SUSTAINABILITY
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Goal and values
Our goal is to create the world’s most efficient and sustainable value chain for seafood by 2025.
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HONEST OPEN RESPONSIBLE Creative
What does being sustainable mean?
If something is to be sustainable, it must meet the requirements within 3 different areas:
ENVIRONMENTAL – We must protect the environment. Every activity impacts the environment but, to be able to operate from an eternal perspective, we must ensure that the environment will return to its original state afterwards.
SOCIAL – We must protect people and local communities. This means safeguarding the human rights of employees directly or indirectly involved in our value chain and making a positive contribution to the local communities around us.
GOVERNANCE – We must comply with laws and regulations, protect our reputation and operate profitably.
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What does ESG actually mean?
• E for Environmental
• S for Social
• G for Governance
BÆREKRAFTIG SUSTAINABLE
– in other words, a catch-all for sustainability SOCIAL
ACHIEVABLE
ENVIRONMENTAL G OVERNANCE FAIR A CCEPTABLE
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We work to reduce our impact on the environment in all operations throughout the value chain:
• Smolt production
• Feed production
• Fish for consumption
• Wild catch
• Industry
• VAP
• Distribution
• Customers and society
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Environmental
• Fish health and fish welfare
• Raw materials for fish feed
• Climate change and risk
• Greenhouse gas emissions
• Electrification
• Energy efficiency measures
• Biodiversity and loss of nature
• Resource depletion
• Waste and pollution
• Circular economy
Social 8
Governance
• Anti-corruption
• Anti-money laundering
• Tax
• Local communities
• Fair adjustment
• HSE
• Diversity, inclusion and equality
• Working environment and employment terms
• Education and training
• Health benefits of seafood
• Food safety
• Protection of personal data
• Supplier follow-up
• Whistleblowing system
• Corporate governance
• Traceability
• Compliance with internal and external laws and regulations
• Compliance with Lerøy’s Code of Conduct and policies
• Earnings for owners
Which areas must we focus on to achieve our goals?
FARMING
Fish welfare
Greenhouse gas emissions from electricity, diesel and petrol, etc.
Greenhouse gas emissions from raw materials used in fish feed
Land use Lice, escapes and wild fish
Survival Feed waste and waste management
Effective routines
HSE
Local employment and skills
Working environment and rights
Improvement potential
Diversity and anti-discrimination
Significant improvement potential
Corruption Compliance with internal and external rules and routines
Compliance with Code of Conduct and policies
Supplier management
SOCIAL GOVERNANCE
ENVIRONMENTAL
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WILD CATCH
Emissions from marine gas oil
Overfishing
Damage to seabed conditions
Unwanted by-catch
Loss of fishing gear
HSE
Local employment and skills
Working environment and rights
Diversity and anti-discrimination
INDUSTRY/VAP, SALES & DISTRIBUTION
Transport of products
Greenhouse gas emissions from electricity, diesel and petrol, etc.
Packaging waste
Land use
Increase the use of fish cuttings and byproducts/fish on floor for human consumption
HSE
Local employment and skills
Working environment and rights
Diversity and anti-discrimination
Corruption Compliance with internal and external rules and routines
Compliance with Code of Conduct and policies
Supplier management
Corruption Compliance with internal and external rules and routines
Compliance with Code of Conduct and policies
Supplier management
At Lerøy, we have set ourselves a number of general goals relating to sustainability. The following tables show some of them.
• Environmental
Social • Governance
The goals have been set at Group level, and the individual segments and companies also have their own goals.
•
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Environmental Goal 2022 2025 2030 CO2e Scope 1+2 -0.5% -1.8% -4.3% CO2e Scope 3 -4.5% -16.5% -42.1% Survival of harvested groups at sea 89% 91% Number of escapees 0 0 0 Number of red spots (lice) 0 0 0 Percentage of superior grade fish 92% 93% 13
*H1: Frequency of injuries involving absence in relation to number of hours worked. Reported
Social Goal 2022 2025 2030 H1* value 11 5 1 Reported adverse incidents per FTE 1.5 3 3 Sickness absence 5.5% 4.5% 4% GPTW score 68% 76% 80% Employee turnover (permanent employees) 13% 12% 10% Percentage of employees on common communication platform 100% 100% 100% Percentage of managers who have completed leadership development programme 200
of
and
observations
FTE. 14
adverse incidents: The sum
near-accidents
safety
per
Goal 2022 2025 2030 Earnings NOK 50 billion Harvest volume, farming 193,000 tons 205,000 tons EBIT, wild-caught fish NOK 500 million Number of suggestions for improvements implemented 118 250 Use of LQMS (internal control system) 75% 100% 100% Percentage of entities working in accordance with the Lerøy Way 40% 100% 100%
Governance
WE HAVE SET OURSELVES AMBITIOUS CLIMATERELATED GOALS.
