The Group focuses on eco-friendly solutions and works on keeping both direct and indirect emissions as low as possible.

The Group reports its Greenhouse Gas emissions according to Greenhouse Gas Protocol and reports Its Scope 1 (Direct emissions from own or controlled sources), Scope 2 (Indirect emissions from the generation from purchased energy and Scope 3 (indirect emissions (not included in scope 1 and 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions) emissions.

The  Group has set a Science Based Target which is approved by The Steering Committee of The Science Based Targets initiative.

By introducing Science Based Targets, The Group has set a clear direction for its emission reductions throughout the entire value chain. Both the company's Board, Group management and employees are supporting the goals that have been set and will work together through "One Lerøy" to ensure that we achieve the goals that have been set.

MAIN GOAL:

 “Lerøy Seafood Group ASA commits to reduce absolute scope 1, 2 and 3 GHG emissions 46% by 2030 from a 2019 base year.”

The target is aligned with a 1,5 degrees C pathway.

Greenhouse gas emissions

The tables provide a summary of  key consumption figures for fossil fuels and electricity as well as greenhouse gas emissions (tco2e) per segment and in total.

TOTAL CONSUMPTION OF FOSSILE FUELS (SCOPE 1)

TOTAL CONSUMPTION OF ELECTRICITY (SCOPE 2)

TOTAL TONNES OF CO2 EQUIVALENT (TCO2E)

CO₂e emissions for fish are in general low. When compared with other types of  proteins we eat, salmon has the lowest eco-footprint.

Emissions

Lerøy Seafood Group («Lerøy») is continuously working to improve its CO2e emission monitoring and reporting. Information regarding emissions is crucial for understanding and responding to environmental challenges. However, we acknowledge that we need to strive to improve the data quality and current reported numbers will be amended if we identify any deviations.   

The Group has completed a comprehensive analysis of climate related risks and opportunities which the Group is facing over short, medium and long term. This analysis has confirmed the importance of measuring, monitoring and reporting our environmental performance.

Lerøy has set ambitious science-based targets to reduce our carbon footprint: We aim to reduce our CO2e emissions by 46% by 2030 compared to 2019 levels. (ref: Climate Policy). Lerøy has defined 2019 as the base year for our science-based climate target as this was the first year all operating segments in the Group were conducting greenhouse gas emission reporting for Scope 1, 2 and 3. The Group’s operating segments are the following: 1) Wild Catch 2 ) Farming  and 3) Value Added Processing which also includes sales and distribution.

The reported emission figures have been collected throughout 2021 from relevant suppliers via invoices and direct monitoring and are based on the same data source as the figures reported in Lerøy’s 2020 annual report.   

Our emissions are reported in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. The Group accounts for Scope 1 and 2 GHG emissions over which it has operational control. Reporting units account for their use of fossil fuels, refrigerants, electricity as well as district heating/cooling. Climate account statements are consolidated in the same manner as financial statements showing aggregated results for the Group’s entities (reporting units).

The Group’s Scope 3 is reported in accordance with GHG Protocol Corporate Accounting and Reporting Standard (Corporate Value Chain (Scope 3) Accounting and Reporting Standard. The Group has carried out mapping of its “carbon hotspots” identifying the main sources of greenhouse gas emissions which are included in the Group’s Scope 3 climate accounts. For more detailed information, please, see table Scope 3 Overview per Category below.

Emission factors

Emissions data for Scope 1, 2 and 3 covers reporting of the following greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs). The Group has not reported any biogenic CO2 emissions in Scope 1 or Scope 3 in 2021. 

Source for Scope 1 emission factors used for calculation of tCO2e is DEFRA (Department for Environmental Food and Rural Affairs, UK Government), 2021 as well as National Standard Emission Factors (Norwegian Environment Agency), 24^th February 2015.

Source for location-based Scope 2 emission factors used for calculation of CO2e is International Energy Agency (IEA) for 2019. The factors used are based on national gross electricity production mixes on 3 years rolling average. The Nordic electricity mix used to calculate the Group’s location-based Scope 2 emissions are based on 2019 factors. The Nordic electricity mix factor is developed by Cemasys (sustainability consultancy company and service provider for registration and calculation of climate accounts) covers the weighted production in Sweden, Norway, Finland and Denmark reflecting the common Nord Pool market area. Emission factors per fuel type are based on assumption in the IEA methodological framework. Factors for district heating/ cooling are either based on actual (local) production mixes, or average IEA stat.

The Group has not purchased Guarantees of Origin in 2021.

Regarding market-based emissions – the choice of emission factor using this method is determined by whether the business acquires Guarantees of Origin or not. For electricity without the Guarantee of Origin, the emission factor is based on the remaining electricity production after all Guarantees of Origin for renewable energy are sold. This is residual mix, which is normally substantially higher than the location-based factor.

Source for Scope 3 emission factors used for calculation of tCO2e is DEFRA (Department for Environmental Food and Rural Affairs, UK Government) 2021, International Energy Agency (IEA) 2021, Greenhouse gas emissions of Norwegian seafood products in 2017, SINTEF study, Emission factors from fish feed producers 2021, Database Ecoinvent 3.8 (2021).

Scope 3 Overview per category (2021)

*For more detailed information regarding the categories, please visit Corporate Value Chain (Scope 3) Accounting standard

**A Well-to-Tank emissions factor, also known as upstream or indirect emissions, is an average of all the GHG emissions released into the atmosphere from the production, processing and delivery of a fuel or energy vector.

GHG emissions calculations methodology (developed by Cemasys)

THREE  MAIN ACTIVITIES WHICH CAN HELP US TO REDUCE OUR EMISSIONS:

• Changing feed content/ ingrediences
• Less transportation by air
• Switching to alternative fuels

What causes our emissions?

GHG emissions intensity

The Group’s emissions ratio is calculated in the following manner: tCO2 (Scope 1 & Scope 2)/tons Produced volume

GHG emissions intensity Farming (Tons CO2/ tons gross growth): 0.057

GHG emissions intensity Wild Catch (Tons CO2/ tons headed/gutted fish): 1.127

GHG emissions intensity VAP, Sales & Distribution (Tons CO2/ tons products sold): 0.117

Climate accounts

Governments, financial institutions, investors, our customers and other important stakeholders are setting higher demands and requirements related to climate change awareness. This has created a call for companies to disclose how climate change is affecting their financial performance and strategy.

Seafood has a smaller carbon footprint than other animal productions systems. With a growing population the world needs food, and ocean-based diets have been pointed out an important contributor to increasing the world’s food production. However, although seafood is considered as a healthy and sustainable source of protein, existing operations and exploiting new opportunities need to be done in a responsible and sustainable manner.

The Group believes that the increased focus on climate and environmental sustainability represents a significant opportunity for the Group, the seafood industry and for Norway. In this context, it is the responsibility of both the industry and political authorities to exploit these opportunities. It requires reason and knowledge to prevail in the years to come.

