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We are committed to reducing the greenhouse gas emissions from our operations.

Climate change refers to the long term changes in the Earth’s climate system, including, changes in temperature, precipitation, and weather patterns, that are primarily caused by human activity.

Climate changes can cause several negative impacts such as:

Rising sea levels: As global temperature rise, glaciers and ice sheets melt, and sea levels rise. This could lead to  flooding of low-lying areas and displacement of millions of people.

Extreme weather events: Climate change leads to more frequent and severe weather events, including hurricanes, droughts, heatwaves and wildfires. These events can cause  significant damage to infrastructure, homes and ecosystems.

Loss of biodiversity: As temperatures rise, many species may be unable to adapt to changing conditions and may go extinct. This could have cascading effects on ecosystem and food chains.

Water scarcity: Climate change is expected to lead to more frequent and severe droughts, which could lead to water scarcity in many regions. This can potentially cause  conflicts over water resources and harm agriculture and food production.

Health impacts: Climate change could lead to increased incidence of several diseases. This could have significant impacts on public health and healthcare systems.

Economic impacts: Climate change could lead to significant economic impacts, including damage to infrastructure, lost productivity, and higher costs for disaster relief. These impacts could be particularly severe for low-income communities and developing countries.

Lerøy, as any other organization, has an impact on the climate in several ways:

The organization emits GHG through our operations. Lerøy is performing GHG reporting (Scope 1, 2 and 3) in order to monitor and control its own and relevant supply chain emissions in order to be able to take appropriate measures for reducing its GHG emissions.

The organization also implicitly contributes to deforestation by purchasing fish feed. Lerøy is working proactively with its business partners (including fish feed suppliers) to develop alternative fish feed ingredients.

The organization generates waste, including plastic waste, however its is taking appropriate steps to reduce its contribution to pollution.

Lerøy has developed Climate policy which sets out a range of actions and measures aimed at addressing climate change and introducing sustainable business practices. The goal of the policy is to mitigate the negative impacts of climate change and reduce risks associated with it.

Actions taken to manage the topic and related impacts:

  • Regular reporting and monitoring of GHG in order to be able to reduce its GHG emissions as well as follow developments and trends and manage the organization’s impact on climate change
  • Committing to a Science Based Target to reduce its GHG emissions. The organization has committed to reducing 46% of its Scope 1, 2 and 3 GHG emissions from base year 2019. The target is aligned with a 1,5 degrees C pathway. NB! The Group is currently re-calculating its Science Based Target base year (2019) and will deliver its re-calculated application to Science-Based Targets Initiative. Lerøy Seafood Group will also set a Forest, Land and Agriculture (FLAG) science-based target and deliver an application to Science Based Targets Initiative according to Science Based Targets recommendations and given time frameworks.
  • Adapting to the impacts of climate change – climate changes occur as a result of any organizational activity. The organization is adapting to the impacts of these changes by implementing appropriate measures.
  • Participating in different research and development activities which is critical to addressing climate change. Lerøy is participating in several initiatives to help developing new technologies that can help reducing climate change.
  • Promote sustainable business practices and increase organizational awareness about climate change and informing stakeholders about what actions Lerøy is taking in order to reduce its GHG emissions. Stakeholders are informed via  annual and quarterly reports, web-page updates as well as news articles on social media. The effectiveness of the actions taken is discussed in the company’s annual report



Greenhouse gas emissions

Emissions 2022

Lerøy is continuously working on improving its monitoring and reporting of greenhouse gas emissions.  Information regarding our greenhouse gas emissions is crucial for understanding and responding to environmental challenges as well as to being able to identify improvement opportunities.

In 2022 the Company carried out an extensive project which aimed to enhance Lerøy’s reporting processes and practices. The Group has strengthened its reporting routines, however we acknowledge that we need to focus on further improvement of quality of the reported data to ensure that the reporting is more accurate, complete and transparent.

A key change from previous year’s reporting is that a major part of  well-boat and service boat activity  (time chartered vessels) is moved from Scope 3 to Scope 1 reporting including operating leases (as defined by IFRS 16) in Scope 1 accounting (for more detailed information regarding operating leases, please, visit This change has a significant effect on Scope 1 reporting, resulting in 20%  increase of Scope 1 emissions compared to 2021 levels.  Emissions from well-boats  and service boats represent approximately 22% of total Scope 1 emissions in 2022. Lerøy is aware of the effect that the changed and improved reporting practice has on the climate accounts and is planning on adjusting/ correcting its climate reports for previous years in order to improve the transparency, quality and comparability of the reported information. This major change in reporting will also be reflected in re-calculation of both base year (2019) emissions and Lerøy’s Science-Based Target. This process will commence in Q2 2023.

