Lerøy Seafood Group´s strategy is based on an eternal perspective and comprises specific and continuous sustainable improvement measures throughout the value chain.
The Group aim to be a little bit better every day and we are focused on making the right decisions each day to reach this goal.
For Lerøy Seafood Group as a corporation, maintaining a constant focus on areas where we have the greatest influence in terms of sustainability is essential.
Based on a critical evaluation of the value chain and our processes, we have concluded that we currently have the greatest influence within our work on the different areas related to our fish-farming activities. A major share of our efforts related to the environment and sustainability will therefore focus on fish farming.
Vision for the Group
«We shall be the leading and most profitable global supplier of sustainable high-quality seafood.»
We live by what is produced in the ocean and rely on sustainable management of resources. This enables us to produce and sell quality seafood in the future. Through close cooperation with professional bodies, customers and suppliers, we will deliver: a safe working environment, high professional competence, the right quality and sustainable solutions throughout the value chain.
The values of the company are to be creative, honest, open and responsible.
Mission
“Take action today for a difference tomorrow”
Download our value chain analysis regarding sustainability below.
The Audit Committee follows up ESG-related matters and makes recommendations and proposals for changes and improvements The Audit Committee consists of Didrik Munch (Chair) Britt Kathrine Drivenes. The Audit Committee report to the Chair of the Board. The Audit Committee holds meetings four times a year. Both a representative from ESG & Quality department as well as an independent auditor is present at these meetings.
The Audit Committee conducts quality assurance of internal control and reporting. It is also responsible for the Board of Directors' dialogue with and monitoring of the external auditor. The auditor reports on their work in writing to the company administration and the Board via Audit Committee.
Pursuant to section 6-41 (1) Of the Norwegian Public Limited Liability Companies Act, companies listed on the Stock Exchange shall have a Nomination Committee which consists of three members elected by the annual general meeting for a period of two years. The company’s nomination committee prepares proposals for the composition of a shareholder-elected Board of Directors, and submits recommendations to the annual general meeting for appointments to the board.
The company has not established specific guidelines for the Nomination Committee. However, the composition of the Nomination Committee ensures that the interests of the shareholders in general are taken into account in that the majority within the committee is independent of the Board and other executive personnel, and that the company’s Articles of Association also specify the framework for the work of the Committee.
The Nomination Committee makes a recommendation regarding remuneration to the members of the Board. The general meeting makes the final decision regarding fees to be paid to the members of the company's Board and Nomination Committee.
The Nomination Committee will facilitate contact with the shareholders, the Board members and the CEO when working on the recommendation of candidates. In addition, shareholders are permitted to recommend candidates to the Committee.
The recommendation of the Nomination Committee is included in the supporting documentation for the general meeting, which is published within the 21-day deadline for notice of the general meeting.
All shareholders can propose candidates for election to the company’s Doard of Directors.
Chair of the Board Arne Møgster (He/him) (1975) was elected to the board at the annual general meeting on 26 May 2009. He holds a Master of Science (MSc) in International Shipping and a Bachelor degree in Business and Administration.
Arne Møgster is the CEO of Austevoll Seafoood AS, and a board member for a number of companies in the Austevoll Seafood Group. Prior to joining Austevoll Seafood ASA in 2006 - Arne Møgster earned himself versatile experience working within fishing, shipbuilding and the offshore supply market. He was the Managing Director of Norskan AS for 3 years, with one year based in Brazil.
Through his position as CEO and board member in listed companies for more than a decade Arne has extensive knowledge of a broad range of subjects including wide experience in working with ESG.
Austevoll Seafood is the majority owner in Lerøy Seafood Group, and the majority owner in Austevoll Seafood is Laco AS. Arne Møgster is a shareholder in Laco AS, and indirectly holds shares in Lerøy Seafood Group ASA. There are some transactions between companies in the Austevoll Seafood Group and Lerøy. Such transactions take place according to the arm’s length principle and are described in the company’s annual report.
Board memeber - Siri Lill Mannes (She/her) (1970) was elected to the board at the annual general meeting on 23 May 2018. Siri Lill holds a Master degree in history, and has also studied Russian and political science. She also completed the Armed Forces’ course in Russian (officer's training school) and studied political science in Georgia, USA, on a one-year Rotary Club scholarship.
In 2017, she completed the Senior Executive Coure at the Norwegian Defence University College (Sjefskurset, Forsvarets Høyskole). Having worked as a TV host and entrepreneur, Siri Lill Mannes has an extensive background in journalism. She started working for TV2 in 1992, when the channel was founded. Since 2010, she has been director of the communications company SpeakLab AS, where she is also a partner and founder.
Through her positions and experience Siri has extensive knowledge within among others international politics and communication. Siri Lill regularly moderates conferences on security, digitalisation and cybersecurity. Since 2015, she has been moderator for the National Security Conference by the Norwegian National Security Authority (NSM).
Siri Lill Mannes is an independent director in the board. She owned no shares in the company as of 31 December 2022.