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Our emissions
Use of fossil fuels such as petrol, marine gas oil, diesel, gas.
(Scope 1)
88% 11% 1%
Use of energy such as electricity, nuclear power.
(Scope 2)
The fossil fuels and energy our suppliers use to produce the goods they supply to Lerøy.
(Scope 3) 17
(figures for 2021)
Our ambition
We have set ourselves ambitious goals for greenhouse gas emissions based on the Paris Agreement. We shall reduce our emissions by 46% by 2030 (base year 2019).
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Focus areas
By focusing on fish feed and transport, we can make a significant impact on our climate goals for 2030.
Sustainable fish feed
Alternative fuel sources
Airfreight
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Sustainable fish feed
Fish feed accounts for approx. 80% of Lerøy’s greenhouse gas emissions. Our ambition is that we WILL achieve the 1.5 degrees goal, and it is therefore extremely important to replace the feedstuffs we currently use with alternatives that generate lower greenhouse gas emissions. To achieve the goal we have set ourselves, we:
• Were the first to use sustainable microalgae in feed as an alternative to fish oil
• Implemented internal projects on the production and use of mussel meal
• Purchased more than 60% of all the new alternative feedstuffs that were available in 2020
• Worked to increase utilisation of cuttings from whitefish and pelagic fish
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The graph shows how we need to reduce our greenhouse gas emissions for fish feed in the coming years in order to achieve the goals we have set ourselves.
how
0 0,5 1 1,5 2 2,5 2022 2023 2024 2025 2026 2027 2028 2029 2030 21 CO2e per kg feed:
of
the
be
(example
reduction can
achieved)
Airfreight
Minimising weight, and alternative solutions
• CO2 transport calculator that calculates the best logistical solution for our products with respect to the climate
• Using dry ice to reduce transport weight
• Replacing sales of whole fish with processed goods
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Alternative fuel sources
R&D and electrification
• Participation in the Green Shipping Programme on the development of alternative fuel sources
• Developing onshore charging stations
• Electrifying locations
• Blending MGO with biogas to reduce emissions
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OUR 5,500 EMPLOYEES ARE CRUCIAL TO OUR SUCCESS
ATTRACTIVE EMPLOYER
• 98 trainees and 355 apprentices (2019–2021)
• Work experience placements and collaboration with educational institutions
LEADERSHIP DEVELOPMENT
• 162 managers had completed leadership development courses as of September 2022
• 110 new managers in all parts of our value chain registered for new courses
• 100% of all managers shall complete the training programme in all countries
SKILLS DEVELOPMENT PROGRAMME
• Motimate e-learning
• Opportunities for internal mobility
• Seafood Next skills development programme
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Food safety in the value chain
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Fish fillets are intrinsically sterile, but all handling increases the risk of contamination. Each stage of the value chain is responsible for supplying safe products to its customers. How can you play your part in food safety?
Remember that everyone can make a difference, so always provide feedback on possible improvements.
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Handle the fish as little as possible, quickly and carefully, and ensure it is chilled quickly
Handle and store chemicals so as to avoid contamination of the fish
FARMING INDUSTRY WILD CATCH
– Observe sluicing routines and zones
– Wash your hands
– Wear clean and appropriate clothing
– Handle the fish carefully and as little as possible
– Ensure that the fish is always kept at a low temperature
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Ensure correct registration, updated specifications and logistics solutions that do not degrade the product
– Observe enclosure routines and zones
– Wash your hands
– Wear clean and appropriate clothing
– Handle the fish carefully and as little as possible
– Ensure that the fish is always kept at a low temperature
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VAP SALES & DISTRIBUTION
Code of Conduct
We all have a responsibility to read the Group’s Code of Conduct. The Code of Conduct guides the decisions we make in our day-to-day work at Lerøy.
