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.