Corporate Social Responsibility 2010 CONTENT We must all accept responsibility 03 LEADER therefore play an important role in 06 LERØY GROUP meeting the worldwide demand for food 13 VISiON, ENVIRONMENTAL POLICY, ENVIRONMENTAL VISION in the future. 14 ENVIRONMENTAL GOALS 18 ORGANISATION OF ENVIRONMENTAL AND SUSTAINABILITY FACTORS If we are to further improve, we must 19 FARMING maintain a strong focus on innovation 24 fou - and technological developments. At 26 The environment Lerøy Seafood Group, we follow a 27 accidental release of fish strategy of continuously developing 29 lice methods and systems to improve the 33 locations efficiency of the entire value chain, from 35 fish feed egg/sea to consumer. We know that we 41 greenhouse gas emissions can achieve major environmental and 42 environmental accounting financial savings by reviewing every part 45 by-products of the value chain. In order to do so, it is 46 distribution essential that all our partners, such as 50 food safety suppliers, transport companies and 52 preparedness customers, help us lay a firm foundation 54 traceability on the road we have to take. Lerøy 57 product information Seafood Group will play a leading role in 62 EcONOMy such processes. 66 SOcial factors If we want to improve, we need to know where we stand. We are currently working on the development of a reporting/measurement tool which will provide us with the answer to this question. This will involve measurement of every part of the value chain, forming the foundation for future improvements. This report provides a detailed insight Lerøy Seafood Group is a leading, global 2050, there will be 9 billion of us, which into the work we have introduced. We will seafood company with a total of 2,200 means 2 billion more mouths to feed. This accept our responsibility today - not employees, including associated implies a drastic increase in the demand tomorrow, in order to solve the challen- companies, with 1,400 employees for food. We may well be facing a global ges we are facing. in Norway and 800 abroad. In Lerøy food shortage in the future. According to Seafood Group, we must all accept international experts, production of food We hope you will find the material responsibility for preventing a negative will have to increase by a total 70% in interesting! impact on our environment. Our order to cover the increased demand. environmental visions is “take action With such prognoses, it will be essential today, for a difference tomorrow”. This to produce foodstuffs which represent vision is easy to relate to and will optimal exploitation of the raw materials/ encourage us to act/react proactively resources we manage. In Norway, we Henning Beltestad every time we make a choice which currently produce 1 million tons of Chairman of the Board influences or impacts on our surround- and which are sold to over Lerøy Seafood Group ings. 70 different countries worldwide. Salmon is a product which efficiently exploits its We have seen a dramatic increase in the raw materials while having a low carbon global population. There are currently footprint when compared with other 7 billion people living on this earth. By animal proteins. Fish farming will

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 20103 Farming Norway

corporatE structure

LERØY SEAFOOD GROUP ASA

Lerøy Aurora AS SALES & DISTRIBUTION PRODUCTION AFFILIATED

Hallvard Lerøy AS 100% Lerøy Midnor AS 100% NORSKOTT HAVBRUK AS** 50%

Lerøy Sverige AB 100% Lerøy Aurora AS 100% ALFARM ALARKO LERØY*** 50%

SAS Hallvard Lerøy 100% Lerøy Hydrotech AS 100% * Division national distribution ** Salmon farming *** Distribution, processing, smokehouse Nordvik SA 90% Lerøy vest AS 100%

Lerøy Portugal Lda 60% SJØTROLL HAVBRUK as 50.71%

Lerøy Sjømatgruppen* Lerøy Fossen AS 100%

JOKISEN EVäät oy 51% Lerøy Smøgen Seafood AB 100% Salmon farming, processing Bulandet Fiskeindustri AS 68.76% Processing, smokehouse Processing white fish

Lerøy MIDNOR AS SALES PER PRODUCT THE 10 LARGEST SHAREHOLDERS WHOLE SALMON 49.8% PROCESSED SALMON 27.9% AUSTEVOLL SEAFOOD ASA 62.56% WHITE FISH 7.9% PARETO AKSJE NORGE 5.74% 0.9% Lerøy HYDROTECH AS OTHERS 3.6% PARETO AKTIV 2.62% SHELLFISH 4.6% ODIN NORGE 1.15% SALMONTROUT 5.2% AWILCO INVEST AS 2.40% SALES PER MARKET BIOMAR AS 1.83%

