Potential, negative and positive effects on the economy, environment and people

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.

2024 was confirmed as the warmest calendar year on record (records going back to 1850). According to NASA, the average global surface temperature in 2024 was above the 20th century base-line. The World Meteorological Organization (WMO) also reported that 2024's global average surface temperature was about 1.55 degrees Celsius above the pre-industrial level. This marks the first calendar year with a global mean temperature exceeding 1.5 degrees Celsius above the 1850-1900 average. The urgency to take decisive climate action has never been greater.

Lerøy, is aware of its duty to contribute to taking climate action by reducing its emissions of carbon dioxide and other greenhouse gases (GHG).

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

The Group 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. Lerøy has entered a strategic partnership agreement with a fish feed supplier. A strategic partnership agreement ensures that we collaborate with a partner that has also set ambitious targets regarding reduction of GHG emissions.

Lerøy generates waste, including plastic waste, however it is taking appropriate steps to reduce its contribution to waste pollution (for more detailed information regarding waste pollution, please, visit section Water and Waste Management (Environment) in Lerøy Sustainability library 2024.

Lerøy has developed Climate and Energy Consumption 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 emissions in order to be able to reduce the emissions, follow developments and trends and manage Lerøy’s impact on climate change.
• Committing to a Science Based Target to reduce its GHG emissions.The organisation has committed to reducing 46% of its overall Scope 1, 2 and 3 GHG emissions from base year 2019.
• Adapting to the impacts of climate change – climate change occurs as a result of any operational activity. Lerøy is adapting to the impacts of these changes by implementing appropriate measures.
• Participating in various research and development activities which are critical to addressing climate change and trying to find appropriate solutions. Lerøy is participating in several initiatives to help developing new technologies that can help to reduce climate change.
• Promote sustainable business practices, increasing organisational 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. The company also reports to CDP. For its 2024 reporting Lerøy earned A- score (Leadership) in Climate Change section. To earn an A/A- score from CDP organisations must show environmental leadership, disclosing action on climate change as well as demonstrate best practice in strategy and action.