Board member Didrik Munch (He/him) (1956) was elected to the Board at the annual general meeting on 23 May 2012. He has a law degree from the University of Bergen. Didrik Munch qualified as a police officer at the Norwegian Police University College in Oslo and held a number of positions within the Norwegian police force (1977–1986).
From 1986 to 1997, he worked in finance, primarily in the DnB system, where he ultimately joined corporate management as Director for the DnB Corporate Customer division. From 1997 to 2008, Didrik Munch was CEO of Bergens Tidende AS. He was CEO of Schibsted Norge AS (formerly Media Norge AS) from 2008 to 2018 and is currently self-employed. Didrik Munch has served on several boards in a number of companies, both as chairperson and ordinary member.
He is currently Chairman of the Board for Storebrand ASA, Solstrand Fjordhotell Holding AS, and NWT Media AS and a board member for Grieg Maritime Group AS, SH Holding AS and Jonstadveien 6 AS. Didrik Munch is currently chair of the audit committee in Lerøy Seafood Group ASA. He has far-reaching knowledge also within ESG, through his extensive experience from both the management and board of some of Norway’s largest companies. Didrik Munch is an independent director in the board. He owned no shares in the company as of 31 December 2022.
Board member Britt Kathrine Drivenes (She/her) (1963) was elected to the board at the annual general meeting on 20 May 2008. She holds a Bachelor of Business Administration from the Norwegian School of Management (BI) and a Master of Business Administration in Strategic Management from the Norwegian School of Economics (NHH).
She is CFO of Austevoll Seafood ASA and also a board member in a number of companies in the Austevoll Seafood Group. She has also been part of the Board in FHF – Norwegian Seafood Research Fund since 2019. FHF’s goal is to create added value to the Seafood industry through industry-based research and development.
Britt Kathrine Drivenes has extensive experience from the fish industry as well as financing, accounting and ESG. She is the Board member who is responsible for overseeing ESG related issues. Britt Kathrine Drivenes owns shares indirectly in Lerøy Seafood Group ASA, as a shareholder in Austevoll Seafood ASA.
Board member Karoline Møgster (She/her) (1980) was elected to the board at the annual general meeting on 23 May 2017. Karoline Møgster has a law degree from the University of Bergen (Candidata juris). She also has a Master of Science in Accounting and Auditing (MRR) from the Norwegian School of Economics. She worked as a lawyer with Advokatfirmaet Thommessen AS and is now employed as a lawyer for the Møgster Group. Karoline has extensive experience within Corporate Governance and corporate law as well as accounting and financing.
She is a board member for Laco AS, and Fiskebåt South. Karoline has board experience from other listed companies. Fiskebåt is an interest and employer organisation for the Norwegian ocean-going fishing fleet, and represent the majority of ocean-going fishing vessels.
Laco is the ultimate parent company of Lerøy Seafood Group. There are some transactions between companies in the Austevoll Seafood Group and Lerøy. Such transactions take place according to the arm’s length principle and are described in the company’s annual report. Karoline Møgster indirectly owns shares in Lerøy Seafood Group ASA as a shareholder of Laco AS.
Board member Hans Petter Vestre (He/him) (1966) was elected employees’ representative to the board at the annual general meeting on 24 April 1995. Hans Petter Vestre is a graduate of the Norwegian College of Fishery, University of Tromsø. He started as a sales manager at Hallvard Lerøy AS in 1992, he is today a team manager at Lerøy Seafood AS.
Hans Petter Vestre has owns 1,200 shares in the company as of 31 December 2022. Hans Petter is a board member in Bergen CK (Cycle club), and has received training within both ESG and IT security as an employee in Lerøy.
None of the board members represent an underrepresented social group (GRI definition: under-represented social group group of individuals who are less represented within a subset (e.g., a body or committee, employees of an organization) relative to their numbers in the general population, and who therefore have less opportunity to express their economic, social, or political needs and views).
Board members are continuously acquiring new ESG-related knowledge in order to stay up-to-date with the latest trends and best practices in the ESG-field. Continuous learning is essential to be able to identify new challenges and opportunities. All of the Board members are participating in various trainings, workshops, conferences and networking arrangements.
Both the Board and Management Team are involved in developing, approving and updating the organization's strategy, policies ang goals related to sustainable development.
The Board has delegated carrying out the day-to-day process of identifying and assessing actual and potential impacts on the economy, environment and people as well as determination of material topics for reporting to ESG & Quality department.
ESG & Quality department created and overview of the Group’s stakeholders and identified a list of actual and potential sustainability impacts. The list was distributed to relevant stakeholders and thay were asked to assess the significance of the impacts. The most significant impacts for reporting were prioritized to determine which topics are material.
The Board and the Management Team are reviewing both the effectiveness and the outcome of the process annually.
For more detailed information on stakeholder engagement, please, visit the chapter on Stakeholders.
Each member of the Management team is responsible for an area/an operational segment. This includes responsibility for overseeing the organization’s impacts on the economy, environment, and people. All companies in the Group have defined sustainability related KPI’s and these are managed on local level.