Statutory and regulatory compliance
Wherever you are in our value chain, there are laws and regulations that we must abide by in our day-to-day work. It is your responsibility to ensure these are followed.
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Whistleblowing
At Lerøy, we have routines for both internal and external whistleblowing. Third parties who wish to whistleblow something they have observed at Lerøy can do so via our website, www. leroyseafood.com
Employees who wish to whistleblow censurable conditions can do so by following the guidelines set out in the whistleblowing poster.
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Circular economy
• Collecting mud from smolt plants and fish for consumption
• Recycling nets and other waste
• Producing protein from seaweed and mussels
Nutrient salts N and P and CO2 from the production of salmon and trout are part of the food chain for seaweed and mussels
Ambition for 2030: Production volume of 100,000 tons
seaweed
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hadde et lavt antall fisk som rømte også i 2021. Tallet var 4 fisk, en reduksjon på 208 stk fisk fra 2020.
Nøkkeltall miljø forts.
Number of fish escaped per year, salmon and trout
Survival for salmon and trout in the sea, rolling 12 months
Percent
Survival on land”, rolling 12 months Percent
FFDR laks Kilo med industrifisk per kilo produsert laks som inngår i mel og olje i fiskefôret Overlevelse laks og ørret i sjø, rullerende 12 måneder Prosent 0 70 80 90 100 '21 '20 '19 '18 92,2 92,5 93,4 93,9 2021 2020 2019 FFDRm 0,45 0,39 0,37 FFDRo 1,65 1,70 2,09 Overlevelse land , rullerende 12 mnd Prosent 0 70 80 90 100 '21 '20 '19 '18 93,5 88,8 91,5 92,8 Havbruk Scope 1+2: 0 0,4 0,8 1,2 '18 0,85 Villfangst Scope 1+2: Klimaregnskap CO2e-utslippene proteiner med Scope Scope 1, tonn Scope 2, Totalt, tonn FFDR laks Kilo med industrifisk per kilo produsert laks som inngår i mel og olje i fiskefôret Overlevelse laks og ørret i sjø, rullerende 12 måneder Prosent 0 70 80 90 100 '21 '20 '19 '18 92,2 92,5 93,4 93,9 2021 2020 2019 FFDRm 0,45 0,39 0,37 FFDRo 1,65 1,70 2,09
Overlevelse land , rullerende 12 mnd Prosent 0 70 80 90 100 '21 '20 '19 '18 93,5 88,8 91,5 92,8 Havbruk 0 0,4 0,8 1,2 '18 0,85 Villfangst Scope 1+2: Klimaregnskap CO2e-utslippene proteiner med Scope Scope 1, tonn Scope 2, Totalt, tonn 0 50 100 150 200 250 '21 '20 '19 '18
rømte
0,15 0,20
antall kjønnsmodne lus pr. fisk Antall Konsernet
nesten fraværende Lerøy Seafood restriktiv i sin bruk av benytter dette kun til fiskevelferd. brukt på land, virkestoff Key figures, Environmental 36
Antall
fisk pr. år, laks og ørret
Snitt
Antibiotics used on shore, kg active substance 2021: 0.00 2020: 0.00 2019: 0.00
Nøkkeltall miljø forts.
Locality status
Average MOM B score (seabed samples)
FFDR salmon
Kilogram of industrial fish per kilo of salmon produced used in the fishmeal and oil in fish feed
VAP, Salg og Distribusjon
Climate accounts CO2e 2021
CO2e emissions for fish are in general low. When compared with other types of proteins we eat, fish is one of the proteins with the lowest footprint .
CO2e-utslippene for fisk er generelt lave. Sammenlignet proteiner med lavest fotavtrykk.
Average number of fully grown lice per fish
The level of fully grown lice has been relatively stable in recent years.
