S U S TA I N A B I L I T Y REPORT
This report has been prepared in accordance with the Global Reporting Initiative Standards (GRI). The information contained in this report covers Multiexport Foods S.A., and all its affiliates. C O N TA C T If you have any questions or suggestions, we invite you to be part of our continuous improvement process regarding this report by writing to the following emails: sustentabilidad@multiexportfoods.com Francisco Lobos Sustainability and Corporate Affairs Manager. flobos@multiexportfoods.com This document is presented in digital format on our website www.multiexportfoods.com ART AND DESIGN DIRECTION Cincel Design www.cinceldesign.com
S U S TA I N A B I L I T Y REPORT
2019
CONTENTS
1
2
3
4
OUR C O M PA N Y pg. 07
C O R P O R AT E GOVERNANCE pg. 23
S TA K E H O L D E R E N G A G E M E N T, M AT E R I A L I T Y A N D C O N TA C T pg. 33
PRODUCTIVE PERFORMANCE pg. 40
5
6
FINANCIAL PERFORMANCE pg. 48
E N V I R O N M E N TA L PERFORMANCE pg. 50
7 SOCIAL PERFORMANCE pg. 65
8 S O C I O - E N V I R O N M E N TA L I N I T I AT I V E S pg. 81
9 GRI CONTENT INDEX pg. 90
5
M E SSAG E F R O M T H E C E O D E A R S TA K E H O L D E R S I am very pleased to present our third Sustainability Report for 2019. This was a year in which we achieved many important goals for our strategic plan, and in which, during the last quarter, we faced a very different scenario as a result of the social unrest that broke out in Chile. In terms of sustainability, our company made significant progress, which demonstrates the importance that we have given to the issue, placing it at the heart of our business model. During the year, we finished reinforcing the structure of the Sustainability and Corporate Affairs Management, with the creation of the Community Relations Management. We also created the Corporate Reputation and Sustainability Board Committee, where strategies and action plans regarding this matter are established. We also started to provide monthly reports on the progress of our sustainability strategy to the company’s board of directors, as well as providing quarterly sustainability management reports to our investors and the Commission for the Financial Market. We have hit many important milestones this year, one of which was completing our first harvests in the Magallanes region, achieving excellent production and health performance, with 100% of the production antibiotic free. Likewise, we became the first salmon company in the world to join the Dow Jones Sustainability Index, the most respected global ESG index. We also announced that we will end our salmon farming operations in Chilean lakes by 2020, a promise that, as of the date of this report, has been fully met. We carried out the third corporate measurement of our carbon footprint, registering it in Huella Chile, and we measured our water footprint for the first time. This information helps us by encouraging us to constantly improve. We renewed our products and sustainability certifications from Best Aquaculture Practices (BAP) and the Aquaculture Stewardship Council (ASC), and it was also certified that 100% of the energy consumed by our processing plants was obtained from renewable sources. We carried out regular initiatives promoting relationships and local development with multiple neighboring organizations and
communities, from the IX to XII regions of the country, and started a powerful project to clean the beaches and the seabed in our concession areas. This report includes many interesting indicators that look at the company from a financial, productive, labor, safety, social and environmental standpoint. These indicators are related to our analysis of material aspects, and account for how we seek to minimize the impact of our activities, while reaffirming our commitment to the United Nations sustainable development goals for 2030. As an organization, we understand that today we live in a time full of challenges: the world is facing an unprecedented pandemic, with unknown epidemiological, health and economic effects; and this is added to the fact that our entire society is going through turbulent times. As far as it is in our hands, we will continue to direct a sustainable path towards caring for our people, keeping our supply chain in operation, and maximizing value for our shareholders and all our stakeholders. We know that we will be successful in these objectives, as we are supported by our solid financial position and great farming conditions, added to the commitment, experience and professionalism of our teams, all of which assures us that we will be able to continue making and implementing the right decisions to move forward. Finally, I want to thank each and every one of Multiexport’s collaborators, because all of them contribute to the sustainability of our company.
AND RÉS LYO N LAB B É CEO Multiexport Foods
OUR COMPANY
6
M U LT I E X P O R T F O O D S AT A G L A N C E 2 0 1 9
2,654 61.61% 1,635
38.39% 1,019
TOTA L CO L L A B O R ATO R S
46 FA R M S O P E R AT E D
95.5
USD 568
Thsd TON WFE
Million
H A R V E S T E D VO L U M E
96.1 Thsd TON WFE P R O C E S S E D VO L U M E
TOP 1
FIRST EXPORTER OF SMOKED PRODUCTS OF CHILE .
TO TA L S A L E S
TOP 2 USD 84 Million E B I T DA
TOP 3
S E CO N D E X P O R T E R O F AT L A N T I C S A L M O N O F CHILE .
THIRD EXPORTER OF ALL SPECIES OF CHILE .
Total in Multiexport and external plants
90.1
USD 43
Thsd TON
Million
VO L U M E S O L D
PROFIT
TOP 6
S I X T H E X P O R T E R BY P R O D U C E D VO L U M E WO R L DW I D E .
O U R C O M P A N Y
CHAPTER
OUR COMPANY
01
7
OUR COMPANY
8
S T R A T E G Y
MISSION
VISION
To feed the world with superior quality products, meeting the needs of consumers through efficient business management based on people, innovation, care for our environment and good relations with our local communities. Our products are a source of life.
Become one of the most important companies in aquaculture worldwide; be recognized for the quality of our products, our passion for innovation, the profitability of our operations and our strong sense of social responsibility.
VA L U E S
Commitment to Our People: We deeply value the personal, family and professional development of our staff, providing them with the skills, the work environment and the opportunities necessary to make them human beings who are happier, more productive and more committed to their work.
Social Role: For Multiexport Foods, the company is conceived as an extension of man and as such, it is an exceptional way to contribute to the development of society. With this conviction we carry out our work, which is founded on our great commitment to both the wellbeing of the communities where we are based and the protection of their environment.
Passion for innovation: Only innovation and continuous improvement lead to excellence. And that is always our goal.
Market Orientation: We carefully consider the needs of the market in order to offer the best value propositions. Likewise, we pay careful attention to our clients so we can provide them with optimum quality of service before and after the sale.
Ethical Conduct: We act with professionalism, moral integrity, loyalty, and deep respect for people. The principles of humanism guide everything we do. OUR COMPANY
Quality: Our processes and products are made with the highest quality and safety standards available in the market.
8
OUR COMPANY
9
I N T E G R AT E D P O L I C Y Quality, environment, health and safety, sustainability, and food safety. MULTIEXPORT FOODS S.A., through its affiliates, establishes that the production processes, processing and commercialization of salmon, as a superior product, must be carried out with sustainable and ethical behavior, closely related to the Safety, Quality and Social Responsibility of the company, which is expressed through care and preservation of the Environment, Biodiversity and Safe Labor Practices. Furthermore, we consider that we are moving towards Excellence when we exceed and increase the level of satisfaction and expectations of our Customers, when we maintain high standards of Food Safety and product technical specifications, when we improve productivity rates and pursue efficiency in the use of resources by implementing new farming and processing strategies.
We are moving towards Excellence when we become aware of and apply contamination awareness and respect for the Environment and its Biodiversity in all our processes, and when we recognize that our productive goals must be achieved with special emphasis on the Occupational Health and Safety of our workers.
Along with this, we assume the commitment to comply with the applicable Legislation in areas such as Food Safety, Quality, the Environment, Food Defense, Occupational Health and Safety, and with the following voluntary commitments: ISO 9001, BRC, IFS, ISO 14001, ISO 45001, GLOBALG.A.P., BAP-GAA, ASC Salmon Standard and Marine Stewardship Council (MSC).
This is why we assume the commitment to implement a Sustainable Process of continuous participatory and multidisciplinary improvement, in which all of the members of the organization, with a preventive attitude, serve as the main promoters of Safety, Quality, the preservation of the Environment and Occupational Health and Safety, both individually and collectively. ANDR É S LYON LABBÉ CEO Multiexport Foods
OUR COMPANY
10
S U S TA I N A B I L I T Y A N D C O R P O R AT E R E P U TAT I O N S T R AT E G Y
Sustainability is at the heart of our business model. For this reason, the new Sustainability and Corporate Affairs Management was implemented this year, and provided with the human and budgetary resources necessary to carry out an ambitious long-term plan. This corporate unit works under the guidelines of the new Committee of Directors for Sustainability and Corporate Reputation, which is composed of and managed by a founding director and two independent directors.
In 2019 we presented our Sustainability and Corporate Reputation Strategy to the organization and our stakeholders. The strategy was formed from the diagnosis of material aspects deriving from the interaction between salmon farming and society. From there, the strategy promotes improvements through long-term action plans, involving the entire organization.
ESG PILLARS*
01
C O R P O R A T E
02
B U S I N E S S
03
04
G O V E R N A N C E
P R O D U C T
C U S T O M E R S
*ESG: environmental, social and governance.
• Business Ethics • Risk Management • Corporate Strategies • Regulatory Compliance • Communication • Increasing Demand • Responsible Farming • Productivity • Attractive Investment • Supply Management • Organic Growth • Technologies • Nutritional Attributes • Traceability • Food Safety • Product Development • Marketing Strategies • Relationship Development • Satisfaction • Transparency
05
E N V I R O N M E N T
• Health Strategy • Welfare • Biodiversity • Fish Escapes • Control of Environmental Impacts • Waste Management • Climate Change Strategy
06
P E O P L E
• Code of Conduct • Health and Safety • Attractive Source of Employment • Integrity • Talent Management • Research and Innovation
C O M M U N I T I E S
• Shared Value • Presence and Dialogue • Transparency • Local Suppliers
07
OUR COMPANY
11
S U S TA I N A B I L I T Y A N D C O R P O R AT E R E P U TAT I O N S T R AT E G Y F O C U S
O N
H I G H
M U LT I E X P O R T
R E P O R T A B I L I T Y
S U S T A I N A B L E
P E R F O R M A N C E
S O C I E T Y
A N D
O P E R A T I O N S
C O R P O R A T E
C U LT U R E
S T A N D A R D S
M O D E L
0%
100%
waste to landfill • Processing 2020 • Farming 2022
participatory cultural transformation process
Traceability Pilot – Blockchain
Redefinition of value proposal, alignment and leadership
0 escape events from our facilities
100% of clean seabed of inorganic waste prior to the next use by 2020
60% antibiotic (AB) reduction by 2025
25% of production “AB Never Use” by 2021
100% of coastal areas close to our operations under a permanent cleaning program
100% of our Stakeholders identified, evaluated and with a relationship plan
Carbon Footprint Annual Assessment
-20% reduction of our carbon footprint by 2020 Carbon Neutral by 2025 Electromobility pilot in the corporate fleet of vehicles
< 0,7 FIFO < 0,7 (FISH IN FISH OUT) Ratio for the conversion of wild feed fish to farmed fish
A N D
Participation in GSI (Global Salmon Initiative) and SalmonChile Sustainability Annual Reports Multiexport Foods Annual Sustainability Report
S U R V E I L L A N C E
C O R P O R A T E
A N D
C O M M U N I C A T I O N
C E R T I F I C A T I O N
100%
Communications Policy
of our staff trained annually
Corporate Storytelling
0 infractions and fines
100% of our productive facilities operating under BAP* standard
7 ASC certified farms by 2020
*BAP: Best Aquaculture Practices.
T R A N S P A R E N C Y
Mainstream and Social Media Strategy
S U S TA I N A B I L I T Y IS THE HEART OF
OUR COMPANY
OUR COMPANY
12
OUR BUSINESS. 12
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13
S U S TA I N A B I L I T Y IS OUR BUSINESS F O U N D AT I O N S
FARMED SALMON
CHICKEN
PORK
BOVINE
OVINE
GLOBAL PRODUCTION
3 .4
114.3
120.9
6 7.4
9.8
1.2-1.5
1.7-2.0
2.7-5.0
6.0-10.0
68%
46%
52%
N O DATA
38%
23%
10%
14%
N O DATA
5%
25%
27%
16%
7%
N O DATA
3.7
7. 1
11
102
185
0.60
0.88
1.30
5.92
N O DATA
Measured in Millions of Tons. FEED CONVERSION RATIO (FCR)
Measures the productivity of different protein production methods. It demonstrates the kilograms (kg) needed to increase the animalâ&#x20AC;&#x2122;s bodyweight by 1kg. EDIBLE YIELD
Edible yield is calculated by dividing edible meat by total body weight.
N O DATA
ENERGY RETENTION
Describes the efficiency of a product in retaining energy from food. This is calculated as a percentage (energy in edible parts/gross energy feed).
CALORIE RETENTION
Describes the gain in edible calories as a percentage of the calorie intake from feed. It is calculated as a percentage (calories in edible portion / calories in feed).
LAND USE
Amount of land needed to produce 100g of edible protein. CARBON FOOTPRINT
Measures in grams of carbon dioxide equivalent (g CO2e) per typical serving (40g) of edible protein of the product. Data are median values.
Source: GSI Sustainability Report, https://globalsalmoninitiative.org/
OUR COMPANY
14
SALMON BUSINESS MANAGEMENT MODEL Our current management model is structured around obtaining maximum efficiency from each of the stages of the value chain, from breeding in fresh water to harvest in sea water, as well as in added value and sales, where the processing and smoked products sectors stand out. In this way, we aim for each stage to operate in an independent but coordinated manner, in order to maintain the focus of the business, facilitating management within the company. Providing support to the business units are the Administration and Finance, Sustainability and Corporate Affairs, Information Technologies, and Human Resources areas.
OUR COMPANY
15
SEA WATER GROWING
PROCESSING
VA L U E C H A I N
FRESH WATER BREEDING
Multiexport Foods is integrated vertically, from reproduction to distribution to the final customer, adding value in every stage of the business chain.
ADDED VALUE
SALES AND DISTRIBUTION
GENETICS AND REPRODUCTION
GENETICS AND
FRESH WATER BREEDING
SEA WATER GROWING
PROCESSING
ADDED VALUE
SALES AND DISTRIBUTION
REPRODUCTION
This includes the incubation, spawning and smoltification phases. We have 5 land-based hatcheries with high quality technology that allows the reutilization and recirculation of the water (70 â&#x20AC;&#x201C; 97%).
The fish farming process starts with an approximate weigh of 150 grams, up to when they reach their commercial size. Our operations in this phase are developed in the X, XI and XII Regions of Chile.
We have two processing plants located in Puerto Montt, one for fresh and frozen products, and the other for smoked products. Together, they have a processing capacity of 80 thousand tons per year.
Here, innovative products are developed and commercialized, according to the needs and trends of customers and markets all over the world.
We supply over 900 thousand portions of salmon daily, to more than 30 countries around the world.
We have a program of genetic selection with breeders that are individually checked to ensure that they comply with the best conditions. Egg production mainly comes from our own breeders, which are kept in freshwater facilities inland.
OUR COMPANY
16
S A L M O N FA R M I N G C YC L E AT L A N T I C SALMON
COHO SALMON
2 months
2 months
SPAWNING
4 months
3 months
SMOLTIFICATION
7 months
4 months
14 - 18 months
9 months
Total 27 - 31 months
Total 18 months
GENETICS AND REPRODUCTION
FRESH WATER BREEDING
SEA WATER GROWING HARVEST
I N M AY 2 0 1 9 , T H E B OA R D O F D I R E C TO R S D E C I D E D TO E N D S M O LT P R O D U C T I O N I N C H I L E A N L A K E S BY 2 0 2 0. T H I S ANNOUNCEMENT IS IN LINE WITH O U R CO M PA N Y â&#x20AC;&#x2122; S CO M M I T M E N T TO T H E E N V I R O N M E N T A N D S U S TA I N A B I L I T Y.
