Below is a brief summary of the general framework and assumptions made when calculating greenhouse gas emissions for Lerøy Seafood Group in 2017.
The framework selected for calculating emissions includes emissions from combustion processes required for the operation of the Group's fish-farming companies and the related processing activities. This is referred to in the following as direct emissions. The Group also wanted to gain an overview of the indirect impact on global warming from the company's activities and has therefore included CO2 emissions from the production of electricity consumed by the company's fish-farming companies in Norway.
Significant sources of greenhouse gas emissions from Lerøy Seafood Group's core activities in Norway have been included in the calculations.
The purchase of products and services such as transport has not been included in the calculations. Lerøy Seafood Group is currently working on obtaining a good basis for calculating this. The tables provide a summary of consumption of fossil fuels and electricity, and greenhouse gas emissions for our most important segments. In addition, the feed companies have average emissions of 1.73 CO2e per kg feed produced for Lerøy Seafood Group. In 2016, Lerøy Seafood Group utilised a total of 236,371 tons of fish feed.
Direct emissions of CO2, CH4 (methane) and N2O (nitrogen oxide) are estimated based on the consumption of various fuel sources such as diesel, heating oil, petrol, propane and marine gas oil (MGO). Emissions from the combustion of petrol are assumed to be associated with cars, while emissions from marine gas oil are assumed to be associated with ships. Methane and nitrogen oxide emissions are converted to CO2 equivalents using their respective global warming potential (GWP); see explanation below.
The emission factors on which the calculation of direct emissions is based have been sourced from the UK Department for Environment, Food & Rural Affairs (2016).
Indirect emissions are emissions of CO2 from purchased electricity. The conversion for these emissions in Norway is based on the emission factor for energy mix in Norway, obtained from the Norwegian Water Resources and Energy Directorate (NVE).
GLOBAL WARMING POTENTIAL (GWP)
GWP is a measurement of the warming effect of various greenhouse gases on the atmosphere. The most significant greenhouse gases are CO2, methane and nitrogen oxide. GWP allows comparison of the warming potential of these gases, expressed as CO2 equivalents. Taking a perspective of the next 100 years, for example, emissions of 1 ton of CH4 will have an impact on global warming equivalent to emissions of 25 tons of CO2.
The analysis is based on A Corporate Accounting and Reporting Standard, the international standard developed by the Greenhouse Gas (GHG) Protocol Initiative. This is the most commonly applied method worldwide for measuring greenhouse gas emissions and forms the basis for ISO standard 14064-I.
EMISSIONS FROM LOGISTICS
Lerøy Seafood Group can influence its greenhouse gas emissions by developing its logistics solutions. Identifying the optimal transport solution is beneficial for the environment, while at the same time contributing to Group profitability. More than 80% of the Group’s products are distributed fresh. This places stringent requirements on proximity to the market and effective logistics solutions. Hallvard Lerøy AS is the largest sales and distribution company within the Lerøy Seafood Group. Hallvard Lerøy AS transports products by road, air, sea and rail. In 2017, over 80% of product distribution was by road.
The majority of distribution still takes place by road. This is mainly due to the limited options in terms of logistics solutions in the different regions. A number of our customers choose to provide transport themselves and therefore pick up products directly from our facilities. We work closely with our transport suppliers, reinforcing the importance of environmental protection. All told, the vehicles we use in our distribution are much newer and better than those used by several of our customers. If we can encourage some of these customers to use our distribution network, this will reduce CO2 emissions.
We continuously look for new distribution solutions that provide the level of service we currently offer our customers, while also being competitive on price. For example, in 2009 we altered one of our most heavily used routes to France. Whereas we previously transported salmon fillets from Norway to Arras in France in fully loaded trucks, we now make use of rail transport for parts of the route. This has allowed us to increase profitability as well as reduce our CO2 emissions. Solutions like this will make it easier for us to contribute positively to environmental protection. By making use of rail transport for parts of the route between Trondheim and Rotterdam, we have achieved a 68.5% reduction in CO2, down from 3.91 to 1.23 tons. The fact that the major transport companies now offer rail transport of entire articulated trailers to Germany and the Netherlands gives us new opportunities to make more use of rail transport.
The volume of fish transported by air has increased in the past year, due to higher sales to Asia, Australia and the USA. We work closely with our air transport suppliers to identify the best air freight systems and the best solutions for the environment.
Among other things, we work closely with a major airline that has scheduled passenger flights covering many of our markets. We make use of the cargo capacity on these planes, which are modern and mainly fly the shortest distance possible from A to B. Consciously focusing on this type of air freight helps us to access our markets using the most modern and least polluting aircraft. Conscious choices and attitudes have enabled us to fly lower product volumes in dedicated cargo planes.
Lerøy Seafood Group’s products from Northern Norway are transported to Southern Norway mainly by rail. This system works well during the summer months. During the winter, there are sometimes delays due to weather conditions etc. that force the Group to make use of uneconomical solutions that may also be less than optimal for the environment.
It is currently our frozen seafood that is transported by ship. We will maintain our focus on eco-friendly logistics in the years ahead and will collaborate closely with our main suppliers of distribution services to contribute to eco-friendly developments in this area.
Our increased focus on processed fish and the fact that we process many of our products in Norway allow us to make positive contributions to environmental protection.