THE GROUP WILL WORK PURPOSEFULLY TO REDUCE OUR CLIMATE FOOTPRINT BOTH INTERNALLY AND FOR OUR PARTNERS
The Group is measuring the climate footprint (scope 1 & 2) for the whole Group, and have started mapping and gathering information to further reduce CO2 e for all production, including our partners, from raw materials for feed, to transport to the end consumer (scope 3).
The Group is identifying where the emissions are and where we can make the biggest gains. The Group are switching from diesel to renewable energy (hydropower) on almost all feed barges.
The Group's investments in an efficient and modern value chain are also helping reducing energy use at the factories and locations along the coast. The Group's fleet renewal has given the company one of the most modern trawler fleets in the world, with more effective energy use and also higher utilisation of the residual raw materials on board.
Air transport to overseas markets is a substantial contributor to the Group's total climate footprint, and the Group are addressing that, but the Group are aware that the biggest potential for reduction in CO2 e emissions is in feed, which constitutes approx. 80% of the Group's total CO2 emissions. The Group therefore work closely together with partners and stakeholders to be prime movers when it comes to both testing and implementing new feed raw materials.
The Group keeps a focus on eco-friendly solutions and works on keeping both direct and indirect emissions as low as possible.
The framework selected for calculating CO2 emissions includes emissions from combustion processes required for the Group’s operations. This is referred to below as direct emissions, Scope 1.
The Group also wanted to gain an overview of the indirect impact on global warming of the company's activities and has therefore also included CO2 emissions from the production of electricity consumed by the Group. This is referred to below as indirect emissions, Scope 2.
All sources of greenhouse gas emissions from the Group's core activities have been included in the calculations.
The purchase of products and services, scope 3 is calculated for 2019 but not for 2020.
The group had a goal for 2020 to map scope 3 for 2019 in order to set Science Based Targets by 2030. This was implemented and we are pleased to announce that we have now had our science based targets approved by The Steering Committee of The Science Based Targets initiative.
By introducing SBT, The Group has set a clear course for climate reduction throughout the entire value chain. Both the company's board, group management and employees are behind the goals that have been set and we will work well together through "One Lerøy" to ensure that we will achieve the goals that have been set.
“Lerøy Seafood Group ASA commits to reduce absolute scope 1, 2 and 3 GHG emissions 46% by 2030 from a 2019 base year.”
The target is aligned with a 1,5 degrees C pathway.
Greenhouse gas emissions
The tables provide a summary of consumption of fossil fuels and electricity, and greenhouse gas emissions per segment and in total.
Total Consumption of electricity (Scope 2)
|Farming||MWh||75 828,6||82 019,7||98 393,0||134 180,2|
|Wild catch||MWh||42 188,6||19 267,5||22 620,7||25 570,4|
|VAP, Sales and Distribution||MWh||15 066,2||9 410,7||25 370,2||29 576,2|
|The Group||MWh||135 628,1||110 697,9||146 383,9||189 326,8|
The data is verified by an independent third party.
Total Consumption of fossile fuels (Scope 1)
|Diesel||liters||2 152 314||2 231 538||2 609 865||2 639 377|
|Marine gas oil (MGO)||liters||3 873 248||3 540 847||3 656 064||3 549 989|
|Petrol||liters||223 333||189 285||264 596||415 777|
|Biodiesel fuel (HVO)||liters||26 200||-||-||-|
|LPG (Propane)||kg||58 328||-||-||-|
|Fuel oil||liters||21 181||26 202||84 271||206 764|
|Diesel||liters||-||3 192||9 782||8 589|
|Marine gas oil (MGO)||liters||32 359 151||36 538 544||35 559 152||38 723 297|
|LPG (Propane)||liters||1 136|
|VAP, Sales and Distribution|
|Diesel||liters||163 577||164 451||556 802||402 883|
|Petrol||liters||22 024||25 154||24 260||28 087|
|Natural gas||m3||2 096||-||24 267||76 287|
|LPG (Propane)||kg||-||-||50 935||53 825|
|Fuel oil||liters||18 165||19 254||17 525||18 051|
|Diesel||liters||2 315 891||2 399 181||3 176 449||3 050 849|
|Marine gas oil (MGO)||liters||36 232 399||40 079 391||39 215 216||42 273 286|
|Petrol||liters||245 357||214 439||288 856||444 367|
|Biodiesel fuel (HVO)||liters||26 200||-||-||-|
|Natural gas||m3||2 890||-||24 267||76 287|
|LPG (Propane)||kg||58 328||-||51 138||54 605|
|LPG (Propane)||liters||-||-||-||1 268|
|Fuel oil||liters||39 346||45 456||101 796||224 815|
The data is verified by an independent third party.