OUR COMPANY
17
GEOGRAPHIC L O C AT I O N
A R AU C A N Í A REGION LOS RÍOS REGION
4
RIVER
1
H ATC H E R Y
CONCESSIONS L O S L AG O S
( 1 2 H E C TA R E S )
REGION
4 23
H ATC H E R I E S SEA CONCESSIONS (2 3 8 H E C TA R E S )
AY S É N PROCESSING
REGION
76
PLANT SEA
FRESH AND
CONCESSIONS
F R OZ E N P L A N T
(6 1 2 H E C TA R E S )
AND SMOKED PLANT
WE ARE IN 25 NEIGHBORHOODS
M AG A L L A N E S REGION
OR GROUPS OF SALMONID CO N C E S S I O N S , W I T H A TOTA L O F 1 0 6 S E A WAT E R CO N C E S S I O N S . T H I S A L LOWS U S TO G UA R A N T E E A N D OPTIMIZE THE CONTINUITY AND EFFICIENCY OF OUR P R O D U C T I V E O P E R AT I O N S .
7
SEA CONCESSIONS ( 70 H E C TA R E S )
2019 SUSTAINABILTY MILESTONES The Community Relations Management is created
Salmon Chile and GSI Sustainability Reports
The Committee of Directors on Sustainability and Corporate Reputation is created
Rules for Good Practices with Communities was signed
Our carbon footprint is registered at â&#x20AC;&#x153;Huella Chileâ&#x20AC;?. Multiexport Foods S.A. is recognized by being incorporated into the Dow Jones Sustainability Index (DJSI) the most prestigious ESG rating worldwide
Group BAP certification
Ganso Farm ASC certification
JANUARY
MARCH
Climate Change Strategy
APRIL
M AY
Announcement of the end of smolt production in lakes (starting in 2020)
MEF Sustainability Report
J U LY
First Atlantic Salmon harvest in the Magallanes region antibiotics and antiparasites free
Upgrade OHSAS 18001 to ISO45001
The energy used at the processing plant is certified as 100% renewable
New offices are inaugurated at Cardonal Campus, an energy efficient and highly sustainable building
AUGUST
Sustainability and Corporate Reputation Strategy
SEPTEMBER
OCTOBER
DECEMBER
Electro-mobility pilot starts
ASC Farms certification, XII Region
OUR COMPANY
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18
18
OUR COMPANY
19
SALES AND MARKETS Our main export markets are the United States, Brazil, Japan, China and Russia, where value-added products represent 43% of total sales. MIAMI COMMERCIAL OFFICE HONG KONG COMMERCIAL OFFICE METROPOLITAN REGION SANTIAGO HEADQUARTERS LOS LAGOS REGION
2019 MEF Exports (Millions USD FOB)
CAMPUS CARDONAL
19 RUSSIA
62 12
214 NORTH AMERICA
EUROPE
3
ASIA
62 JAPAN
W E A R E P R O U D TO
WESTERN ASIA
S U P P LY OV E R 9 0 0 106 LATIN AMERICA
THOUSAND PORTIONS OF S A L M O N DA I LY TO M O R E T H A N 3 0 CO U N T R I E S A R O U N D T H E WO R L D
20 OUR COMPANY
IN 2019, OUR SALES I N C R E A S E D TO U S D 568 MILLION, 6% MORE THAN 2018
Sales by Product Format (Millions USD FOB)
Sales by Specie (Thsd TON)
FROZEN
114.99 SMOKED
42.80
FRESH
2% 1.54
348.84
TROUT
92% 83.93
7% 6.52
AT L A N T I C
COHO
SALMON
SALMON
OUR COMPANY
21
BRANDS AND PRODUCTS We have 8 official brands, with a focus on the following:
S A L M O N I S T H E O N LY A N I M A L P R OT E I N W H I C H P R OV I D E S O M E G A 3
Proportion of Processed Products MEF Plants by Type
51.1%
35.95%
7.36%
3.99%
0.98%
0.62%
FILLET
WHOLE
LOINS
SLICED
PORTIONS
OTHER
OUR COMPANY
22
L AT I T U D E 4 5 ° , O U R B R A N D O F S M O K E D S A L M O N I N T H E U N I T E D S TAT E S , G R E W A N D E X PA N D E D I N 2 0 1 9 . PA R T N E R S H I P S W I T H T H E M A I N R E TA I L E R S I N T H E CO U N T RY, S U C H A S WA L M A R T, B J ’ S , S A M ’ S C LU B , W I N N D I X I E A N D M E I J E R , HAS POSITIONED THE BRAND AS THE AU T H E N T I C S A L M O N F R O M C H I L E A N PATAG O N I A , D U E TO D I G I TA L M A R K E T I N G C A M PA I G N S A N D A DV E R T I S I N G AT R E TA I L O U T L E T S , R E AC H I N G M O R E THAN 20 MILLION NORTH AMERICAN CO N S U M E R S , W I T H S A L E S S U R PA S S I N G 3 6 3 ,0 0 0 K I LO S .
C O R P O R A T E G O V E R N A N C E
CHAPTER
OUR COMPANY
02
23
CCOORRPPOORRAATTEE GGOOVVEERRNNAANNCCEE
24
OWNERSHIP AND CONTROL M U LT I E X P O R T FOODS S.A. BUSINESS NAME
Multiexport Foods S.A
TA X I D N o .
76.672.100-1
T Y P E O F C O M PA N Y
Open Stock Corporation
R E G I S T R AT I O N I N THE SECURITIES REGISTRY
Nยบ 979
ADDRESS
Av. Cardonal 2501, Puerto Montt, Region of Los Lagos
TELEPHONE
(56-65) 2 483 700
FA X
(56-65) 2 483 701
W E B PAG E
http://www.multiexportfoods.com/
EMAIL ADDRESS
inversionistas@multiexportfoods.com
MNEMONIC CODE I N T H E STO C K M A R K E T
Multifoods
E X T E R N A L AU D I TO R
PricewaterhouseCoopers
M I T- S A L M O N S PA . ( M I T S U I & C O. (USA), INC.)
76.626849% SALMONES M U LT I E X P O R T S.A.
M U LT I E X P O R T PAC I F I C FA R M S S . A . 99.99998897% 0.00001103%
23.373151%
A L I M E N TO S MUTIEXPORT S.A. 99.9975%
M U LT I E X P O R T FOODS INC. USA 100%
99.99999212%
S A L M E X 2 S PA .
0,0025%
0.00000788%
SOC. INVERSIONES I S L A V I C TO R I A LT DA . 99%
C U LT I VO S AC U ร C O L A S N AC I O N A L E S S.A. 99%
C U LT I VO S O T WAY S . A .
1%
1%
0.01%
35.27% OT H E R I N V E S TO R S
M U LT I E X P O R T PATAG O N I A S . A .
99.99%
100%
64.73% CONTROLLER GROUP
C O R P O R AT E G O V E R N A N C E
25
C O R P O R AT E GOVERNANCE COMPOSITION
José Ramón Gutiérrez Arrivillaga CHAIRMAN
In accordance with our bylaws, Multiexport Foods is led by a Board of Directors with seven members elected every 3 years at the Ordinary Shareholders’ Meeting, who remain in office for the same number of years (said period may be renewed). The members of the Board of Directors elect the Chairman for the same period, and he/she may be re-elected. At their meeting, held on April 24th, 2019, the shareholders’ assembly of Multiexport Foods S.A. elected the Board for the 2019-2022 period, with José Ramón Gutiérrez, Martín Borda, Alberto de Pedregal, Hernán Goyanes and Carlos Pucci being ratified, and two new directors joining the board: Rodrigo Pérez Mackenna and Elke Schwarz. Elke Schwarz is the first woman to join the Company’s Board of Directors. • Multiexport Foods does not request minimum attendance from its Directors. • Multiexport Foods does not restrict the number of boards that its Directors can participate in.
Note: We welcome the definition of Independent Director given by the law No. 18,046 for open stock corporations. Their main characteristic is that they have no relationship with the company, the other companies in the group it is part of, its controller company, or with the main executives of any of these. In this way, the independent directors contribute to the exercise of fair, objective, and impartial judgement on the occurrence of possible conflicts of interest between the different classes of shareholders, or between the shareholders and the administration.
Civil Industrial Engineer 7,017,364-6 Alberto del Pedregal Labbé
Martín José Borda Mingo
DIRECTOR
DIRECTOR
Business Administrator 6,604,969-8
Economist 7,010,555-1
Elke Renate Schwarz Kusch
Carlos Pucci Labatut
INDEPENDENT DIRECTOR
DIRECTOR
Civil Engineer 6,474,225-6
Journalist 8,858,781-2
Rodrigo Perez Mackenna
Hernán Salvador Goyanes García
INDEPENDENT DIRECTOR
INDEPENDENT DIRECTOR
Civil Engineer 6,525,287-2
National Public Accountant 48,082,143-2
C O R P O R AT E G O V E R N A N C E
26
BOARD DIVERSITY BY GENDER
Number of women
BOARD COMMITTEE 2018
2019
0
1
1
1
B Y N AT I O N A L I T Y
Number of foreigners B Y AG E R A N G E
< 35 years
0
0
0
0
51 - 65 years
6
7
> 65 years
1
0
35 - 50 years
This is composed by Elke Renate Schwarz Kusch, Hernán Salvador Goyanes Garcia, and Rodrigo Pérez Mackenna, who were chosen in the meeting held on April 24th, 2019. Hernán Goyanes was appointed as the Chairman of the Committee, and the attorney Rubén Bascuñán as the Secretary of the Minutes.
the external auditors and the risk rating agency, after evaluating their proposals. • Examination of operations in relation to transactions with related parties.
· The Board Committee met 12 times during the year, with an average attendance of 94.05% of the members.
• Examination of the remuneration system and compensation plans for managers and executives.
During this period, the Board Committee agreed to fulfill its duties and exercise the powers established in article 50 bis of law 18,046
Additionally, the following matters are also reviewed in the meetings of the Board Committee:
The main subjects addressed in these meetings were the following:
• Status and progress of essential risks of the company, studied using the ARCE methodology
• Quarterly financial statements presented by the administration. • Corporate standards Note: The average seniority (tenure) of Multiexport Foods’ Board is 10 years.
• Examination of the reports from external auditors, the balance sheet, financial statements and the internal control letter presented by PwC. The committee ruled on these documents prior to their submission to the board. They also proposed names for
• Internal Audit Reports • Other matters according to requirements that arise periodically.
Multiexport Foods Board Committee CHAIRMAN OF THE COMMITTEE
Hernán Salvador Goyanes García 48,082,143-2
DIRECTOR
DIRECTOR
Elke Renate Schwarz Kusch 8,858,781-2
Rodrigo Pérez Mackenna 6,525,287-2
C O R P O R AT E G O V E R N A N C E
27
S U S TA I N A B I L I T Y A N D C O R P O R AT E RESPONSIBILITY BOARD COMMITTEE In order to lead the company’s sustainability and corporate reputation strategy, in 2019, Multiexport Foods formed a board committee who will guide and advise General Management and Sustainability and Corporate Affairs Management on these matters. The committee is made up of directors José Ramón Gutiérrez, Elke Schwarz and Rodrigo Pérez Mackenna. There will also be executives taking part in these committee meetings on a permanent basis, and these are the CEO, Andrés Lyon, the Sustainability and Corporate Affairs Manager, Francisco Lobos, and the Marketing Manager, Cecilia Rojas.
The main topics addressed in these meetings were the following: • Diagnosis of material aspects in the interaction between salmon farming and society • Development of the sustainability and corporate reputation strategy • Management of and relations with the community • Corporate communications plan • Cultural transformation project • Social contingency and foundations for a new agenda with stakeholders
• The Sustainability Committee met 5 times during the year, with an average attendance of 100% of the members.
Multiexport Foods Sustainability Committee
CHAIRWOMAN OF THE COMMITTEE
Elke Renate Schwarz Kusch 8,858,781-2 Permanent member DIRECTOR
DIRECTOR
Rodrigo Pérez Mackenna 6,525,287-2 Permanent member
José Ramón Gutierrez Arrivillaga 7,017,364-6 Permanent member
C O RCPOORRPAO TR E AGT O E VGE O R VNEARNNCAEN C E
28
I N 2 0 1 9 , T H E S U S TA I N A B I L I T Y A N D CO R P O R AT E R E P U TAT I O N B OA R D CO M M I T T E E WA S C R E AT E D TO P R OV I D E G U I DA N C E A N D A DV I C E TO G E N E R A L M A N AG E M E N T A N D S U S TA I N A B I L I T Y A N D C O R P O R AT E A F FA I R S M A N AG E M E N T O N S U C H M AT T E R S .
A N D R É S LY O N
FRANCISCO LOBOS
R I C A R D O G R Ü NWA LD
GINO MANRÍQUEZ
YO I C H I R O YAG I H A S H I
MARTÍN HEPP
Corporate General Manager Civil Industrial Engineer, Pontificia Universidad Católica de Chile ID No.: 10,019,058-3
Sustainability and Corporate Affairs Manager Marine Biologist, Universidad de Concepción, Civil Industrial Engineer, Universidad San Sebastián MBA, Universidad Mayor ID No.: 13,623,808-6
Commercial Manager Civil Industrial Engineer, Pontificia Universidad Católica de Chile ID No.: 7,080,918-4
Administration and Corporate Finance Manager. Business Administrator, Pontificia Universidad Católica de Chile. MBA, Pontificia Universidad Católica de Chile ID No.: 10,626,204-7
New Business Development Asian Markets Business Administrator, Keio University, Japan ID No.: 26,842,838-0
Farming Manager Civil Industrial Engineer, Pontificia Universidad Católica de Chile ID No.: 15,782,459-7
J O H N M AT E O
MARCELO CISTERNAS
RUBÉN BASCUÑAN
RODRIGO RODRÍGUEZ
JASON PAIN E
SEBASTIÁN ORTEGA
Processing Division Manager Chemical Civil Engineer and Master’s degree in Engineering Sciences, Universidad de Santiago de Chile ID No.: 11,863,124-2
Human Resources Manager Business Administrator, Pontificia Universidad Católica de Chile ID No.: 9,832,861-0
In House Lawyer Lawyer, Pontificia Universidad Católica de Chile ID No.: 8,108,412-2
Information Technology (IT) Manager Computer Science Engineer, Pontificia Universidad Católica del Maule. Master’s degree in Computing Management, IDE Spain ID No.: 10,021,849-6
Manager of Multiexport Foods Inc. USA Aquaculture Technology
Auditor Civil Industrial Engineer, Pontificia Universidad Católica de Chile ID No.: 13,551,832-8
Graduate from the Florida Institute of Technology. MBA, University of Miami, United States.
