Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Employee well-being
• Sustainable harvesting practices
• Food safety and traceability

Environmental Achievements

• Reduced feed factor from 1.16 in 2007 to 1.18 in 2008 (with a goal of 1.12 in 2009)
• Reduced use of antibacterial agents in feed (goal of <100 kg in 2009)
• Reduced use of anti-parasitic agents in feed (goal of <8.0 kg in 2009)
• Only one reported incident of fish escape in 2008 (50 fish, with 49 recovered)

Social Achievements

• Implemented GlobalGAP standard across production companies
• Focus on employee health and safety, with initiatives to reduce accidents and illness absence
• Various employee engagement activities (family events, social gatherings, sports events)

Governance Achievements

• Established a preparedness group for crisis management and product recall
• Commitment to full traceability of products
• Continuous assessment of CO2 accounting and labeling

Climate Goals & Targets

Environmental Challenges

• Maintaining sustainable harvesting of wild fish species used in feed
• Reducing the environmental impact of transportation, particularly air freight
• Lack of standardized CO2 labeling for seafood products
• Combating salmon lice

Mitigation Strategies

• Collaboration with feed suppliers to ensure sustainable sourcing
• Exploring more environmentally friendly transportation options (passenger planes, increased train use)
• Continuous assessment of CO2 accounting methods
• Increased use of wrasse and improved strategies for combating salmon lice (coordinated delousing, fallow periods, new smolt release strategies)

Supply Chain Management

Responsible Procurement

• Collaboration with feed suppliers to ensure sustainable operations and environmentally friendly practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GlobalGAP, MSC, HACCP, BRC, ISO 9001

Certifications: GlobalGAP (Lerøy Hydrotech AS, Lerøy Midnor AS, Lerøy Aurora AS)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Lerøy was the first company in the world to gain ASC certificate for its salmon distribution chain.
• The first three aquaculture facilities to gain ASC certificates in the world are linked to Lerøy.
• No antibiotics have been administered for fish in the sea in 2013.
• No use of Chitin inhibitors over the past three years.
• Management of and participation in various R&D&I projects within aquaculture with a focus on the environment and sustainability.

Social Achievements

• Minor injuries were reported for employees in 2013.
• Total sick leave of 5.3% was reported, up from 4.8% in 2012.
• The company is part of a global industry and the constant changes in framework conditions require flexible employees who are dynamic, willing to adapt and learn.
• The working environment and cooperative atmosphere are good.
• The individual companies in Lerøy Seafood Group all have employee representatives to take charge of the formal cooperation between company and employees.

Governance Achievements

• The Board of Directors underlines the need for strategic, forward-looking models for the Group’s business, and this may involve acquisitions and mergers both upstream and downstream.
• The Board of Directors is also actively involved in securing the financial and structural conditions required for the Group to achieve its long-term goals.
• Lerøy Seafood Group aims to supply high-quality products, thereby developing a profitable, efficient and binding cooperation network within both supply and marketing.

Climate Goals & Targets

Environmental Challenges

• Salmon lice infestations
• Accidental release of fish
• Challenges on the raw materials market for fish feed (increasing demand for wild fish, reduced supply of marine raw materials)
• Sea temperatures in Norway were low in the winter of 2013, negatively impacting growth conditions.

Mitigation Strategies

• Integrated Pest Management for salmon lice (cleaner fish, functional feed, cleaning procedures, medicinal treatment)
• Optimising equipment and routines to avoid accidental release of fish
• Investing in R&D projects to find alternative and sustainable sources of raw materials for fish feed (e.g., macroalgae, mussels)
• Increased focus on the use of sustainable fish feed.

Supply Chain Management

Supplier Audits: 150-200 external quality audits per year

Responsible Procurement

• Requirements for suppliers to closely monitor quotas and catch usage
• Requirements for sustainable and regulated fishing practices
• Prioritization of marine raw materials with IFFO, MSC, or similar certifications
• Prohibition of palm oil, and soy must be RTRS certified

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ASC, ISO 14001 (Lerøy Smögen Seafood AB), BRC (all production plants), ISO 9001 (Bergen sales department), MSC, Global Gap

Sustainable Products & Innovation

• ASC certified salmon

Environmental Metrics

ESG Focus Areas

• Protect our oceans
• Improve our climate
• Empower our people
• Strengthen our communities
• Improve our health

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1+2) from 125,427 tCO2e in 2018 to 126,825 tCO2e in 2019 (Note: This shows a slight increase, not a reduction as initially stated in the report. Further analysis is needed to understand this discrepancy).
• Reduced use of antibiotics to zero in 2019.
• Achieved a 12-month survival rate of 93.4% in the marine phase of production (target was 95%).
• Average of 0.15 adult female lice per fish (stable over recent years).
• 56% of all non-organic waste recovered, recycled, or reused (aiming for a 10% increase annually).
• Reduced undesirable substances (dioxin and DL-PCBs) in salmon by 38% since 2011.
• Stabilized EPA/DHA levels in salmon since 2011.

Social Achievements

• Supported 879 different events for children and young people with healthy food.
• Donated food items (sushi, fish cakes, etc.) to various initiatives.
• Maintained a strong focus on HSE procedures and compliance, resulting in zero fatal incidents.

Governance Achievements

• Implemented a digital channel for whistleblowing.
• Conducted 209 supplier audits in 2019.
• No confirmed incidents of corruption.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (not explicitly stated, but implied by the focus on supplier audits and risk assessment).
• Climate change impacts on fish stocks and production.
• Lack of sufficient technology for fossil-free propulsion systems in large vessels.
• High CO2 emissions from feed (approximately 80% of total CO2e emissions).
• Food waste contributing to greenhouse gas emissions.
• Plastic waste in the ocean.