Lerøy has also established a closer cooperation with shipping companies that provide well-boat and service boat services and has worked on enabling the shipping companies to improve their procedures for gathering and reporting of relevant data as well as on strengthening reporting processes internally. A key takeaway from 2022 is that Lerøy needs to both intensify and strengthen its daily dialogue with these suppliers in order to secure better data flow and exchange.

The Group has completed a comprehensive analysis of climate related risks and opportunities which the Group is facing over short, medium and long term. The analysis has confirmed the importance of measuring, monitoring and reporting on our environmental performance. The analysis is discussed in greater detail in the Group’s Task Force Climate-Related Financial Disclosures (TCFD) report

 A new TFCD report was released in Q2 2023.

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. Lerøy has also committed to become climate neutral by 2050.




The Group’s operating segments are the following:
  • Wild Catch;
  • Farming;
  • Value Added Processing, Sales and Distribution (VAPSD).

The reported emission figures have been collected throughout 2022 from relevant suppliers via invoices and are based on the same data sources as the figures reported in Lerøy’s 2021 annual report.   

Lerøy’s greenhouse gas emissions are reported in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. The Group uses the operational control approach for consolidating GHG emissions accounting. It means that emissions from operations, over which it has operational control, are included in Scope 1 and 2 reporting, however indirect upstream and downstream emissions relating to its operations are accounted for in Scope 3.  Reporting units account for their use of fossil fuels, refrigerants, electricity, district heating/cooling, water usage, waste composition (incl. methods of waste disposal). 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 emissions are reported in accordance with the GHG Protocol Corporate Accounting and Reporting Standard (Corporate Value Chain (Scope 3)). The Group has mapped its “carbon hotspots” and identified 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 2022. We will hold off  doing so until the methodology on how to calculate biogenic emissions will become more established.

Scope 1

Sources for Scope 1 emission factors used for calculation of tCO2e are DEFRA (Department for Environmental Food and Rural Affairs, UK Government), 2022, National Standard Emission Factors (Norwegian Environment Agency), 24th February 2015, Linde Gas (Industrial gasses) 2022, A-gas Product information guide, product information summary-refrigeration Library - refrigerants - A-gas product information guide, 2022.

Scope 2

There are two types of Scope 2 emissions: location based and market based. Location-based Scope 2 emissions are calculated based on the average emissions factor for the grid region where the organization consumes electricity. Marked-based Scope 2 emissions, on the other hand, take into account the specific contractual instruments that an organization has in place to purchase renewable energy certificates or power purchase agreements.

The source for location-based Scope 2 emission factors used for calculation of Lerøy’s Scope 2 CO2e is the International Energy Agency (IEA). The Nordic electricity mix factor is developed by Cemasys (sustainability consultancy company and service provider for registration and calculation of climate accounts) and covers the weighted production in Sweden, Norway, Finland and Denmark reflecting the common Nord Pool market area. The factors used are based on national gross electricity production mixes on a 2 year "lag". The Nordic electricity mix used to calculate the Group’s location-based Scope 2 emissions for 2022 are based on 2020 factors. The emission factors from IEA used in the location-based calculation of scope 2 emissions from electricity use are taken from the document “IEA Emission factors” published in 2022. Since 2020, Cemasys no longer uses a 3-year rolling average, but instead uses the annual figure (2 years "lag", example: the emission factor for 2021 is based on the figure for 2019. The datasets used are "CO2 emission factors for electricity only generation (CHP electricity included) for world countries (in CO2 per kWh)" and "CH4 and N2O emission factors for electricity generation (based on default IPCC factors) (in CO2eq per kWh)". This means that the emission factors include emissions of CO2, CH4 and N2O (converted into CO2e). Electricity trade has not been taken into account.

IEA:s explanations of the datasets:

  • CO2 emission factors for electricity only generation (CHP electricity included) for world countries (in CO2 per kWh):
    • “This ratio is based on total emissions from fossil fuels consumed for electricity generation, in both electricity-only and combined heat and power plants (CHP), divided by output of electricity generated from all fossil and non-fossil sources. Both main activity producers and autoproducers have been included in the calculation.”
  • CH4 and N2O emission factors for electricity generation (based on default IPCC factors) (in CO2eq per kWh):

“The emission factors are converted from gCH4 and gN2O to gCO2eq using the 100-year Global Warming Potential (GWP). For the purpose of comparability with international data submission guidelines, the factors from the 4th Assessment of the IPCC are used. 1gCH4 = 25 gCO2eq”

The Group has purchased Guarantees of Origin (GOs) in 2022. Information regarding companies which have purchased GOs as well as the percentage share that covers the consumption is reported in Cemasys (the Group’s internal reporting system for GHG emissions accounting).