Årsrapport 2021 Lokalitetsstatus Gjennomsnittlig MOM B score (bunnprøver) '21 '20 '19 '18 '21 '20 '19 1,49 1,37 1,55 Lerøy Seafood Group I Årsrapport 2021 35 Havbruk Scope 1+2: Tonn CO2e/tonn brutto tilvekst 0 0,02 0,04 0,06 0,08 0,10 0,12 '21 '20 '19 '18 0,10 0,06 0,11 0,10 0 0,03 0,06 0,09 0,12 0,15 '21 '20 '19 0,12 0,13 0,08
Scope 1+2: Tonn CO2e/tonn produkt solgt FFDR laks Kilo med industrifisk per kilo produsert laks som inngår i mel og olje i fiskefôret Overlevelse laks og ørret i sjø, rullerende 12 måneder Prosent 0 70 80 90 100 '21 '20 '19 '18 92,2 92,5 93,4 93,9 Lokalitetsstatus Gjennomsnittlig MOM B score (bunnprøver) 2021 2020 2019 FFDRm 0,45 0,39 0,37 FFDRo 1,65 1,70 2,09
Overlevelse land , rullerende 12 mnd Prosent 0 70 80 90 100 '21 '20 '19 '18 93,5 88,8 91,5 92,8 1,49 1,37 1,55 Havbruk Scope 1+2: Tonn CO2e/tonn brutto tilvekst 0,06 0,08 0,10 0,12 0,10 0,06 0,11 0,10 0 0,4 0,8 1,2 '21 '20 '19 '18 0,85 1,13 0,86 0,85 Villfangst Scope 1+2: Tonn CO2e/tonn rund fisk
Klimaregnskap CO2e 2021
Scope Havbruk Villfangst Scope 1, tonn CO2e 18.706 120.238 Scope 2, tonn CO2e 4.470 Totalt, tonn CO2e 23.176 120.986 37
Antibiotics used in sea,
2021: 0.00 2020: 18.99* 2019: 0.00
kg active substance
Scope Farming Wild Catch VAP, Sales & Distribution Lerøy Seafood Group Scope 1, tonne CO2e 18.,706 120,238 2,580 141,524 Scope 2, tonne CO2e 4,470 748 4,363 9,581 Total, tonne CO2e 23,176 120,986 6,943 151,105 0 0.05 0.10 0.15 0.20 '21 '20 '19 '18
Number
Key figures, Social
samfunn forts. Antall skader med fravær i 2021 123 Sykefravær Prosent 0 2 4 6 8 10 '21 '20 '19 3,42 2,44 5,85 3,81 5,20 2,98 2,21 2,69 6,51 Langtidsfravær Sykefravær Korttidsfravær H1 - LTI (%) 15,33 2019 2020 2021 2021 Nestenulykker Antall 400 600 800 1.000 652 680 746 626 Nøkkeltall Nøkkeltall samfunn forts. Sykefravær '21 '20 3,42 2,44 5,85 3,81 2,21 2,69 6,51 Langtidsfravær Sykefravær Korttidsfravær H1 - LTI (%) 15,33 2019 2020 2021 2021 38 Sick leave Percent Long-term sick leave Short-term sick leave Sick leave Number of employees 2021
Nøkkeltall
* Se side 90 for mer informasjon.
Dødsulykker* Antall
Fatal accidents
Antibiotika Bruk av antibiotika er nesten fraværende i norsk havbruksnæring. Lerøy Seafood Group er svært restriktiv i sin bruk av antibiotika og benytter dette kun unntaksvis og av hensyn til fiskevelferd.
18,99*
0,00
* Se side 90 for mer informasjon.
Antibiotika brukt i sjø, kg aktivt virkestoff
Sikkerhetsobservasjoner
2.309
0,00
18,99*
0,00
2.555
Antibiotika brukt på land, kg aktivt virkestoff
0,00
3.273
0,00
0,00
ble benyttet på en lokalitet utifra hensyn til fiskevelferd
32 Lerøy Seafood Group I Årsrapport 2021 1 Antall skader uten fravær i 2021 144 '21 '20 '19 2.309 2.555 3.273 Sikkerhetsobservasjoner Antall * Se side 90 for mer informasjon. Dødsulykker* Antall 0 200 400 600 '21 '20 '19 '18 652 680 626 1 Antall skader med fravær i 2021 123 Antall skader uten fravær i 2021 144 '21 '20 '19 2.309 2.555 3.273 Sikkerhetsobservasjoner Antall '21 '20 '19 * Se side 90 for mer informasjon. Langtidsfravær Sykefravær Korttidsfravær 2020 2021 Dødsulykker* Antall Nestenulykker Antall 0 200 400 600 800 1.000 '21 '20 '19 '18 652 680 746 626 Group er svært restriktiv i
bruk
benytter
unntaksvis og av hensyn til fiskevelferd.