C O R P O R AT E G O V E R N A N C E
MAIN EXECUTIVES
29
C O R P O R AT E G O V E R N A N C E
30
BOARD
O R G A N I Z AT I O N A L STRUCTURE
CEO G eneral M anagement
Auditor Marketing Management
Sustainabilit y and Corporate
Environment
Af fairs M anagement
and Concessions
Legal Counsel
Management Communit y Relations
Farming
Process
Commercial
H uman
Administration
IT
M anagement
M anagement
M anagement
Resources
and Finance
M anagement
M anagement
M anagement
Fresh Water
O perations
G eneral
H uman
Accounting
Produc tion
and Plants
Projec ts
Management
Resources
and Finance
Management
Management
Management
M ultiexpor t
Management
Management
Produc tion
Q ualit y
Foods Inc . USA
O perations
Administration
Management
A ssurance
Management
Value Added
ChiloĂŠ -
Management
Produc ts
Puyuhuapi Area
Engineering
Produc tion
Management
A sia Market
and Financial
Management
Logistic s
Management
Liabilit y
Cordillera Area
Management
L atam Market
Management
Management
Supply
Russian Market
Management
and others
Control
Management
Management
Produc tion Management M elinka Area Produc tion Management AysĂŠn Area
Management
Management
Management Per formance, Development
Logistic s Management
Produc tion Management Magallanes Area O perations and Logistic s Management H ealth Management Food and N utrition
Responsibility at the executive level for economic issues falls on the Administration and Finance Manager.
Management Per formance and Planning Management
Responsibility at the executive level for environmental and social issues falls on the Sustainability and Corporate Affairs Manager as well as the review and approval of this report.
C O R P O R AT E G O V E R N A N C E
31
R E M U N E R AT I O N BOARD The remuneration for the Board of Directors is set at each Ordinary Shareholders’ Meeting. Directors are paid for each time they attend, and there is a difference in pay for the Chairman of the Board and the Committee of Directors. At the Ordinary Shareholders’ Meeting held on April 24th, 2019, it was agreed that the position of Director would be paid an amount of $1,750,000 for attendance at each meeting, and the Chairman of the Board $3,000,000. For the Board Committee, the remuneration was set at $750,000 for attendance at each meeting, with the Chairman of the Board Committee receiving $1,750,000 for each meeting. Finally, a budget for operating expenses for the Committee and its eventual advisors was set as a maximum of $50,000,000. Directors José Ramón Gutiérrez and Carlos Pucci have voluntarily waived 100% of their remuneration for being part of Multiexport ordinaries board meetings.
EXECUTIVES The total amount of remuneration received by the company’s senior managers and executives during the year amounted to US$ 8.126M. Multiexport Foods has an incentive system consisting of an annual bonus, applicable to the main executives and other positions considered eligible at the company’s discretion. This compensation system seeks to motivate the respective executive through a formal scheme that rewards both individual performance and the creation of economic value.
C O R P O R AT E G O V E R N A N C E
32
S TA N D A R D S A N D T R A N S PA R E N C Y
I D E N T I F I C AT I O N A N D M A N AG E M E N T O F R I S KS
For Multiexport, ethical conduct is an integral part of our company values. This is why we have an Ethics Committee which is in charge of resolving any ethics issues that are identified. In addition, there is a whistle-blower system (email, traditional mail, and telephone) designed for receiving information related to ethical breaches.
In order to strengthen Multiexportâ&#x20AC;&#x2122;s Corporate Governance, at the beginning of 2019 we created the Comptrollerâ&#x20AC;&#x2122;s Office, which is responsible for Risk Management and Internal Audits. In 2019, the Comptrollerâ&#x20AC;&#x2122;s Office worked on defining its functions and organization, with the objective of separating the Risk Management and Internal Audit units, but keeping them under the same base methodology. For this purpose, a comprehensive risk management project began in the fourth quarter, with the aim of updating the process map, determining risk appetite and risk tolerance, and surveying strategic risks, emerging risks and operational risks, in order to obtain a risk map based on which both the Risk Management and Internal Audit units will carry out the activities of each function.
The mission, vision, and values of the company, as well as the Code of Ethics, were prepared in the context of the implementation of the Crime Prevention Model. These documents were carried out with the advice of external consultants and were subsequently approved by the Board. The Code of Ethics is the responsibility of the Ethics Committee, which is made up of directors and the General Manager. Annually, the Ethics Committee reviews and updates the Code of Ethics, which is delivered to all new workers in the company. In 2019, Multiexport Foods did not report any cases in which the Code of Conduct was violated or that led to fines by regulatory bodies.
POLITICAL INFLUENCE In line with its internal rules and regulations, Multiexport did not provide contributions to any political campaigns, political organizations, lobby organizations, lobbyists and/or other tax-exempt groups with political influence in 2019.
C O R P O R AT E G O V E R N A N C E
33
S T A K E H O L D E R S E N G A G E M E N T , M A T E R I A L I T Y A N D
C O N T A C T
CHAPTER 03
S TA K E H O L D E R S E N G A G E M E N T, M AT E R I A L I T Y A N D C O N TA C T
34
S U S TA I N A B L E D E V E L O P M E N T G OA L S U N I T E D N AT I O N S O R G A N I TAT I O N We assume the responsibility of achieving the Sustainability Goals of the United Nations. The operations of Multiexport Foods are in line with several of the 17 goals, but for the purpose of this report we will focus on those with the greatest impact.
S TA K E H O L D E R S E N G A G E M E N T, M AT E R I A L I T Y A N D C O N TA C T
35
M A T E R I A L I T Y A N A LY S I S In 2019, we focused on the topics that have the greatest impact on our management, in environmental, social, and economic terms. The above was based on a materiality analysis carried out in 2018, which conducted surveys of different interest groups, following the guidelines delivered by the Global Reporting Initiative (GRI). This was also supplemented by a study carried out in 2019 that aimed to define the guidelines of our Sustainability and Corporate Reputation Strategy. Based on the above, we have developed a robust sustainability strategy focused on the issues that concern our stakeholders, with particular focus on our corporate governance, business, products, customers, the environment, our staff, and our neighboring communities.
L A B O R P R AC T I C E S
M AT E R I A L I T Y M AT R I X
S TA K E H O L D E R S E N G A G E M E N T, M AT E R I A L I T Y A N D C O N TA C T
36
FISH ESCAPES L O C A L E C O N O M I C I M PAC T
CO M M U N IT Y M A N AG E M E NT
A N I M A L W E L FA R E
C O M M U N I C AT I O N C H A N N E L S
7,0
ENERGY EFFICIENCY
PROFESSIONAL DE VELOPM ENT
BUSINESS ETHICS FOOD
FOOD SAFET Y
S U S TA I N A B I L I T Y
U S E O F M E D I C AT I O N
T R A N S PA R E N C Y
6,5 PRODUCTIVE PERFORMANCE BIODIVERSITY
S T R AT E G Y EMISSIONS I M PAC T O N L A N D S C A P E S
6,0 I M P O R TA N T F O R I N T E R E S T G R O U P S
T R AC E A B I L I T Y C E R T I F I C AT I O N S
N AT U R A L
LOCAL
RISKS
DE VELOPM ENT
R E L AT I O N S H I P W I T H
FINANCIAL I N D I C AT O R S
SUPPLIERS N AT I V E P E O P L E
QUALITY OF PROCESSES
5,5
AND PRODUCTS
D O N AT I O N S AND
A N A LY S I S
DE VELOPM ENT
OF THE
OF LOCAL
CONTEXT
SUPPLIERS
COMMERCIAL MANAGEMENT
F R E E A S S O C I AT I O N
SOCIAL
CONTRIBUTIONS
E N V I R O N M E N TA L ECONOMIC
5,O 5,O
5,5
6,0
6,5
7,0
CROSSOVER ISSUE
I M P O R TA N T F O R M U LT I E X P O R T F O O D S Note: Scale from 1,0 to 7,0 for both axis.
S TA K E H O L D E R S E N G A G E M E N T, M AT E R I A L I T Y A N D C O N TA C T
37
S TA K E H O L D E R S In order to align our management with the requirements of our environment, we systematize our interactions with stakeholders; by generating dynamic, continuous dialogues with them it allows us to continue strengthening our relationship in the long term.
SHAREHOLDERS
CUSTOMERS
INVESTORS
AUTHORITIES
A P P R OAC H TOWA R DS TH E
A P P R OAC H TOWA R DS TH E
A P P R OAC H TOWA R DS TH E
A P P R OAC H TOWA R DS TH E
COM PANY
COM PANY
COM PANY
COM PANY
They are interested in production results and long-term performance, focusing on strategy, business image, and risk management.
Their main focus is on the quality, safety and sustainability of the food.
They are interested in investment returns.
Their main concerns are the stability of the sector in the long term and the social environment.
I N I T I AT I V E S F R O M T H E C O M PA N Y I N I T I AT I V E S F R O M T H E C O M PA N Y
I N I T I AT I V E S F R O M T H E C O M PA N Y
We maintain fluid relations with controlling shareholders through meetings and periodic reports. C O M M U N I C AT I O N C H A N N E L S
· Board Meetings · Annual Report and Financial Statements · Sustainability Report · Shareholders’ Meeting · Press Events
We strive to exceed customer expectations, and evaluate their satisfaction using various tools. C O M M U N I C AT I O N C H A N N E L S
· Attention from Commercial Executives · Marketing Campaigns · Certifications · Customer satisfaction surveys · Participation in Seafood Fairs · Sustainability Report
We strive to maintain a continuous and open dialogue with investors and fund administrators, through the annual report, quarterly reports, essential communications, and the direct investor service channel.
I N I T I AT I V E S F R O M T H E C O M PA N Y
We promote open and transparent dialogue with the authorities. We participate in specific sector discussions. C O M M U N I C AT I O N C H A N N E L S
C O M M U N I C AT I O N C H A N N E L S
· Quarterly Financial Reports · Direct Channel for providing Assistance to Investors · Annual Report and Financial Statements · Multiexport Foods Annual Conference · Sustainability Report · Press releases
· Meetings with Public Agencies · Public-Private Worktables · Inspections and Visits · Sustainability Report
S TA K E H O L D E R S E N G A G E M E N T, M AT E R I A L I T Y A N D C O N TA C T
38
SUPPLIERS
NGO'S, LOCAL
E M P LOY E E S
A P P R OAC H TOWA R DS TH E
COMMUNITIES, UNIONS
A P P R OAC H TOWA R DS TH E
COM PANY
AND ACADEMIA
COM PANY
They take care to meet the expectations of the company at all stages, meet objectives and achieve long-term relationships. I N I T I AT I V E S F R O M T H E C O M PA N Y
We seek to encourage total commitment from our suppliers, and we support them so that they can achieve the highest operational standards. We promote prompt payment for services and supplies, to facilitate a fair and healthy relationship. C O M M U N I C AT I O N C H A N N E L S
· Tenders · Regular Meetings · Training · Audits · Sustainability Report
A P P R OAC H TOWA R DS TH E COM PANY
These are groups focused on promoting care for ecosystems and quality of life involved in our operations, ranging from sustainable fish production to animal welfare, public health and food safety. I N I T I AT I V E S F R O M T H E C O M PA N Y
We focus our work on building relationships of trust with organizations that seek to improve and contribute to the development of the industry, by participating in dialogues around territorial planning in different sectors of local development projects. C O M M U N I C AT I O N C H A N N E L S
· Meetings and Visits · Professionals dedicated to Relations with these groups · Dialogues around Territorial Planning · Local Development Projects · Extension and Assistance Programs · Agreements with Educational Institutions · Salmon Social Initiative · Sustainability Report
Their main concerns are understanding their objectives, succeeding in productive challenges and creating a great work environment. I N I T I AT I V E S F R O M T H E C O M PA N Y
The company seeks to understand the expectations of workers and support them in their personal and professional development. There are several initiatives related to training and improvement of skills and abilities. On a regular basis, the Board analyzes the organizational culture and proposes actions to promote it. C O M M U N I C AT I O N C H A N N E L S
· Emails · Strategic Alignment · Collective Negotiation · Corporate Magazine · Open System for Suggestions and Complaints. · Internal and External Social Networks · Sustainability Report
S TA K E H O L D E R S E N G A G E M E N T, M AT E R I A L I T Y A N D C O N TA C T
39
M A T E R I A L I S S U E S A N D S T R AT E G Y
C O M M U N I C AT I O N
TR A N S PA R E N C Y
C E R T I F I C AT I O N S
CHANNELS C O R P O R AT E
R E P O R TA B I L I T Y
SURVEILLANCE
C O M M U N I C AT I O N
AND
AND
T R A N S PA R E N C Y
C E R T I F I C AT I O N
QUALIT Y OF PROCESSES AND PRODUCTS FOOD SAFETY
EMISSIONS HIGH
TR ACEABILIT Y
BUSINESS M U LT I E X P O R T SOCIETY AND
PERFORMANCE C O R P O R AT E
FOOD
S TA N D A R D S
S U S TA I N A B I L I T Y
S T R AT E G Y
C U LT U R E M O D E L
WORK PR ACTICES
ETHICS COMMERCIAL
PROFESSIONAL
MANAGEMENT
DEVELOPMENT FREE
ENERGY
A S S O C I AT I O N
EFFICIENCY
FOCUS ON S U S TA I N A B L E O P E R AT I O N S
LOCAL
PRODUCTIVE
ECONOMIC
PERFORMANCE
FISH ESCAPES
COMMUNITY MANAGEMENT
I M PAC T A N A LY S I S
USE OF
LOCAL
OF THE
M E D I C AT I O N
DEVELOPMENT
SUPPLIERS
BIODIVERSITY
SUPPLIERS
FINANCIAL
ANIMAL
N AT I V E
I N D I C AT O R S
W E LLFA R E
PEOPLE
N AT U R A L
D O N AT I O N S A N D
RISKS
CONTRIBUTIONS
ENVIRONMENT
SOCIAL E N V I R O N M E N TA L ECONOMIC C O R P O R AT E
I M PAC T O N LANDSCAPES
C O R P O R AT E G O V E R N A N C E
40
P R O D U C T I V E P E R F O R M A N C E
CHAPTER 04
2017
Wild and farmed salmon production. (Thsd TON WFE)
4,500
2018
INDUSTRY
2019 MEF
2017
2018
COHO SALMON
2 .06%
10.80%
5.50%
9.70%
6.29%
M O R TA L I T Y
8.30%
4 . 47
In 2019, the worldwide production of farmed salmon increased by 7.6% and the production of wild salmon decreased by 5.6%. The increased of the total salmon offer worldwide is consequence of better farming conditions.
4.69
Multiexport vs Chilean Industry (kg WFE/smolt)
4.59
A sustainable approach to feeding the worldâ&#x20AC;&#x2122;s growing population is more necessary than ever. As wild fishing has reached its maximum capacity, aquaculture is necessary so future generations can continue to enjoy salmon as we do today.
4.40
AT L A N T I C S A L M O N PERFORMANCE
4.54
GLOBAL PRODUCTION
4.26
PRODUCTIVE PERFORMANCE
41
2019 AT L A N T I C S A L M O N
S M O LT S S T O C K I N G
4,000
(thousands of units)
2019: 20,928
X R E G I O N : 7, 7 6 7 XI REGION : 11,361
3,500
XII REGION : 1,800 3,000
STOCKING
2,500
2018: 22 , 320
X REGION : 5,655 XI REGION : 14,865 XII REGION :
2,000 1,500
2017: 20,110
1,800
X REGION : 5,458 XI REGION : 14,652
1,000
HARVESTS
500
2019
XII REGION : 0
52 ,167
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 0 07 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
0
95 , 475
2018 WILD SALMON
FA R M E D S A L M O N
4 8 , 470 81,839
2017
BIOMASS EXISTENCE IN FA R M I N G AT T H E E N D O F T H E P E R I O D ( TO N W F E )
38,771 75,657
H A RV E S T ( TO N W F E )
S A N I TA R Y S T R AT E G Y
FCRb
(KG OF FEED REQUIRED TO GROW 1 KG OF WEIGHT IN SALMON LWE)
FUNCTIONAL DIETS
HIGH ENERGY DIETS
PHOTOPERIOD
VACCINES (SMOLT)
SANITARY MANAGEMENT
Pentavalent Vaccine + Live Vaccine BKD Vaccine for Fish in the Magallanes Region
Continuous health monitoring with weekly vet visits
ATLANTIC SALMON
COHO SALMON
2017
1.23
1.08
2018
1.25
1.11
2019
1.2
1.03
VA C C I N E S A N D A N T I B I O T I C S As part of the health strategy defined in 2016, we seek to continuously and sustainably reduce the use of antibiotics. In 2019, this effort was reflected in a drop of 12.9% in their use compared to 2017, a figure that maintains the trajectory we projected when the strategy was implemented.
