As shown in the Group’s history Lerøy has always been an innovative company both in terms of product and process development. Creative is one of The Group’s values. This includes also sustainability innovation, and projects related to sustainability innovation.
Findings from the materiality analysis are key inputs into the Group’s balanced scorecard both for coming years, but also going forward to 2030. Included in this scorecard are sustainability KPI, and to reach them several project and initiatives have been initiated.
The following list is not exhaustive, but gives examples of some of the key projects carried out in 2022, or which are still ongoing
And as said this is not an exhaustive list. This is an example of how the group’s set objectives and balance scorecard approach drives innovation through project and initiatives, with the materiality assessment as key input.
The Group is certain such innovation and project, and creativity, is necessary to reach its long term objectives.
The Group has developed a set of objectives and KPIs which are reviewed annually and followed up on least monthly. This balanced set of KPIs includes ESG variables and is broken down from the Group level at least to the business-unit level. These KPIs are monitored together with project and action lists to ensure development in the desired direction.
Lerøy has developed a significant sustainability library (available at www.leroyseafood.com) which highlights our key policies and also gives more in-depth information on status and targets.
Beyond highlighting where we are going, these KPI’s and their continuous monitoring highlight where we have gaps, related to both our short-term and long-term ambitions. These gaps provide valuable information about where we need to focus our efforts, both in terms of short-term action lists and longer-term initiatives, typically in the form of projects.
Such action lists and processes, with clear roles and responsibilities, are present on the Group and segment levels, and also at least on the business-unit level, and are part of the continuous review of our operations. While nowhere near a complete list of such initiatives in the Group, the following provides an overview of some of the key strategic projects on the Group and segment levels at the start of 2023.
All strategic projects we perform require clear mandates with targets and plans for realizing operational and economic gain, as defined in our standards for project methodology.
| Project | Short description | ||
| Group | Digital transformation | Access to good data and efficent processes supported by technology and systems are essential for Lerøy to reach its target of becoming the world's mot efficent and sustaiable value chain for seafood. Program to develop more joint systems and processes | |
| HR/ Payroll / IAM | Implementation of a joint HR and payroll system for all the Norwegian subsidiaries in the Group. Standardisation of master data and processes, and sharing of best practices. Establishing HR operational model. | ||
| Sustainability in daily operations |
Sustainability is key to reaching our vision and objectives. Project for increasing knowledge through organisation and ensuring ESG variables are included in all operational meetings | ||
| Feed strategy | For the Group's GHG footprint (Scope 3), feed is the most important contributor. Project to ensure we meet our operational targets as well as the target of reducing GHG emissions by 46% in 2030 | ||
| Lerøy Ocean Harvest | Production of low trophic species, like seaweed, are very sustainable. Since 2013, Lerøy has been working with Bellona to industrialise production of low trophic species. Project with aim to scale Lerøy's production of seaweed to 100,000 tonnes in 2030 | ||
| Implementing Lerøy Way |
Implementing the Group's business system, the Lerøy Way, to ensure continous improvement in our value chain. Implementing principles for how we solve our problems and improve together to reach the target of satisfied customers. |
| Project | Short description | |
| Farming | Process improvement land | Lerøy has made significant investments in RAS post-smolt facilities. These are highly complex facilities, where most growth parameters may be controlled. Program to gather and develop knowledge implementing improvements in the process of land-based production, to ensure a robust and well-performing smolt. |
| Improved sea lice control | Sea lice pose a core challenge to the efficiency of our farming operations. Project to gather, develop and implement knowledge and improvements within sea lice control | |
| New production technologies | Reviewing and developing technologies which may reduce sea lice pressure; improving key KPIs for the Farming segment |
| Project | Short description | |
| Wild Catch | Raw material strategy | There are numerous regulations in the Whitefish industry, and our access to raw material comes from both the trawling and coastal fleets. We have signficant obligations in our land-based industry. Project with aim to better utilise our resource base and increase utilisation in the land based industry |
| Floating trawl | While restricted by regulations, bottom trawling for several species may be replaced by a floating trawl. Lerøy's aim is to be at the forefront of this development | |
| Green shipping programme | Energy needs in the trawling fleet are currently met by fossil fuels. While it will take time, Lerøy is participating in developing alternatives means of propulsion |
| Project | Short description | |
| VAP, S&D | Higher value creation on 100% of fish | From both an environmental and a financial perspective, it makes sense to use as much of the fish as possible, for high-value utilisation. Project with aim to increasing the value of all of the raw material |
| Sustainable logistics | To reach our GHG targets (scope 3), we must ensure that our logistics are as efficient as possible. Project to develop larger and smaller improvements wich are both environmentally and financially attractive |
The status of our operations is more thoroughly described in the Board of Directors report for 2022, a year in which the Group did not meet all of its targets. However, we are confident that the measures taken, and the way we work, will gradually improve our results in the coming years.
The strategic program Digital Transformation will help realise Lerøy’s strategy and targets by working towards achieving data-driven production, comprehensive and datadriven management of the value chain, datafocused organisation, and further developing digital employees.
Lerøy has ambitious goals through a sustainable strengthning, developing and expanding its farming activcity. One of the vectors to ensure this sustainable transformation is through investment in new technologies.
Persuing our digital transformation allows us to have a better live data feed and control of the fish welfare in our production facilities. This gives us a fundament for state of the art analyses giving unpreceeded insight and understanding on the impact of our activities on the fish stock, the environment or our stakeholders.
Lerøy is taking a front runner role in developing and enabling sea-based production technologies protecting the salmon from sea lice. Lerøy is working internally with technology development and collaborating with several suppliers to test prototypes of different technologies.
These are new farming concepts that protect the growth environment including closed and semi-closed containment systems (SCCS), and submersible fish farm infrastructure. Experience shows that lice treatment free commercial production is achievable.
Lerøy is planning a significant technology investment (in the range of 500 - 1.000 MNOK) in the coming years, with the first installations being rolled out in the course of 2024.
Lerøy is working in a structured way to adopt new production technologies. The coastal production technology program consists of a number of projects intended to adopt new and improved production technologies within coastal aquaculture.
The motivation is to run existing production in an even more sustainable way and to enable the company to exploit new growth opportunities. The program’s purpose is to help strengthen important value drivers of the segment.