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 GOs, the emission factor is based on the remaining electricity production after all GOs for renewable energy are sold. This is residual mix, which is normally substantially higher than the location-based factor.

Sources for Scope 3 emission factors used for calculation of tCO2e are DEFRA (Department for Environmental Food and Rural Affairs, UK Government) 2022, Greenhouse gas emissions of Norwegian seafood products in 2017, SINTEF study, Emission factors from fish feed producers 2022, Database Ecoinvent 3.8 (2022) as well as supplier specific emission factors.

Info: Expand table for more details

Scope 3 Overview per category (2022)
Category tCO2e
Purchased goods and services

The consumption data is based on purchased volumes throughout the year. Data on fish feed carbon intensity is collected from relevant fish feed suppliers which account for 99,5% of all fish feed purchased. The calculated GHG emissions for purchased fish feed also include transportation emissions, relevant Scope 3 emissions, emissions related to land use change (LUC) calculated with economic allocation as method. 

EPS boxes (Styrofoam boxes with lids). Information regarding EPS boxes (number, type, properties) is collected from the Group’s companies throughout the year.

Plastic bags/sheets and single use hygiene plastic items. Information regarding plastic bags/sheets  and single use hygiene plastic items is collected from the Group’s companies throughout the year.

Vacuum packaging/film. Information regarding vacuum packaging/film is collected from the Group’s companies throughout the year.

Cardboard/carton boxes. Information regarding cardboard/carton boxes  is collected from the Group’s companies throughout the year.

Rope and feeding tubes. Information regarding rope and feeding tubes is collected from the Group’s companies throughout the year.

Municipal water. Information regarding consumed municipal water is collected from the Group's companies throughout the year.

Capital goods

Information regarding used construction materials (concrete and steel used in supplementary construction of Belsvik facility (Lerøy Midt). Belsvik facility is a hatchery-produced (on-growing) fish facility. The facility was extended with a post smolt facility in 2022.

Fuel and energy related activities

Well to Tank (WTT)**. Calculations based on the existing consumption data volumes collected from the Group’s companies throughout the year. The calculation is based on the reported consumption data for Scope 1 and 2 (for more detailed information, see table Total Consumption of Fossil Fuels (Scope 1).

Upstream transportation and distribution (outbound transportation)

Transportation services (sea transportation,  service boats, well boats***). Consumption data collected from sea transportation/ well- boat service providers (calculations include WTT).

Transportation of produced products to customers. Information collected from the Group’s Logistics department. The calculations are based on distance from capital to capital. The emission factors used are determined by type of transportation mode.

Waste generated in operations

Waste - data on  waste volumes, waste composition (incl. methods of waste disposal) is collected from the Group’s companies throughout the year.

Business travel


Air travel (business travel by air) -  information regarding distances traveled is collected from travel agent the Group uses (including WTT).

Employee commuting

Employee commuting – estimation based on SSB (Statistisk Sentralbyrå) for Norwegian operations, TRAFA (Transport Analysis) for Swedish operations, and STATISTA for operations in the Netherlands. For all other operations - INSEE statistics as well as official government websites are used.

Upstream leased assets


Downstream transportation and distribution

Downstream transportation and distribution  - transportation of  products carried out by the customers themselves. Information collected from the Group’s Logistics department. The calculations are based on distance from capital to capital. The emission factors used are determined by the mode of transportation.

Processing of sold products

Processing of sold products – calculations consist of two parts –  part one - estimated use of electricity for storage of fish in the country of consumption before the product is sold to end consumer. Part two – estimated emissions related to third party processing.

Use of sold products


End-of-life treatment of sold products

End of life treatment –  organic waste estimated share (%) of non-edible fish.

Downstream leased assets






*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.

*** Well-boats and service boats which are not classified as operating leases (ref. definition  IFRS 16) are included in Scope 3 emissions since Lerøy does not have operational control over the leased assets held under an operating lease.