Evolution of Antibiotic Use g AB/TON Produced (LWE)
Smolts Vaccinated with a Pentavalent Dose
900
Use of Antibiotics (g / TON Produced (LWE))
800
2017
2018
2019
100%
100%
100%
458
306
399
700 600 500 400 300
2018
2017
2016
2015
2014
399
0
2019
306
458
454
512
100
616
200
800
Our strategy is based on constant supervision by veterinarians over the state of health of our fish, allowing early clinical diagnosis. Therefore, the use of antibiotics is restricted solely and exclusively to situations where diseases occur, and always under the care of specialized professionals. To ensure the safety of the final product, we rely on a robust system of traceability and control of pharmacological residues, which allows us to ensure the quality and safety of our product.
2013
PRODUCTIVE PERFORMANCE
42
Note: This year the indicator of antibiotic use is presented considering tons equivalent to live weight, LWE.
PRODUCTIVE PERFORMANCE
43
W E H AV E R E D U C E D T H E U S E O F A N T I B I OT I C S BY A L M O S T 5 0 % CO M PA R E D TO 2 0 1 3 . T H I S I S I N L I N E WITH SALMON CHILEâ&#x20AC;&#x2122;S COMMITMENT W I T H M O N T E R E Y B AY AQ UA R I U M TO R E D U C E T H E U S E O F A N T I B I OT I C S BY 5 0 % BY 2 0 2 5 .
F O U R T H CO N S E C U T I V E Y E A R O F CO H O S A L M O N A N D M AG A L L A N E S R E G I O N P R O D U C T I O N A N T I B I OT I C S A N D A N T I PA R A S I T I C F R E E .
CALIGUS Graph of Total Adults (Mobile and Ovigerous Females) Atlantic Salmon
Antiparasitics in Baths g AB / TON
15
SPECIES
Atlantic Salmon Coho Salmon
2017
2018
2019
10.7
12.15
11.75
0
0
0
2017
2018
2019
0.06
0.05
0
0
0
0
10
Antiparasitics in Feed g AB / TON 5
SPECIES
Atlantic Salmon Coho Salmon SEP
OCT
N OV
DEC
SEP
OCT
N OV
DEC
2018
AU G
2017
AU G
2016
JUL
2015
JUN
MAR
2014
M AY
FEB
2013
APR
JAN
0
2019
Graph of Total Adults (Mobile and Ovigerous Females) Coho salmon 0.07 0.06 0.05 0.04 0.03 0.02 0.01
2016
2017
2018
JUL
2015
JUN
APR
2014
M AY
MAR
2013
FEB
0.00
JAN
PRODUCTIVE PERFORMANCE
44
2019
PRODUCTIVE PERFORMANCE
45
CERTIFIED PRODUCTION VO LU M E
FOOD SAFETY
We have policies and procedures to ensure the legality, quality, and safety of our products. Within this framework, the following methods are used: A Management System that is periodically submitted for certification audits under international standards such as ISO 9001, ISO 14001, ISO 45001, ASC, MSC, BRC, IFS, BAP and GLOBAL G.A.P., in addition to a product traceability system and a strong Food Defense system, as required by the most demanding markets in the world - The United States, the European Union, Brazil, Russia, Japan and China, among others.
The fish produced by Multiexport Foods, in all stages of their life cycle, are bred using traditional production methods. No genetic modification techniques are used, in accordance with the provisions of Directive 2001/18/EC, a document on the intentional release of genetically modified organisms (GMO). Similarly, we do not use hormones in any the stages of the life cycle of our fish. Multiexport Foods only uses approved substances for aquaculture fish. The companyâ&#x20AC;&#x2122;s Health Management guarantees compliance with these provisions, supported by certifications: ISO 9001, ISO 14,001, and OHSAS 18001 and BAP, BRC, IFS and Global Gap Systems for processing plants.
HARVESTED BIOMASS (TON WFE)
2017
2018
2019
75,657
81,839
95,475
6,170
0
7,038
75,657
81,939
95,475
2017
2018
2019
ISO 9001, ISO14001, ISO 45001
66,418
71,360
77,273
GLOBAL GAP
66,418
71,360
77,273
BRC and IFS
66,418
71,360
77,273
ISO 9001, ISO14001, ISO 45001 ASC BAP
PROCESSED BIOMASS IN OUR PLANTS (TON WFE)
PRODUCTIVE PERFORMANCE
46
A N I M A L W E L FA R E MODEL
FREDOM FROM HUNGER
We provide adequate nutrition at each development stage and constant fish activity monitoring.
FREEDOM TO EXPRESS
FREEDOM FROM DISEASE AND PAIN
Our experienced team of veterinarians is constantly monitoring the health of our fish to react timely in the presence , of any pathology.
04
VISITS FROM VETS PER FA R M P E R M O N T H
15
VETS
NORMAL BEHAVIOR
We provide adequate cultivation densities, using only 1.6% of the volume of each fish cage during the harvest period.
MAKE UP THE B I O S E C U R I T Y S TA F F A T M U LT I E X P O R T FOODS
FREEDOM FROM
FREEDOM FROM THREATS
DISCOMFORT
We are continuously improving protection against predators such as birds and sealions without taking harmful actions against them.
We minimize the stress of our fish by reducing the number of managements. We are also concerned with keeping optimal physical-chemical parameters in our farms even in the face of natural irregularities., despite natural losses.
We understand the importance of good animal welfare practices, and the link between the health of our fish, their wellbeing and the quality and safety of the food we produce. For this reason, we have based our Animal Wellbeing or Welfare standards on the 5 freedoms concept, which has been adapted from the Worldwide Agriculture Welfare Council.
We have also established the following instructions for veterinary treatments to fulfill our goal of improving animal welfare: • All vaccines and injections are given with previous anesthesia prescribed by veterinarians and under their supervision. • In the event of discarding fish, they are sedated prior to any managements. • All our fish are harvested using humanitarian methods.
C A G E V O L U M E U S E AT M A X I M U M D E N S I T Y
9 8 .4 %
1.6%
WATER
FISH
PRODUCTIVE PERFORMANCE
47
FISH ESCAPES
N° Fish Escapes
2016
2017
2018
2019
0
0
0
0
Note: The number of fish escapes is shown as a net number after recapture, from January to December.
I N 2 0 1 9 W E D I D N OT H AV E I N C I D E N T S R E L AT E D TO F I S H ESCAPES.
PERFORMANCE FINANCIERO
48
F I N A N C I A L P E R F O R M A N C E
CHAPTER
05
FINANCIAL PERFORMANCE
49
I N S E P T E M B E R 2 0 1 9 , O U R C O M PA N Y B E C A M E T H E F I R S T S A L M O N C O M PA N Y I N T H E WO R L D TO B E PA R T O F T H E D OW J O N E S S U S TA I N A B I L I T Y INDEX. T H I S I N D E X I S C O M P O S E D O N LY FO R CO M PA N I E S W I T H T H E H I G H E S T S U S TA I N A B I L I T Y P E R FO R M A N C E , C O N S I D E R I N G T H E FO L LOW I N G A S P E C T S : E N V I R O N M E N TA L , S O C I A L & G OV E R N A N C E ( E S G ) . ACCO R D I N G TO I N D E P E N D E N T AU D I T S C A R R I E D O U T I N T H E F I R S T H A L F O F 2 0 1 9 , A N D V E R I F I E D BY R O B E CO S A M I N SW I T Z E R L A N D, M U LT I E X P O R T F O O D S WA S A M O N G T H E TO P 2 5 % O F CO M PA N I E S W I T H T H E B E S T S U S TA I N A B I L I T Y M A N AG E M E N T I N T H E “ F O O D P R O D U C T S ” S E C TO R WO R L DW I D E .
In 2019, the company saw a revenue from operations of USD 568.4 million, 5.8% more than 2018. This increase is explained by a higher volume sold (8.8%), partially offset by lower sales prices. Furthermore, the harvested volume in 2019 was 95,476 TON WFE, 16.7% higher than the 81,839 TON WFE harvested in 2018. The Operational EBITDA reached USD 83.6 million, while the Operational EBIT reached USD 63.8 million. These figures show a decrease compared to the 2018 financial year of 28.3% and 34.8%, respectively. The drop in the EBIT is mainly due to the lower sales prices in 2019 than in 2018, and to a slight increase in ex farm costs. Finally, the consolidated profit for the year was USD 43.4 million, decreasing by 46.6% (USD 38.0 million) compared to what was reported the previous year. This drop is explained by the factors previously indicated.
INDICATOR
MILLION USD
Revenue
568.4
EBITDA
83.6
EBIT
63.8
EBIT/kg Atlantic WFE
0.73
Profit
43.4
Net Leverage
<0.9
Liquidity
>2
E N V I R O N M E N TA L P E R F O R M A N C E
50
E N V I R O N M E N T A L P E R F O R M A N C E
CHAPTER
06
E N V I R O N M E N TA L P E R F O R M A N C E
51
E N V I R O N M E N TA L MONITORING A Q U A C U LT U R E E N V I R O N M E N T A L R E P O R T S ( I N FA S ) These are the environmental monitoring received during the period, as required by national aquaculture regulations, executed under the supervision of Sernapesca. AEROBIC FARMS
ANAEROBIC FARMS
2017
40
6
2018
31
6
2019
40
6
PHYTOPLANKTON The information from these analyses has been delivered to SalmonChile in order to share it with the community. N° PHYTOPLANKTON MONITORING
2017
3,500
2018
4,949
2019
7,357
MONITORING OF E N V I R O N M E N TA L VA R I A B L E S
100%
O F M U LT I E X P O R T ’ S FA R M S POSSESS REAL TIME TECHNOLOGY FOR THE MEASUREMENT OF
O C E A N O G R A P H I C PA R A M E T E R S
E N V I R O N M E N TA L P E R F O R M A N C E
52
FEED CONSUMED
130,805,631 kg
AV E R A G E % O F FISH MEAL IN FEED
FEED CONSUMED 2019
9.5%
9.2%
7. 1 %
0.51 kg of wild fish are needed to produce 1 kg salmon
Multiexport has determined the maximum benthic deposit in its
FM LEVEL + FO LEVEL FIFO= X FCR FM PERFORMANCE + FO PERFORMANCE
different sea water farms which range from 27 gC /m2/year, up to 5,800 gC/m2/year. Various studies indicate that in the area of influence under the cages, hypoxic or anoxic conditions
AV E R A G E % O F
and structure variation of benthic communities are produced. In farms considered as sedimentary, this involves
2019
6.6%
5 .4 %
5.5%
1.42 kg of wild fish are needed to produce 1 kg of salmon
0.60
2018
2019
2017
0.64
et.al, 2013) in farms considered as dispersive.
2018
IN FEED
6,000 gC/m2/year (Keeley et.al., 2012) or 10,000 gC/m2/year (Cromey et.al., 2002), with up to 15,000 gC/m2/year (Keeley
Goal <0.7
FISH OIL
0.60
ON SEABED
2018
The term Fish in Fish Out (FIFO) is used to describe the ratio of how much wild fish it takes to produce one ton of aquaculture fish. Controlling this indicator is important in order to continue our development regardless of the supply and production of ingredients that come from fishing. This allows us to allocate a greater proportion of these resources to direct human consumption, and reduce fishing for aquaculture production.
2017
E S T I M AT E D D E P O S I T
2017
FIFO
FM: Fishmeal FO: Fish Oil
E N V I R O N M E N TA L P E R F O R M A N C E
53
W AT E R FOOTPRINT To contribute to the better use and management of natural resources, in this report we present the first measurement of the water footprint for Hatcheries, Farming, Plant and Office processes for 2019. Note: The methodology applied in the analysis corresponds to the analysis of
WAT E R U S E We use surface water and groundwater for all our farming and processing processes. This resource is used in accordance with the water use rights granted by the General Water Directorate (DGA), in which coordinates, extraction points and discharge are indicated.
the processes detailed by the Water Footprint Network, according to Arjen
All emissions are monitored and comply with regulation, according to the Monitoring Resolution issued by the Superintendence of Health Services (SISS) based on the tables indicated by Supreme Decrees 90/2000 (Hatcheries) and 609/1998 (Processing Plants).
Hoekstra’s guidelines.
Along with this, the Molco, Chaparro and Puerto Fonck hatcheries have environmental monitoring programs, which were established in theirs Environmental Qualification Resolutions. It should be noted that the areas where our hatcheries and plants are located do not suffer water stress. Note: The water consumption data shows 100% of the company’s water use.
Water Footprint (WF) Components
WAT E R F O O T P R I N T O F A P R O D U C E R OR CONSUMER
INDIRECT USE
O F WAT E R
O F WAT E R
GREEN WAT E R FOOTPRINT
B L U E WAT E R FOOTPRINT
B L U E WAT E R FOOTPRINT
NONCONSUMPTIVE
O U R TOTA L WAT E R
WAT E R
GREEN WAT E R FOOTPRINT
CONSUMPTION
WAT E R W I T H D R AWA L
DIRECT USE
CO N S U M P T I O N I N 2 0 1 9 WA S 48,828 THOUSAND M3, 10% LESS THAN THE PREVIOUS YEAR AND
WAT E R U S E
1 1 % LOW E R T H A N I N 2 0 1 7. T H I S
(return flow)
VA LU E I S I N L I N E W I T H O U R
WAT E R
G R AY W A T E R FOOTPRINT
POLLUTION
G R AY W A T E R FOOTPRINT
OBJETIVE OF REDUCING OUR Blue WF: Fresh water extracted. Gray WF: Fresh water to dilute contamination. Green WF: Rainwater.
WAT E R CO N S U M P T I O N BY AT L E A S T 5 % BY 2 0 2 0 ( B A S E 2 0 1 7 )
Water Use by Operation (Million m3)
Total Consumption per Year (Millions m3) Plant Water Consumption Ratio m3/ TON WFE Processed
15.4
2018
0.01 0.42
0 0.42
53.69
5.5
5.8
6.4
49
2019
2018
2017
2019
2018
2017
0.03 0.04 0.06
48,4
71%
BLUE WF
28%
GRAY WF
1%
R E S U LT S ( m 3 ) BLUE WF
GRAY WF
INDIRECT WF
TOTAL WF
Hatcheries
2,282,828
5,657,085
9,660
7,949,573
Processing Plants
0
279,557
4,996
19,674
Sea Water
0
0
77,294
77,294
2,282,828
5,900,348
91,950
8,275,126
AREA
2019
Water Extraction by Source (Millions m3) 2019
INDIRECT WF
H AT C H E R Y
PUERTO FONCK
PLANT
PROCESSING
0.4 0.4 0.4 2018
H AT C H E R Y
MOLINO DE ORO
M O LCO
H AT C H E R Y
H AT C H E R Y
RÍO NEGRO
H AT C H E R Y
C H A PA R A N O
2017
54
55
4.7
7. 6
9.8 10.9
11.8
15.1 14.7 14.8
19.2 1 7. 4
5% Reduction Goal (base 2017)
15.1
E N V I R O N M E N TA L P E R F O R M A N C E
54
Total
BASED ON THE MEASUREMENTS M A D E F O R E AC H O F T H E A R E A S
2017
0 0.42
T H I R D PA R T Y WAT E R G R O U N D WAT E R S U R FA C E WAT E R
54.37
A N D T H E I R D I F F E R E N T WAT E R F O OT P R I N T CO M P O N E N T S , T H E TOTA L R E S U LT F O R M U LT I E X P O R T F O O D S I N 2 0 1 9 WA S 8 , 2 75 ,1 2 6 m 3 .