Antibiotika
Antibiotika brukt
aktivt virkestoff 2021: 0,00 2020:
2019:
sin
av antibiotika og
dette kun
*
i sjø, kg
2021:
2020:
2019:
32 Lerøy Seafood Group I Årsrapport 2021 1
3,42 2,44 Korttidsfravær H1 - LTI (%) 15,33 2019 2020 2021 2021 Nestenulykker Antall 0 200 400 600 800 1.000 '21 '20 '19 '18 652 680 746 626
2021:
2019:
32 Lerøy Seafood Group I Årsrapport 2021 1 Antall skader med fravær i 2021 123 Antall skader uten fravær i 2021 144 '21 '20 '19
2020:
Antall
Antall
Antall 0 200 400 600 800 1.000 '21 '20 '19 '18 652 680 746 626 39 Number of injuries resulting in absence in 2021 Number of injuries without absence in 2021
Dødsulykker*
Nestenulykker
Number Safety observations Number Near-accidents Number
Places in municipal kindergartens
Key figures, Social
equivalents
Places in nursing homes
Ripple effect for society in 2021 in Norway
10,396,607 * 1,034,087 *
Taxes
Value creation
* Affected by prevailing market prices
Value creation = Gross production value minus intermediate consumption.
* Net tax from employees and tax paid in 2020 by Lerøy Seafood Group
Places in municipal kindergartens
In 2021, Lerøy Seafood Group had more than 4,500 different suppliers nationwide.
3,116 municipal kindergartens
Full-time equivalents
982
Full-time equivalents Places in nursing homes
Places in nursing homes
5,806 Places in municipal kindergartens
Places in municipal kindergartens
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Full-time
Purchases made by our Norwegian companies from Norwegian suppliers in 2021 (invoiced in 2021)
Purchases from Group companies
External purchases
Payable taxes
60 municipalities
We had own operations in approx. 60 municipalities in Norway.
NOK 12.8
We purchased goods and services worth NOK 12.8 billion excluding internal purchases from more than 280 different Norwegian municipalities.
NOK 647.5 million
Our employees paid tax to different municipalities amounting to NOK 647.5 million.
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Lerøy Seafood Group Figures in MNOK 0 200 400 600 800 1,000 '21 '20 '19 '18 851 691 453 387
Figures in NOK billion 0 5 10 15 20 '21 '20 '19 '18 '17
Nøkkeltall finans
Omsetningsutvikling Beløp i millioner kroner Utvikling LSG Beløp 1.000 2.000 3.000 4.000 0 5.000 10.000 15.000 20.000 25.000 '21 '20 '19 '18 '17 '16 '15 '14 '13 '12 '11 '10 resultat* ROCE* Prosent '21 0 5 10 15 20 25 30 '21 '20 '19 '18 '17 '16 '15 '14 '13 '12 '11 '10 Soliditet Key figures, financial 42 ROCE * Percent Profit performance Figures in NOK millions
Development in Group's operating profit LSG Group*
Figures
* Before fair value adjustments related to biological assets
i millioner kroner
i millioner kroner 0 1.000 2.000 3.000 4.000 '21 '20 '19 '18 '17 '16 '15 '14 '13 '12 '11 '10 0 5.000 10.000 15.000 20.000 25.000 '21 '20 '19 '18 '17 '16 '15 '14 '13 '12 '11 '10 43 Whole salmon 37.5% Whitefish 16.4% Trout 7.1% Shellfish 4.2% Pelagic 0.4% Other 5.5% Processed salmon 28.8% Revenue by product 2021 Norway 17.7% Asia 16.2% USA & Canada 4.8% Rest of Europe 7.2% Other 0.7% EU 53.4% Revenue by market 2021
Omsetningsutvikling Beløp
Utvikling i konsernets driftsresultat LSG Konsern* Beløp
in NOK millions
THE NORWEGIAN SEAFOOD PIONEER
SINCE 1899
You can find more information about how we work on sustainability at Lerøy in our sustainability library https://www.leroyseafood.com/en/sustainability/ sustainability-library-2021/
NORDICSWAN ECOLABEL