Day-to-day follow-up of sustainability related KPI's is performed locally. Monthly/ quarterly/ annual review of reported information is carried out by ESG & Quality department. Organization’s impacts on the economy, environment, and people are reviewed by the Management Team monthly. The Board is reviewing impacts related to economy, environment, and people at every meeting. The Audit Committee is reviewing impacts on the economy, environment, and people in detail four times a year.
Both the Board and the Management Team review and approve both the list of material topics as well as reported information. The material topics and reported information (on high-level) is presented to and approved by the Board. The information is presented and distributed to the Board by the Head of ESG & Quality. The presented information is being reviewed by the Board prior it being approved. Corrections and amendments are made if necessary.
The company has developed a Board of Director's Guidance and Working procedure. The document is prepared in cooperation with both the Board and the Chair of the Board. The procedure contains, among other issues, guidance on how the Board and the Management team shall handle agreements with related parties.
The company has established a procedure to ensures that both the Board and the Management Team must notify the Board of Directors if Lerøy enters an agreement where a member of the Board or the Management Team might have any significant interest in. In cases where a company which has connections to a Board member performs work for the Board, the independence issue is assessed by the Board. If necessary, appropriate action is taken accordingly.
Should transactions with related parties occur, these shall be documented and executed according to the Arm’s Length Principle. An independent assessment shall be carried out for significant contracts. Exemptions may be made for agreements that represent part of the company’s regular operations, and are based on regular commercial conditions and principles.
Agreements with related parties shall be reviewed to ensure sufficient clarity regarding proper balance of the agreements. This is to make sure that the company is aware of potential conflicts of interest and performs due diligence checks prior to entering a contract. The purpose of this process is to prevent assets being transferred from the company to related parties.
Information on related parties is available in the Group’s Annual report – Financial information – Note 25- Related Parties.
(Potential) conflicts of interest are not disclosed to stakeholders.
When recruiting board members, the company’s owners follow a longstanding strategy of assessing the company’s need for varied competency (including ESG-related competency), continuity, renewal and changes in ownership structure. It will always be in the company’s interest to ensure that the composition of the Board varies in line with the demands and expectations made on the Group.
The Board is performing self-evaluation at least annually. The Board’s evaluation of its own performance and of Group management must of course be seen in conjunction with the Group’s performance. To date, the Board has not issued reports on its evaluation of its own work; this is a conscious priority decision and must be viewed in connection with other announcements in the company’s communications to the public. Moreover, external evaluations of the Board’s work are probably the most influential and are likely to remain so in the future.
If relevant and necessary actions might be taken in response to these evaluations. The actions can include changes to the composition of the highest governance body and organizational practices.
Recommendations for remuneration of the members of the Board are developed by the company’s Nomination Committee and adopted by the annual general meeting in accordance with section 6-10 of the Public limited Liability Companies Act.
Remuneration of the Board of Directors is not based on results. The Board members elected by the shareholders have no share options. If enterprises which board members are associated with perform work for the company’s Board, the question of independence is treated specifically by the Board.
Remuneration of the Chairperson of the Board and other board members is recommended by the Nomination Committee and adopted by the General meeting.
The annual General meeting on 23rd May 2022 adopted annual remuneration of the Board of Directors as follows:
Chairperson of the Board - NOK 500,000
Other Board members - NOK 300,000
The Audit Committee’s remuneration for additional work performed is NOK 120 000 for the Chairperson of the Committee and NOK 80 000 per year for other members of the Committee.
The annual remuneration for the Nomination Committee is NOK 45 000 per member.
Results of votes of stakeholders on remuneration:
The company does not involve remuneration consultants in determining remuneration.
A renumeration report for executives is published annually, highlighting the actual remuneration, remuneration principles and framework. The guidelines regarding salary and other remuneration shall be clear and understandable and contribute to the company’s business strategy, long-term interests, and financial capacity. The schemes for salary and other remuneration shall help to align the interests of shareholders and executive personnel, and they shall be simple.
The annual general meeting shall, at minimum every four years, review and approve the Board’s guidelines for stipulating salary and other remuneration of persons in senior positions according to the provisions in section 6-16 a of the Public Limited Liability Companies Act and related regulations. Furthermore, the annual General meeting shall hold an advisory vote each year on the board’s statement regarding paid and current remuneration covered by the guidelines prepared according to section 6-16 a of the Public Limited Liability Companies Act, cf. section 6-16 b of the Public Limited Liability Companies Act.
Regarding remuneration of executive personnel – the Company mainly uses fixed pay as a compensation option. Variable pay is used to a limited degree. Executive salary shall be competitive, so that the company is able to attract and retain the most skilled executive-level employees. The fixed remuneration of executive personnel shall include: Base salary – it is established on the basis of the responsibilities, complexity, competencies and length of service for the position.
Base salary is normally the main element of executive personnel salaries. Bonus schemes – in principle, bonuses are a form of profit sharing where members of management are remunerated for their contribution to the company’s long term earnings and development.
The purpose of Lerøy’s bonus scheme is to stimulate continuous development of Lerøy’s value creation, growth and results, as defined in the company’s strategy. Bonus payments are assessed and stipulated every year based on a comprehensive evaluation of five components: the executive’s value creation, efforts, results, values, attitudes and conduct – all in relation to defined goals, tasks and available resources, this also includes performance related to organizations impacts on the economy, environment and people.