Total tonnes of CO2 equivalent (tCO2e)
|Scope 1||tCO2e||17 092||16 328||18 831||18 461|
|Scope 2||tCO2e||3 944||3 692||3 837||5 501|
|Total||tCO2e||21 036||20 020||22 668||23 962|
|Scope 1||tCO2e||88 543||101 395||98 720||107 501|
|Scope 2||tCO2e||2 194||867||882||1 048|
|Total||tCO2e||90 737||102 263||99 603||108 549|
|VAP, Sales and Distribution|
|Scope 1||tCO2e||833||841||1 798||1 830|
|Scope 2||tCO2e||1 981||2 304||2 757||3 376|
|Total||tCO2e||2 815||3 145||4 554||5 205|
|Scope 1||tCO2e||106 473||118 565||119 349||127 792|
|Scope 2||tCO2e||8 246||6 863||7 476||9 925|
|Total||tCO2e||114 719||125 427||126 825||137 717|
The data is verified by an independent third party.
CO2e emissions for fish are in general low. When compared with other types of proteins we eat, salmon has the lowest eco-footprint.
Lerøy Seafood Group («Lerøy») is continuously working to improve its Co2e emission monitoring and reporting. Information on emissions is crucial for understanding and responding to environmental pollution. However, we acknowledge that the data quality is not perfect and we strive to improve our data quality and current reported values will be updated if we identify any deviations.
The Group has completed a comprehensive analysis of climate related risks and opportunities to which we believe the Group is exposed over the short, medium and long term. This analysis has confirmed the importance of measuring and reporting environmental performance
Lerøy has set ambitious science based targets to reduce our environmental 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 included in the emission reporting. The Group’s operating segments comprise the following: 1) Wild Catch 2 ) Farming and 3) Value Added Processing which also includes sales and distribution.
Our emissions are reported according to the GHG Protocol Corporate Accounting and Reporting Standard.
The GHG Protocol Corporate Standard requires reporting a minimum of scope 1 and scope 2 emissions and you will find this in our updated 2020 emission report. This means that our 2020 report is based on operational control and includes only activities which Lerøy controls. We aim to include emissions data from relevant scope 3 activities in 2021.
The reported emission figures have been collected throughout 2020 from relevant suppliers via invoices and direct monitoring, and are based on the same data source as the figures reported in Lerøy’s 2019 annual report.
The reported figures provide the best estimates at the end of the reporting period and any amendments will be implemented in our annual report for 2021.
Emissions data covers reporting of the following greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs). The Group has not been contributing to any biogenic Co2 emissions in 2020.
For more details regarding methods for calculating Scope 1 and Scope 2 as well as conversion factors, please see link to the appendix below:
Emission factors - Scope 1 and 2
Methodology Scope 1 and 2
WHAT CAUSES OUR EMISSIONS (2019)
The three most important options to decrease our emissions:
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.
Climate related risks & opportunities
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 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.
POLICY AND LEGAL
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:
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:
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.
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.
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.
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:
Rising air temperatures
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.
Exploit market shifts towards climate friendly products and services:
Exploit opportunities that follow a new positioning in a low carbon market:
Exploit collaborative efforts:
Resource efficiency as equivalent to cost efficiency and can be obtained through:
TOP 3 CLIMATE RELATED RISKS & OPPORTUNITIES
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:
TOP 3 RISKS:
TOP 3 OPPORTUNITIES:
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.
Our fish feed ingredients should be from sustainable and traceable sources.