E N V I R O N M E N TA L P E R F O R M A N C E
55
CARBON FOOTPRINT Reducing green house gases (GHG) emissions is strategically important for the future development of our operations and the country. Multiexport Foods therefore has the opportunity to contribute to the reduction of these emissions through analysis and management of its carbon footprint. In this report we present the third measurement carried out by the company in its fresh water, sea water, processing and office-based operations.
The GHGs identified in this inventory are the following: 路 Carbon dioxide 路 Methane 路 Nitrous oxide
R E S U LT S GHG Inventory by Scope
Note: This study is carried out in accordance with the Greenhouse Gas Protocol (GHG Protocol). This tool is widely used in the estimation of carbon footprint and is supported by the World Resources Institute (WRI) and the World
GHG EMISSIONS (tCO2e)
SCOPE
ACTIVITY
Scope 1
Fuel consumption and gas refrigerants
Scope 2
Use of electricity
Scope 3
Waste, corporate flights, and water
Business Council for Sustainable Development (WBCSD).
Emission sources included in this study:
CO2
CH4
N2O
SCOPE 3
SCOPE 2
74,944 0
Total
19,938 94,882
Network consumption amounted to 15,980,944 (16 GWh) in 2019. The emissions from this consumption are zero tCO2e, since we are the first Chilean salmon farming company with a certification of Renewable Energy consumption, provided by Enel Generaci贸n through IRECs.
S CO P E 2 R E F L E C T S GHG Inventory by Consumption Area (Thsd tCO2e)
EMISSIONS FROM THE
SCOPE 1
Scope 1 (mandatory) GHG emissions from sources that are owned or controlled by the company. Scope 2 (mandatory) Consumption of electricity and/or steam generated by third parties.
PROCESSING PLANT
46
E L E C T R I C I T Y, W H I C H I N
S E A WAT E R
25
FR E S H WATER OFFICE
CO N S U M P T I O N O F
22
2
2 0 1 9 WA S Z E R O, A S T H E E N E R GY U S E D I N O U R PROCESSING PLANTS IS 1 0 0 % R E N E WA B L E
Scope 3 (optional) GHG emissions that are not owned or controlled by the company.
E N V I R O N M E N TA L P E R F O R M A N C E
56
GHG Inventory by Contributing Source and Consumption Area
Annual Comparison of GHG Emissions by Scope (tCO2e)
48%
R -2 2 / R - 4 4
O I L S E A WAT E R PLANT OFFICES
D R I N K I N G WAT E R SYSTEM H AT C H E R I E S LIQUID GAS SEA WAT E R H AT C H E R I E S OT H E R
776
25%
3% 1%
816 0
981 5 ,70 6
4,845
59,697
6 7, 0 6 2
18%
2% 0.4%
2017
1% 0.4% 0.01%
74 , 9 4 4 2018
SCOPE 1
2019
SCOPE 2
SCOPE 3
Carbon footprint of the product N AT I O N A L , I N T E R N AT I O N A L CHARTER FLIGHTS
1% 75,760 tCO2e
tCO2e = 1 .1 7
95,475 TWFE * 68% F R E S H WAT E R
S E A WAT E R
OFFICES
tEdibleMeat
PROCESSING PLANT
C O M PA R I S O N W I T H P R E V I O U S Y E A R S Unlike the measurements from previous years, in 2019 the range of emission classifications in Scope 3 was expanded by adding the consumption items associated with Water and Corporate Flights, whose contribution amounts to 19,122 tCO2e.
Intensity (tCO2e / tEdibleMeat)
67,062
74,944
Scope 2
5,706
4,845
0
Scope 3
981
776
816
Total
66,384
72,683
75,760
Production (TON wfe)
75,255
82,850
95,475
1.30
1.29
1.17
Intensity (tCO2e / t Edible Salmon)
REDUCTION IS IN LINE WITH 1 .17
59,697
2019
Scope 1
CO M PA R E D TO 2 0 1 7. T H I S
1.29
2019
2018
2018
C A R B O N F O OT P R I N T BY 1 0 %
1.30
2017
W E H AV E R E D U C E D O U R
2017
For the purposes of comparison with previous years, the 2019 emissions results are divided into all consumption items, and the quantification of emissions without the contribution of corporate flights and water consumption.
O U R G OA L TO D E C R E A S E O U R C A R B O N F O OT P R I N T BY 2 0 % BY 2 0 2 0.
E N V I R O N M E N TA L P E R F O R M A N C E
57
WA S T E M A N A G E M E N T Note: The waste generation data refers to 100% of the company.
FA R M I N G ( T O N ) LANDFILL
PROCESSING (TON) R E C YC L I N G
REUSE
LANDFILL R E C YC L I N G
2019
2,954 3,525 8,315
2018
2 , 8 74 2,460
2019
COMPOSTING R ECOV ERY (EN ERGY )
517 1, 287 14,206
55 2018
4,357
718 1,459
12,100
45 NON-HAZARDOUS 2019
HAZARDOUS
2017
1,198 318
117
NON-HAZARDOUS 2018
109
HAZARDOUS
8,581 2019 2018 2017
12,424
14,677
14 8 9
16,051 14,314 13,931
E N V I R O N M E N TA L P E R F O R M A N C E
58
“ Z E R O WA S T E ” P R O C E S S I N G P R O J E C T Processing Division Waste by Type (Thsd TON) For the last 4 years, Multiexport Foods has been developing a sustainability initiative called Zero Waste to Landfill in the Puerto Montt processing plants, with a focus on expanding this project to farms in its second stage.
O R G A N I C WA S T E F R O M T H E PROCESS SLU DG E
The project aims to reduce, recycle, and reuse waste, changing the paradigm of waste production, use and disposal, in line with the Responsible Consumption required by the Sustainable Development Goals established by the UN for 2030.
MISCELL ANEOUS INDUSTRIAL WA S T E PA P E R A N D C A R D B O A R D
The plan is to send zero waste to landfill from the processing plants by the end of 2020. MISCELL ANEOUS PL ASTIC S DISCARDED SUPPLIES
Evolution of Waste Sent to Landfill from Processing (TON)
SCRAP 3,048
SHARP MEDICAL INSTRUM E N T S , C H E M I C A L C O N TA I N E R S A N D OT H E R S USED OILS 1,409
0
2
4
6
8
10
12
14
1,198 718 517
2015
2016
2017
2018
R E C YC L I N G , R E U S E O R R E C O V E R Y
LANDFILL
2019
“Zero Waste” Processing Project Progress
97%
3%
3Rs
LANDFILL
W E A R E F U L LY CO M M I T T E D TO
C I R C U L A R E CO N O M Y I N O U R PROCESS.
E N V I R O N M E N TA L P E R F O R M A N C E
59
M AT E R I A L S U S E D I N P R O C E S S I N G Of the total materials used in our production process at the plant, 38% is renewable, consisting of cardboard. In the other hand, 22.7% of those materials are made with recycled components.
Materials Used in the Production Process (Thsd kg) C A R D B OA R D
1,667 1 ,412
P O LY S T Y R E N E S A LT
604
P O LY E T H Y L E N E
314
SMOKED
138
P R O D U C T T R AY S FILM
85
VA C U U M PA C K S
64
SUGAR
59
A N TI OXI DA N TS
17
PA C K A G I N G
10
SEALS DRESSING
1
D I S I N F E C TA N T S
1
ADDITIONAL
0.02
PA C K A G I N G
F R O M N O N - R E N E WA B L E S O U R C E S
F R O M R E N E WA B L E S O U R C E S
77,28% N O T R E C YC L E D
22,72% M A D E W I T H R E C YC L E D M AT E R I A L S
E N V I R O N M E N TA L P E R F O R M A N C E
60
BIODIVERSITY In accordance with the Environmental Impact Statements and the Environmental Qualification Resolutions of our facilities, no significant impacts are produced on the biodiversity surrounding our operations. We have carried out biodiversity characterization studies in some of our farms, and we have identified the species included in the national and international conservation lists that interact daily with our workers and contractors in the 3 regions where our operation is concentrated. This is all accompanied by a rigorous training program on the companyâ&#x20AC;&#x2122;s conservation plan. Protecting the ecosystems where we operate is an integral part of our business management; we are committed to reducing negative interactions with wildlife through responsible management. However, despite our efforts, occasionally species can die as a result of interaction with our farms.
EX EXTINCT
EN
ENDANGERED
EW EXTINCT IN THE WILD
VU VULNERABLE
CR
NEAR THREATENED
LEAST CONCERN
DATA DEFICIENT
1
EN
10
7
15
22
VU
NT
LC
DD
NE
CONSERVATION CONSERVATION STATUS STATUS ACCORDING ACCORDING TO THE RED LIST, TO THE INTERNATIONAL NATIONAL UNION FOR CLASSIFICATION CONSERVATION OF NATURE (IUCN)
CR
4
0
EN
10
7
17
24
EN
VU
NT
LC
DD
NE
XI REGION
IDENTIFIED: 33
CONSERVATION STATUS ACCORDING NATIONAL CLASSIFICATION
XII REGION
IDENTIFIED: 31
NOT EVALUATED
DD
5
EN
NE
LC
CONSERVATION STATUS ACCORDING TO THE NATIONAL CLASSIFICATION
CONSERVATION STATUS ACCORDING TO THE RED LIST, INTERNATIONAL UNION FOR CONSERVATION OF NATURE (IUCN)
CR
CRITICALLY ENDANGERED
NT
X REGION
IDENTIFIED: 30
CONSERVATION STATUS ACCORDING TO THE RED LIST, INTERNATIONAL UNION FOR CONSERVATION OF NATURE (IUCN)
CR
4
0
EN
10
7
19
26
EN
VU
NT
LC
DD
NE
E N V I R O N M E N TA L P E R F O R M A N C E
61
No. of Negative Interactions with Wildlife
Chilean Protected Areas and their degree of IUCN approval
2017
2018
2019
Birds
0
0
0
Mammals
0
0
1
PROTECTED AREA / IUCN CATEGORY
la
lb
II
III
Marine Park (MP) Virgin Regions Reserve (VRR) National Park (NP) Natural Monument (NM) Nature Reserve (NR) Forest Reserve (FR) National Reserve (NR) Marine Reserve (MR) Coastal Marine Areas of Multiple Uses (CMAMU) IUCN Protected Area Management Categories
III. Natural monument
Ia. Strict Natural Reserve
IV. Habitat/species management area
Ib. Wild natural area
V. Protected land and seascape
II. National Park
VI. Managed protected area
Source: Ministry of the Environment, http://areasprotegidas.mma.gob.cl/areas-protegidas/
IV
V
VI
E N V I R O N M E N TA L P E R F O R M A N C E
62
Distance Operations - Protected Areas FARMS WITH A DISTANCE BETWEEN 0 AND 1 KM
No. of concessions Farms
Conservation Area
Region
Category
4
Pitipalena - Añihue
XI
CMAMU
58
NR Las Guaitecas
XI
NR
3
NP Isla Magdalena
XI
NP
5
NP Melimoyu
XI
NP
7
NR Kaweskar
XII
NR
7
NP Kaweskar
XII
NP
Region
Category
X REGION
XI REGION
FARMS WITH A DISTANCE BETWEEN 1 AND 4 KM
No. of concessions Farms
Conservation Area
1
NP Pumalin
X
NP
3
NP Alerce Andino
X
NP
5
NR Las Guaitecas
XI
NR
3
NP Isla Magdalena
XI
NP
1
NP Queulat
XI
NP
XII REGION
Note: A distance up to 4 km is established, since, when evaluating the area of influence of a project, the landscape component is the aspect with the greatest
territorial range (3.5 km).
Our operations are carried out close to different environmental protection sites, in accordance with the National Registry of Protected Areas of the Ministry of the Environment.
Multiple Uses. In the Region of Magallanes, our farming farms are located in the area delimited by the Kaweskar National Reserve, and close to the Kaweskar National Park area.
In the Region of Aysén, our farms operate on the coast near the Las Guaitecas National Reserve and the Melimoyu National Park, and within the territory of the Pitipalena-Añihue Coastal Marine Area of
In both cases, we take care to act in accordance with our conservation plan, based on international standards and the best practices in the industry.
E N V I R O N M E N TA L P E R F O R M A N C E
63
C L I M AT E C H A N G E S T R AT E G Y Climate Change is one of the greatest challenges facing humanity. Conscious of this situation, in our company we are carrying out the “Multiexport Climate Action Strategy” program, through which we aim to become carbon neutral by 2025. Below we present the most significant milestones from 2019 in terms of this strategy:
100% R E N E WA B L E E N E R G Y IN OUR PROCESSING EQUAL TO
16 GWh NET REDUCTION OF
6 .0 0 0 t CO 2 e 8 % O F O U R T O TA L GHG EMISSIONS
We became the first salmon company worldwide to receive a renewable energy certification (IRECs), delivered by Enel Generación Chile S.A. This accredited that in 2019 the company supplied its processing plants (Cardonal, located in the city of Puerto Montt) with only Non-Conventional Renewable Energy (NCRE), registering an annual energy consumption of 16 GWh from renewable sources. The reduced carbon footprint of our processing plant is equivalent to 44,117,647 km1 traveled by an average car; that is, 42,749 trips from Puerto Montt to Santiago, or 114 trips from the earth to the moon2. We registered our carbon footprint in the “Huella Chile” program of the Climate Change Office of the Ministry of the Environment. This is the first national program for quantifying and managing corporate carbon footprints, whose purpose is to support and promote the quantification and voluntary management of GHG emissions at the corporate level, in both the public and private spheres. In line with our commitment to sustainability and innovation, in 2019 we implemented our pilot electro-mobility plan by adding a 100% electric Hyundai Ioniq to our fleet of corporate vehicles, and becoming the first salmon company in the country to adopt this technology.
1 Equivalences considering CO2e emissions equal to 136g/km, a factor of emission corresponding to a medium-sized vehicle (e.g. 4-door gasoline fu-
eled Hyundai Accent, information from the Database: Vehicle Consumption
FIRST SALMON PROCESSING PLANT ZERO EMISSION
of the Ministry of Energy, available at http: // www. consumovehicular.cl/). 2 Considering a distance of 384,400 km between the earth and the moon
OUR CARBON FOOTPRINT IS REGISTERED IN THE HUELLA CHILE PROGRAM.
1
T H E F I R S T S A L M O N C O M PA N Y I N T H E COUNTRY TO IMPLEMENT ELECTROM O B I L I T Y.