EU 54.7% FOLKETRYGDFONDET 1.18% ASIA PACIFIC 11.1% PARETO VERDI 1.17% NORWAY 15.4% USA AND CANADA 7.7% VARMA MUTUAL PENSION INSURANCE 1.23% Rest OF EUROPE 8.7% OTHERS 20.13% Lerøy VEST AS OTHERS 2.4%

SJØTROLL HAVBRUK AS Company Ownership Licences Mill. smolt 2009 2010 2011E share No individuals GWT GWT GWT Lerøy Midnor AS 100% 30 9.5 35 000 34 000 36 500 Lerøy Aurora AS 100% 17 6.0 19 300 20 300 20 500 Lerøy Hydrotech AS 100% 24 7.0 21 500 25 200 24 000 Lerøy Vest AS 100% 34 14.2 32 700 34 300 37 000 Sjøtroll Havbruk AS* 50.71% 25 8.4 3000 26 000 Total Norway 130 45.1 108 500 116 800 144 000 Norskott Havbruk AS (UK)** 50% 6.0 13 200 13 500 11 500 Total 51.1 121 700 130 300 155 500 Consolidated, farming Affiliated, farming *Acquired and consolidated as from November 2010 **LSG´s share

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 20105 ” Take action today - for a difference tomorrow

Lerøy Seafood Group

The Lerøy Seafood Group can trace its frequently been the first to launch on Up to 1997, the Group was a traditional operations back to the end of the 19th new markets, or to commercialise new family company. In 1997, a private century, when the -farmer species of fish. This pioneering spirit placing with financial investors was Ole Mikkel Lerøen started selling live is still very much alive in the Group. carried out for the first time. In connect- fish on the Bergen . This was ion with this placing in 1997, the fish he either had caught himself or had Since 1999, the Group has acquired company was reorganised as a public bought from other fishermen. The fish substantial interests in various domestic limited company. The company was was hauled to market in a corf behind and international enterprises. Late listed on the stock exchange in June Ole Mikkel Lerøen’s rowing boat, in 2003 the Group acquired all the shares 2002. Since then, the company has a journey that could take between 6 and in Lerøy Midnor AS and acquired Lerøy introduced several cash issues, most 12 hours, depending on prevailing winds Aurora AS in 2005. The companies Lerøy recently in March 2007. The availability and currents. Fossen AS and Hydrotech AS were of capital has been an essential acquired in 2006, whereas Lerøy Vest AS ingredient in the Group’s development Over time, Ole Mikkel Lerøen’s operations was acquired in 2007. In 2010 the Group from a seafood exporter to a wholly gradually came to include retail sales continued expanding its fish farming integrated seafood group. in Bergen, the sale of live shellfish and activities by acquiring 50.71 % of the a budding export business. In 1939, two company Sjøtroll Havbruk AS. The Group’s Stock exchange listing of the parent of his employees, Hallvard Lerøy sr. and investments in downstream activities company Lerøy Seafood Group ASA Elias Fjeldstad, established what today over this period have established it as provides access to venture capital and, has become one of the Group’s principal a national and international distributor in selected cases, the shares are used sales companies - Hallvard Lerøy AS. of fresh fish. Because of these and as payment in kind in connection with Since its establishment, the company similar investments over the last ten acquisitions, most recently with the has been a pioneering enterprise in a years, the Group has now developed into acquisition of shares in Sjøtroll Havbruk number of fields in the Norwegian a totally integrated seafood group with AS. At the beginning of 2011, the Group industry. The main focus has constantly solid foundations for further develop- is well situated to further strengthen its been on development of markets for ment. At year-end 2010, the Group had position as a central actor in the seafood. The company has very 1 794 employees. international seafood industry.