The Group's operations are closely linked to the natural conditions in Norwegian and international freshwater sources and marine areas. Access to clean water and clean seas is a prerequisite for the Group's operations.

LSG has set ambitious science-based targets to actively to reduce our overall carbon footprint and also focusing on reducing the environmental impact of the Group's activities.

The Task Force on Climate-related Financial Disclosure (TCFD) framework is designed to improve the clarity, consistency and reliability on climate-related disclosures for a better understanding of climate-related risks and opportunities and how to implement measures to mitigate such risks.

In 2020 the Group conducted an in depth interview analysis with 20 key internal and external stakeholders to identify what is considered to be the Group’s main risks and opportunities related to climate change. 

The qualitative scenario analysis summarized below is aligned with the TCFD recommendations. The Group’s main vision is to be the most profitable global supplier of sustainable high-quality seafood and  sustainability is at the core of every important strategy decision we make. The Group acknowledges the importance of better disclosures and aims to integrate the complete TCFD recommendations  with quantifications of potential financial impact in due course.

CLIMATE RELATED RISKS & OPPORTUNITIES

The transition to a low-carbon society will potentially reduce physical risks from climate change, but it will also lead to transition risks, which need to be identified, assessed and managed.  

Below we highlight the key transition and physical risks and opportunities that were identified in the interview analysis.

Transition Risks

Transition risks are risks associated in the transition to a low-carbon society. It involves risks related to regulatory changes, legal and financial responsibility for damage caused by climate change, new technology, changes in the market and consumer behaviour as well as reputational risk.

POLICY AND LEGAL

Climate policies aim to mitigate the negative effects of climate change. Policy changes and new regulations can pose a negative risk for companies through failure of compliance, or through increased costs such as carbon pricing and increased prices of feed ingredients.

For Lerøy (“LSG”), the introduction of new and more stringent climate-related regulations were identified as a risk mainly in two areas: potential new regulations that could have a significant financial impact on operations, and potential new regulations relating to the purchase of raw materials.

An increase in regional, national, international and industry specific regulations is likely to impact LSG financially through increased operating costs and decreased revenue.

Potential new climate-related regulations impacting operations and purchase of raw materials:

Overall:

• The EU taxonomy is created to steer capital towards sustainable investments. There is currently significant uncertainty related to how this will impact LSG in the short term.
  • As the seafood industry is currently not yet covered in the EU taxonomy, there is a risk that LSG’s activities will not be classified as green activities. This may impact LGS’s access to green financing.
  • LSG may further be impacted through larger technological upgrades in order to meet future requirements laid out by the Taxonomy
• Carbon pricing and taxes.
  • An potential increase in carbon pricing will directly impact operating costs in the short term before LSG transition to lower emission technologies and solutions.
  • LSG transports products to overseas markets by air freight. If carbon taxes increase over time this will have a significant financial impact, making our products less competitive.
  • LSG uses MGO and diesel in farming and wild catch, and any taxation on fossil fuels will impact cost of fuel consumption. Potential increased taxation on vehicle transportation to European markets
• Potential regulations regarding local pollution levels and fuel use could potentially increase transportation costs.
• New legislation and requirements concerning the use and disposal of styrofoam and plastics.
  • More stringent regulation concerning the use and recycling of plastics in all markets may increase operation costs or lead to investments in new types of packaging material and transportation boxes.

Farming

• Potential new legislation prohibiting direct sea operations and requiring production in closed systems.
  • A potential prohibition of direct sea operations will directly impact LSG’s entire value chain and business model.
• Risk of regulatory changes in relation to CO2 emissions allowance per site.
• Litigation risks in local operation areas.
• Risk of more stringent ASC/MSC certifications.
  • If ASC/MSC certification criteria are not met, LSG’s products will lose its certification, leading to potential loss of market access and reduced income
• Potential taxation on, or prohibition to use  soy as an ingredient in fish feed.
  • A stigmatization of soy use can prohibit soy as a component in feed composition, and require LSG to purchase alternative feed sources which can impact the overall cost of feed

Wild-catch

• Potential new legislation prohibiting the use of trawlers in wild fish operations due to co2 emissions associated with the use of marine gas oil (MGO), alternatively prohibiting the use of MGO.
  • Both scenarios would lead to significant investment costs for the Group as the entire trawler fleet would have to be retrofitted/renewed with low-carbon solutions.
• Significant changes related to quota regulations for wild fish catches could have a direct impact to production capacity and income generating activities.

TECHNOLOGY

Development of new technological solutions will function as an effort to reduce carbon emissions and can represent both opportunities and risk. Unsuccessful investments in new technologies, or the cost of transitioning to lower emission technologies may pose a significant financial risk to LSG:

• The risk that LSG’s existing vessel fleet could end up as stranded assets if not adjusting to technology, regulatory and/or market changes.
  • Potential large investments in new fishery/fish farming vessels and /or working boats that may need to be retrofitted in a few years when technology and requirements develop further.
• Potential technological developments in alternative protein production.The increasing awareness of the meat industry’s global carbon impact is shifting the market to alternative sources of plant-based protein, and lab-based protein production may pose a threat to LSG if the market shifts from seafood to these alternative protein sources.
• Technological developments in land-based fish farming.
  • Land-based farming poses a threat to LSG as this moves production closer to the market, eliminating the need for long-distance transport, especially air freight.

MARKET

Climate change awareness has created a shift in demand for lower emission foods. Failure to comply to stakeholder environmental demands may lead to a reduced demand for our products, impacting our revenue.

Demand

• Change in consumer needs and behaviour.
  • Young consumers (with future purchasing power) are changing their eating habits and have a larger focus on climate issues and carbon footprint on food they purchase. Rising markets for alternative plant-based protein sources may affect the competitive environment and potentially reduce demand for LSG’s products This risk has a potential direct impact to the Group’s profitability.
    • Climate awareness is becoming increasingly important for consumers in Norway.
  • Consumers set higher demands and requirements to the products they purchase. There may be an increase in demand for certified fish. This may have a financial impact if these demands are not met.

REPUTATION

Climate change has been identified as a potential source of reputational risk tied to changing customer or community perception of a company’s contribution to or detraction from the transition to a lower-carbon economy. By not meeting the expectations from stakeholders, the reputation of LSG may be damaged and directly impact consumer behaviour.

Brand specific:

1. LSG is a well-known name to consumers. Reputational risks is therefore significantly larger for LSG than other companies within the industry.
2. Any damage to LSG’s reputation regarding climate and sustainability will reach the consumer who may stop buying their products. If LSG is associated withnegatively affecting the climate and harming the marine ecosystem, this may significantly impact revenue.
3. Reputational value today is more important than 10-15 years ago. Young consumers have more opinions, and there is a large risk in not winning them over.