Lerøy Seafood Group has taken an active role in influencing the further development of feed composition to ensure product quality in a sustainable way.
We work actively to further the development of sustainable fish feed. Our fish feed ingredients should be from sustainable and traceable sources.
We normally divide the ingredients into two groups:
During the last years there has been a change in the composition of the feed to more and more use of vegetable raw materials.
Proportion of marine raw material
|Share marine raw materials %||20||22||23|
|Share vegetables %||80||78||77|
In 2020, the Group purchased 273 497 tons of fish feed.
CO2e for production of fish feed
|2020, included landuse||2019||2018|
|Average emissions per kg feed produced for the Group||3,18||1,58||1,77|
In 2020 we used the following marine raw materials:
In 2020 we used the following vegetable species
FFDR, salmon (ASC formula)
The data is verified by an independent third party.
Novel feed ingredients
The Group was one of the first to use new raw materials and has since 2017 used microalgae in fish feed. Through its interest, Lerøy has participated in the development of the supplier industry within microalgaes. When Lerøy started using microalgae, there was only one producer, today there are four.
Lerøy has also used insect meal the last years, but the available volumes offered today is too small for an industry and the costs are too high.
Through our work with novel feed ingredients Lerøy has invested significant values in the development of new raw materials for fish feed. An estimate based on 2020 averages says that Lerøy’s investment in novel feed ingredients is approx. NOK 220 million over the last 3 years.
To be able to justify the increased production costs, we depend on a competitive price for these raw materials. Today, price and production volume are not satisfactory to be able to justify an increase in volume to be included in the feed.
Lerøy has taken leadership in the pursuit of new and sustainable raw materials. We chose to focus on alternatives for marine omega 3 out of concern for fish quality, fish welfare, securing the supply and out of marine ecology concerns. Microalgae helps Lerøy to increase the level of EPA+DHA in the feed, addressing all the mentioned potential problems intertwined with fish oil from forage fisheries.
However, it is worth noting that we are not replacing any fish meal/oil in with novel ingredients today, rather increasing the level without further putting pressure on the marine wildlife. The reasoning behind this is complex. Lerøy takes our responsibility in assuring sustainably managed oceans with utmost respect. That can only be achieved with a holistic approach. Today, our experience at sea, tells us that replacing FM/FO even further than has already been done will affect aspects of growth, survival and ultimately feed conversion ratios negatively. Not an acceptable outcome. We are confident that a greater understanding in fish nutrition will solve this in time, but not in the next couple of years.
We are looking into alternatives to better source high quality feed ingredients from the oceans. Certification of marine raw materials is one of those short term KPI’s we are pursuing to always increase, same with the percentage of trimmings used, and where possible, going down in the trophic levels (krill meal etc.). Increasing the use of trimmings is one of the areas Lerøy is pursuing very actively, and the potential we have by integrating our white fish value chain to farming.
The projects run by Ocean Harvest, where we investigate species like blue mussels, and its potential as a marine raw material in feed, also show how Lerøy is actively working and funding the hunt for alternatives to forage fish, but not necessarily marine raw materials.
|Total Feed use||280 000 000 kg|
|Total use of Marine Raw materials||63 000 000 kg||22% of total|
|Use of Forage fish||45 000 000 kg||71% of marine raw materials|
|Use of trimmings||18 000 000 kg||29% of marine raw materials|
|Approximate spending on novel feed ingredients since 2018 – ytd.||NOK 220 Million|
The Group has established requirements for its suppliers of fish feed to make sure that raw materials are managed in a sustainable manner. Moreover, the Group will require its suppliers to monitor closely how quotas are established and respected, and how the catch is utilised.
Policy: Fish feed
The Group has worked for a long time to change feed composition and have made some decisions regarding the fish feed we use for our salmon:
Our feed contains:
These choices has resulted in a new product brand: «Lerøy Salmon™»
Marine Feed ingredient Certified according to a sustainability standard
|Total share of certified raw materials %||40,85||40,25|
|Share of certified marine ingredients %||90,27||89,53|
Production of Atlantic salmon and Rainbow trout is considered more sustainable compared to production of beef, pork, sheep and other animal based proteins. The reason is that animal based proteins are more discharge intensive because of the methane gas they produce.
