Sustainability Report 2016 Sustainability Report 2016
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SUSTAINABILITY REPORT 2016 SUSTAINABILITY REPORT 2016 TABLE OF CONTENTS THE GROUP PRODUCTS EMPLOYEES 4 Lerøy in every kitchen 29 The products 65 Employees 6 An eventful year! 37 Traceability and preparedness 8 History and 2016 39 Research, development and innovation SOCIETY 10 Important events 2016 68 Social Impact 11 Governance ENVIRONMENT 69 Economic Impact 12 The largest shareholders in Lerøy Seafood Group 49 Focus areas and targets 74 Lerøy Seafood Group, GRI-table 2016 13 Environmental and sustainability management 52 Lerøy Seafood Groups`s target areas for the 15 Risk management and internal control external environment 17 Stakeholders 52 Accidental release 53 Measure to reduce salmon lice THE VALUE CHAIN 55 Fish health and welfare 21 Value chain 56 Efficient utilisation of land and sea areas 22 ” Take action today - for a difference tomorrow" 57 Raw materials 22 Fisheries 61 Emission 24 Farming 25 From roe to plate 27 Suppliers THE GROUP THE GROUP LOCAL ROOTS 1 YET A GLOBAL LERØY – IN EVERY KITCHEN PERSPECTIVE Lerøy Seafood Group is the leading exporter of worldwide. The Group supplies a total range of seafood from Norway and the world’s second- seafood products from Norway including salmon, WE HAD COMPANY ACTIVITIES IN APPROX. largest producer of Atlantic salmon and trout. Our fjord trout, cod, saithe, haddock, mackerel, herring vision is ”... to be the leading and most profitable and shellfish. Lerøy Seafood Group is a wholly 60 DIFFERENT NORWEGIAN MUNICIPALITIES global supplier of sustainable seafood”, and integrated company, carefully following each step Farming every day we supply the equivalent of three throughout the entire value chain, from salmon million seafood meals to more than 70 markets eggs and fishing to finished products. Sales & Distribution VAP Wild Catch and Whitefish 2 1 LERØY AURORA AS Number of licences: 26 • 2015 GWT: 29 200 2 LERØY MIDT AS Number of licences: 57 • 2015 GWT: 71 400 Fiskeri 3 LERØY VEST AS 3 Sales and Number of licences: 37 • 2015 GWT: 33 200 Fishery I Farming Industry VAP distribution Customer 4 4 SJØTROLL HAVBRUK AS Number of licences: 26 • 2015 GWT: 23 800 REVENUE (NOK MILLION) 18 000 17 000 16 000 15 000 14 000 13 000 GLOBAL PRESENCE 12 000 11 000 10 000 9 000 8 500 • FINLAND 8 000 SCOTLAND/SHETLAND • •• SWEDEN • DENMARK 7 500 • NETHERLANDS 7 000 • FRANCE 6 500 SPAIN • 6 000 NORTH AMERICA • PORTUGAL • • TURKEY • JAPAN 5 500 5 000 • CHINA 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LERØY SEAFOOD GROUP SUSTAINABILITY REPORT 2016 4 THE GROUP The Group’s core activities are production of support provided by both local and central public is ensured by control systems, and Lerøy is employees. In 2016, the Group produced 150, 200 salmon and fjord trout, wild-caught whitefish authorities. committed to food safety and delivers full tonns of salmon and trout, and exported seafood and shrimps, processing of seafood, product traceability on all of its 2,500 products. In a global worth more than NOK 17,26 billion. development, sale, marketing and distribution In countries outside Norway, the Group is most perspective, the production of Atlantic salmon of seafood. Leroy Seafood Group has grown active in Sweden and is well established in and fjord trout is one of the most sustainable significantly both organically and through Stockholm, Gothenburg, Malmö and Smögen. and environmentally friendly methods of food acquisitions over the last 15 years. Today, the In other countries, the Group has a global sales production that exists. However, the Group Group is one of the world’s largest producers network made up of subsidiaries in Finland, maintains a strong focus on the potential of Atlantic salmon and trout. Subsequent to Denmark, the Netherlands, France, Spain, Portugal, challenges represented by point pollution and acquisitions completed in 2016, the Group is also USA and Turkey, and sales offices in China and other environmental impacts of the business. The now easily the largest corporation in Norway in Japan. In addition, the Group provides national Group’s business is closely related to the natural terms of catches and processing of whitefish, distribution of fresh fish to the Norwegian market conditions in Norwegian and international sources with a significant position internationally. Lerøy through wholesalers in Bergen, Oslo, Stavanger and of fresh water and marine areas, and access Seafood Group is one of the largest seafood Trondheim. Moreover, the Group has 15 processing to clean water and clean sea is a prerequisite exporters in the world. The seafood industry is facilities