At the end of the assessment period, a decision regarding the extent to which the criteria for a bonus payment have been met. The assessment is performed according to the criteria described above. Bonus payments to persons in senior positions may compromise up to one year’s salary. The company does not have a scheme for repaying of variable remuneration. The Board reserves the right to make amendments or terminate the bonus scheme on yearly basis.
The company does not have any scheme for reclaiming variable remuneration. The Board of Directors has the right to make changes to or terminate the bonus scheme on a yearly basis.
Lerøy Seafood Group ASA has a defined contribution pension scheme according to the Act relating to mandatory occupational pensions. The base for premium payments is capped at maximum 12G (G is the national insurance base amount) per year.
Senior executives in the Group are members of the company’s collective pension scheme up to the Group’s in-house retirement age, which is 70, and do not have separate agreements that include early retirement or supplementary pensions. The company may, however, enter into such agreements in the future.
In principle, the company does not make use of severance pay apart from salary during the period of notice for the number of months stipulated in the provisions of the Working Environment Act. Severance pay may, however, be a good alternative in some situations for all parties involved. Severance pay can therefore be utilized in extraordinary circumstances, albeit capped at two annual salaries.
The Board of Directors of Lerøy Seafood Group ASA underlines the importance of having sound corporate governance that clearly states the distribution of roles between shareholders, the Board of Directors and the company management.
The Board of Lerøy Seafood Group ASA emphasizes the importance of having good corporate governance, which clearly establishes the division of roles between shareholders, the Board and the Group's management. The Board has its own dedicated board member who has special responsibility for the environment and sustainability.
The goal of Lerøy Seafood Group ASA is that all parts of the Group's value chain will operate and create growth and development. This is in accordance with the Group's strategy for long-term and sustainable value creation for shareholders, customers, suppliers and society as a whole.
The Board of Lerøy Seafood Group ASA has the overall responsibility for sustainability work within the Group.
In the Group, the CEO has main responsibility for this area. Matters related to sustainability are approved by the Group management before they are sent to the audit committee / board. The Head of ESG & Quality is responsible for coordinating work involving the environment/ sustainability for all the companies within the Group. Responsibility is delegated to the Managing Director of each subsidiary.
Managers and other employees, at the various levels in the organization, have different goals related to sustainability included in their job descriptions. The company also works with goal management where goals related to sustainability are included. Goals related to job descriptions and goal achievement are included in the basis for the payment of bonuses.
The company has audited consolidated financial statements on public record. For information regarding the list of entities included in financial reporting, please, visit Lerøy Annual Report 2022.
All reporting entities report relevant ESG data in the reporting system Cemasys which consolidates the information on a Group level. There are no adjustments to information for minority interests as it is not relevant in the given context. If mergers and/or acquisitions occur it is taken account into reporting and the reporting is accordingly adjusted to ensure completeness. The approach does not differ across disclosures in this Standard and/ or across material topics.
An overview over entities included in the organizations's sustainability reporting can be found below.
A stakeholder is a group, organisation, member or system who affects or can be affected by an organization's actions (GRI definition).
Lerøy's values are open, honest, responsible and creative, and it is crucial for us to have a continuous and open dialogue with all our stakeholders.
Stakeholder engagement is an important building block for success towards the Group’s goal to becoming the most and effective supplier of sustainable seafood. Engagement with stakeholders helps us identify and manage our positive and negative impacts on the environment, social and governance related issues.
The purpose of stakeholder engagement is to ensure that Lerøy amplifies the positive impacts, mitigates the negative impacts, shares knowledge, best practices as well as ensures meaningful engagement with the stakeholders.
Open and honest communication with the stakeholders is essential for best possible cooperation. Stakeholder identification is a part of Lerøy’s materiality assessment process where relevant stakeholders are mapped out.
Lerøy Seafood Group communicates with its stakeholders via meetings, various reports (such as the annual report, the stock exchange reports, CDP reports etc.), communication in the media, announcements, joint projects, partnerships, websites and social media.
Find the overview of stakeholder dialogue below.
In order to identify which issues are the most significant to Lerøy and determine material topics, the company has undertaken a materiality assessment.