The CO2 footprint of Fish (average) is about 3,49 kg Co2-EQ/kg compared to beef at 26,61 kg Co2 -EQ/kg. Farmed Atlantic salmon have even a lower Eco fotprint of 3,3 kg co2 – EQ/kg (Ref: Sintef 2017).
To reduce our overall emissions and trap excess nutrients such as Nitrogen, phosphor and carbon from our salmon and trout production Lerøy, in partnership with NGO Belona Holding AS, started a joint venture, Ocean Forest, to produce macro algae, blue mussels and polychaeta at near several of our farming sites. In addition to trap CO2 and absorb excess nutrients from the farming operations, especially the blue mussels, but also the sugar kelp are good sources of sustainable proteins and other health benefitting nutrients.
Ocean Forest has conducted two studies of fermented kelp in feed for ruminants in collaboration with the University of Copenhagen. The first study is an in vitro study, in which the methane gas production in the stomach of dairy cows is added to various fermented kelp products. The measurements showed up to a 45% reduction in methane gas production using fermented kelp.
The second experiment was performed on calves. The calves could choose freely between 4 different diets with 0 to 5% fermented kelp added. The feed with the highest content of fermented kelp was clearly most sought after by the animals.
The studies in Denmark have shown that fermented kelp can be an important new ingredient in feed to land animals to reduced their emissions of methane gas by 30-40 % (Hansen et al, In prep) when adding Sugar kelp to their diet. Ocean Forest sold most of the production of sugar kelp in 2020 as a new ingredient for animal feed.
Using blue mussel meal instead of fish meal has also shown to be an excellent replacement as shown in the EU funded project Holofood. We therefore started an inhouse R&D project with one of the major Feed companies to see if blue mussel meal is viable commercially.
We also include 1,5 – 2 % insect flour in all our freshwater feed as a replacement for fish meal. From a nutritional point of view its considered a high quality and sustainable protein source, but its highly expensive to use.
The growth potential of this business venture are far greater than what we produce today, and what we will be able to produce in a long while. Today we have blue mussel and sugar kelp production at 7 locations (5 sugar kelp locations and 2 blue mussel locations). We produced 150 tons of sugar kelp (1,5 ton protein) in 2020, and estimate a significant increase in production volume in 2021 and 2022.
Our goal is to one day have the knowledge, technology and the Customer base to extend this production setup to a major part of our farming sites, producing more sustainable marine and plant proteins. We are also committed to continue educating the public about the benefits of a diet consisting of marine proteins, Omega 3 and 6 fatty acids and other health benefiting nutrients. Doing so, we are confident that the human consumption of these sustainable proteins will increase in the future.
Non-compliance with environmental laws and regulations
The company had no violations of the regulations which resulted in fines in this area.
The worlds dependency on clean freshwater have never been greater. With an increasing global population, increased temperatures due to increased Co2 emissions and increased pollution, it has become even more important to govern our water sources in a sustainable manner.
LSG take this responsibility seriously and strive to protect and safeguard the freshwater sources we draw water from. We have devised strict protocols and procedures to make sure that we never draw on more water than we are allowed to.
We do this based on extensive risk analysis and preventive actions. This also protects local habitats and wildlife in addition to reduce our impact on local water levels. We also continue our effort to switch all flow through systems to RAS. In 2020 we closed down 5 flow through systems and replaced them with one facility using RAS technology. This change was the biggest contributor to reaching our goal of a 5 % reduction in fresh water use. In total we reduced our usage of freshwater with 5,1 % in 2020.
In our operations, and mainly the Smolt operations, there have been identified risks which may have a negative impact on our operations. Long term drought has the highest consequences for our operations and may cause severe impacts on both fish welfare and our financial situation. Long term drought which will deplete our water reserves in magazines is however deemed unlikely since access to clean high quality freshwater in Norway is good.