Total consumption of fossil fuels (scope 1)
Fossil fuels and electricity Unit 2018 2019 2020 2021 2022
2 462 629
3 159 669
3 066 643
3 380 334
6 872 560
Farming   2 262 514 2 591 190 2 654 552 2 893 492 6 264 465
Wildcatch   3 192 9 781 8 033 10 789 7 927
VAP, Sales & Distribution   196 923 558 697 404 058 476 053 600 168
Marine gas oil (MGO)
40 079 393
39 183 756
42 248 727
46 770 962
53 336 294
Farming   3 540 849 3 656 064 3 525 430 3 461 428 12 994 859
Wildcatch   36 538 544 35 559 152 38 723 297 43 309 534 40 341 435
VAP, Sales & Distribution   - - - - -

214 441
288 856
442 621
516 830
666 111
Farming   189 287 264 596 414 031 471 823 558 852
Wildcatch   - - 503 486 169
VAP, Sales & Distribution   25 154 24 260 28 087 44 521 107 091

Biodiesel fuel (HVO)
Farming   - - - - -
Wildcatch   - --   - -
VAP, Sales & Distribution   - --   - -

LPG (Propane)
51 146
54 605
38 601
80 546
Farming   - -   - -
Wildcatch   1502 211 780 2 013 704
VAP, Sales & Distribution   957 50 935 53 825 36 588 79 842

Natural gas
18 620
24 266
78 553
189 628
478 537
VAP, Sales & Distribution   18 620 24 266 78 553 189 628 
478 537
LPG (Propane)
1 268
Wildcatch   - 203 1 136 - -
VAP, Sales & Distribution   - - 132 - -

Fuel oil
45 456
101 796
224 955
67 711
Farming   26 202 84 271 206 904 45 916 661
VAP, Sales & Distribution   19 254 17 525 18 051 21 795 -

1 673
2 059
6 395
Farming   228 1 670 478 379 140
Wildcatch   504 - - - 677
VAP, Sales & Distribution   74 3 93 1 680 5 578

*Diesel includes Diesel (100% fossil), Diesel (B7) and Diesel (B30 HVO)
**Petrol includes Petrol (100% fossil) and Petrol (E5)

GHG emissions intensity ratio per operating segment
  • Farming = Scope 1+2 tons CO2 emissions in Farming segment/ tons gross growth: 0.18
  • Wild Catch = Scope 1+2 tons CO2 emissions in Wild Catch segment/ tons headed/ gutted fish: 1.19
  • VAP, Sales and Distribution = Scope 1+2 tons CO2 emissions in VAP, Sales and Distribution/ tons products sold: 0,072

NB! Scope 3 emissions are not included in the GHG emissions intensity ratio calculation, however Scope 3 is a significant contributor to GHG emission intensity. The Group is working on improving its reporting routines to be able to allocate Scope 3 emissions to the respective segments in the Group.

Unit 2018 2019 2020 2021 2022
120 783
135 025
189 267
205 728
220 026
Farming MWh 86 852 98 662 134 355 144 203          148 280
Wildcatch MWh 19 267 10 803 25 380 24 137            24 990
VAP, Sales & Distribution MWh 14 664 25 560 29 532 37 388            46 755
Unit 2018 2019 2020 2021 2022
20 320
22 097
23 938
23 176
57 947
Scope 1  tCO2e 16 412 18 249 18 429 18 706                  54 092
Scope 2 (Location based)  tCO2e 3 908 3 847 5 508 4 470                     3 855
102 266
99 141
108 540
120 985
113 191
Scope 1   tCO2e 101 399 98 720 107 499 120 237                112 541
Scope 2 (Location based)  tCO2e 867 421 1040 748 650
VAP, Sales & Distribution
3 603
4 578
5 268
6 942
7 667
Scope 1  tCO2e 969 1 814,7 1 881 2 579                     3 281
Scope 2 (Lokasjons basert)  tCO2e 2 633 2 764 3 387 4 362                     4 464
1 279 11
1 418 557
1 422 388
1 308 278
1 217 274
Scope 1  tCO2e 118 782 118 785 127 810 141 523                169 913
Scope 2 (Location based)  tCO2e 7 409 7 033,3  9 937 9 581                     8 970
Scope 3  tCO2e 1 721 1 292 739 1 284 642 1 157 174 1 038 392
Annual Scope 2 Market-based GHG emissions:
   tCO2e 35 365 28 443 50 409 49 208 44 843

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


GHG Emissions Reduction 2022:

Scope 1 emissions have increased by 20% compared to 2021 levels. The reason for the change is amended reporting practices (ref. chapter Emissions 2022 in Sustainability library) as well as improved quality of data.

