, Canada regarding open net farming
• Lack of infrastructure in many rural areas limiting access to renewable energy
• Climate change impacts on ecosystems and production (e.g., warmer water temperatures, ocean acidification)
• Sea lice impacting fish welfare
• Potential human rights violations and non-compliance with decent working conditions in some supply chains

Mitigation Strategies

• Electrification of sea sites and boats (Norway and Canada)
• Purchase of renewable energy certificates (Chile)
• Development of alternative sourcing strategies for feed ingredients
• Implementation of preventive measures against diseases (e.g., vaccination, screening, hygiene)
• Use of laser technology against sea lice
• Testing of submersible pens to avoid sea lice
• Engagement with feed suppliers to address social risks using the GSI's ESG tool
• Conducting dialogues with suppliers, updating contract terms, conducting workplace audits

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Cermaq Supplier Code of Conduct based on UN Global Compact Ten Principles and UN Sustainable Development Goals
• Use of certified soy (RTRS or ProTerra)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging hatcheries and fish farm sites
• Warmer seawater temperatures impacting fish health and location of farms
• Ocean acidification affecting environmental conditions

Transition Risks

• Costs and availability of feed ingredients
• Regulatory changes

Opportunities

• Increased productivity of marine resources for feed
• New farming sites further north
• Cultivation of new species

Reporting Standards

Frameworks Used: GRI Standards, ESRS, Global Salmon Initiative (GSI)

Certifications: ASC, ISO 45001 (Canada), IFS and BAP (Chile), ISO 22000 (Canada and Norway)

Third-party Assurance: Deloitte AS

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed