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SUSTAINABILITY LIBRARY 2023 About Lerøy Material topics

Material topics

Materiality assessment

Lerøy Seafood Group carried out its first materiality assessment in 2016, with updates in 2020. In the autumn of 2022, the Group made a completely new materiality assessment in accordance with the requirements in the GRI Standards 2021.

  • In order to verify the validity of the materiality assessment undertaken in 2022, a review of the assessment was carried out in November 2023. This is an important exercise since 2023 is the year the sector standard GRI 13 “Agriculture, Aquaculture and Fishing Sectors 2022” is fully implemented. Since there are no specific changes to the value chain in the Group in 2023, the review revealed only few changes in the Group`s assessment.
  • The assessment for 2022 included 4 internal topics, Results and process, Compliance, Customers perspective and Learning and organisational development. These are no longer a part of the materiality assessment but included in the Groups KPI`s. In addition to this we have included “Climate adaption and resilience” as a new topic and changed the name of some of our previous topics. See list of material topics below.
  • The organization has not tested the topics on other stakeholders than the Management Team, the Audit Committee and the Board of Directors after they have been concluded as it sees the assessment process to be sufficient in defining the material topics

In order to determine material topics, Lerøy completed the following steps:

  • Identified the stakeholders which are the most important to the organization, customers, suppliers, business partners, employees’, regulators and community representatives
  • Identified a range of potential material topics, based on own materiality assessment, GRI 13 Sector Standard, Coller Fairr Protein Producer Index, EU Taxonomy and other relevant frameworks, which the stakeholders had to assess with regard to their relevance to them and the Group
  • Conducted the investigation via a survey and through in-depth interviews with stakeholders to get their opinion on significant topics
  • Requested the stakeholders to prioritize and assess the importance and impact of significant topics that we addressed to them and asked to point out the most relevant ones for Lerøy Seafood Group seen from their perspective
  • Assessed the following questions internally for the different topics: How grave is the impact? How widespread is the impact? How hard is it to counteract or remedy the resulting harm?
  • Prioritized material issues based on their actual and potential, negative and positive, impacts on the economy, environment, and people, including impacts on human rights. The material topics that were defined as relevant are those which the organization has or can have the greatest positive or negative impact on.
Stakeholders whose views and feedback has been collected
  • PwC: Audit and assurance, consulting and tax services
  • Løvold: Supplier of systems for mooring fish farms and other floating installations in the sae
  • The Norwegian Seafood Federation – interest organization for fisheries and aquaculture companies in Norway
  • ScaleAQ: Supplier of aquaculture systems (such as mooring systems, pens and pen accessories, barges, nets and net service, camera systems, LED lights and sensors, feeding systems etc.)
  • OneOcean – Supplier of software solutions for informed and compliant voyage decision making;
  • Söderberg & Partners: Supplier for risk assessment and financial advice
  • Ettiketto: Packaging supplier
  • Marel: Food processing machinery and software solution
  • Zoetis: Producer of medicine and vaccinations for pets and livestock
  • Atradius: Supplier of trade credit insurance, surety and collections services
  • ICA: Swedish retailer franchise
  • Wikborg Rein: one of the biggest law firms in Norway
  • Akvagroup: Supplier of solutions and services to global aquaculture
  • DNV: an international accredited registrar and classific
  • Ahlsell: supplier of products and services within electrical, tools, personal protective equipment etc.
  • Rema: grocery chain in Norway and Danmark
  • Morenot: provider of solutions to fishing-, aquaculture- and seismic industries
  • IKEA: Swedish chain selling  ready-to-assemble furniture and houseware supplier
  • Aquatiq: Supplier of process equipment, chemistry and hygiene solutions to global food industry
  • Bellona: Independent non-profit organization that aims to meet and fight climate changes
  • Båtsfjord municipality: municipality in northern Norway (Lerøy runs a processing plant in the municipality)
  • Bewi: international provider of packaging, components and insulation solutions
  • Vard: full-service ship builder and designer
  • Norgesgruppen: Norwegian grocery wholesaling group
  • DNB: Financial services company (bank)
  • Danske bank: private Nordic banking company
  • Optimar: automated fish processing company
  • Skretting: world’s largest producer of feeds for farmed fish
  • Selstad: International supplier of competence and equipment for sea-based commerce
  • NMBU: Norwegiosn University of Life Sciences (research institution)
  • Employees of Lerøy

 

Material topics 2023

Is the topic new or has it been included in ESG reporting in the previous reporting period?