Industry wide:

4. There is a risk of industry wide propaganda against the seafood industry. This poses  a threat to seafood products being perceived as healthy and sustainable products. This may potentially impact sales and overall profitability to the Group.
5. The use of soy in fish feed impacts reputation.
   • The market has decided that soy is a bad raw material in terms of climate, which may impact purchasing decisions of end consumers. Even though 100 % of the soy used in feed is certified, the use of soy alone can damage reputation.
6. Growing awareness of the use of air freight in transportation may harm the overall reputation of seafood.
7. Any potential negative impact on the marine ecosystems is likely to have a direct financial impact on revenue. There is a long term risk that aquaculture may potentially be blamed for ruining the ecosystem in the ocean.

Physical climate-related risks

Physical impacts are risks associated with direct implications of climate change, and can be event driven such more extreme weather (acute) or longer-term shifts in climate patterns such as higher temperatures (chronic)

Financial implications vary from costs associated with damage of sites and vessels to the larger impacts associated with loss of fish and less stable access to raw materials as well indirect impacts from supply chain disruption,, Physical risks could have a direct impact on LSG’s production capacity and revenue growth.  

ACUTE

Acute physical risks are risks associated with more frequent extreme weather such as storms, hurricanes, floods and heavy precipitation of rain and snow. Such events may impact LSG’s direct operations, or cause disruptions in the supply chain.

For LSG, any events delaying production has a financial implication. It is therefore crucial for LSG to be prepared for such scenarios. Acute physical risks can also impact the supply of raw materials used in fish feed, which is a extremely important for LSG.

Direct operations

• Extreme weather events such as heavy snowfall, extreme cold weather, storms and waves can have direct implication on production sites and fishing operations:
  • Storms and waves increase the load on all installations. This may lead to major material damage and could cause LSG to lose production capacity short term which will have a direct impact on revenue.
  • Material damage on production sites further increases the risk of escapes.
  • Extreme weather can damage fishing fleet so that operations are not possible, directly impacting production capacity and revenue.
• Extreme weather may lead to loss of ships at sea and cause oil spill along the Norwegian coastline, which may impact our fish farm facilities. If there are no healthy fish in Norwegian waters, operations stand still, directly impacting revenue.
• Extreme weather events which cause long time drought may have a significant impact on our ability to produce Smolt. Preventive actions in place to mitigate this risk are:
  • Each smolt production facility have water magazines with stored water in case of emergencies.
  • Continuous surveillance of water levels in lakes/Rivers etc
  • Long term contracts and/or concessions for use of freshwater
  • Non of our water sources is used for human water consumption
• Facilities in coastal areas are increasingly exposed to landslides.
• Extreme weather events could impact logistics and distribution.
  • For example: Large amounts of snow in Northern Norway may delay deliveries of fresh fish and hence lose value. Customers may not want to purchase at same price.
• Extreme weather events can lead to changes in water quality, leading to disease, parasites and algae that can kill the fish overnight. This will have direct impact on revenue.
  • Any events impacting the biology in the ocean, especially algae bloom, is potentially a risk that can have large impacts on LSG’s profits

Supply chain

• Extreme weather, such as drought and floods can affect the production of raw materials that LSG depends on in feed ingredients (soy, wheat, rapeseed oil, corn).This can impact both availability and cost of raw materials
• Extreme weather events pose direct HSE risks in the entire value chain.

CHRONIC

Chronic climate risks are risks derived from longer-term shifts in climate patterns, such as higher temperatures in air and sea, and change in sea levels. The sea is LSG’s biggest asset, and any changes in sea levels or temperature that directly impacts the marine ecosystem can potentially impact the company’s livelihood in the long run.

Rising sea temperatures:

Wild catch

• Sea temperatures affect the migration patterns of wild fish.
  • Changes in sea temperatures could lead the cod stock further north. This causes the fishing zones to move, directly impacting the transportation radius of trawlers, increasing fuel use and costs.
  • It poses a large challenge for coastal fishing if cod is no longer found along the Norwegian coast line, which will impact the availability LSG has to purchase fish from the coastal fleet
  • There is a frisk if LSG are not able to harvest the full fishing quota. This will directly impact revenue capacity from our trawler fleet
• A rise in sea temperature may cause a change in the substances found in fish. This could make products less attractive to the market and can potentially have direct impact on revenue.

Farming

• Changes in sea temperatures could lead other fish stocks further north (and closer to the coast) – like mackerel shoals and turbot. These species can make holes in the fish pens and result in an increased risk of fish escapes.
• Increased sea temperatures provide better conditions for salmon lice.
  • This would make operations in the south more challenging and can also affect aquaculture in the north in the long term.
• A rise in sea temperature may cause a change in the substances found in salmon. This could make products less attractive to the market and can potentially have direct impact on revenue.
• Changes in oxygen levels, increased precipitation, changes in sea levels in fjords can lead to poorer conditions for farming, increasing the risk of disease and mortality.

Rising air temperatures

• An increase of air temperature will increase the need for refrigerants to keep the fish cold during transportation. This will for instance require more ice, making transportation higher which again will lead to higher emissions and can potentially impact costs.

OPPORTUNITIES

As markets and consumer behaviour shift in response to climate change, the seafood industry have a substantial opportunity to harness solutions addressing climate change. Companies prepared to manage  and mitigate climate-related risks, will obtain a competitive advantage.

Technological improvements may lead to resource efficiency. Additionally, an increasing supply of low-/zero-emission energy sources, combined with potential carbon pricing, may create a shift in demand for these services.

Explore market shifts towards climate friendly products and services:

• Alternative transportation solutions (blue wrap or sub chilling) to increase durability of fresh fish will eliminate or reduce dependency on air freight of fresh fish. This may reduce costs and improve reputation.
• Innovations enabling production of fish feed ingredients in markets closer to home, potentially in lab based controlled environments, may eliminate or reduce dependency of unstable supply of raw materials such as soy. This will also reduce transportation, further reducing costs and emissions.
• Moving towards more climate friendly packaging, with focus on recycling, is a clear signal to the customer that LSG have serious considerations regarding climate and sustainability. This may have a positive impact on reputation and revenue growth
• There are large opportunities associated with reaching young and future consumers who are concerned about climate change, as this can have a positive impact on revenue.

Explore opportunities that follow a new positioning in a low carbon market:

• A shift in market preference from whole fresh to refined fillets or frozen may increase market share, directly impacting revenue, and lower costs and emissions from air freight.
• There are large opportunities associated with the perception of seafood and aquaculture as a contributor to a sustainable food production for a growing world population.
  • EAT, European Green Deal, WRI etc. are all pointing to aquaculture as a contributor to sustainable future food requirements. This may influence market perception.
  • A growing population will increase global demand for food and protein. Seafood is viewed as a healthy and sustainable protein and there are opportunities of new and growing markets, which will impact revenue growth.
• Investments in low-carbon solutions could lead to eligibility for financial support schemes from for instance Enova which is a Norwegian governmental owned company aimed to contribute to the restructuring of energy use and energy production in Norway.