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 20107 CONSOLIDATED ACTIVITIES its customers with cost-effective, Traditionally, the Norwegian and large Lerøy Seafood Group is in the business individual and forward-looking solutions, parts of the international seafood of meeting the demand for food and thus providing the Group and its partners industry have been seriously under- culinary experiences in Norway and inter- with the best possible opportunities for capitalised, with an ensuing high level of nationally by supplying seafood products growth. It is vital that the interaction financial risk. This is not compatible with through selected distributors to between businesses in the value chain the cyclical nature of the industry. Lerøy producers, institutional households and which makes up the network is based Seafood Group has always emphasised consumers. Lerøy Seafood Group has upon the requirements and wishes of the need to secure the confidence of its a clear focus on delivering products of the end user. Lerøy Seafood Group and financial partners, thereby gaining high quality and on developing binding, its collaborators form a commercial access to necessary outside capital long-term, profitable and cost-effective network, which must strive to ensure on viable terms. The company’s financial collaborations both with suppliers and in mutual exchange of expertise between contingency planning, both present and the market. Lerøy Seafood Group’s vision network members. Businesses within future, will allow the Group to take part is to be the leading and most profitable the network, regardless of ownership, in the value-generating structural global supplier of quality seafood. must be given ample opportunities to reorganisation now taking place. To attain this goal, it is important that the focus on their own core activities and Group works to achieve profitability in all to capitalise on economies of scale and The seafood industry harbours a its activities. reduced risk. considerable potential, but if this potential is to be realised and exploited The Group’s core activities are distri- The Group divides its products into to the full, new products will have to be bution, sale and marketing of seafood, the main sectors of salmon products, created and developed in line with the processing of seafood, production of whitefish, pelagic fish and shellfish. The evolution of new markets. Lerøy Seafood salmon, trout and other species in distinction between farmed species and Group is active in the development of new addition to product development. The wild fish is significant and requires products and markets under the motto: Group operates through subsidiaries different logistics and working methods. “What can be sold will be produced”. It is in Norway, Sweden, Finland, France and These products are distributed on the important that trade between Norway and long-term commitment through become the world’s second largest partner’s qualifications for ensuring Portugal and through a network of sales Norwegian market and more than and other nations can take place continuity of supplies will increase producer of Atlantic salmon and trout, satisfactory operations. These criteria offices that ensure its presence in the 65 other markets worldwide. The broad according to international regulations. in both the production and marketing and this product area is therefore crucial apply among other things to manage- most important markets. The Group’s range of products offered by the Lerøy Seafood Group and its partners sectors. Moreover, a high level of for the Group’s further development. ment competency and, equally important, task is to satisfy the customer’s company provides sales advantages and colleagues will therefore work processing also requires proximity to the to the expertise within the organisation requirements for cost-effective and in most market areas. The company’s systematically to improve the reputation market and good logistics solutions. The After Atlantic salmon and trout, whitefish as a whole. It is important that the continuous supply of a wide range strategy is to meet the market’s of Norwegian seafood both nationally Group makes stringent demands on food is the largest product area for Lerøy investment object’s balance sheet with of high-quality seafood products. The ever-increasing demands for food safety, and internationally. safety, cost efficiency and continuous Seafood Group. In recent years, this adjustments is acceptable in terms of Group’s global sales network allows it quality, product range, cost efficiency product development. product area has developed favourably the Group’s risk profile. Similarly, any to act as an efficient supplier with good and continuity of supply. This is achieved The Lerøy Seafood Group has a large through cooperation with a number of potential alliance partner or investment product range dispersal, thus reducing by coordinating the various elements in portion of fresh in its Throughout 2010, Norway succeeded small and medium-sized companies. object must understand the significance risks for the Group and its partners. the value chain - the production units, the product range. At present the share of in sustaining its position as the world’s Our association with these businesses of continuous, quality-assured, Lerøy Seafood Group will continue to Group’s sales network and established fresh fish products is more than 80% and leading producer of the Group’s main will continue to expand and is expected market-oriented production. maintain strategic geographical market strategic alliances with sea farms, fishing this will be maintained in coming years. product, farmed Atlantic salmon. Even to provide us many interesting oppor- dispersal, but will also make use of its vessels and plants In addition, there is a clear trend towards when including the catch of wild salmon, tunities in the future. Lerøy Seafood The Group’s core activities demand resources to focus on selected markets primarily along the coast of Norway. a rising level of processing for our full Norway is still the largest supplier of Group is also a supplier of shellfish and various forms of expertise and a high with a view to maintaining or developing The Group’s business systems are under range of products. Through many years Atlantic salmon. Moreover, it seems that fresh pelagic fish to Norwegian and degree of adaptability. For this reason, significant market shares. Developments constant review and development. of systematic marketing of processed Norway may be able to consolidate this European markets. The sale of shellfish our organisation is made up of people in the world’s food markets make salmon, Lerøy Seafood Group has built position in the next few years, despite and fresh pelagic fish represents a from different sectors of trade and increasing demands on our marketing The Group works actively to develop up a sound position within this product the second largest producer nation, small but interesting niche product area. industry with a wide range of formal work and require differentiated systems and routines that safeguard and area. As the degree of processing rises, Chile, having now recovered from major backgrounds and practical experience approaches depending on the respective support its requirements for profitability. regardless of the type of raw material, biological problems. The Group has several criteria for the from different fields. As the Group is market area and on the products being In an industry in rapid growth, the increasingly stringent demands are selection of potential alliance partners involved in a global industry which marketed. Therefore, in the future, Lerøy demand for risk management is made on the players involved. Standards Lerøy Seafood Group has through a and investment objects, placing an experiences continuous fluctuations in Seafood Group will also strive to provide particularly stringent in certain areas. of food safety, cost efficiency, quality number of acquisitions over recent years emphasis on factors such as the alliance general conditions, it is paramount that

8LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 20109 our employees remain up to date and philosophy and base their decision- While headquartered in Bergen, Norway, expand their knowledge and areas of making on facts if the industry is to the Group’s global sales and distribution expertise. The Group is made up of a develop further. It is also of decisive activities are established in the most young yet highly experienced group of important to avoid inflicting special important seafood markets in the world. people. With the constant rate of change Norwegian fees and duties on the Sales and distribution together with the in general conditions for the Group, we Norwegian fish farming industry which Group’s production activities constitute rely on employees who are dynamic, would hamper any opportunities for an efficient and profitable seafood group willing to learn and flexible. The Group businesses to succeed in this inter- with considerable growth potential. has employees who meet these national and extremely competitive The production clusters in the various requirements. Our employees work hard industry. We hope that the businesses, regions shall be further developed by to improve the Group’s competitive edge together with the public authorities, harvesting synergy effects in several and earnings and display a burning can work together to ensure a set of areas, and the various production desire to see the individual companies general conditions for the industry environments will draw on each other’s fulfil future requirements and thereby which substantiate the development of expertise through extensive exchange achieve the Group’s long-term strategic an internationally competitive industry. of know-how. The Group’s decentralised goals and performance requirements. operation model in the production In order to meet future challenges in In countries outside Norway, the Group segment makes such exchange possible. the world’s food markets, the Group is most active in Sweden and is well The Group’s regional focus creates, in our will continue to develop its organisation established in Stockholm, Gothenburg, opinion, a basis for interesting industrial through projects linked to the Group’s Malmø and on the west coast in Smøgen. developments in that it forms alliances strategic goals. The Group’s rapid In other countries, the Group has and collaborations beyond those of development in recent years has been established activities in Finland, France, direct ownership. The Group’s market made possible by capable people who Portugal and Turkey. Finally, the Group orientation, with well-managed sales and have found the Group to be an attractive has sales offices in several important distribution activities, makes it possible place of work. One of several important seafood markets such as Japan, USA and to benefit from economies of scale within prerequisites for the Group’s continued China. The Group is also represented in positive development is its ability to Scotland through the affiliated company offer attractive jobs to as many capable Norskott Havbruk AS. «The Group’s core employees as possible. The Group must activities are distribution, maintain a strong focus on leading the BUSINESS SEGMENTS competition for result-oriented and The Group’s primary business segments sale and marketing competent personnel with higher than are Sales & Distribution and Production. of seafood, processing of average capacities for work and change. This segmentation is chosen according seafood, production of to type of organisation and commercial In Norway the Group had activities risk. The Production segment comprises salmon, trout and other in 9 counties and 38 municipalities at the following companies: Lerøy Midnor species in addition to year’s end. The Group is a major employer AS, Lerøy Vest AS, Lerøy Hydrotech AS, in several of these municipalities and is Lerøy Aurora AS, Sjøtroll Havbruk AS, product development.» grateful for the good support provided by Lerøy Fossen AS, Bulandet Fiskeindustri both local and central public authorities. AS, Lerøy Smøgen Seafood AB, SAS Fish logistics and distribution in collaboration It is of decisive importance that public Cut, SAS EuroSalmon and Inversiones with our future customers. The wholly authorities maintain an interest in and Seafood Ltda. Sales & Distribution integrated operations comprise a totality understand the need for continuity and consists of all other subsidiaries apart of decisive importance for our compet- predictability in the development of from Lerøy Seafood Group ASA (parent itive ability when providing the Group’s general conditions for our industry. company). Lerøy Seafood Group ASA is central customers with continuity in The national importance of the fish not assigned to either of the segments. supply of quality products of fresh farming industry for employment and seafood. value creation is considerable, but it is Lerøy Seafood Group is experiencing essential that the bodies which stipulate significant growth and has already estab- Sales and Distribution general conditions adopt a long-term lished major activities in many countries. In 2010, the Sales and Distribution