located in various European countries. for the Group’s operations. The Group makes still a young industry with substantial potential continuous investments to minimise its impact for future development and growth. The Group is The Group aims to take good care of the on the environment, and to maintain correct a major employer in several of the municipalities environment, the fish we produce, and all the environmental attitudes among management and in which it operates and is grateful for the good people involved in our business. High quality employees. At year-end 2016, the Group had 3,783 Smolt cap. 2012 2013 2014 2015 2016 2017E Region Licences (in mill) GWT GWT GWT GWT GWT GWT Lerøy Aurora AS* 26 11.5 20 000 24 200 26 800 29 200 30 000 39 000 Lerøy Midt AS 57 22.0 61 900 58 900 68 300 71 400 52 200 62 000 Lerøy Sjøtroll 63 22.6 71 600 61 700 63 200 57 100 68 000 64 000 Sum Norway 146 56.1 153 400 144 800 158 300 157 700 150 200 165 000 Villa Organic AS** 6 000 Norskott Havbruk 13 600 13 400 13 800 13 500 14 000 15 000 (UK)*** Total 167 100 158 200 178 100 171 200 164 200 180 000 Associates * Includes volume from Lerøy Finnmark AS from and including second half 2014 ** LSG’s share of Villa Organic’s volume in H1 2014, not consolidated *** LSG’s share, not consolidated LERØY SEAFOOD GROUP SUSTAINABILITY REPORT 2016 5 THE GROUP The acquisitions of Havfisk and Norway Seafoods saithe. With the inte gration of Havfisk, Lerøy gains Group come across as the most exciting events that access to stable deliveries of top-quality frozen and took place in 2016 for Lerøy Seafood Group ASA. fresh whitefish. This will afford major development The acquisitions let us enter a new and exciting potential in terms of the market, making use of our segment within the seafood industry, and represent already well-developed distribution network. We a milestone in the history of the company. are delighted to confirm that Havfisk has reported in-creased revenue in 2016. FULLY PREPARED FOR THE FUTURE Norway Seafoods Group, now Lerøy Norway Our company is developing all the time, and 2016 will Seafoods, is an extremely exciting company. go down as one of the most important years in the Geographically, it has strategically central locations company’s history. with facilities throughout North Norway. Lerøy We initiated the process of formi ng a fully integrated Norway Seafoods is Norway’s largest purchaser of company for salmon in 2003 with our very first whitefish. The company has also played a key role acqui sition – Nye Midnor (now Lerøy Midt). This was in developing the sale, marketing and distribution the start of a fantastic journey, and today we are one of both fresh and frozen whitefish in many parts of the world’s largest producers of salmon and trout. of Europe. We plan to sustain and build upon the achievements of this company over many years, With the acquisition of Havfisk and Norway and will make significant investments in the various Seafoods, we have now embarked on a new and factories in North Norway. equally exciting journey. We are working to integrate whitefish into our well-established value chain. We have grown into a fully integrated company, having FARMING – HIGH PRICES MEAN A SUCCESSFUL YEAR achieved control of the entire value chain for a full 2016 has been a wonderful year for the Farming range of seafood – from the sea to the consumer. segment due to extremely high prices for salmon and trout. The increase in price level is mainly With such a solid position, we have every opportunity attributed to the 6.7% decline in global supply. Lerøy to shape the Lerøy Seafood Group of the future. We Seafood Group produced 150,000 tonnes of salmon very much look forward to completing the integration and trout in 2016, down 5% from 2015. of these two companies into Lerøy, and can confirm that the integration process has gone well so far. Release from stock costs in 2016 were at an extraordi narily high level from a historical AN EVENTFUL YEAR! NEW COMPANIES, NEW OPPORTUNITIES perspective. Increased feed costs were one of the Havfisk is the largest trawling operator in Norway for main drivers behind the high costs. We also incurred 2016 will go down in the record books as one of the most challenging and exciting years in the history of whitefish, currently with nine trawlers. The company extremely high direct and indirect costs in order to Lerøy – and certainly during the almost 24 years I have worked for the company. The level of activity in 2016 also has one trawler under construction, scheduled comply with the statutory limits for salmon lice. The remained high, and we have succeeded in further boosting our market share on the global seafood market.