In order to determine material topics, Lerøy completed the following steps:
|
Material topic 2022 |
Is the topic new or has it been included in ESG reporting in previous reporting period? |
|
BIODIVERSITY |
The topic has been included in Lerøy’s ESG reporting in previous reporting period. Fish Escapes, Sea bed conditions was material topics in 2021 but is now included in biodiversity. |
|
WATER AND EFFLUENTS |
New material topic in 2022 |
|
WASTE |
New material topic in 2022, however the company chose to include GRI 306 “Waste” (2020) in its reporting for 2021 |
|
FISH HEALTH AND WELFARE |
The topic has been included in Lerøy’s ESG reporting in previous reporting period. Sea Lice, Use of Drugs and Chemicals, was material topics in 2021 but is now included in fish health and welfare. |
|
CLIMATE EMISSIONS |
The topic has been included in Lerøy’s ESG reporting in previous reporting period; In the previous reporting period the name of the topic was “Emissions” |
|
RAW MATERIALS FISH FEED |
The topic has been included in Lerøy’s ESG reporting in previous reporting period. Deforestation was a material topic in 2021 but is now included in raw materials fish feed. |
|
HEALTH, SAFETY AND ENVIRONMENT |
The topic has been included in Lerøy’s ESG reporting in previous reporting period; In the previous reporting period the name of the topic was “Health, Safety and Environment (HSE)” |
|
FOOD SAFETY |
New material topic in 2022. Product Traceability and Product Recall was a material topic in 2021, but is now included in Food Safety. |
|
FOOD SECURITY |
New material topic in 2022 We reported food waste in 2021 |
|
RESULTS |
The topic has been included in Lerøy’s ESG reporting in previous reporting period; In the previous reporting period the name of the topic was “Earnings and Returns for Owners” |
|
SUPPLIER MANAGEMENT |
The topic has been included in Lerøy’s ESG reporting in previous reporting period |
|
CUSTOMER PERSPECTIVE |
New material topic in 2022 |
|
COMPLIANCE |
The topic has been included in Lerøy’s ESG reporting in previous reporting period; In the previous reporting period the name of the topic was “Compliance and Business Code of Conduct” |
|
ANTI- CORRUPTION |
New material topic in 2022, however the topic was partly reported on under “Compliance and Business Code of Conduct” |
|
LEARNING AND ORGANISATIONAL DEVELOPMENT |
New material topic in 2022 |
Topics which we reported on in 2021 that are not included in 2022 reporting:
In 2022 Lerøy has chosen to report on material topics which reflect the content in GRI Sector Standard 13. The material topics for 2022 implicitly cover the topics listed above.
Customers drive economic growth by creating demand for goods and services, which in turn leads to job creation and increased economic activity. Customers can have positive environmental impacts by choosing to buy products that are produced sustainably and have a lower carbon footprint. This can lead to increased demand for environmentally friendly products and services, which can drive innovation and investment in low carbon footprint products.
Customer drive has positive social impacts by choosing to buy products that are produced in ways that are fair and ethical, such as those that are produced using fair labor practices or that support local communities
The future development of Lerøy will be determined by our ability to achieve continuous improvements, increased efficiency, innovation and development of sustainable solutions throughout the value chain. To be able to do this we need cooperate with strategic customers who share the same perspective.
To be able to reach our target to reduce climate emissions with 46% and drive innovation and investment in green technologies, we need to make choises (i.e fish feed ingredients with lower emissions). These choices need to be rooted with our strategic customers, if not , we risk developing products and services which are not demanded in the market and risk to loose value creation for our self, our customer and the society.
Lerøy will, in long term cooperation with strategic customers, develop new product categories which will generate value creation, job creation and riple effects for the local communities.
If we understand and fulfil customer and market opportunities, Lerøy succeeds when our customers succeed. We shall meet our customers’ expectations in terms of delivery, sustainability, quality and costs, and we shall create growth in existing and new markets via forward-looking and innovative sustainable solutions.
Values are created in value chains, and in businesses in value chains, that form a network and competitive processes for their customers.
Our vision “to be the world’s most effective and sustainable value chain for seafood”; requires us to continue to develop in order to achieve a position as a preferred supplier of seafood on a global scale. Our customers aim for growth and new market shares by offering competitive solutions with a view to cost and quality, innovation, security of supply and food safety.
We need to understand the wishes of our customers, and our value chain needs to be built upon competitive processes that ensure success for our customers. Feedback from customers is an opportunity for improvement.
Target: Increase the share of sales revenue from strategic customers
Lerøy has focused on achieving growth by means of securing access to raw materials that are fully traceable and governable. Lerøy's value chain comprises a large product range and allows for development of activities and products to increase customer satisfaction and willingness to pay, which in turn helps our customers gain new market shares.
The fundamental principles in the method utilised to achieve our goals are working continuously to achieve optimal flow of goods to the customer and optimal flow of information from the customer, by means of continuous improvement. This requires a decentralised organisation that is able to solve problems where and when they emerge, but also a Group that has the capacity to disseminate information from customers back to the value chain, so that all parties are aware of the challenges to be solved. Problem-solving shall be based on facts.
Lerøy has not been involved in any negative impacts through its activities or as a result of our business relationships related to customer perspective.
The Group works actively to build long-term, strategic customer relationships in which values for both parties are created over time. Strategic customers are customers considered important to the long-term sucess of Lerøy, with the same values, goals and with mutual beneficial sustainable outcomes. Strategic customers may have an uniqe requirement or needs that are diffcult for other companies to fulfill.
The Group has and shall have a wide range of customers in order to minimise risk related to individual customers. The share of revenue from strategic customers, is used as an indicator of our performance in this area.
In 2022, 50% of our revenue came from strategic customer, close to target. In 2022 we have been in dialogue with several strategic customers and defined strategic long term partnerships.