In 2020 LSG sourced 97,8 % of its fresh water from surface water sources, and 1,3 % from Municipality sources. In total we used 0,27 m3 freshwater per kg fish produced in the group. The farming segment used 14,09 m3 per kg fish produced, while our slaughterhouses used 0,00063 m3 freshwater per kg fish produced, and our VAP segment used 0,0065 m3.
The RAS (Recirculating Aquaculture Systems) technology allows Lerøy Seafood Group to produce fish with up to 99% reduction in water use compared to conventional flow-through systems. The Group started to use RAS-technology already in 2005. In 2021, approximately 80% of all salmon smolt in Lerøy Seafood Group will be reared with this technology.
We continue our work with water treatment and discharge. Most of our processing factories, new and old, are equipped with fat separators and UV light treatment. In some factories, where it’s necessary, we also have chemical treatment of waste water in addition to mechanical treatment.
New technology and proximity to a biogas facility in Sweden have made it possible for one of our factory to send wastewater for treatment there, and at the same time recover biogas from the waste water. This has resulted in eliminating treatment on site which is beneficial for all parties.
Our operations consummation of freshwater is not significant. We have therefore defined our discharge of wastewater to be the same as our intake of freshwater.
Waste handling and Sorting
Improving our handling and sorting of waste is a continuous priority for LSG. Sorting waste for reuse, recycling and recovery will greatly impact our environment through reduction of unwanted, hazardous and non-biodegradable waste in the environment .
We have implemented strict sorting regimes in all our locations and strive, in collaboration with our waste handling companies, to make sure that all our waste is handled correctly by us and the recipient of the waste. In this the different waste handling companies and local governments are the main contributor and drivers to make the big changes. Without involvement, dedication and investments from them, it will be difficult to see a significant change in share of waste being recycled, reused and recovered.
Many have argued that the incentives to sort and handle waste correctly is somewhat mute, because large quantities of waste is sent to landfills or to undisclosed destinations for incineration. Because of this we are committed to continue our work in different forums like the UN Global Compact initiative to do what we can to push for change.
Our goal for 2020 was to increase the share by 10 % compared to 2019.
We experienced however a decline with 4,73 % % compared to last year. This may be explained by several factors. The 7 % overall reduction of non-organic waste we generated in 2020 is one of them. Another contributing factor is that our waste fractions are more or less constant. Meaning that without change in how our waste is handled by waste handling companies, our share of waste which is recycled, reused and recovered will also be more or less constant. We can partly solve this with higher involvement with private companies which can reuse our waste to other purposes.
The share of hazardous waste in LSG is about 2% of the total amount of waste we generate. Some of our factories still use fluorescent lights, so by changing them to LED lights we can reduce this even further. In addition, the electrifying of our feeding stations will also reduce our hazardous waste by eliminating the use of oils and lubricants for our generators.
The Group has established different revolutionary measures in order to reduce environmental impact; from obtaining power from land, hybrid fleets, floating solar cells, to 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:
Power from land usually makes good overal economic sense.
Power from land results in:
The further development of power from land should entail a degree of overcapacity, thus enabling any future electrified boats to be recharged.
More than 65% of our sites now run on power from land – a figure that will increase in the coming years. In 2020, there is a plan to replace fossil-fuelled generators at 19 production sites. We will then have 85% of the Group`s sites on renewable electricity.
The various measures require technological development and a high level of expertise, and in many ways, they represent a breakthrough in the industry.
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 Group has hybrid solutions with batteries at two production sites.
Organic non-edible materials
Organic non-edible materials from all our activities represent about 26% of our total volume produced. We categorize these from 1-3. Of the total volume of organic non-edible materials, 0,1% is category 35,8% is category 2, and 59,1% category 3.
The Group strives to increase the share for human consumption, and aims to increase this by 50% by 2024. Projects across the Group have been ongoing since 2018.
We have e.g. invested in a harvest boat which will significantly increase fish welfare and volumes for harvest from our farming operations. This will reduce the volume in Category 2 significantly. In addition, several projects in our VAP, Sales and Distribution segment will contribute to the reduction of food waste and increase the level of raw materials for human consumption.
The Group is actively involved in the process of recovering plastic waste from the oceans through different programes, in order to protect marine wildlife. One of the activities is recycling our fish farming nets, yarn and old trawls.