E N V I R O N M E N TA L P E R F O R M A N C E
64
R E G U L AT O R Y CHANGES REGULATORY CHANGE
OF_135338 2019 FAN Monitoring
01-14-19
OF_135342 Acatenella Program
01-14-19
Exempt Resolution. No. 1005-2019 Contingency Term Format
03-15-19
Exempt Resolution. No. 1769-2019 Modifies the Calendar, Modifies Exempt Resolution No. 5958
04-30-19
Exempt Resolution. No. 544-2019 Initiation of the Preliminary Draft for the Emission of Pollutants at Farming Sites and Processing Plants for Hydro-biological Resources
06-10-19
Exempt Resolution. No. 2968-2019 Sets Minimum Contents, Replaces Exempt Resolution. No. 4424
07-04-19
Exempt Resolution. No. 3096-2019 Exempt Resolution. No. 5958 and Exempt Resolution. No. 1769
07-12-19
ORD DGA No.143125 2019 MM
08-22-19
Exempt Resolution. No. 1165-2019 Preliminary project that establishes goals for Collection and Valuation, and Obligations for Containers and Packaging
DATE
09-30-19
Exempt Resolution. No. 3264-2019 Variables to Measure
10-14-19
Exempt Resolution. No. 5158-2019 V Modifies Exempt Resolution No. 3096 that Determines the Scheduling of Contingency Plans to be Delivered
11-08-19
Exempt Resolution. No. 6004-2019
12-31-19
SOCIAL PERFORMANCE
65
S O C I A L P E R F O R M A N C E
CHAPTER
07
SOCIAL PERFORMANCE
66
C O L L A B O R AT O R S S TA F F I N G
B R E AKDOWN BY S E NIORIT Y
G E N D E R B Y J O B C AT E G O R Y
Our team is the engine that drives Multiexport Foods, and the management of their wellbeing, development, growth and health is essential to ensure the company’s results.
Under 3 years: 1,228
Senior Management
481
In 2019 we strengthened our organizational structure in different areas by incorporating the Human Resources Corporate Management, Legal Counsel Management and the Comptroller’s Office, which will allow us to continue to face the current and future challenges of our industry.
74 7
WOM EN
MEN 15%
Between 3 and 6 years: 519
4 WOM EN
187
85% 41 MEN
332
Management
B R E AKDOWN BY G E N DE R WOM EN
MEN
Between 6 and 9 years: 555 252 61.61% 1,635
303
38.39%
26%
1,019
135 WOM EN WOM EN
T O TA L : 2 , 6 5 4
74 % 387 MEN
MEN
Between 9 and 12 years: 208
Technicians
B R E A K D OW N BY AG E 76 21.89%
62.43%
581
1 ,657
416
UNDER
BETWEEN
OV ER
30
30 AND 50
50
132
15.67% WOM EN
MEN 28%
Over 12 years: 144 23
1 04 WOM EN
72% 262 MEN
121
Workers B R E A K D O W N B Y N AT I O N A L I T Y
WOM EN
MEN
96.50% S TA F F W I T H D I S A B I L I T I E S 2,561
0.30%
C O S TA R I C A N 1
0.04%
S PA N I S H 2
0.08%
45% 773 WOM EN
CHILEAN
CO LO M B I A N 8
HAITIAN 7
0. 26%
J A PA N E S E 1
0.04%
PERUVIAN 1
0.04%
VENEZUEL AN 54 2 .03% AMERICAN 19
0.72%
0.83% 22 PEOPLE
55% 945 MEN
SOCIAL PERFORMANCE
67
H U M A N C A P I TA L D E V E L O P M E N T We understand that the professional growth of our collaborators is a key tool to ensure the success of our company. In this sense, in 2019 we focused our efforts on training our collaborators in the new regulatory and technical aspects that the industry must comply with. To meet this objective, we increased investment in training and education for our team, adding a total of 61,087 hours of learning and improvement, for which we invested a total of $ 287,532,888 - 26.3% more than in 2018.
Processes Division A highlight of 2019 was the Operational Excellence Program, which was implemented for the third consecutive year and saw the participation of more than 700 collaborators who developed their knowledge with the TPM (Total Productive Maintenance) methodology, in the Fresh and Frozen processing plant. The program also included change management workshops, which sought to improve the adaptability of our collaborators to changes in their daily tasks and functions.
Farming In Farming, meanwhile, our collaborators participated in the Design and Planning of the Production Cycle course, whose objective was to reinforce the goals and objectives of the production cycle. Among the topics covered by this course were: Audits, Occupational Health and Safety, fish feeding, Nutrition, SIFA, Health and growth, Teamwork, Effective Communication, and sense of belonging. This course was held in order to align the technical knowledge of all our collaborators, and ensure an efficient and safe production process.
AV E R A G E H O U R S O F T R A I N I N G B Y G E N D E R
INVESTMENT IN TRAINING
AND POSITION:
Employee training â&#x20AC;&#x201C; % of revenue Employee training (CLP) Average cost invested in training per employee (CLP) T O TA L : 2 1
T O TA L : 1 2
M A N AG EM ENT
24
6
PROFESSIONALS
20
18
21
10
E M P L OY E E T R A I N I N G - % O F R E V E N U E 30%
AND TECHNICIANS 20%
A D M I N I S T R AT I V E
Goal 2019: 16%
S TA F F A N D 10%
2019
2018
0%
2017
WORKERS
2017
2018
2019
GOAL 2019
17%
26%
18%
16%
$219,227,820
$227,612,538
$287,532,888
$263,188,688
$91,612
$93,514
$108,339
$99,167
SOCIAL PERFORMANCE
68
CAREER DEVELOPMENT Hiring
TOTAL NUMBER OF NEW HIRED EMPLOYEES
AGE BREAKDOWN:
Under 30 years Between 30 and 50 years Over 50 years
2018
2019
461
413
459
449
58
61
Staff Turnover In 2019 we managed to decrease the turnover rate of our collaborators from 3.22 (obtained in 2018) to 2.7. This decrease is the result of a decrease in resignation or dismissal of collaborators in all age and gender ranges.
BY G E N DE R
80% STAFF TURNOVER RATE AGE BREAKDOWN:
790 753
X REGION
1.21
Between 30 and 50 years
1.57
1.30
Over 50 years
0.21
0.19
2018
2019
1.18
1.06
2.04
1.64
TURNOVER AS % OF TOTAL COLLABORATORS
2018
2019
Total Turnover (voluntary, retirement, dismissals, etc.)
36.9%
24.4%
7.8%
5.3%
Men
26
2019
Internal mobility Number of positions taken by internal candidates Percentage of positions taken by internal candidates
1.44
Women
24
2018
2019
BREAKDOWN BY GENDER:
104 190
XI REGION XII REGION
2018
Under 30 years
5 9
2017
2018
2019
75
74
82
44%
34%
33%
PERFORMANCE ASSESSMENT 2019
In terms of percentages, with respect to the total number of collaborators, there was a significant decrease of 12.5% in the case of total turnover, and 2.5% in voluntary resignation, between 2018 and 2019.
In 2019 we hired a total of 923 people, all of whom come from regions in which we have some type of operation.
IX REGION
Performance Assessment % of employees who have received a periodic performance and professional development assessment.
Voluntary Resignation
76%
SOCIAL PERFORMANCE
69
TRADE UNIONS
R E M U N E R AT I O N
As a company, we respect and recognize the importance of the representation of our workers, which comes about through the creation and exercise of trade unions. For this reason, we have promoted our Free Association Policy throughout the organization, and in 2019 we reinforced our open-door policy and our continuous dialogue with these entities. We are keen to take advantage of this opportunity to establish participatory and transparent relationships, with the aim of closeness and harmony with all collaborators.
Wage Gap The wage gap indicates the difference between the salaries of women and men when holding the same position. Ratio of base salary and remuneration of women compared to men
During the year we successfully closed early negotiations with the Cordillera-Dalcahue unions, and with the IX Region union.
Percentage of employees represented by an independent union or covered by collective agreements
1.00
0.84
LEADERSHIP AND PROFESSIONAL POSITIONS
29% 2017 53% 2 01 8 58% 2 01 9
1.00
0.86
A D M I N I S T R AT I V E S TA F F
1.00
0.92 WORKERS
AS OF DECEMBER 31st 2019, WE
H AV E 9 T R A D E U N I O N S , W H I C H TO G E T H E R R E P R E S E N T 5 8 . 4 % O F O U R WO R K E R S .
SOCIAL PERFORMANCE
70
Wage Difference The wage difference, meanwhile, measures the difference between the gross wage per hour that a collaborator earns, and the country’s minimum wage. By looking at the table below, it is possible to see that our workers earn 2 times the country’s minimum wage.
POSITION
WAGE DIFFERENCE
Leadership and Professional Positions
5.7
Technical-Administrative Staff
2.8
Workers
2.0
Minimum Salary Ratio By looking at the graphic below, it is possible to see the efforts we have made to improve the salaries of our collaborators. In 2019, we increased the minimum wage for our workers by 28% in the case of men, and by 23% in the case of women.
2018
$373,010
$288,000
INITIAL
M I N I M U M WA G E
SAL ARY MEF
2019
IN 2019, WE INCREASED T H E M I N I M U M WAG E O F O U R
WO R K E R S BY 2 8 % I N T H E C A S E O F M E N , A N D BY 2 3 % I N T H E $ 475 , 52 8
$459, 256
INITIAL SAL ARY MEF
$301,000 M I N I M U M WA G E
C A S E O F WO M E N .
SOCIAL PERFORMANCE
71
H E A LT H A N D S A F E T Y The physical and psychological wellbeing of our collaborators is fundamental for Multiexport Foods, and for this reason we constantly seek to strengthen and consolidate a preventive culture throughout the company. In 2019 we started the Preventive Health Program, whose focus is to diagnose collaboratorsâ&#x20AC;&#x2122; health conditions to ensure the best safety standards throughout our production chain. This was also supplemented with activities for the promotion and protection of health for the future. Accident Rate The Accident Rate (TA) measures the percentage of accidents that occurred in a certain period in relation to the number of workers in the company in the same period.
Accident Rate Average Days Lost due to Accidents
2016
2017
2018
2019
3.84%
4.93%
3.41%
3.81%
11.4
15.27
15.91
15.05
Absence Rate Any absence related to the personal health of a worker (Total number of days of absence/total number of workdays).
Absenteeism Rate
2016
2017
2018
2019
0.57%
0.54%
1.78%
0.24%
Fatalities Number of deaths of workers at the companyâ&#x20AC;&#x2122;s facilities between January and December.
Fatality Rate
2016
2017
2018
2019
0
0
0
0
SOCIAL PERFORMANCE
72
ALLIANCES
Multiexport Foods, partners of SalmonChile, maintains its strong commitment to the collaborative construction of a sustainable aquaculture industry for another year; the aim is for an industry that is responsible for growing in harmony with the community and environment that surrounds us. Therefore, Multiexport Foods participated in the different joint projects carried out in 2019, taking part in the General and Technical Board, and in the different commissions (territorial and communicational), contributing their experience and good relationships to the construction of synergies for the good of society.
Along the same lines, since it has been present in Magallanes, Multiexport Foods has been part of the Asociación de Productores de Salmón y Trucha de Magallanes AG, actively participating in the meetings of the Board, and interacting with partner companies and local actors.
In the 2019 period, we actively participated in the meetings and conferences of the “Global Salmon Initiative” (GSI), an initiative that groups together 17 salmon companies across the world, exceeding 50% of the world’s production. The common goal of this group is to provide a healthy source of protein to feed a growing population, minimizing environmental impact and improving the social contributions of operations. In this context, Multiexport Foods is part of the 4 topics forming the common agenda: Bio-security, Nutrition and Food, Standards and Communications.
We are proud to be part of GSSI from 2019. It is an initiative that brings together more than ninety stakeholders in a pre-competitive effort to address the complex global sustainability challenges facing the aquaculture industry. In this space, the private sector, NGOs, Governments, and other International Organizations, including the FAO, collaborate and exchange knowledge in order to create joint solutions to these challenges.
The Corporación de Desarrollo Productivo del Litoral Aysén (CorpAysén) was created on November 29th, 2016, in order to promote and implement actions to encourage the development of communities and productive sectors connected to the coast of the Aysén Region.
The company is part of the Salmon Social Initiative, which brings together 10 producing and supplying companies in the salmon farming industry of the Los Lagos and Aysén Region. This has the aim of jointly improving the social and environmental standards of the operations of the companies, beyond current regulations. The group has been creating commitments for a responsible relationship with local communities for more than 3 years, based on respect and care for the environment, building relationships of trust, and contributing to social development through the creation of shared value.
INSTITUTION
CONTRIBUTION AMOUNT 2019 (USD)
SalmonChile
$ 305,011
Global Salmon Initiative
$ 88,456
Asociación Productores de Salmón y Trucha Magallanes
$78,522
Others
$ 18,819
Total
$ 4 9 0, 8 0 8 U S D CO N T R I B U T I O N TO A S S O C I AT I O N S A N D ALLIANCES IN 2019.
$490,808
PSEOR CF IOARLMPAENRCFEO RSMOACNI C AE L
73
W E TA K E PA R T I N A S S O C I AT I O N S B E C AU S E W E S E E K TO E N S U R E T H E S U S TA I N A B I L I T Y O F T H E I N D U S T RY A N D I T S T H R E E F O L D I M PAC T A S W E L L A S , TO TA K E A DVA N TAG E O F T H E P L AT F O R M S
FOR DISCUSSION ON TECHNICAL A S P E C T S , P R O D U C T I V E I N N OVAT I O N O R S A N I TA RY I S S U E S .
SOCIAL PERFORMANCE
74
R E G U L AT O R Y COMPLIANCE Total No. of Infractions
2019
8
2018
7
2017
8
6 6
E N V I R O N M E N TA L
SOCIO - ECONOMIC
Total Amount Paid for Infractions in USD
2019
904
2018
16,728
2017
28,788
18 ,145
E N V I R O N M E N TA L
14, 205
SOCIO - ECONOMIC
SOCIAL PERFORMANCE
75
SUPPLIERS As a company, we have a firm commitment to promoting sustainability throughout our value chain, making the management of suppliers a strategic pillar. Therefore, in line with the UNâ&#x20AC;&#x2122;s Sustainable Development Objective No. 12 on Responsible Production and Consumption, we promote responsible practices in acquisition and development processes with our suppliers and service providers.
national economy. For this reason, 99.6% of our total investment in suppliers is concentrated within our country, with a figure of more than USD $461M.
LOCAL ECONOMIC CHAIN
At the same time, we seek to strengthen the local economies of the regions where we have our production and processing activities. We have 26 farms in the X region, Los Lagos, and this is the region where we invested most in suppliers in 2019, reaching 71.89% of our total expenditure in Chile.
The supply chain is structured around the efficiency of each one of its stages, from fresh water breeding to harvest in sea water, as well as in value added and sales, where the smoked products and processing operations stand out. In this sense, we understand the importance of our suppliers, and we want to be a driving force in the local and
We strive to cultivate long-term relationships with our suppliers based on trust and mutual growth. We partner with our suppliers to develop innovation projects for the benefit of both us and them,
Distribution of Amount Invested in Suppliers by Region (Millions USD)
we care about the conditions of their workers, and we maintain a prompt payment practice, which contributes to our positive working relationship.
Distribution of Amounts Invested in Suppliers by Country
USD 4 6 3 ,0 8 6 , 8 4 5 TOTA L 2 0 1 9 .