To define partnership models with long term beneficial outcomes takes time, our ambition is that 80% of our revenue share comes from strategic customers within 2030.
|
|
Target |
2022 |
2021 |
2020 |
2020 |
|
Share of revenue from strategic customers (%) |
52 |
50 |
NA |
NA |
NA |
The Group has adopted some of the Sustainable Development Goals established by the UN, including environmental, economic and social development goals.
The group has selected specific sustainability goals, where we focus on the environment and climate, economy, and society.
All 198 member nations of the UN have participated in the preparation of the 17 sustainability goals. The group has selected the goals that are most relevant to our businesses, which we will work towards in our daily activities and focus on in the group's strategy work.
All the companies in the group have internal sub-goals related to the work with the selected sustainability goals. Find below an overview of the linkages between material topics and SDF's in Lerøy Seafood Group.
With its catch of whitefish and the production of Atlantic salmon and trout, the Group is a globally competitive and sustainable food producer. This is also confirmed through international surveys where the company's work related to ESG is assessed.
Coller FAIRR is that of the companies that assess how listed companies work in accordance with sustainability. In this survey, 60 different protein-producing companies are measured specifically on the UN's sustainability criteria and the stakeholders' perception of our work. In this survey, Lerøy is considered the 3rd best company.
The group's sustainability reporting has been prepared in accordance with the GRI framework, and is part of the group's annual report.
In 2022 Lerøy and other Norwegian seafood producers are banned from Russia. This was initiated in August 2014 when Russia decided to ban the import of Norwegian seafood in response to sanctions imposed by the US, the EU and others for the annexation of Crimea and later war in Ukraine.
Sanctions adopted by the EU are implemented in Norwegian law on the basis of the Sanctions Act. Violation of the Sanctions Act is punishable and can result in a corporate penalty, Lerøy does not have any trade with Russia.
Since the Russian ban origin from 2014, the economical impact is low. Lerøy have no possibility to mitigate or avoid such bans.
In General Lerøy comply with all regulation of the importing countries to avoid marked bans.
The Group´s product development department cooperates with production and sales to create new products, and improve the quality of the existing products through the entire value chain.
In the Product Development department, sustainability is at the heart of everything we do.
Our vision is to be the world's best product development company for sustainable seafood, with the aim of improving people's diet.
Our goal is to develop sustainable, tasty and safe product solutions, which create value for our industrial activities, and make us the consumers' preferred choice.
At Lerøy, we believe in the power of collaboration to drive innovation and sustainability. Our Product Development Department works in conjunction with a broader team of product developers across our downstream operations, all working together in a “One Lerøy” manner.
The “One Lerøy Product Development Team” works through the entire value chain, from raw materials to finished products in stores, constantly developing new products and improving the quality of existing ones, with a strong focus on utilizing the whole fish for human consumption to avoid wastage.
By utilizing local expertise and pooling our knowledge in our “One Lerøy Product Development Team” we can create a more diverse and inclusive product development process that prioritizes sustainability and meets the evolving needs of our customers. Our shared commitment to Lerøy's values of openness, honesty, responsibility, and innovation helps us to build an inclusive and engaging work environment that fosters creativity and continuous development.
The Product Development Department in Lerøy places a strong emphasis on developing new and innovative products that meet the evolving needs of our customers, while prioritizing sustainability, with a focus on natural ingredients and low salt content, to give consumers a better and more healthy way of eating.
The department follows an "Outside – In" development model that emphasizes sustainability and user-led innovation. This approach involves understanding the insights of the external environment, such as climate, politics, income, population, competitors, and other industries. We use these insights to put together models like the 'Gear Model' and the 'Business Model Canvas,' and then use simulations with tools like drawings, Lego blocks and pretotyping.
Pretotyping involves creating simple product samples and testing them to validate our ideas. This allows us to get quick responses to quick solutions and identify potential challenges or opportunities early in the process. This can be done both in our test kitchen in our main office in Bergen or in one of our many factories. Then we invite users to provide feedback on the product samples we create.
Our commitment to sustainability extends to our packaging as well. We aim to avoid over-packaging*, and to use sustainable materials whenever possible. We believe that sustainability is key to our success and we strive to ensure that every aspect of our operations is as sustainable as possible.
Our packaging strategy is aligned with our goal to reduce food waste, prolong shelf life and product quality while having the lowest possible eco footprint. We are working towards a sustainable packaging material portfolio by 2030, using materials that can either be recycled, reused or are biodegradable.
To achieve our sustainability goals, we have established a category team for packaging, comprising people from different departments with diverse knowledge and experience. The team works closely with our own companies, suppliers, and producers, as well as other aquaculture companies and NGOs to ensure that the best packaging solutions are used.
*Over-Packaging describes a product that is wrapped in multiple layers of materials, that is either unnecessary or unwanted by the consumer.
In addition to our focus on waste reduction we are also exploring the use of complementary products like algae that will help to increase the sustainability of our core products such as shellfish and white fish. Our goal is to create a range of complementary products that will add value to our core products and enhance their sustainability.