Another activity is: “ Only on loan”. This is a project in which Lerøy Seafood works together with waste and recycling company Norsk Recycling to ensure that the packaging for products packed in aluminium trays is returned for recycling after use. Such packaging is therefore only “on loan”. Waste is a resource that is not properly utilised, and we aim to do something about this. We also focus on using the correct packaging and the correct size of products in order to avoid waste.
Effects of recycling of fish farming nets, yarn and old trawls
Use of Organic sludge from Smolt production
Since 2013, when the juvenile production facility Belsvik opened, we have sent our organic sludge to a biogas production facility. The use of Organic sludge as biogas is sustainable, but we found that the long transportation of sludge with high content of water was less sustainable.
Investment in a drying facility on location was therefore recently decided and from 2023 we will be able to deliver dried sludge to the agriculture industry.
The Sludge will be used as a soil improvement material and fertilizer. Our other two major smolt production sites in Laksefjord and Kjærelva is already drying their sludge on site for the agriculture industry.
The Group is also producing sugar kelp, which is another example of recycling. When we produce sugar kelp we use the nutritions from fish farming to produce sugar kelp and blue mussels.
Production of sugar kelp
Producing sugar kelp is a very efficient way of binding CO2 already dissolved in the sea. Farming sugar kelp does not require any input of freshwater, fertiliser, pesticides or land. The plant captures the nitrogen, phosphorus and carbon (as CO2) directly from the ocean. On average, 1.000 kg (wet weight) sugar kelp contains 26 kg carbon equal to 100 kg CO2 – which is higher than the same volume for wood.
Ocean Forest AS is an R&D company, and the Group has a 50% share in this company together with NGO Bellona Holding AS. The company is focusing on the production of low trophic species such as macro algae, blue mussels and polychaeta.
Utilise sugarkelp as an feed ingredient for cattles, giving an substantial reduction in emissions from cattle farming.
Production of blue mussel meal
Ocean Forest AS also focuses on the production of blue mussels, not for human consumption but mainly as a source of marine protein. We have conducted a series of growth studies with Atlantic salmon demonstrating that blue mussel is an excellent fishmeal replacement.
The challenge has been to produce a blue mussel meal free of shell fractions on an industrial scale. We have now ordered special equipment that will enable us to separate the meat from the shell on an industrially efficient scale. Testing and implementation of the equipment will take place in 2020. Blue mussels will also contribute to cuts in CO2 emissions.
More efficient feed control
The Group has a constant focus on the footprint from our fish farming activities. Faeces and uneaten feed on the seabed beneath our cages can represent a local undesired impact on the environment. This issue is addressed with an increased focus on feed control but also how to optimize the raw material used and the amount and physical quality of the faeces.
Ocean Forest focuses on the organic matter that reaches the seabed and how we can increase the turnover of this material. Our focus is on polychaeta; how to support the establishment of an active and heathy community of this species and how to harvest the surplus for use in e.g. fish feed for other species than salmon.
In collaboration with the Institute of Marine Research in Norway and the University of Wageningen, we have in recent years conducted a series of studies indicating the turnover rate and species present. We have developed a “polychaeta vacuum cleaner” for harvesting and one of our employees is now studying in detail these challenges in a PhD programme with the Institute of Marine Research/University of Bergen.
New raw material for feed
The Group has a major ongoing programme for developing new innovative raw material for fish feed. Historically, Lerøy has been a prime mover regarding the use of Omega-3 fatty acids produced from microalgae to increase the level of Omega-3 in our feed compared to industry standard, and for the introduction of Camelina oil and the ban on ethoxyquin. Last year, we were the first company to start using insect meal in all our freshwater feed delivered by one of our feed suppliers.
Today, we buy the full volume of insect meal the producer can produce. We are also involved in very interesting projects relating to blue mussel meal and seaweed in salmon feed. Both projects are part of a major EU-supported project – “Holofood”, involving a series of issues, such as feed utilisation and retention, growth performance, fish and gut health.