0.05% 0.01%
UK
USA
USD 218,629
0.01%
JAPAN USD 403,418
0.03%
$8
$5
$14
$9
USD 23,186 DENMARK
2019
OT H E R S
REGIONS
USD 121,788 VIII REGION
$108
$91 RM
$331 X REGION
$272
USD 55,835
2018
0.09% GERMANY
0.01% BR AZIL
99.62%
USD 38,175
CHILE USD 461, 323,013
0.19% ARGENTINA USD 893,960
SOCIAL PERFORMANCE
76
72% OF OUR INVESTMENT IN SUPPLIERS IN 2 0 1 9 WA S I N LO S L AG O S R E G I O N , W H E R E 2 3 O F O U R FA R M S A R E F O U N D, A S W E L L A S 4 O F O U R H ATC H E R I E S A N D O U R 2 P R O C E S S I N G P L A N T S .
SOCIAL PERFORMANCE
77
CRITICAL SUPPLIERS We have determined as critical suppliers those whose supplies are in direct contact with our fish feed and those who could pose a risk in terms of human health and the environment.
S A L M O N CO M PA N I E S S I G N E D A N AG R E E M E N T W I T H G OV E R N M E N T
The commitment that suppliers in this category must assume involves safeguarding the integrity and safety of the products they deliver to Multiexport Foods, throughout their value chain, maintaining quality assurance procedures, certifications and/or programs for successful management. They must also safeguard the safety of their employees and the environment where they develop their services. In 2019, we had the support of a total of 1,445 suppliers, of which 74 are defined as part of the group of critical suppliers.
2019
Total No. of Suppliers Critical Suppliers % of Critical Suppliers
I N 2 0 1 9 M U LT I E X P O R T A N D OT H E R
1,445 74 5%
TO E N H A N C E T H E P R O D U C T I V E I M PAC T O N AYS Ă&#x2030; N R E G I O N .
SOCIAL PERFORMANCE
78
Selection of Suppliers
DELIVERY OF
SUPPLIER
Application request file
FILE AND
C O N TA C T
DOCUMENTS
SUPPLIER
Supplies REQUESTS FILE AND DOCUMENTS
REVISION OF DOCUMENTS
TYPE OF
VA L I D AT I O N
REGISTRY OF THE SUPPLIER
AND
I N C O R P O R AT I O N FILE
Yes A P P R O VA L
COMPLETES
IN THE VENDOR AP P ROVE D?
MASTER
P ROVI D E R ? S U P P LY
Not Incorporation File
REQUEST REJECTED Services
A P P R O VA L AND VA L I D AT I O N
SUPPLIERS CONTROL , C S R A N D H E A LT A N D SAFET Y
C O N TA C T A N D R E Q U E S T
R E V I S I O N A N D A P P R O VA L
I N C O R P O R AT I O N
SOCIAL PERFORMANCE
79
S U P P L I E R E VA L U A T I O N AND AUDIT Suppliers of Materials Suppliers of packaging materials and additives are evaluated annually. In the event that a supplier does not obtain the expected results, this must be audited in the following period. The audit process is led by an external entity and conforms to the highest international standards.
Processing Services The services that support the Processing unit are evaluated every six months.
Farming Services The services that support the Farming unit are evaluated quarterly.
Assessment Items
Assessment Items
Assessment Items
6 0 % Weighed quality risk 4 0 % Certification matrix 2 0 % Documentary/administrative
In 2019, 51 suppliers were evaluated and 21 were audited according to the results obtained in the evaluations from 2018. Two suppliers were suspended in 2019 due to the results of the process.
5 0 % Documentary/administrative 5 0 % Quality of service
In 2019, 121 suppliers were evaluated, of which 100 were approved, and 21 were approved with observations.
5 0 % Operational evaluation 2 0 % Outsourcing regime 3 0 % Health and safety
In 2019, 22 suppliers were evaluated, of which 20 were approved, and 2 obtained insufficient results.
SOCIAL PERFORMANCE
80
A Q U A C U LT U R E L I C E N S E S The company contributes directly to municipal funds through the payment of aquaculture licenses.
Total Aquaculture Licenses
LA UNIÓN $5 ,160,789
2017
2018
2019
$915,193,608
$940,280,521
$952,311,917
P U E R T O O C TAY $ 1 5 , 5 9 7, 1 2 0 PUERTO MONT T $ 8 , 4 3 9 , 6 3 1 CALB UCO $ 7 9 , 0 4 9 , 4 3 9
COCHAMÓ $ 2 6 , 8 0 5 , 2 5 7 H UA L A I H U É $ 3 7, 8 6 2 , 3 4 9
QUEMCHI $535 , 928 DA L C A H U E $ 4 9 6 , 2 3 0 C U R AC O D E V É L E Z $ 2 8 , 8 4 6 , 8 4 2 CASTRO $1 0,0 4 8 ,65 8 Q U I N C H AO $ 4 5 , 8 7 5 , 4 7 1 C I S N E S $ 4 74 , 3 8 4 , 1 4 8
P U E R T O AY S É N $ 1 4 9 , 7 8 7, 4 7 7
N ATA L E S $ 6 9 , 4 2 2 , 5 7 7
T H E CO M PA N Y C O N T R I B U T E D
C L P $ 9 5 2 , 3 1 1 , 9 1 7 TO M U N I C I PA L F U N D S T H R O U G H T H E PAY M E N T O F AQ UAC U LT U R E L I C E N S E S .
S O C I O - E N V I R O N M E N TA L I N I T I AT I V E S
81
S O C I O E N V I R O N M E N T A L I N I T I A T I V E S
CHAPTER 08
82 S O C I O - E N V I R O N M E N TA L I N I T I AT I V E S
PILLARS OF THE COMMUNIT Y RELATIONS STRATEGY
ACTIVE MANAGEMENT
SOCIAL INVESTMENT
PROMOTION AND CARE OF
OF RELATIONS
FOR DEVELOPMENT
THE ENVIRONMENT
COMMUNITY R E L AT I O N S We understand that our link with the social environment is a fundamental element in the way we run our company. We seek to establish close, long-term relationships within the framework of our value chain, in order to contribute to the development of the communities in which we are based, and improve the quality of life of the people who live in them.
Our goal is to always be of help to the 38 communities close to our operations, from AraucanĂa to Magallanes. We understand that each of our collaborators is an ambassador of the company in the territory; their roles and functions must promote the common good and manage interactions.
In 2019, we carried out a diagnosis of our area of influence and relevant social actors, which allowed us to design a Community Relationship strategy, based on three pillars: Active Management of Relations, Social Investment for Development, and Promotion and Care of the Environment. These pillars establish actions to be developed and the indicators associated with their fulfillment.
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83
AC T I V E M A N AG E M E N T O F R E L AT I O N S We establish active and continuous communication channels that create a relationship of trust with the community. These channels also serve to guide the social benefits brought by the company’s production chain, through shared values. Taking a cross-cutting approach, we have established open-doors initiatives, among which we would like to highlight the Molco Alto School and Preschool students’ visit our hatcheries and the Piedra Azul High School aquaculture students’ visit our processing plant in Puerto Montt, as well as the invitation of social leaders to our base in Puerto Cisnes, among others. These initiatives allowed us to demonstrate our processes and the standards with which we work, and establish the grounds for communication channels.
INVESTIGATION CENTRE
NEIGHBORS & CITIZENS
LOCAL MASS MEDIA
NGOs
SERVICE PROVIDERS
REGIONAL AUTHORITIES
TRADE ASSOCIATIONS
SALMON COMPANIES
NATIVE PEOPLE
COMPANIES
Another major focus has been our relationship with native people, with the aim of strengthening their culture. In this regard, in 2019 we accompanied Kawésqar communities on a trip to their ancestral territory, and we also supported, together with the Ancón Sin Salida Community, an intercultural educational visit to students from two schools in Punta Arenas. In our relationship with society in general, we contribute to improving quality of life through the promotion of art and sports, and the provision of specific support for people with disabilities, raising funds for Jornadas Solidarias de Rehabilita Aysén and Salmo Jornadas in Magallanes.
LOCAL AUTHORITIES
WORSHIP/ RELIGIOUS ASSOCIATIONS
FISHERMEN
REGULATORS
NEIGHBORS
TOURIST SERVICES
FUNCTIONAL SOCIAL ORGANIZATIONS
PUBLIC SERVICES
REGIONAL SOCIAL ORGANIZATIONS
SCHOOLS
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W E M A I N TA I N A N AC T I V E A N D P E R M A N E N T CO M M U N I C AT I O N W I T H CO M M U N I T I E S TO B U I L D T R U S T W I T H T H E M BY C R E AT I N G S H A R E D VA LU E .
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85
ART
SPORT
The development of culture and the arts is an area we always seek to be involved in; with this aim, we support various initiatives, such as:
We promote initiatives for healthy living, in particular those that encourage sports activities and the development of those who practice them.
• For the sixth consecutive year we supported the School Theater meeting, which brings together children and young people from the south of the country, and allows them to present their work in a comprehensive learning space. This event was held at the Diego Rivera Theater in Puerto Montt. • Within the framework of the 150th anniversary of the Instituto Alemán in Puerto Montt, our company supported the staging of the play “Macbeth” by the English theater company TNT, involving students from the Institute itself, along with those from the Inmaculada Concepción of Puerto Varas, the Liceo de Niñas, Escuela Alemania, Liceo Bosque Mar and the American School of Puerto Montt. • We also supported the production of “Shrek” the musical by Colegio Puerto Varas, which was staged at the Teatro del Lago de Frutillar, an event attended by five • Likewise, we continue to support the Bosque Nativo Cultural Extension Center in Puerto Varas, and we sponsor seasons of cinema, arts, and music, among other initiatives.
In this sense, we are proud to continue supporting, for the sixth year, the progress of athlete Rodrigo Cárdenas, from Dalcahue, who participated in the 2019 World Athletics Championships in Naples in the discus throwing event. Along with this, we supported the organization of the ‘2019 Sailing Week’ in Llanquihue, an event that combines sport and tourism, and promotes regional development. Finally, we support various amateur soccer and basketball clubs throughout the territory, providing sports equipment, and we contribute to the organization of the Chiloé Cycling Tour and the Puerto Aysén Basketball Championship, among others.
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SOCIAL INVESTMENT FOR DEVELOPMENT We contribute to the social and economic development of the communities we operate in, promoting initiatives related to strengthening education, training, and development of local suppliers, in addition to the execution of projects aimed at promoting social capital.
E D U C AT I O N In 2019, we provided strong support to the educational work of schools linked to the aquaculture sector, creating training opportunities and taking part in workshops with specialized foundations.
As part of these initiatives, we received 89 internship students at our farms, hatcheries and processing plants, where they were guided by our collaborators, who taught them all about the industry. In addition, we carried out talks at public schools in different locations, among other training activities. We also organized a joint project between the Arturo Prat Chacón High School of Puerto Cisnes, the Universidad de Concepción and COPAS Sur Austral, as part of the students’ comprehensive education.
Alliances with NGOs We continued our joint work with the NGO Canales, implementing opportunities for students to approach the world of work, promoting the development of skills that increase their employability. We also maintained our commitment to scholarships for students in melinka, who leave guaitecas seeking higher education. Through Enseña Chile, we contribute to bringing new teachers into classrooms in vulnerable areas of the country, providing new approach for students in the communities in which we work, to help them face the challenges they may encounter during their education.
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PROMOTION OF ENTREPRENEURSHIP We promote the development of local entrepreneurs, organizing training opportunities for the community, where we seek to provide tools for their social and economic development. With this aim, we implemented training programs for different social groups, in which we provided tools to promote local entrepreneurship. For example, we ran “Boat Repair” courses for 20 fishermen from the Puerto Aysén Fishermen’s Union, and two “Tanning and creation of leather craft” courses for 20 people from the district of Cochamó, in alliance with the National Women’s Service and the Municipality.
We created networks, joining a project with the Choigo Indigenous Community and the Isla Llingua Association of Women in Agriculture, where we supplemented the award of a state fund (FOSIS), which allowed them to acquire a tractor to improve the productive efficiency of horticulturists and pickers.
In parallel, we supported the inhabitants of Isla Tenglo with the installation of an open pier for the community in the area, which allowed them to improve accessibility and contributed to improving the fishing processes and tourist activities in the town, as was the case with Turismo de Mar y Tierra, who already had a boat and a tourism project managed with the State.
Alongside these initiatives, we also supported the creation and formalization of new service providers for the industry, providing them with advice from our team of professionals in the operations, supply, security and occupational health areas, with special focus on the Aysén and Magallanes regions.
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PUBLIC COMMITMENTS In terms of development alliances, this year we signed the Salmon Social Initiative, together with other companies in the industry, with the aim of improving the social and environmental operating standards of companies beyond the regulations in force, and encouraging the hiring of local services and workers. Furthermore, in AysĂŠn we signed a Productive Protocol agreed between companies in the industry and the government, in order to reinforce our commitment to the development of the region, which will strengthen the value chain and the development of aquaculture in the territory.
PROMOTION AND CARE OF THE ENVIRONMENT
CONTRIBUTIONS
We promote a culture of responsible citizenship when dealing with our environment, which manifests itself through two lines of work on this issue:
In 2019, we reinforced our direct contribution to communities within our area of direct influence, supporting those organizations and initiatives that had the greatest impact on the quality of life of families, and responding to the Community Relations model that has been established.
Projects linked to environmental awareness: in this area, we support recycling initiatives and environmental education in schools, among which we would like to highlight our work with the Environmental Committee of the Colegio Bosquemar de Puerto Montt, and visits to hatcheries from the students of the environmental brigade at the Escuela de Molco, among others.
In this period, we contributed CLP 8.000.000 in salmon products for social activities. Also, the company disbursed CLP 50.000.000 implementing social programs in local communities involving 542 volunteersâ&#x20AC;&#x2122; hours of our staff.
We renewed our commitment to the Re-create Llanquihue program, with which we have been partners since its creation in 2017, and which this year continued its Environmental Education program. This program also prevented more than 200 tons of waste from reaching landfills thanks to its recycling chain
Millions of Chilean pesos
Sea and Coastal Clean ups: : we have organized operations in places such as Huyar, San Javier, Apiao, Puerto Aguirre, Puerto Cisnes, Melimoyu, Lago Rupanco and Estuario de ReloncavĂ, where we have partnered with other companies, farmers and social organizations.