Mitigation Strategies

• Developed a supply management system for risk evaluation and auditing of suppliers.
• Monitoring developments in fossil-free propulsion technology.
• Working closely with partners and stakeholders to test and implement new feed raw materials (e.g., microalgae, insect meal, blue mussel meal, seaweed).
• Implementing Project 50/50-5 to reduce non-recyclable plastic consumption by 50% within 5 years.
• Initiating projects to reduce food waste (e.g., increased utilization of residual raw materials, improved shelf life of products).

Supply Chain Management

Supplier Audits: 209/year

Responsible Procurement

• Strict ethical and environmental requirements for suppliers; risk-based approach to supplier management; audits to ensure compliance with requirements and initiate corrective measures.

Climate-Related Risks & Opportunities

Physical Risks

• Changes in sea temperatures impacting fish stocks and production.

Transition Risks

• Potential future tax on CO2 emissions.

Opportunities

• Increased focus on climate and environmental sustainability representing a significant opportunity for the Group.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ASC, MSC, GlobalG.A.P., BRC, IFS, FSSC 22000, Debio, ISO 22000, ISO 9001, ISO 14001, Kosher

Third-party Assurance: PwC (for materiality analysis)

UN Sustainable Development Goals

• Null (Mentions several SDGs but doesn't explicitly list them)

The Group has adopted some of the UN Sustainable Development Goals, focusing on those most relevant to its processes.

Sustainable Products & Innovation

• Freshly packaged fish; fish-cut concept.

Awards & Recognition

• Null (Mentions products frequently nominated for prizes, but doesn't list specific awards)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced GHG emissions by 1.5% compared to 2022 levels.
• Achieved an A- (Leadership) score in the CDP Climate Change section in 2023.

Social Achievements

• All employees given opportunity to complete online training course on ESG factors.
• Various ESG-related KPIs, some audited annually.

Governance Achievements

• Climate-related risks and opportunities integrated into overall governance mechanisms.
• Board-level oversight of climate-related issues, with designated Board member responsible for ESG.

Climate Goals & Targets

Environmental Challenges

• Grow-out seawater licenses for salmon and trout are limited and may become stricter.
• Proposal to decrease Norwegian cod fishing quota by approximately 20%.
• Uncertainty related to the EU Taxonomy and its impact on Lerøy.
• Carbon pricing and taxes on fossil fuels.
• Stricter requirements for ASC certifications.
• New legislation and requirements concerning the use and disposal of Styrofoam and plastics.
• Taxation or prohibition on the use of soy in fish feed.
• Norwegian aquaculture traffic-light system (TLS).
• Unsuccessful investments in new technologies.
• Technological developments in alternative protein production.
• Technological developments in land-based fish farming.
• Change in consumer needs and behavior.
• Increasing demand for climate-conscious food.
• Negative portrayal of aquaculture industry in media.
• Extreme weather events impacting production sites and fishing operations.
• Extreme weather causing oil spills.
• Extreme weather events posing health and safety risks.
• Facilities in coastal areas exposed to landslides.
• Extreme weather events leading to changes in water quality.
• Extreme weather affecting production of raw materials for fish feed.
• Changes in sea temperatures affecting migration patterns of wild fish.
• Changes in sea levels or temperature impacting long-term livelihood.

Mitigation Strategies

• Close contact with relevant authorities and providing feedback.
• Optimizing operations to increase efficiency and reduce GHG emissions.
• Working on getting all relevant reporting in place, in line with best-practice procedures for EU Taxonomy.
• Lowering emissions, prioritizing activities that produce the most GHG emissions.
• Participating in R&D activities exploring alternative fuels.
• Ensuring compliance with ASC certification requirements.
• Investing in new types of packaging material and exploring recycling opportunities.
• Significantly reducing the use of soy over time and exploring alternative feed ingredients.
• Keeping average numbers of mature female sea lice as low as possible through various measures.
• Conducting thorough assessments prior to implementing new technologies.
• Engaging in projects developing new and high-quality forms of marine and plant-based protein products.
• Engaging in multiple projects pertaining to land-based farming.
• Conducting market research projects and reputation assessments.
• Taking climate action and fulfilling certification requirements.
• Taking responsibility for negative environmental impacts and working to reduce their effects.
• Educating the wider public about the aquaculture industry.
• All LSG’s sea farms are certified according to NS 9415.
• Agreements with local actors to access oil spill emergency equipment.
• Improving facilities to mitigate landslide risk.
• Developing procedures to address changes in water quality.
• Conducting risk assessments for all ingredients used for feed.

Supply Chain Management

Responsible Procurement

• Checking and assessing largest suppliers’ ESG strategy and performance.
• Working closely with feed suppliers to discuss developments and promote sustainable fish feed.
• Collaborating with transportation providers to find low-emission solutions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Oil spills
• Landslides
• Changes in water quality
• Changes in sea temperatures
• Changes in sea levels

Transition Risks

• Fossil fuel regulations
• Market changes
• Stricter certification requirements
• EU Taxonomy

Opportunities

• Alternative transportation solutions
• Innovations in fish feed ingredients
• Climate-friendly packaging
• Reaching climate-conscious consumers
• Shift in market preference to processed products
• Growing demand for sustainable seafood
• Investments in low-carbon solutions
• Collaborations with suppliers

Reporting Standards

Frameworks Used: TCFD, CDP, GRI

Certifications: MSC, ASC, NS 9415

Third-party Assurance: PWC

Sustainable Products & Innovation

• Macroalgae (sugar kelp)
• Blue mussels
• Insect meal in fish feed