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 |
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| 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% |
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| 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 |
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| 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. | ||