Methane reduction with sugar kelp
The Group is also delivering sugar kelp to an exciting project in Denmark. In the project, they mix sugar kelp with feed for cows. Compared with ordinary diets with normal cow feed, the project shows that this mixture provides a 50% reduction in the methane emissions from the cows. Fermented sugar kelp in feed also proved successful.
Methane concentration from pure sugar kelp feed, maize silage and sugar beet pulp fermented.
While the use of antibiotics is almost non-existent in Norwegian fish farming, it is a major problem in production of red meat. Here too, sugar kelp can be helpful. The trials in Denmark show that sugar kelp in pig feed, helps with intestinal health and reduces the need for antibiotics.
Project 50/50-5 Food waste
Globally food waste contribute to 8-10 % of greenhouse gas emissions. By reducing food waste we also reduce our climate foot print. About 2 kg of CO2e are emitted for 1 kg of food waste.
Food waste includes all usable parts of food produced for humans, but which are either discarded or removed from the food chain for purposes other than human food.
In project 50/50-5, the Group has chosen to include reduced mortality in farming and utilisation of residual raw materials from wild catches to produce fishmeal, fish oil or silage. Such raw materials are used for human consumption or animal feed, generating food for humans.
The Group has participated in a SINTEF project to map the amount of food waste that occurs in the seafood industry, enabling sub-projects to be set up that have an impact.
We aim to increase the edible proportion of today's food waste by 50%, including reduction in mortality in farming and increased utilisation of residual raw materials from wild catches (fishmeal, oil, silage) and reduction of floor fish and unsold products in the Industry/VAP segment.
Level of fishmeal, oil and silage produced from residual raw material have increased by 39% from 2019 to 2020.
The increase is mainly cause of the new vessel Kongsfjord producing silage and optimalization of oil and meal production. Volumes in 2021 and 2022 will not have such significant increase, increase will mainly be in optimizing meal, oil & silage production. Level of meal, oil and ensilage production was in 2020 40% of available residual raw material.
In Industry and VAP segment reducing food waste is to among other sub projects reduce level of floor fish (products falling on the floor in the production) and unsold products (products expired or ingredients not used in products).
It has been challenging finding a good reporting solution for Industry/VAP facilities in reporting floor fish and unsold product total for the Group. We therefor do not have sufficient data from 2019 to compare with. Level of floor fish and unsold products was in 2020 around 412 000 kg total in the group. All facilities are working according the action plan to reduce floor fish and unsold products.
Other Food waste reduction projects
Project 50/50-5 Plastic
About 5 kg of CO2e are emitted for 1 kilogram of plastic – 2 kg resulting from the production of the plastic and 3 kg of CO2 are emitted when the plastic is burned after use. For some types of plastic, the number may be 4.5 – and for others 5.5. Source: Norwegian Climate Foundation
Lerøy’s programme, as a Group, is reduce non-recyclable plastic consumption by 50%, including reduction in total plastic consumption. All 60 companies in the Group will contribute to achieving the goal and have established sub-projects with goals for each company.
Each company has established a detailed action plan so that the Group can achieve the target in total by 2024. Cooperation, reporting and following up takes place at three segment levels: Farming, Wild catch and VAP, Sales & Distribution. Cooperation at segment level allows us to utilise ideas and actions across similar operations within the Group, improving our contribution towards achieving the main goals.
Over the past year, the Group has carried out a thorough evaluation of the sub-projects to assess the actual effect and impact of the measures taken – and to ensure that they are making a difference!
Our understanding is that all plastic is recyclable as long as it is possible to collect and sort in the right fractions. Therefore, "non" recyclable plastic is interpreted as plastic in wrong place.
We aim to reduce non-recyclable plastic consumption by 50%, including reduction in total plastic consumption. For Farming we measure amount of feed tubes and ropes purchased, for wild catch, Industry and VAP we measure amount of vacuum film, plastic bag sheet and single use hygienic equipment purchased.
Summarized; to reduce plastic purchased as a result of the different sub projects. Less plastic used equals less plastic in wrong place or less kg of plastic per kg products produced.
For 2020 the group used 1 931 731 kg of plastic within the identified areas. No sufficient data from 2019.
Other plastic consumption reduction projects