Scope 2 emissions have decreased by 6,8% compared to 2021 levels due to use of cleaner sources of energy.

Scope 3 emissions have decreased by 10,26% due to significant decrease in emissions from fish feed as well as moving well and service boat emissions to Scope 1 (ref. chapter Emissions 2022 in Sustainability library).

In 2022 total GHG emissions for Lerøy Seafood Group (Scope 1,2 and3) have decreased by 7% compared to 2021 levels.

Status and roadmap to reduce our GHG emissions by 46% in 2030 








  Unit  2018 2019 2020 2021 2022
Diesel* liter 2 262 514 2 591 190 2 654 552 2 893 492 6 264 465
Marin gas oil (MGO) liter 3 540 849 3 656 064 3 525 430 3 461 428 12 994 859
Petrol** liter 189 287 264 596 414 031 471 823 558 852
Biodiesel fuel (HVO) liter - - - -  - 
LPG (Propane) kg - - - -  - 
Fuel oil liter 26 202 84 271 206 904 45 916                       661
Refrigerants kg 228 1 670 478 379 140
Diesel* liter 3 192 9 781 8 033 10 789  7 927
Marin gass olje (MGO) liter 36 538 544 35 559 152 38 723 297 43 309 534 40 341 435
LPG (Propane) kg 1502 211 780 2 013 704
LPG (Propane) liter 203  1 136 -  - 
Petrol** kg 503 486 169
Refrigerants kg 504  - 677
VAP, Sales & Distribution            
Diesel* liter 196 923 558 697 404 058 476 053  600 168
Petrol** liter 25 154 24 260 28 087 44 521  107 091
Natural gas m3 18 620 24 266 78 553 189 628  478 537
LPG (Propane) kg 957 50 935 53 825 36 588  79 842
LPG (Propane) liter - - 132 -  - 
Fuel oil liter 19 254 17 525 18 051 21 795  - 
Refrigerants kg 74 3 93 1 680  5 578
Diesel* liter 2 462 629 3 159 669 3 066 643 3 380 334 6 872 560
Marin gass olje (MGO) liter 40 079 393 39 183 756 42 248 727 46 770 962 53 336 294
Petrol** liter 214 441 288 856 442 621 516 830 666 111
Biodiesel fuel (HVO) liter - - - -  - 
Natural gas m3 18620 24 266 78 553 189 628 478 537
LPG (Propane) kg 2459 51 146 54 605 38 601 80 546
LPG (Propane) liter - 203 1 268 -  - 
Fuel oil liter 45 456 101 796 224 955 67 711  661
Refrigerants kg 806 1 673 571 2 059 6 395

*Diesel includes Diesel (100% fossil), Diesel (B7) and Diesel (B30 HVO)
**Petrol includes Petrol (100% fossil) and Petrol (E5)

Climate scenario analysis

NB! Please, note that this is the previous version of Climate scenario analysis. An updated version of Climate scenario analysis is integrated in Lerøy's 2022 TCFD report (see link above)

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.


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.


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:


  • 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.


  • 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


  • 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.


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.


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.


  • 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.


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:

  1. 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.
  2. 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.
  3. Growing awareness of the use of air freight in transportation may harm the overall reputation of seafood.
  4. 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 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 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.


  • 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.


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.


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:


  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.


  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.

Skjermbilde potential impact.JPG

Greenhouse gas emissions reduction initiatives

What does sustainability mean for Lerøy?

Sustainable development is based on three fundamental pillars:

Environment -  We must take care of the environment. All activity affects the environment, but we must ensure that the environment will return to its original state after use in order to be able to operate in an eternal perspective.

Social - we must look after the people and the local environment. Ensure that human rights are safeguarded for employees who are involved directly or indirectly in our value chain and contribute positively to the local environment around us.

Governance – We must comply with laws and regulations, protect our reputation and operate profitably.

    Sustainability wheel

We will reduce our greenhouse gas emissions by 46% by 2030. Lerøy has an ambition to be climate neutral by 2050.

In order to reach our greenhouse gas emission reduction target, we have initiated 3 main projects that will contribute to reduction of greenhouse gas emissions in Lerøy. These projects are targeting our most significat greenhouse gas emissions sources.


Sustainable fish feed

Raw materials for fish feed have been proven to contribute the highest greenhouse gas emissions. It constitutes a large part of Lerøy's Scope 3 category "Purchased goods and services" (527 804,8 tCO2e in 2022). Lerøy therefore wants to prioritize raw materials that contribute to reaching our grennhouse gas emissions reduction target without compromising biodiversity and other important ESG aspects.