Exploit collaborative efforts:

• Improve competitive advantage through positioning as a sustainable protein provider by collaborating with suppliers to reinforce efforts to a shift to climate friendly solutions.
  • Work actively with suppliers to improve life cycle analyses (LCA) of fish feed, to further improve composition and make climate friendly decisions. This can improve reputation, and potentially impact revenue growth.
  • Work actively with transportation providers to be in the forefront of low-emission goods transportation.This will potentially improve reputation, reduce overall emissions and costs through avoided carbon or fuel taxes.
• Active communications with authorities and involvement in policy making will reduce climate-related risks and enable LSG to be ahead of any regulatory changes.

Resource efficiency

Resource efficiency as equivalent to cost efficiency and can be obtained through:

• Increased resource efficiency in processing of fish.
  • More efficient use of products, such as in fish feed, or as fish flour/oil, can reduce costs.
  • Filleting fish in Norway for lower weight in freight to processing plants in Europe can reduce transportation costs
• Increased efficiency in waste management:
  • Circularity and return schemes in packaging and plastics from the ocean can reduce costs.
• Better data technologies for all systems may lead to increased control of operations, further improving efficiency and potentially reducing costs.

SURVEY RANKING:

Below we highlight the top three climate-related risks and opportunities  that were identified as the most strategically and financially important for LSG based on the results from the survey:

TOP 3 RISKS:

1. Reputation: The risk of LSG being perceived as an unsustainable brand. If LSG is associated with large contributions of GHG emissions and harming the marine ecosystem, this can significantly impact revenue and profitability.
2. Policy & legal: The introduction of new climate related regulations directly impacting operations. Potential new legislation prohibiting direct sea operations will directly impact LSG’s entire value chain. New legislations regulating our trawler fleet or fuel use can also have a direct financial impact. There is also a risk of local regulatory changes in relation to fuel and CO2 emission allowance per site.
3. Policy & legal: The introduction of new climate related regulations directly impacting purchase of raw materials. Examples of prohibition of, or taxation on, the use of soy as a component in feed can limit the supply of, or increase the cost of feed, which is pointed out as one of LSG’s main contributing input factors.

TOP 3 OPPORTUNITIES:

1. Market: Influencing the market to view seafood as a sustainable protein source. EAT, European Green Deal, WRI etc. are all pointing to aquaculture as an important contributor to sustainable future food requirements. This may influence market perception. Additionally, the population is growing, which will increase the global demand for food and protein. If seafood can maintain its positioning as a healthy and sustainable source of protein, there are opportunities to be exploited in a growing market.
2. Products & services: LSG can improve and increase a competitive advantage in a low-carbon economy by actively collaborating with their suppliers of fish feed and transportation providers to reduce GHG emissions and save costs.
3. Resource efficiency: LSG can reduce costs through resource efficiency and circularity in all operations. This includes more efficient use of biproducts, reducing transportation volumes of fish to processing plants in Europe, return schemes to reduce waste and use of plastics, and the introduction of technologies to improve data availability and control, further improving efficiency.

The below document with tables summarize the findings from the interviews.

Note that the risk and opportunity assessments are provisional and will be further developed. The heatmapping is result of a preliminary assessment of risk level based on interview input. We intent to stress-test this resilience in the future by using scenarios and quantitative analysis.

Potential financial impact is categorized with the following colours in the summary table.

The below document with tables summarize the findings from the interviews.

Note that the risk and opportunity assessments are provisional and will be further developed. The heatmapping is result of a preliminary assessment of risk level based on interview input. We intent to stress-test this resilience in the future by using scenarios and quantitative analysis.

Potential financial impact is categorized with the following colours in the summary table.

The Group work actively to further the development of sustainable fish feed.

Our fish feed ingredients are to be sourced from sustainable, ethical and traceable sources.

Lerøy Seafood Group has taken an active role in influencing the further development of feed composition to ensure premium product quality, in a sustainable way.

Ingredients

We work actively to further the development of sustainable fish feed. Our fish feed ingredients should be from sustainable and traceable sources.

We normally divide the ingredients into two groups:

• Marine raw materials
• Vegetable raw materials

During the last years there has been a change in the composition of the feed to more and more use of vegetable raw materials.

Proportion of marine raw material

CO2e for production of fish feed

Economic feed factor

In 2021 we used the following marine raw materials:

In 2021 we used the following vegetable species

• Soya SPC 21,4% (with 100 % deforestation free value-chain and MVE system for traceability and surveillance monitoring)
• Sunflower Extract 2,9%
• Faba beans 3,3%
• Wheat 18,2
• Pea Protein 2,0%
• Guar Meal 4,4 %
• Rapeseed oil 17,8%
• Camelina oil 0,6%
• Linseed oil 0,8%

FFDR salmon (ASC formula)

Improving the FFDR ratios is an important KPI for Lerøy. The implementation of organic Debio certified salmon, in addition to a turbulent year in the commodity market has made it necessary to include more marine raw materials. We are looking to unlock the synergies with our own trawlers to gain access to more trimmings.

The data is verified by an independent third party.

Novel feed ingredients

The Group has for the last 5 years been a pioneer in the large-scale use of new raw materials. Through our engagement, Lerøy has shouldered the cost of developing of the supplier industry within microalgaes. When Lerøy started using microalgae, there was only one producer, today there are four.

Lerøy has also used insect meal the last years, but the available volumes offered today is still miniscule, and the costs are high. Still, starting in Q1 2022, Lerøy is stepping up its commitment to accelerate the production of insect meal, and introduce it to all of our salmon during the land based production.

Through our work with novel feed ingredients Lerøy has invested significant values in the development of new raw materials for fish feed. An estimate based on 2021 averages says that Lerøy’s investment in novel feed ingredients is approx. NOK 250 million over the last 4 years.

To be able to justify the increased production costs, we depend on a competitive price for these raw materials. Today, price and production volume are not satisfactory to be able to justify an increase in volume to be included in the feed.

Lerøy has taken leadership in the pursuit of new and sustainable raw materials. We have chosen to focus on alternatives for marine omega 3 out of concern for fish quality, fish welfare, securing the supply and out of marine ecology concerns. Microalgae helps Lerøy to increase the level of EPA+DHA in the feed without further increasing the dependency on traditional fisheries.

Lerøy is always looking into the alternatives to source high quality feed ingredients from the oceans. Low trophic fisheries like krill or mesopelagic fish is an option of great potential. Another unique opportunity Lerøy have, is the integration of our own white fish value chain with regards to increase the use of high-quality trimmings.

Our commitment does not stop there. Through Ocean Harvest, we run projects where we investigate species like blue mussels, and its potential as a marine raw material in feed. This show that Lerøy is not solely relaying on our suppliers to solve the needs of tomorrow, but we are actively working and funding the hunt for alternatives ourselves.