Climate emissions

The topic has been included in Lerøy’s ESG reporting in previous reporting period

Climate adaption and resilience

New material topic in 2023  (GRI 13)

Biodiversity

The topic has been included in Lerøy’s ESG reporting in previous reporting period

Water and effluents

The topic has been included in Lerøy’s ESG reporting in previous reporting period

Waste

The topic has been included in Lerøy’s ESG reporting in previous reporting period

Food security

The topic has been included in Lerøy’s ESG reporting in previous reporting period

Food safety

The topic has been included in Lerøy’s ESG reporting in previous reporting period.

Animal health and welfare

The topic has been included in Lerøy’s ESG reporting in previous reporting period. In the previous reporting period the name of the topic was “Fish health and welfare”

Occupational health and safety

The topic has been included in Lerøy’s ESG reporting in previous reporting period. In the previous reporting period the name of the topic was “Health, safety and environment”

Supplier chain traceability

The topic has been included in Lerøy’s ESG reporting in previous reporting period. In the previous reporting period the name of the topic was “Supplier management”

Anti- corruption

The topic has been included in Lerøy’s ESG reporting in previous reporting period

Raw materials fish feed

The topic has been included in Lerøy’s ESG reporting in previous reporting period

Anti-competitive behaviour

New material topic in 2023  (GRI 13)

Anti-competitive bahavior has not been a stand-alone material topic, however Lerøy has described ongoing cases in both Sustainability Library and Annual report 2022

 

Topics in the applicable GRI Sector Standards determined as not material 

When using the GRI Standards, the organization prioritizes reporting on those topics that represent its most significant impacts on the economy, environment, and people, including impacts on their human rights. In the GRI Standards, these are the organization’s material topics. The process of determining material topics is informed by the organization’s ongoing identification and assessment of impacts. The ongoing identification and assessment of impacts involves engaging with relevant stakeholders and experts and it is conducted independently of the sustainability reporting process. (GRI, 2021). On the basis of this work, the topics listed in the table below has been determined as not material. 

 

Topics in the applicable GRI Sector Standards determined as not material

 

Topic 

Explanation 

13.4 

Natural ecosystem conversion 

The Group's farming of salmon and trout takes place in the sea along the Norwegian coast, and therefore does not affect mangroves, saltmarshes, wetlands, savannas or other terrestrial ecosystems. The use of freashwater for smolt production in Norway is regulated and thus the impact on lake and river ecosystems is negligible. 

Lerøy has an indirect impact on natural ecosystem conversion through its suppliers, especially suppliers of fish feed raw material. Lerøy is actively working towards ensuring and improving the sustainability of agricultural raw materials used in fish feed and has signed the Cerrado manifesto, and requires soy to be ProTerra/Eurosoy certified. 

13.5 

Soil health 

Lerøy's land-based facilities take up relatively little space and are mostly situated in areas already regulated for industrial activity and has no agricultural activity. Therefore, Lerøy has little direct impact on soil health. Lerøy has an indirect impact on soil health through its suppliers, especially suppliers of fish feed raw material. Lerøy is actively working towards ensuring and improving the sustainability of agricultural raw materials used in fish feed and has signed the Cerrado manifesto, and requires soy to be ProTerra/Eurosoy certified. 

13.6 

Pesticides use 

The pesticides in use in Lerøys operations are mainly to combat sea-lice in our farming operations. Only a small amount of active substance is used in delousing operations as there has been a trend towards using mechanical delousing treatment instead of chemical bath treatments in Lerøy, and in the salmon farming industry as a whole. The chemical agent with the highest volume of emitted substance in 2023 was hydrogen peroxide, which quickly dissociates in the marine environment. With the introduction of closed and semi-closed production technology in Lerøy, the use of pesticides is expected to further decrease as these production forms is expected to lower the need for delousing procedures. 

13.12 

Local communities 

Many of the Group’s companies are located in decentralised areas, making significant contributions to employment and income in the local communities.

Of the Group's water withdrawal, only 0,008% was drawn from gorundwater sources in 2023. Most of the surface water used in our operations is drawn from sources in Norway, and to the Group's knowledge there has been no adverse impacts on local communities from surface water use.   

Hazardous wastes of small quantities are stored safely and with in regulations in storage lockers design for the purpose. Throughout the Group, waste handling companies handle and transport in accordance with relevant regulations. To the best of our knowledge there have been no adverse impacts on local communities from improper handling of hazardous material.

The Group has not discovered breaches of rights of indigenous peoples directly caused by the organization. Lerøy works continuously to ensure a discrimination-free environment, where every employee and worker is treated equally, independently of their gender, age, sexual orientation, origin, ethnicity, skin color, language, religion or personal philosophy.