The company has initiated these innovative projects to reduce GHG emissions:

  • Use and development feed ingredients such as microalgae and insect meal that have a low carbon footprint
  • Increased utilization of offcuts and residual raw material from the wildcatch segment
  • Ocean forest, production of macroalgae, mussels and low-trophic species


Upstream transportation and distribution is our second largest greenhouse emisson source, and resulted in 433 909,4 tCO2e in 2022. Transportation of produced products to customers is the largest contributar, prioritization of optimalization of transport weight and develop technology to be able to choose more environment friendly transportation is crucial.

  • Developed a climate calculator for air transportation showing the most climate-efficient routes​
  • Reduce transportation weight by 20% by replacing wet ice with dry ice as a cooling medium​
  • Increase the degree of processing – higher utilization of residual raw material

Alternative fuel sources

Leroy is participating in different innovation programs on how to create alternatives for fossile fules like MGO.

Our total Scope 1 emissions in 2022 was 169 913 tco2e. In the Wildcatch segment Lerøy Havfisk is a part of an innovation program exploring how to use green ammonia to reduce the dependency of MGO, in addidtion the Farming segment which has electrified a large proportion of its of farm locations.

  • Green Shipping Program - development of alternative low-emission fuel sources​ i.e ammonia
  • Mixing biofuel into Marine Gas Oils (MGO) without engine changes​
  • Streamlining operations and fishing gear to use less MGO​
  • Electrification of fleets, well boats and workboats

Electrification of fleets, well boats and workboats

The world's largest shore current system for well boats is ready for use at Hitra. This investment is one of many measures we are taking to achieve the company's goal of reducing greenhouse gas emissions by 46% by 2030. Our goal is to create the world's most efficient and sustainable value chain for seafood, says Harald Larssen, general manager of Lerøy Midt.

Lerøy Midt has chartered the wellboat Gåsø Høvding, which has been built to run all systems on board completely electrically for direct delivery of salmon to our slaughterhouse on Jøsnøya in Hitra. The well boat is the world's largest with more than double well volume comparing to normal well boats. The well boat is owned by Frøy Rederi AS, which has invested large sums in the system for electric operation. 

With the investment in the high-voltage shore power plant, Lerøy Midt has the potential to significantly reduce nitrogen oxide (NOx) emissions and emissions of several thousand tonnes of CO2 equivalents annually. 


The project is a close collaboration between Lerøy Midt AS as the customer, Frøy Rederi AS which owns the wellboat and Nord Trøndelag electricity utility (NTE) which has designed and built the shore power plant. 

In addition to NTE and Frøy Rederi AS, Enova (Norwegian state-owned enterprise owned by the Ministry of Climate and Environment. It provides funding and advice for energy and climate projects) has been involved and taken up to 40 per cent of the budgeted investment costs, which has made it possible to carry out the project.

Gåsø Høvding, like other well boats, is manned around the clock, so the crew in particular will be able to benefit from the silence. This will improve the working conditions and the working environment for everyone involved, both those on board and those who work at our Jøsnøya plant. In addition to the actual transport of salmon from the cages to slaughter, the size of the boat allows the entire biomass from a cage to be handled in one load. If, for example, salmon lice treatment is necessary, the well boat can be filled with fresh water that it can produce itself and treat the entire cage in one operation. The treatment is a gentle treatment against this parasite.The well boat is equipped with today's most modern equipment, which means that the salmon have as good conditions on board as they have in a cage in localities.


Power from land

The Group has established different measures in order to reduce its 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 usually makes good overall  economic sense.

Power from land results in:

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

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

More than 80 % of our sites now run on power from  land, on remaining sites 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 various measures require technological  development and a high level of expertise, and in many ways, they represent a breakthrough in the industry.

Solar panels provide fish with a reduced carbon footprint

Lerøy Kjærelva is a RAS (Recirculating Aquaculture Systems) facility, which means that 99% of the water is reused. Because little water resources are used, it is environmentally friendly and sustainable. The RAS technology still requires more electricity to purify the water used. This means that fish from RAS facilities have a higher energy footprint than fish traditional farming, however the solar panels contribute to a lower activity carbon footprint in total.

The solar panel, which is placed on a 14,000 square meter roof, provides an annual electricity saving of approximately 1.2 gigawatt hours, which is equivalent to the annual electricity consumption of approximately 75 households!

Taket på Kjærelva sett ovenfra på skrå. Store deler av taket er dekket av solcellepanel.