D O N AT I O N S 2018
$88
$76
$54
Along with these projects, we participated for the third consecutive year in the Environmental Table of the district of Quinchao, an initiative convened by the Municipality, in which companies present in the territory join together to contribute to various projects for the benefit of local inhabitants and the environment. $19
S O C I O - E N V I R O N M E N TA L I N I T I AT I V E S
89
SOCIAL INVESTMENT 2019
GRI CONTENT INDEX
90
G R I C O N T E N T I N D E X
CHAPTER
09
GRI CONTENT INDEX
91
GRI STANDARD
CONTENT
GRI 102
GENERAL DISCLOSURES
OMISSION
PAGE
ORGANIZATIONAL PROFILE
102-1
Name of the organization
24
102-2
Activities, brands, products, and services
21
102-3
Location of headquarters
19
102-4
Location of operations
17
102-5
Ownership and legal form
24
102-6
Markets served
19
102-7
Scale of the organization
6
102-8
Information on employees and other workers
66
102-9
Supply chain
102-10
Significant changes to the organization and its supply chain
5
102-11
Precautionary Principle or approach
32
102-12
External initiatives
102-13
Membership of associations
75 - 76 - 77 - 78 - 79
34 - 88 72 - 86 - 88
STRATEGY
102-14
Statement from senior decision-maker
102-15
Key impacts, risks, and opportunities
5 5 - 32
ETHICS AND INTEGRITY
102-16
Values, principles, standards, and norms of behavior
8
102-17
Mechanisms for advice and concerns about ethics
32
GOVERNANCE
102-18
Governance structure
102-19
Delegating authority
102-20
Executive-level responsibility for economic, environmental, and social topics
30
102-21
Consulting stakeholders on economic, environmental, and social topics
36
102-22
Composition of the highest governance body and its committees
102-23
Chair of the highest governance body
25
102-24
Nominating and selecting the highest governance body
25
102-25
Conflicts of interest
25
25 - 26 - 27 Omit
25 - 26 - 27
GRI CONTENT INDEX
92
GRI STANDARD
CONTENT
OMISSION
PAGE
102-26
Role of highest governance body in setting purpose, values, and strategy
32
102-27
Collective knowledge of highest governance body
38
102-28
Evaluating the highest governance body’s performance
102-29
Identifying and managing economic, environmental, and social impacts
102-30
Effectiveness of risk management processes
Omit
102-31
Review of economic, environmental, and social topics
Omit
102-32
Highest governance body’s role in sustainability reporting
102-33
Communicating critical concerns
Omit
102-34
Nature and total number of critical concerns
Omit
102-35
Remuneration policies
31
102-36
Process for determining remuneration
31
102-37
Stakeholders’ involvement in remuneration
31
102-38
Annual total compensation ratio
Confidential
102-39
Percentage increase in annual total compensation ratio
Confidential
Omit 32 - Financial Report
30
STAKEHOLDER ENGAGEMENT
102-40
List of stakeholder groups
102-41
Collective bargaining agreements
102-42
Identifying and selecting stakeholders
37 - 38
102-43
Approach to stakeholder engagement
35
102-44
Key topics and concerns raised
37 - 38 69
37 - 38 - 39
REPORTING PRACTICE
102-45
Entities included in the consolidated financial statements
102-46
Defining report content and topic Boundaries
102-47
List of material topics
36
102-48
Restatements of information
42
102-49
Changes in reporting
102-50
Reporting period
1
102-51
Date of most recent report
5
102-52
Reporting cycle
5
102-53
Contact point for questions regarding the report
3
3 - 49 35 - 36 - 39
Without changes
GRI CONTENT INDEX
93
GRI STANDARD
CONTENT
OMISSION
PAGE
102-54
Claims of reporting in accordance with the GRI Standards
3
102-55
GRI content index
92
102-56
External assurance
103
GRI 200
ECONOMIC STANDARDS
GRI 201
ECONOMIC PERFORMANCE
103-1
Explanation of the material topic and its Boundary
Financial Report
103-2
The management approach and its components
Financial Report
103-3
Evaluation of the management approach
Financial Report
201-1
Direct economic value generated and distributed
49
201-2
Financial implications and other risks and opportunities due to climate change
63
201-3
Defined benefit plan obligations and other retirement plans
201-4
Financial assistance received from government
GRI 202
MARKET PRESENCE
103-1
Explanation of the material topic and its Boundary
68
103-2
The management approach and its components
68
103-3
Evaluation of the management approach
68
202-1
Ratios of standard entry level wage by gender compared to local minimum wage
70
202-2
Proportion of senior management hired from the local community
68
GRI 203
INDIRECT ECONOMIC IMPACTS
103-1
Explanation of the material topic and its Boundary
86 - 87
103-2
The management approach and its components
86 - 87
103-3
Evaluation of the management approach
86 - 87
203-1
Infrastructure investments and services supported
203-2
Significant indirect economic impacts
GRI 204
PROCUREMENT PRACTICES
103-1
Explanation of the material topic and its Boundary
75
103-2
The management approach and its components
75
103-3
Evaluation of the management approach
77 - 79
204-1
Proportion of spending on local suppliers
75 - 76
GRI 205
ANTI-CORRUPTION
Omit Does not apply
89 74 - 80
GRI CONTENT INDEX
94
GRI STANDARD
CONTENT
OMISSION
PAGE
103-1
Explanation of the material topic and its Boundary
32
103-2
The management approach and its components
32
103-3
Evaluation of the management approach
Omit
205-1
Operations assessed for risks related to corruption
Omit
205-2
Communication and training about anti-corruption policies and procedures
Omit
205-3
Confirmed incidents of corruption and actions taken
GRI 206
ANTI-COMPETITIVE BEHAVIOR
103-1
Explanation of the material topic and its Boundary
Omit
103-2
The management approach and its components
Omit
103-3
Evaluation of the management approach
Omit
206-1
Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
Omit
GRI 207
TAX
103-1
Explanation of the material topic and its Boundary
Financial Report
103-2
The management approach and its components
Financial Report
103-3
Evaluation of the management approach
207-1
Approach to tax
207-2
Tax governance, control, and risk management
207-3
Stakeholder engagement and management of concerns related to tax
207-4
Country-by-country reporting
GRI 300
ENVIRONMENTAL STANDARDS
GRI 301
MATERIAL
103-1
Explanation of the material topic and its Boundary
Omit
103-2
The management approach and its components
Omit
103-3
Evaluation of the management approach
Omit
301-1
Materials used by weight or volume
59
302-2
Recycled input materials used
59
303-3
Reclaimed products and their packaging materials
59
GRI 302
ENERGY
103-1
Explanation of the material topic and its Boundary
10 - 55 - 56
103-2
The management approach and its components
11 - 55 - 56
32
Omit Tax Policy 30 - 32 Omit Financial Report
GRI CONTENT INDEX
95
GRI STANDARD
CONTENT
OMISSION
PAGE
103-3
Evaluation of the management approach
302-1
Energy consumption within the organization
302-2
Energy consumption outside of the organization
Not rated
302-3
Energy intensity
Not rated
302-4
Reduction of energy consumption
55
302-5
Reductions in energy requirements of products and services
63
GRI 303
WATER AND EFFLUENTS
103-1
Explanation of the material topic and its Boundary
53 - Water Footprint
103-2
The management approach and its components
53 - Water Footprint
103-3
Evaluation of the management approach
53 - Water Footprint
303-1
Interactions with water as a shared resource
303-2
Management of water discharge-related impacts
303-3
Water discharge
303-4
Water withdrawal
54
303-5
Water consumption
54
GRI 304
BIODIVERSITY
103-1
Explanation of the material topic and its Boundary
10 - 60 - 62
103-2
The management approach and its components
11 - 60 - 62
103-3
Evaluation of the management approach
11 - 60 - 62
304-1
Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
62
304-2
Significant impacts of activities, products, and services on biodiversity
52
304-3
Habitats protected or restored
62
304-4
IUCN Red List species and national conservation list species with habitats in areas affected by operations
60
GRI 305
EMISSIONS
103-1
Explanation of the material topic and its Boundary
10
103-2
The management approach and its components
11
103-3
Evaluation of the management approach
11
305-1
Direct (Scope 1) GHG emissions
55
305-2
Energy indirect (Scope 2) GHG emissions
55
11 - 55 - 56 55 - 56
Water Footprint Omit Water Footprint
GRI CONTENT INDEX
96
GRI STANDARD
CONTENT
OMISSION
PAGE
305-3
Other indirect (Scope 3) GHG emissions
55
305-4
GHG emissions intensity
56
305-5
Reduction of GHG emissions
56
305-6
Emissions of ozone-depleting substances (ODS)
Does not apply
305-7
Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions
Does not apply
GRI 306
EFFLUENTS AND WASTE
103-1
Explanation of the material topic and its Boundary
103-2
The management approach and its components
11
103-3
Evaluation of the management approach
11
306-1
Water discharge by quality and destination
54
306-2
Waste by type and disposal method
306-3
Significant spills
306-4
Transport of hazardous waste
306-5
Water bodies affected by water discharges and/or runoff
GRI 307
ENVIRONMENTAL COMPLIANCE
103-1
Explanation of the material topic and its Boundary
10
103-2
The management approach and its components
11
103-3
Evaluation of the management approach
11
307-1
Non-compliance with environmental laws and regulations
74
GRI 308
SUPPLIER ENVIRONMENTAL ASSESSMENT
103-1
Explanation of the material topic and its Boundary
Omit
103-2
The management approach and its components
Omit
103-3
Evaluation of the management approach
Omit
308-1
New suppliers that were screened using environmental criteria
Omit
308-2
Negative environmental impacts in the supply chain and actions taken
Omit
GRI 400
SOCIAL STANDARDS
GRI 401
EMPLOYMENT
103-1
Explanation of the material topic and its Boundary
68
103-2
The management approach and its components
68
103-3
Evaluation of the management approach
68
10 - 58
57 - 58 Does not apply 57 Omit
GRI CONTENT INDEX
97
GRI STANDARD
CONTENT
OMISSION
PAGE
401-1
New employee hires and employee turnover
401-2
Benefits provided to full-time employees that are not provided to temporary or part-time employees
Omit
401-3
Parental leave
Omit
GRI 402
LABOR/MANAGEMENT RELATIONS
103-1
Explanation of the material topic and its Boundary
69
103-2
The management approach and its components
69
103-3
Evaluation of the management approach
69
402-1
Minimum notice periods regarding operational changes
GRI 403
OCCUPATIONAL HEALTH AND SAFETY
103-1
Explanation of the material topic and its Boundary
71
103-2
The management approach and its components
71
103-3
Evaluation of the management approach
71
403-1
Occupational health and safety management system
Omit
403-2
Hazard identification, risk assessment, and incident investigation
Omit
403-3
Occupational health services
Omit
403-4
Worker participation, consultation, and communication on occupational health and safety
Omit
403-5
Worker training on occupational health and safety
Omit
403-6
Promotion of worker health
Omit
403-7
Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
Omit
403-8
Workers covered by an occupational health and safety management system
Omit
403-9
Work-related injuries
403-10
Work-related ill health
GRI 404
TRAINING AND EDUCATION
103-1
Explanation of the material topic and its Boundary
67
103-2
The management approach and its components
67
103-3
Evaluation of the management approach
67
404-1
Average hours of training per year per employee
67
404-2
Programs for upgrading employee skills and transition assistance programs
67
404-3
Percentage of employees receiving regular performance and career development reviews
68
404-3
Porcentaje de empleados que reciben evaluaciones periĂłdicas del desempeĂąo y desarrollo profesional
68
68
Omit
71 Omit
GRI CONTENT INDEX
98
GRI STANDARD
CONTENT
OMISSION
PAGE
GRI 405
DIVERSITY AND EQUAL OPPORTUNITY
103-1
Explanation of the material topic and its Boundary
69 - 70
103-2
The management approach and its components
69 - 70
103-3
Evaluation of the management approach
69 - 70
405-1
Diversity of governance bodies and employees
26 - 66
405-2
Ratio of basic salary and remuneration of women to men
69 - 70
GRI 406
NON-DISCRIMINATION
103-1
Explanation of the material topic and its Boundary
Omit
103-2
The management approach and its components
Omit
103-3
Evaluation of the management approach
Omit
406-1
Incidents of discrimination and corrective actions taken
GRI 407
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
103-1
Explanation of the material topic and its Boundary
69 - Free Associaton Policy
103-2
The management approach and its components
69 - Free Associaton Policy
103-3
Evaluation of the management approach
69 - Free Associaton Policy
407-1
Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
GRI 408
CHILD LABOR
103-1
Explanation of the material topic and its Boundary
Does not apply
103-2
The management approach and its components
Does not apply
103-3
Evaluation of the management approach
Does not apply
408-1
Operations and suppliers at significant risk for incidents of child labor
GRI 409
FORCED OR COMPULSORY LABOR
103-1
Explanation of the material topic and its Boundary
Does not apply
103-2
The management approach and its components
Does not apply
103-3
Evaluation of the management approach
Does not apply
409-1
Operations and suppliers at significant risk for incidents of forced or compulsory labor
GRI 410
SECURITY PRACTICES
103-1
Explanation of the material topic and its Boundary
Omit
103-2
The management approach and its components
Omit
32
Not rated
Not rated
Not rated
GRI CONTENT INDEX
99
GRI STANDARD
CONTENT
OMISSION
PAGE
103-3
Evaluation of the management approach
Omit
410-1
Security personnel trained in human rights policies or procedures
Omit
GRI 411
RIGHTS OF INDIGENOUS PEOPLES
103-1
Explanation of the material topic and its Boundary
83
103-2
The management approach and its components
83
103-3
Evaluation of the management approach
83
411-1
Incidents of violations involving rights of indigenous peoples
GRI 412
HUMAN RIGHTS ASSESSMENT
103-1
Explanation of the material topic and its Boundary
Code of Ethics
103-2
The management approach and its components
Code of Ethics
103-3
Evaluation of the management approach
Omit
412-1
Operations that have been subject to human rights reviews or impact assessments
Omit
412-2
Employee training on human rights policies or procedures
Omit
412-3
Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening
Omit
GRI 413
LOCAL COMMUNITIES
103-1
Explanation of the material topic and its Boundary
10 - 83
103-2
The management approach and its components
11 - 83
103-3
Evaluation of the management approach
11 - 83
413-1
Operations with local community engagement, impact assessments, and development programs
413-2
Operations with significant actual and potential negative impacts on local communities
GRI 414
SUPPLIER SOCIAL ASSESSMENT
103-1
Explanation of the material topic and its Boundary
75
103-2
The management approach and its components
75
103-3
Evaluation of the management approach
75
414-1
New suppliers that were screened using social criteria
Not rated
414-2
Negative social impacts in the supply chain and actions taken
Not rated
GRI 415
PUBLIC POLICY
103-1
Explanation of the material topic and its Boundary
32
103-2
The management approach and its components
32
Does not apply
89 Omit
GRI CONTENT INDEX
100
GRI STANDARD
CONTENT
OMISSION
PAGE
103-3
Evaluation of the management approach
32
415-1
Political contributions
32
GRI 416
CUSTOMER HEALTH AND SAFETY
103-1
Explanation of the material topic and its Boundary
Omit
103-2
The management approach and its components
Omit
103-3
Evaluation of the management approach
Omit
416-1
Assessment of the health and safety impacts of product and service categories
Omit
416-2
Incidents of non-compliance concerning the health and safety impacts of products and services
Omit
GRI 417
MARKETING AND LABELING
103-1
Explanation of the material topic and its Boundary
103-2
The management approach and its components
103-3
Evaluation of the management approach
Omit
417-1
Requirements for product and service information and labeling
Omit
417-2
Incidents of non-compliance concerning product and service information and labeling
Omit
417-3
Incidents of non-compliance concerning marketing communications
Omit
GRI 418
CUSTOMER PRIVACY
103-1
Explanation of the material topic and its Boundary
Omit
103-2
The management approach and its components
Omit
103-3
Evaluation of the management approach
Omit
418-1
Substantiated complaints concerning breaches of customer privacy and losses of customer data
Omit
GRI 419
SOCIOECONOMIC COMPLIANCE
103-1
Explanation of the material topic and its Boundary
10
103-2
The management approach and its components
11
103-3
Evaluation of the management approach
11
419-1
Non-compliance with laws and regulations in the social and economic area
74
419-1
Incumplimiento de las leyes y normativas en los รกmbitos social y econรณmico
74
Omit 10
GRI CONTENT INDEX
101
ANNEX
SOCIAL PERFORMANCE
102
SOCIAL PERFORMANCE
103
SOCIAL PERFORMANCE
104
SOCIAL PERFORMANCE
105
S O C I O - E N V I R O N M E N TA L I N I T I AT I V E S
106