Sustainable and ethical raw material sourcing

The Group cooperates with multiple feed suppliers to achieve our performance and sustainability goals

The Group has contractual requirements for its suppliers of fish feed, to make sure that raw materials are managed in a sustainable and ethical manner. Moreover, the Group works with its suppliers to monitor closely fishery improvement programs, fisheries that are at risk of losing certification and catch utilization.

Lerøy requires raw materials to be:

• Fished/ harvested in an ethically sound manner and in compliance with legal frameworks
• Based on sustainable harvesting or fishing
• On a positive trend regarding the percentage certified according to a internationally acclaimed sustainability standard
• In compliance with the ASC feed standard
• Able to trace back to origin (farm/ geographical area/fishery)
• An ever-increasing share of trimmings
• ProTerra/Eurosoy certified and deforestation free value chain sourced Soy.

Links

Policy:  Fish feed

KPI:  Raw materials fish feed

KPI:  Deforestation

Conscious choices

The Group takes an active stance regarding the feed composition. We implement our own set limits and limitations regarding feed composition.

Lerøy Salmon is raised with feed containing:

• EPA and DHA rich microalgae
• Camelina/linseed oil for beneficial omega 3 ratio
• Minimum 7.5% of the fatty acids is EPA and DHA
• Insect meal

Our feed does not contain:

• Salmon oil
• GMO
• Ethoxyquin
• Palm oil
• Chitin inhibitors
• Bone or blood meal

These choices has resulted in a new product brand: «Lerøy Salmon™»

Marine Feed ingredient Certified according to a sustainability standard

Production of Atlantic salmon and Rainbow trout is considered more sustainable compared to production of beef, pork, sheep and other animal based proteins. The reason is that animal based proteins are more discharge intensive because of the methane gas they produce.

The CO2 footprint of Fish (average) is about 3,49 kg Co2-EQ/kg compared to beef at 26,61 kg Co2 -EQ/kg. Farmed Atlantic salmon have even a lower Eco footprint of 3,3 kg co2 – EQ/kg (Ref: Sintef 2017).

To reduce our overall emissions and trap excess nutrients such as Nitrogen, phosphor and carbon from our salmon and trout production, Lerøy in partnership with NGO Belona Holding AS, started a joint venture, Ocean Forest, to produce macro algae, blue mussels and polychaeta near several of our farming sites.

In addition to trap CO2 and absorb excess nutrients from the farming operations, especially the blue mussels, but also the sugar kelp are good sources of sustainable proteins and other health benefitting nutrients.

Ocean Forest has conducted two studies of fermented kelp in feed for ruminants in collaboration with the University of Copenhagen. The first study is an in vitro study, in which the methane gas production in the stomach of dairy cows is added to various fermented kelp products. The measurements showed up to a 45% reduction in methane gas production using fermented kelp.

The second experiment was performed on calves. The calves could choose freely between 4 different diets with 0 to 5% fermented kelp added. The feed with the highest content of fermented kelp was clearly most sought after by the animals. 

The studies in Denmark have shown that fermented kelp can be an important new ingredient in feed to land animals to reduced their emissions of methane gas by 30-40 % (Hansen et al, In prep) when adding Sugar kelp to their diet. Ocean Forest sold most of the production of sugar kelp in 2021 as a new ingredient for animal feed.

Using blue mussel meal instead of fish meal has also shown to be an excellent replacement as shown in the EU funded project Holofood. We therefore started an inhouse R&D project with one of the major Feed companies to see if blue mussel meal is viable commercially.

We also include 1,5 – 2 % insect flour in all our freshwater feed as a replacement for fish meal. From a nutritional point of view its considered a high quality and sustainable protein source, but its highly expensive to use.

The growth potential of this business venture are far greater than what we produce today, and what we will be able to produce in a long while. Today we have blue mussel and sugar kelp production at 7 locations (5 sugar kelp locations and 2 blue mussel locations). We produced 150 tons of sugar kelp (1,5 ton protein) in 2020, and estimate a significant increase in production volume in 2021 and 2022.

Our goal is to one day have the knowledge, technology and the Customer base to extend this production setup to a major part of our farming sites, producing more sustainable marine and plant proteins.

We are also committed to continue educating the public about the benefits of a diet consisting of marine proteins, Omega 3 and 6 fatty acids and other health benefiting nutrients. Doing so, we are confident that the human consumption of these sustainable proteins will increase in the future.

In 2021 Lerøy started a R&D project lead by our product development team to look into the possibility to diversify our protein assortment, expanding into plant based protein products. Our goal with the project was to find a partner which could help us find suitable replacements for fish proteins in an assortment of “fish like products” such as Vegan Maki with salmon and shrimp, Vegan Salmon burger, Key west Crab cake and more.

Consumer interest in plant based fish alternatives is growing and is poised for a rapid rise like other alternative protein products. It is being driven by the same macro trends, but playing out in ways specifically related to the fish and shellfish industry. The Vegan market is expanding in tact with the growing demand for sustainable food, and Lerøy plan to be apart of this trend offering a wide arrangement of product to satisfy our customers need for fish products, and plant based fish alternative products in the future.

The project in itself is ongoing and therefore not ready for publication. We can however share that we have found a partner to help us in our quest, that product development and consumer testing have begun and that we see several possibilities within plant based proteins going forward.

One such possibility is to use Sugar Kelp from our own production into this product range giving us a huge advantage in sourcing, development and product quality. The largest challenge we face at this point is to find a plant based protein which can simulate the Atlantic salmon texture giving the right resistance in the mouth, creamy sensation on the tongue or the elastic bite when chewing.

In addition visuals and taste need to be perfect before products from this range will be ready for market. We continue this project also in 2022 and have ambitions to have plant based protein products ready for market during 2023.

Compliance with environmental laws and regulations

Management and responsibility for water use, water treatment and discharge is located locally in each company in the Group. The overall responsibility to make policies and strategies for our use, treatment and discharge of water lies with the Group management. In addition the Group have a responsibility to consolidate and control reported water related data from all companies.

The Group have not registered any violations of regulations related to use of -and discharge of water.

WATER USAGE

The worlds dependency on clean freshwater have never been greater. With an increasing global population, increased temperatures due to increased Co2 emissions and increased pollution, it has become even more important to govern our water sources in a sustainable manner.

LSG take this responsibility seriously and strive to protect and safeguard the freshwater sources we draw water from. We have devised strict protocols and procedures to make sure that we do not draw on more water than we are allowed to.

We are also in dialogue with local stakeholders and communities thorough local meetings organized by Lerøy. We need, through our ASC certification, to have meetings with local stakeholders and communities to discuss concerns and questions they have. To this date water usage or water discharge have not been a  topic at any of these meetings.

We do this based on extensive risk analysis and preventive actions. This also protects local habitats and wildlife in addition to reduce our impact on local water levels. We also continue our effort to switch all flow through systems for Salmon farming over to RAS 

In 2021 we did not plan for any new Smolt facilities with RAS technology. We did however manage a 1,9 % water reduction in the Group, reducing our fresh water usage from 86 770 110, 3 m3 in 2020 to 85 115 627,7 m3 in 2021. Several factors have contributed to the reduction in freshwater use in 2021, but the main contributors are increased focus in the value chain regarding water management and investments in water saving equipment in several of our facilities.