Food safety is another top priority for us. We work closely with our suppliers to ensure that our products meet or exceed industry standards for safety and quality. We are constantly reviewing our processes to ensure that we are using the most effective and sustainable methods available.
The Product Development Department in Lerøy believe that sustainability is not just an obligation, it's an opportunity. By prioritizing sustainability in our product development process, we can create products that are not only better for the environment but also more appealing to consumers.
We are proud to be at the forefront of sustainable seafood development, and we look forward to continuing to develop innovative, sustainable products that meet the needs of our customers and the world around us.
In the last few years, we have performed a larger review of the Group’s strategic framework, which is now continuously in development through our yearly plan for strategic activities. For these strategic processes, we conduct internal and external analysis of key trends that impact our operations and opportunities.
These analysis cover areas such as value drivers in our operations, our competitors, the markets we operate in, potential new markets, and potential macro risks that could influence our operations.
Furthermore we have made an assessment to identify conditions where Lerøy has an actual or potential significant impact on financial results, people, or the environment. This includes both an impact directly caused by Lerøy and the impact that we have, or may have, throughout our entire value chain.
Our materiality assessment is further described in the ESG section of the Group’s annual report. These analyses are used to improve our strategic decisionmaking, which enables us to define our strategy, as shown below, to define our shortand long-term goals, and to define our strategic initiatives.
The following table outlines the Group’s strategy on one page. Cascaded and similar exists for each of our business segments.
The Group’s values – open, honest, responsible, and creative – underlie all of our activities. They lay the foundation for our efforts to create the world’s most efficient and sustainable value chain for seafood and our vision to be the leading and most profitable global supplier of high-quality, sustainable seafood.
| Strategic perspective | Materiality area | KPI | Target 2022 | Status 31.12.22 | Target 2023 | Target 2025 | Target 2030 | Revised 3rd party | Comment |
| Results | Results | ROCE (%) | 18 | 14,5 | 18 | 18 | 18 | Y | Target 18% (pre tax) over cycles. Below target in 2022 due to higher capital build and profitability below target |
| Revenue (NOKbn) | 25 | 26,6 | 30 | 35 | >50 | Y | Positive development, with strong demand post covid. Developing according to objectives. | ||
| EBIT/Kg for farming and VAP, S&D | #2 | #4 | #2 | #1 | #1 | N | Profitability through salmon and trout valuechain compared to peers. Weak performance in 2022 among others due to high contract share in high price environment | ||
| EBIT VAPS&D (NOK) | 155 | 1250 | To be decided | Y | Weak year, with supply chain turmoil and high and volatile raw materiale prices. Signicant improvement expected in 2023 | ||||
| EBIT Wild catch | 348 | 500 | To be decided | Y | Lower quotas is a challenge. Key focus on increasing own volume through value chain | ||||
| Harvest volume farming (1 000GWT) | 175 | 175 | 205 | To be decided | Y | Challenging growth conditions H2 2022 with growth below expectations | |||
| Customers | Customers | Share of revenue from strategic customers (%) | 52 | 50 | 52 | 70 | 80 | N | Share of revenue from customers identified as strategic customers |
| IPSOS score (%) | 62 | 59 | 62 | 66 | To be decided | N | External reputation score in Norway | ||
| Food safety | GFSI certification in factories making ready to eat products (%) | 100 | 92 | 100 | 100 | 100 | N | Applies to own factories | |
| Residual value of medicines in products (%) | 0 | 0 | 0 | 0 | 0 | N | Applies for all seafood from LSG | ||
| Product recalls (number) | 0 | 11 | 0 | 0 | 0 | N | Applies for all seafood from LSG | ||
| Activities | Processes | Economic feed convertion rate | 1,24 | 1,37 | 1,24 | 1,19 | To be decided | N | Challenging growth conditions in particulary H2 2022. Several iniatives implemented |
| MAB - license utilisation (%) | NA | 86 | 91 | 95 | To be decided | N | Measurement of utilisation rate of licences in farming | ||
| Growth speed (iTTT) farming | NA | 95 | 100 | 105 | To be decided | N | Internal growth index measuring speed of growth in farming | ||
| Documented implemented improvement initatives | NA | 64 | 212 | 337 | To be decided | N | Number of documented implemented improvement iniatives in standardised format | ||
| Documented implemented improvement initatives - reducing CO2 emissions | NA | 20 | 40 | To be decided | N | Number of documented implemented improvement iniatives in standardised format with the aim to reduce CO2-emissions | |||