13.13 

Land and resources rights 

Resource rights held by LSG are mainly constituted by aquaculture licences and fishing quotas. To the Group's knowledge no local communities have been physically or economically displaced as a result of activity related to these quotas. On the contrary Lerøy remains a positive force in the local communities it operates as a considerable tax-payer, and employer.  

13.14 

Rights of indigenous peoples 

The Group has not discovered breaches of rights of indigenous peoples directly caused by the organization. Lerøy, however, recognizes its responsibility to ensure rights of indigenous peoples in our supply chain. It requires that relevant suppliers  document incidents of violations involving the rights of indigenous peoples as well as that appropriate remediation and grievance mechanisms are in place.

13.15 

Non-discrimination and equal opportunity 

At the end of 2023, the workforce comprised 39% women and 61% men across the Group. The gender ratio has been stable over several years, but in recent years we have seen ain increasing trend in the number of female workers. Lerøy’s work on equality and diversity is embedded in its overarching strategy, and increasing the proportion of women in the workforce and in management positions is a strategic KPI scorecard. The Group has set itself a target of 40% women in leading roles by 2030.

Lerøy works continuously to ensure a discrimination-free environment, where every employee and worker is treated equally, independently of their gender, age, sexual orientation, origin, ethnicity, skin color, language, religion or personal philosophy.

One of the Group’s goals is to provide a workplace without discrimination because of disabilities.

The Group has an international working environment and a number of our employees have cross-cultural backgrounds.

13.16 

Forced or compulsory labor 

To the best of our knowledge, Lerøy has no registered cases of forced or compulsory labour. Both the Group’s Business Code of Conduct as well as Supplier Code of Conduct states that there is a zero-tolerance policy towards forced or compulsory labour. The Group is performing supplier social assessment and completes supplier screening using social criteria such as prevalence of forced or compulsory labour.

13.17 

Child labor 

To the best of our knowledge, Lerøy has no registered cases of child labour. Both the Group’s Business Code of Conduct as well as Supplier Code of Conduct states that there is a zero-tolerance policy towards child labour. The Group is performing supplier social assessment and completes supplier screening using social criteria such as prevalence of child labour.

13.18 

Freedom of association and collective bargaining 

The Group supports and promotes freedom of association and recognizes the right to collective bargaining. Furthermore, Lerøy encourages its employees to organize themselves in unions of their choice. Employees not covered by collective bargaining agreements have identical working conditions and terms of employment as those who are organized in unions of their choice.

The Group keeps a close dialogue with employee representatives, as well as cooperates actively with its employees/ trade unions.

The Group provides information about the right to freedom of association, collective bargaining and participation in trade unions.

13.20 

 

The Group is performing regular reporting and monitoring of its employment practices. All employees and workers have a secure, written employment contract which defines the employment terms and conditions as well as employment benefits. Fundamental principles and rights at work are respected. Lerøy practices ethical recruitment hiring employees and workers lawfully and in a fair, transparent manner that respects their dignity and human rights.

13.21 

Living income and living wage 

Salaries paid to employees/ workers shall as a minimum comply with national minimum wage provisions or the industry standard and shall always be sufficient to cover basic needs. Salary and payment of salary shall be agreed upon in writing before employment starts. This agreement shall be in a format which the employee can understand. Disciplinary deductions from salary are not permitted.

13.22 

Economic inclusion 

Lerøy is operating in rural areas providing economic opportunities for local communities. The company contributes implicitly to development of infrastructure and other services in the areas.

When selecting its suppliers the Group also considers the potential supplier’s sustainability performance and ambitions.

Small-scale producers (farmers or fishers) however are not key suppliers of the Group.

13.24

Public policy

Lerøy Seafood Group ASA and all its underlying subsidiaries are politically neutral. We do not affiliate with any political party in any country, and we do not make political donations to political parties or to any candidate running for office, nor sell products or provide services that endorse political parties. We provide information directly to stakeholders or through our memberships of trade or policy focused organizations. Such policy engagement and political activities must always comply with Lerøy’s Code of Conduct and all applicable laws.

Double materiality assessment

For 2024 the Group will report according to EU `s sustainability directive, CSRD.  In CSRD it is a requirement to carry out a “double materiality” assessment. This means that companies must report not only on how the company’s own activities together with the company`s value chain impacts on people and the environment (impact materiality), but also on how sustainability issues might create financial risks or opportunities for the company (financial materiality).  The Group is currently carrying out its double materiality assessment.