The Group withdrew the following volume of freshwater by Source; 83 742 472 m3 from Surfacewater source; 1 362 157,66 from municipal source; 8598 m3 from groundwater source and 2400 m3 from Rainwater source.

In our operations, and mainly the Smolt operations, there have been identified risks which may have a negative impact on our operations. Long term drought has the highest consequences for our operations and may cause severe impacts on both fish welfare and our financial situation. Long term drought which will deplete our water reserves in magazines is however deemed unlikely since access to clean high quality freshwater in Norway is good. 

In 2021 LSG sourced 98,4 % of its fresh water from surface water sources, and 1,6 % from Municipality sources.  The farming segment used 0,36 m3 fresh water per kg fish produced, while our slaughterhouses used 0,0053 m3 freshwater per kg fish produced, and our VAP segment used 0,0069 m3 in 2021.  Wildcatch segment used 0,0087 m3 per kg fish produced.

Lerøy have an ambition to include water usage and water discharge also in our supplier evaluation routines. As of now we do not have any data on water usage and discharge from our suppliers.

RAS

The RAS (Recirculating Aquaculture Systems) technology allows Lerøy Seafood Group to produce fish with up to 99% reduction in water use compared  to conventional flow-through systems. The Group  started to use RAS-technology already in 2005.

In 2021, approximately 80% of all salmon smolt in Lerøy Seafood Group was reared with this technology. RAS technology also entails that we recycle and cleans the water before discharge. In 2021 the total volume of freshwater which was recycled and reused in RAS systems was approximatly 66 240 172,8 m3. That is 78 % of the total withdrawn water in the group.

Using RAS technology allows us to discharge the recycled water directly back to the source or directly to the sea according to our permits. These permits for release of process water have different parameters which needs to be fulfilled based on location.

These peramaters can be TOC (Total Organic Carbon), N_tot (Total Nitrogen) and P_tot (total phosphor). The limit, or degree purified water for these can wary depending on permit and area of operations. For one of our facilities the degree of purification limits would look like this:

Waste water discharge

We continue our work with water treatment and discharge. All of our processing factories, new and old, are equipped with fat separators and UV light treatment. In some factories, where it’s necessary, we also have chemical treatment (Chlorine) of waste water in addition to mechanical treatment before discharge.

Our discharged wastewater from VAP/sales and distribution segment is mainly released to municipal treatment (412 071 m3) centres after internal treatment. Outgoing discharge water is tested in accordance with local requirments, and deviations is handled in our quality management system. In our farming segment our most water intensive operations are the juvenile fish production, and discharged wastewater from these operations are managed through approvals from local governments. All our units in this segment discharge treated wastewater (82 800 216 m3) directly into the sea in accordance with permits/agreements with local government based on analysis of the discharged water.

New technology and proximity to a biogas facility in Sweden have made it possible for one of our factory to send wastewater for treatment there, and at the same time recover biogas from the waste water. This has resulted in eliminating treatment on site which is beneficial  for all parties.

Our operations consumption of freshwater is not significant. We have therefore defined our discharge of wastewater to be the same as our intake of freshwater (2021: 85 115 628m3).

All Water related non-conformites are reported, handled and stored in our Quality Management system. This system enables us to keep track of trends and implement correct corrective and preventive actions. Lerøy had no major incidents regarding wastewater spils or unwanted/unplanned discharge in 2021.

Water related CAPEX and OPEX:

Waste handling and Sorting 

Improving our handling and sorting of waste is a continuous priority for LSG. Increasing our sorting Grade of waste for reuse, material -and energy recovery will greatly impact our environment through reduction of unwanted, hazardous and non-biodegradable waste in the environment . In this regard LSG began work in 2021 to investigate if a strategic partner within waste handling could be a solution, first and foremost for our Norwegian operations. This work is well underway and the result is planned to be shared in 2022.

Finding one strategic partner for all our waste handling in Norway will significantly influence how the local and central management works with waste. It will also give us the opportunity to better influence how -and what happens with our waste fractions. We see several opportunities in the future to strengthen our engagement and commitment to increase our degree of recirculation within the group, also outside of Norway.

In the meantime we have continued implementing strict sorting regimes in all our locations and strive, in collaboration with our waste handling companies, to make sure that all our waste is handled in a sustainable way by us and the recipient of the waste. In this the different waste handling companies, local and National governments are the main contributor and drivers to make the big changes. Without involvement, dedication and investments from them, it will be difficult to see a significant change in share of waste being, reused and recovered.

We are committed to continue our work in different forums like the UN Global Compact initiative to do what we can to push for change within the national and global regulations for waste handling and sorting. Our companies will also continue to audit and followup our suppliers on wastehandling to make sure that our waste is handled in a legal and sustainable manner.

All waste fraction data is mandatory to report to the group through its environmetal reporting system (Cemasys). Data reported monthy is based on invoice from Waste handling companies.

Our goal for 2021 was to increase the share by 5 % compared to 2020.  

The group reduced its share of non-organic waste which was recycled (Material recovered and re-used) in 2021 with 0,49% compared to 2020. Our share of recycled waste was 53,31 % (3 190 643 kg) compared to 53,80 % in 2020. Our Waste fractions which is not recycled are either sent to Energy recovery (21,9% (1 308 991 kg) of total volume), Landfill (9,9% (592 359 kg) of total volume) or Composting (0,1% (6395 kg) of total volume). In addition we had a category for other wastes in 2021 which represented 14,78 % (884 335 kg) of our total waste fractions . The Other category will be removed for the 2022 reporting, ensuring that our companies will add the waste fractions to the right destination and disposal method. 

We are not satisfied with a decline of 0,49 % in recycled waste in the group, even though we had a 2,66 % increase in waste volume in 2021. Since last year our companies have been in dialog with their respective waste handling companies and asked what could be done to increase the share of recycled waste. Some changes have been made on a local level and we see that the share of material recovery is increasing for some. Lerøy’s main operations is however in Norway, and the majority of our waste is generated in our farming section. This is one of the reasons why Lerøy started to look for a strategic partner for all waste handling in Norway in 2021. It gave us the opportunity to find a partner which suited our operations and need the best, and which could help us on our way to reach our goals in the future for waste handling.

Key requirements in the procurement process:

1) Better reporting functionality than we have today

2) Possibility to consolidate data on a group level

3) Infrastructure to handle and maintain service for all our locations in Norway

4) Clear strategy for recycling within the waste handling company which is in line with our own.

5) To be a contributing partner, finding good solutions to increase Lerøy`s share of recycled waste.

6) and more.

The share of hazardous waste in LSG is still low, and contribute less than 0,01 % of the total amount of waste we generate. Some of our factories still use fluorescent lights, so by changing them to LED lights we can reduce this even further. In addition, the electrifying of our feeding stations will also reduce our hazardous waste by eliminating the use of oils and lubricants for our generators.  