| Number of revised internal customer-supplier agreements (%) | 100 | 66 | 100 | 100 | To be decided | N | Number of customer supplier relationship contracts between units in our own value chain | ||
| HSE | Sick leave (%) | 5,5 | 6,7 | 5,4 | 4,7 | 4,1 | Y | Sick leave percentage: Number of days of sick leace* 100/number of possible man-days | |
| LTI-H value(%) | 11 | 13,29 | 10 | 0 | 0 | Y | Frequency of injuries H1/LTI =Number of injuries with absence x 1 000 000/ total number of working hours |
||
| RUH | 1,5 | 1,3 | 1,9 | 3 | 3 | Y | The sum of near misses and safety observations | ||
| Fishhealth and welfare |
Number of red spots, sea lice, (number ) | 0 | 1 | 0 | 0 | 0 | N | Number of violations of Norwegian regulations | |
| Antibiotics used in sea (kg active substance) | 0 | 0 | 0 | 0 | 0 | Y | Medication prescribed by fish health personnel | ||
| Survival in sea, harvested groups (%) | 89 | 85 | 89 | 91 | To be decided | N | Survival in harvested groups | ||
| Survival in freshwater (%) | 92 | 91,4 | 93 | To be decided | To be decided | Y | (1-12 months rolling mortality)*100 12 months rolling mortality= (total # of mortalities last 12 month - total # of culled fish due to illness or simila)/ (closing # of fish in water + total # of mortalities in last 12 months + total # solgt fish in last 12 months + total # of culled fish) | ||
| Average density per cage in the sea (kg/m3) | <25 | 4,1 | <25 | <25 | <25 | Y | In a cage with fish there is about 97.5 % water and 2,5% fish | ||
| Climate emissions | Scope 1+2 % 1 000t CO2e from 2019 | 138,56 | 141t,40 | 135,12 | 133,37 | 120,4 | Y | Climategas emissions from fossil fuels/energy | |
| Scope 3 % 1 000t CO2e from 2019 | 1 288 832 | 1 022,23 | 1 160 620 | 1 106 050 | 781,4 | Y | Climategas emissions from fossil fuels/energy from suppliers | ||
| Raw materials fishfeed | Risk assessment | Yes | Yes | Yes | Yes | Yes | N | Implementation of risk assessment of raw materials | |
| Soy - deforestation free (%) | 100 | 100 | 100 | 100 | 100 | Y | Soy - share of deforestation-free soy protein conenctrate with tracebility | ||
| Novel ingredients blue mussels | NA | 93 | 98 | Yes | Yes | N | Bluemussel meal Functionality separation technology 98% |
||
| Novel feed ingredients (Number) | NA | 1,3 | 2 | 4 | 10 | N | Number of various new feed ingredients | ||
| Novel ingreditens share of feed trimmings (%) | NA | 33 | 33 | 39 | 50 | N | Amount of marine raw materials in feed from trimmings | ||
| Certifications marine raw materials (%) | 100 | 86 | 100 | 100 | Yes | Y | Percentage of certified marine raw materials (%) | ||
| Certification soyprotein consentrate (%) | 100 | 100 | 100 | 100 | 100 | Y | Lerøy does not use raw materials from soy other than soy protein concentrate | ||
| FFDRo salmon | NA | 1,66 | 1,6 | 1,4 | 0,95 | Y | The forage fish dependency ratio oil | ||
| Waste | Waste (%) | 5 | 37 | 50 | 60 | 65 | N | Increase degree of recycling (material recovery), Base year 2022 The KPI was adjusted for 2023 |
|
| Food security | Food waste (%) | -30 | 66 | -7 | -21 | -50 | N | Reduction of floorfish and unsold products, base year 2021. The KPI is changed for 2023 | |
| Water and effluents | Water withdrawal reduction (%) | -5 | 13,7 | -2,5 | -5 | -10 | NN | Units in area wiht med/high risk of water stress,(WRI Aquaduct), Base year 2022.) | |
| Water use and scarcity (%) | 100 | 100 | 100 | 100 | 100 | Y | Carry out risk assessment for 100 % of own facilities | ||
| Supplier management | New suppliers screened environmental criteria (%) | >11,5 | 15,1 | 20 | 50 | 100 | Y | Percentage of new suppliers that were screened using environmental criteria (%) | |
| New suppliers screened social criteria (%) | >11,5 | 15,1 | 20 | 50 | 100 | N | Percentage of new suppliers that were screened using social criteria (%) | ||
| Screening of all suppliers | Yearly | Yes | Yearly | Yearly | Yearly | N | Evaluation of the Group’s suppliers | ||
| Compliance | Lerøy Code of conduct | 40 | 0 | 0 | 0 | 0 | N | Number of registered cases in the Group | |
| Lerøy Supplier code of conduct | Number of registered cases in the Group | ||||||||
| Anti-money laudering | Number of registered cases in the Group | ||||||||
| Anti-corruption | Confirmed incidents for corruption | 0 | 0 | 0 | 0 | 0 | N | Confirmed corruption cases and action/measures implemented | |
| Learning and organi- sational development |
Learning and organisational development | Global GPTW score (%) | 68 | 70 | 72 | 77 | 80 | N | Global Great place to work score. Measurement of employer experience. Measured in January for the last 12 months |
| Share of companies working with Lerøy Way (%) | 40 | 60 | 67 | 100 | NA | N | Share of internal business units working with Group's "business system" Lerøy Way | ||
| Gender balance in leader-positions ( % Women) | NA | 29,1 | 31 | 35 | 40 | N | The Group works purposefully to increase the proportion of women in leading positions | ||
| Code of conduct, sign by share of the employees (%) | 100 | 100 | 100 | 100 | 100 | N | Registered via Motimate. | ||