ELECTRICITY

The Group has established different revolutionary measures in order to reduce environmental impact; from obtaining power from land, hybrid fleets, floating  solar cells, to electric working boats.

Wherever it is possible, the Group seeks to use electricity sourced from land-based powerlines  instead of electricity from generators at each production site.

Power from land:

Power from land usually makes good overall  economic sense.

Power from land results in:

• Reduced emissions
• Less noise
• Good economy
• Less maintenance

The further development of power from land should entail a degree of overcapacity, thus enabling any future electrified boats to be recharged.

More than 65% of our sites now run on power from  land – a figure that will increase in the coming years. In 2022, there is a plan to replace fossil-fuelled  generators at 19 production sites. We will then have  85% of the Group`s sites on renewable electricity.

The various measures require technological  development and a high level of expertise, and in many ways, they represent a breakthrough in the industry.

Where the infrastructure is insufficient for land-based electricity, Lerøy Seafood Group is developing hybrid solutions that allow for up to 30% more efficient use of fossil fuels at each site. The Group has hybrid solutions with batteries at two production sites.

ORGANIC NON-EDIBLE MATERIALS

Organic waste in the group is reported in accordance with (EU) nr 142/2011. Category 2 and 3 Organic non-edible materials from our Farming activities is respectively 5,6 % and 8,5 % of the total volume produced.

Category 2 and 3 Organic non-edible materials from our VAP sales and Distribution segment is respectively 0,3 % and 4 % of the total volume produced.

The Group strives to increase the share for human consumption, and  aims to increase this by 50% by 2024. Projects across the Group have been ongoing since 2019.

We have e.g. invested in a harvest boat which will significantly increase fish welfare and volumes for harvest from our farming operations. This will reduce the volume in Category 2 significantly. In addition, several projects in our VAP, Sales and Distribution segment will  contribute to the reduction of food waste and increase the level of raw materials for human consumption.

RECYCLING

The Group is actively involved in the process of recovering plastic waste from the oceans through different programs, in order to protect marine wildlife. One of the activities is recycling our fish farming nets, ropes and old trawlernets.

Another activity is: “ Only on loan”. This is a project in which Lerøy Seafood works together with waste and recycling company Norsk Recycling to ensure that the packaging for products packed in aluminium trays is returned for recycling after use.  Such packaging is therefore only “on loan”.

Waste is a resource that is not properly utilised, and we aim to do something about this. We also focus on using the  correct packaging and the correct size of products in order to avoid waste.

EFFECTS OF RECYCLING OF FISH FARMING NETS, YARN AND OLD TRAWLS

USE OF ORGANIC SLUDGE FROM SMOLT PRODUCTION

Since 2013, when the juvenile production facility Belsvik opened, we have sent our organic sludge to a biogas production facility. The use of Organic sludge as biogas is sustainable, but we have found that long transportation of sludge with high content of water was less sustainable.

Investment in a drying facility on location was therefore recently decided and from 2023 we will be able to deliver dried sludge to the agriculture industry.

The Sludge will be used as a soil improvement material and fertilizer. Our other two major smolt production sites in Laksefjord and Kjærelva is already drying their sludge on site for the agriculture industry.

SUGAR KELP

The Group is also producing sugar kelp, which is another example of recycling. When we produce sugar kelp we use the nutritions from fish farming to produce sugar kelp and blue mussels.

PRODUCTION OF SUGAR KELP

Producing sugar kelp is a very efficient way of binding CO₂ already dissolved in the sea. Farming sugar kelp does not require any input of freshwater, fertiliser, pesticides or land. The plant captures the nitrogen, phosphorus and carbon (as CO₂) directly from the ocean. On average, 1.000 kg (wet weight) sugar kelp contains 26 kg carbon equal to 100 kg CO₂ – which is higher than the same volume for wood.

Ocean Forest AS is an R&D company, and the Group has a 50% share in this company together with NGO Bellona Holding AS. The company is focusing on the production of low trophic species such as macro algae, blue mussels and polychaeta.

Main goal:

• To reduce the footprint of our fish farming activities by capturing dissolved nitrogen, phosphorus and carbon dioxide from the water
• To develop new ingredients for human consumption or animal feed
• To develop new species for the Norwegian aquaculture industry

The use of sugarkelp as an feed ingredient for cattles provides a significant reduction in methane emissions from cattle farming.

PRODUCTION OF BLUE MUSSEL MEAL

Ocean Forest AS has focus on the production of blue mussels, not for human consumption but mainly as a source of marine protein in feed. We have conducted a series of growth studies with Atlantic salmon demonstrating that blue mussel is an excellent fishmeal replacement.

The challenge has been to produce a blue mussel meal free of shell fractions on an industrial scale. We have now ordered special equipment that will enable us to separate the meat from the shell on an industrially efficient scale. In addition, blue mussels will also contribute to cuts in CO₂ emissions.

NEW RAW MATERIAL FOR FEED

The Group has a major ongoing programme for developing new innovative raw material for fish feed. Historically, Lerøy has been a prime mover regarding  the use of Omega-3 fatty acids produced from microalgae to increase the level of Omega-3 in our  feed compared to industry standard, and for the introduction of Camelina oil and the ban on ethoxyquin. Last year, we were the first company to start using  insect meal in all our freshwater feed delivered by one of our feed suppliers.

Today, we buy the full volume of insect meal the producer can produce. We are also involved in very interesting projects relating to blue mussel meal and seaweed in salmon feed. Both projects are part of a major EU-supported project – “Holofood”, involving a series of issues, such as feed utilisation and retention, growth performance, fish and gut health.

Methane reduction with sugar kelp

The Group is also delivering sugar kelp to an exciting project in Denmark. In the project, they mix sugar kelp with feed for cows. Compared with ordinary diets with normal cow feed, the project shows that  this mixture provides a 50% reduction in the methane emissions from the cows. Fermented sugar kelp in feed also proved successful.

Methane concentration from pure sugar kelp feed,  maize silage and sugar beet pulp fermented.

While the use of antibiotics is almost non-existent in Norwegian fish farming, it is a major problem in  production of red meat. Here too, sugar kelp can be helpful. The trials in Denmark show that sugar kelp in pig feed, helps with intestinal health and reduces the need for antibiotics.

Project 50/50-5 Food waste

Globally food waste contribute to 8-10 % of greenhouse gas emissions. By reducing food waste we also reduce our climate foot print. About 2 kg of CO2e are emitted for 1 kg of food waste.  

Food waste includes all usable parts of food produced for humans, but which are either discarded or removed from the food chain for purposes other than human food.  

In project 50/50-5, the Group has chosen to include reduced mortality in farming and utilisation of residual raw materials from wild catches to produce fishmeal, fish oil or silage. Such raw materials are used for human consumption or animal feed, generating food for humans.

The Group has participated in a SINTEF project to map the amount of food waste that occurs in the seafood industry, enabling sub-projects to be set up that have an impact.  

We aim to increase the edible proportion of today's food waste by 50%, including reduction in mortality in farming and increased utilisation of residual raw materials from wild catches (fishmeal, oil, silage) and reduction of floor fish and unsold products in the Industry/VAP segment.

Level of fishmeal, oil and silage produced from residual raw material have increased by 39% from 2019 to 2021. 

The increase is mainly cause of the new vessel Kongsfjord producing silage and optimalization of oil and meal production. Volumes in 2022 will not have such significant increase, increase will mainly be in optimizing meal, oil & silage production.  

In Industry and VAP segment reducing food waste is to among other sub projects reduce level of floor fish (products falling on the floor in the production) and unsold products (products expired or ingredients not used in products).

It has been challenging finding a good reporting solution for Industry/VAP facilities in reporting floor fish and unsold product total for the Group. We therefor do not have sufficient data from 2019 to compare with. Level of floor fish and unsold products was in 2020 around 412 000kg  and in 2021 ;167 383 kg total in the group. All facilities are working according the action plan to reduce floor fish and unsold products.

OTHER FOOD WASTE REDUCTION PROJECTS

• Utilisation of residual raw materials from wild caught segment as a circular economy within the Group   
• Increased utilisation of residual raw materials from white fish processing plants – “we use it all”.
• Opportunity to develop new products utilising residual raw materials in our plant in Stamsund, producing fish cakes, puddings etc.
• Increased shelf life for retail products to contribute to lower food waste at retail level. By using new technology like CO2 emitters in consumer packages, we have increased shelf life for certain consumer packages by +24% (5 days) 
• Projects investigating new opportunities to extract protein and meal from residual raw materials
• Measures to reduce products falling on the floor in all our facilities. A single project will give a reduction of 12 000 kg of food loss by a reduction of 70%.
• Optimizing trimmings in our facilities to develop new products from trimmings and new by-products.

Project 50/50-5 Food waste

Globally food waste contribute to 8-10 % of greenhouse gas emissions. By reducing food waste we also reduce our climate foot print. About 2 kg of CO2e are emitted for 1 kg of food waste.  

Food waste includes all usable parts of food produced for humans, but which are either discarded or removed from the food chain for purposes other than human food.  

In project 50/50-5, the Group has chosen to include reduced mortality in farming and utilisation of residual raw materials from wild catches to produce fishmeal, fish oil or silage. Such raw materials are used for human consumption or animal feed, generating food for humans.

The Group has participated in a SINTEF project to map the amount of food waste that occurs in the seafood industry, enabling sub-projects to be set up that have an impact.  

We aim to reduce current food waste by 50%, including reduction in mortality in farming and increased utilisation of residual raw materials from wild catches (fishmeal, oil, silage) and reduction of floor fish and unsold products in the Industry/VAP segment.

Level of fishmeal, oil and silage produced from residual raw material have increased by 39% from 2019 to 2021. The increase is mainly cause of the new vessel Kongsfjord producing silage and optimalization of oil and meal production. Volumes in 2022 will not have such significant increase, increase will mainly be in optimizing meal, oil & silage production.  

In Industry and VAP segment reducing food waste is to among other sub projects reduce level of floor fish (products falling on the floor in the production) and unsold products (products expired or ingredients not used in products).

It has been challenging finding a good reporting solution for Industry/VAP facilities in reporting floor fish and unsold product total for the Group. We therefor do not have sufficient data from 2019 to compare with. Level of floor fish and unsold products was in 2020 around 176 868 kg  and in 2021 ;167 383 kg total in the group. All facilities are working according the action plan to reduce floor fish and unsold products.

OTHER FOOD WASTE REDUCTION PROJECTS

• Utilisation of residual raw materials from wild caught segment as a circular economy within the Group   
• Increased utilisation of residual raw materials from white fish processing plants – “we use it all”.
• Opportunity to develop new products utilising residual raw materials in our plant in Stamsund, producing fish cakes, puddings etc.
• Increased shelf life for retail products to contribute to lower food waste at retail level. By using new technology like CO2 emitters in consumer packages, we have increased shelf life for certain consumer packages by +24% (5 days) 
• Projects investigating new opportunities to extract protein and meal from residual raw materials
• Measures to reduce products falling on the floor in all our facilities. A single project will give a reduction of 12 000 kg of food loss by a reduction of 70%.
• Optimizing trimmings in our facilities to develop new products from trimmings and new by-products.

Project 50/50-5 Plastic

About 5 kg of CO2e are emitted for 1 kilogram of plastic – 2 kg resulting from the production of the plastic and 3 kg of CO2 are emitted when the plastic is burned after use. For some types of plastic, the number may be 4.5 – and for others 5.5. Source: Norwegian Climate Foundation 

Lerøy’s programme, as a Group, is reduce non-recyclable plastic consumption by 50%, including reduction in total plastic consumption. All 60 companies in the Group will contribute to achieving the goal and have established sub-projects with goals for each company.

Each company has established a detailed action plan so that the Group can achieve the target in total by 2024. Cooperation, reporting and following up takes place at three segment levels: Farming, Wild catch and VAP, Sales & Distribution. Cooperation at segment level allows us to utilise ideas and actions across similar operations within the Group, improving our contribution towards achieving the main goals. 

Over the past year, the Group has carried out a thorough evaluation of the sub-projects to assess the actual effect and impact of the measures taken – and to ensure that they are making a difference!

Our understanding is that all plastic is recyclable as long as it is possible to collect and sort in the right fractions. Therefore, "non" recyclable plastic is interpreted as plastic in wrong place. 

We aim to reduce non-recyclable plastic consumption by 50%, including reduction in total plastic consumption. For Farming we measure amount of feed tubes and ropes purchased, for wild catch, Industry and VAP we measure amount of vacuum film, plastic bag sheet and single use hygienic equipment purchased. 

Summarized;  to  reduce plastic purchased as a result of the different sub projects. Less plastic used equals less plastic in wrong place or less kg of plastic per kg products produced. 

For 2021 the group used 6 029 351kg of plastic within the identified areas, about the same level as 2020. We believe that better reporting quality of plastic use in the organization is the reason why volume do not decrease.

OTHER PLASTIC CONSUMPTION REDUCTION PROJECTS

• On four-pack frozen salmon and frozen whitefish products, we use one plastic chamber for the label. By removing the last chamber with label, we are able toreduce plastic consumption by 10.000 kg.
• Reduce disposable / hygiene items at each site and replace with multi-use articles.
• Reduce the use of disposable cleaning agent containers and replace them with multi-use containers.
• By making changes to just one product, we can reduce plastic waste by 2.5 tonnes by changing the use of vacuum film. This change will also reduce costs. 
• By working together with our customers we can increase the “degree of filling” in each packaging, reducing the use of plastic per kg of product.