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201011 Vision segment generated a turnover of The Group’s activities are varied, the Norwegian School of Economics and its shareholders, staff and society Lerøy Seafood Group shall be the NOK 8,670 million and an operating depending on each unit’s position in the Administration (NHH) and a 1st degree in general. Lerøy Seafood Group aims to leading and most profitable global profit of NOK 255 million compared with value chain, and consequently require of law from the University of Bergen. provide a satisfactory rate of return from supplier of quality seafood. NOK 7,361 million and NOK 217 million differentiated forms of management and Helge Singelstad was previously CEO, all its activities. respectively in 2009. This positive follow-up. Good internal management Vice CEO and CFO of Lerøy Seafood Group development is generated by a number systems are essential for success, but over a number of years. Consequently, As Lerøy Seafood Group is an intern- of factors, including good exploitation these must be continuously developed he has broad knowledge of the Group and ational seafood corporation with of capacity, a good market for the in order to accommodate fluctuating the industry. Helge Singelstad is decentralised operations and a signifi- Environmental segment’s products – Atlantic salmon economic conditions. The Group’s Chairman of Austevoll Seafood ASA cant volume of biological production, the and trout – and improved return from regional structure with independent and Member of the Board of DOF ASA. company is exposed to a number of risk policy the segment’s strong position on the units, also in respect of short-term In addition, he is the Managing Director factors. The Board of Directors therefore Lerøy Seafood Group is one of the main global fish markets. reporting, facilitates good control and of Laco AS. Helge Singelstad owns no works hard to ensure that the group largest seafood corporations in the a powerful focus. The internal control is shares or options in Lerøy Seafood Group implements all measures required to world. We live off the natural resources In its central position between owners based on daily and weekly reports that ASA as per 31 December 2010, but as a control risk, limit individual risk and keep produced in the sea and rely on these and management, it is the Board of are summarised into monthly reports shareholder in Austevoll Seafood ASA he risk as a whole within acceptable resources being properly managed so Directors’ function to safeguard the tailored to the individual company, while indirectly owns shares in the Group. constraints. that we can continue to sell seafood in shareholders’ need for strategic at the same time providing satisfactory the future. The management of Lerøy governance and operational control. reporting at group level. The Group structure, with autonomous Seafood Group will do their utmost to The function and focus of the Board will units in different regions, is supervised ensure that the products manufactured always vary somewhat depending on When recruiting board members, the through participation by Group staff in and purchased comply comply with the circumstances within the company company’s owners have already for the administrative bodies in the various prevailing rules and regulations of our and on developments in the external many years considered the company’s companies. Also the employees, through industry. business environment. needs for varied expertise, continuity, their representatives on the boards of renewal and changes in ownership the subsidiaries, contribute to satis- We will furthermore strive to find the The transformation of the Lerøy Group structure. It will always be in the factory operational development. most environmentally friendly and from a family company to a listed public company’s interest to ensure that the sustainable systems for our products via limited company has been guided by the composition of the Board varies in line The audit committee performs a quality a close cooperation with our customers owners’ clear awareness of the type of with the demands made on the company audit of the internal control and reporting and suppliers of fish feed and transport. Board the company needs. The process and with expectations regarding Group system and is responsible for the Board’s to establish a Board with members from performance. The Board’s assessment of dialogue with and monitoring of the Lerøy Seafood Group will continuously various fields of expertise and inde- itself and of Group management must of external auditor. The audit committee seek to introduce improvements which pendent of the Group’s management necessity be seen in conjunction with the held three meetings in 2010. will reduce pollution and help protect the team and largest shareholders was Group’s performance. To date, the Board environment. initiated by the owners already at the has not issued reports on its assessment The ordinary shareholders’ meeting on end of the 1980s. Since the early 1990s, of its own work; this is a conscious 25 May 2005 voted to change Article 5 of Our employees will focus on the the majority of the members of the Lerøy priority decision and must be viewed the company’s articles of association to company’s environmental targets. In fact, Group Board have been independent of in connection with other announcements give the company a permanent nomina- Lerøy Seafood Group will include the the Group’s management team precisely in the company’s communications to the tion committee consisting of three environment as one of its main focus in order to protect the Board’s ability to public. Moreover, external assessments members elected by the shareholders’ areas in the future, in terms of both challenge management practices. of the Board’s work are probably the meeting for a period of two years. The employees and our products. most influential and are likely to remain company’s nomination committee is For several years, as well as in its eight so in the future. charged with preparing suggestions meetings in 2010, the Board has for the composition of an owner elected maintained a particular focus on the Chairman of the Board, Helge Singelstad, board of directors and to submit connection between practical operations was appointed to the Board by the recommendations to the shareholders’ Environmental and strategic business development. extraordinary general shareholders’ meeting for appointments to the board. The Board and company management meeting on 26 November 2009. Helge Vision has since 1997 worked purposefully to Singelstad is 48 years old and holds Based on continued growth and Take action today – for a difference develop the Group into a wholly integrated a degree in computer engineering, improved profitability, Lerøy Seafood tomorrow leading and profitable seafood group. a degree in Business Administration from Group aims to create financial values for

12LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 Environmental goals As previously mentioned, Lerøy Seafood allow individual companies to set their All indicators are measured on a monthly Group is actively involved in every part own company targets. Lerøy Seafood basis and utilised internally in order of the value chain. Key performance Group has not established any common to achieve improvements within individual indicators are established for comparable environmental goals in 2010 and 2011 companies and for benchmarking companies. However, we have chosen to for individual key performance indicators. between comparable companies.

We have measured the following key performance indicators in 2010 and will measure the same in 2011 Young fish Fish Slaughter Processing Wholesale Sale Goal for 2010 Status Goal for 2010 Status Goal for 2010 Status Goal for 2010 Status Goal for 2010 Status Goal for 2010 Status Accidental release 0 0 0 15 0 0 Energy kwt/kg produce Ind. Ind. Ind. Ind. Ind. Ind. Ind. Ind. Ind. Ind. Ind. Ind.

Biological feed Ind. Ind.

Water m3/tonn produce Ind. Ind. Ind. Ind. Ind. Ind. Ind. Ind. Ind. Ind.

Packaging kg/tonn produce Ind. Ind. Ind. Ind. Ind. Ind.

Transport goal Ind. Ind. Ind. Ind. Ind. Ind.

Environmental goals 2010-2011 Focus areas for 2010 : Status for focus areas for 2010: Target 2010 Achieved 2010 Target 2011 • We shall cooperate with our suppliers • This process has generated improve- reached within the individual compa- Feed factor 1.13 1.18 1.15 of water, energy and packaging to ments, but we will continue to focus on nies. However, inaccurate figures for Accidental release 0 15 0 introduce specification of quantities this area in 2011. 2009 resulted in an incorrect starting No. direct vehicles sold from HL AS 75% 74% 75% purchased, enabling us to measure point for this goal. Moreover, there has Increase in sale of processed fish HL AS 25% 23.50% 20% from 2010 these parameters more closely. been a reduction in the number of shifts from 2009 to 2010, resulting in lower • Lerøy Hydrotech reported an accident An example of measurement of energy at one of our production facilities in France. • We shall take active measures to • Secondary safeguards have been volumes over which to distribute on 4 February 2010 which occurred ensure that all our young fish facilities installed in all facilities with the consumption. ENERGY (kWh) USED TO PRODUCE 1KG SALMON IN EUROSALMON during vaccination of fish. 15 fish were PER MONTH IN 2010 shall introduce secondary safeguards exception of 1. This facility will introduce anaesthetized in a vessel which on outlet areas in 2010 in order to such measures in 2011. overturned and fell into the sea. Such kWh/kg 2009 kWh/kg 2010 0.400 kW prevent accidental release of fish from incidents shall be reported as accidental the facilities. release of fish as the fish may rewaken 0.350 kW

after the sedation has worn off and swim 0.300 kW • We shall utilise biological delousing in • Delousing method to reduce the use away. the form of Wrasse in all 2010G facilities and development of resistance to 0.250 kW

where we have problems with lice. The anti-parasitic medication. 0.200 kW facilities in Troms county do not have Wrasse have been utilised for delousing 0.150 kW problems with lice. The goal is to use in practically all the 2010G facilities, Wrasse as a biological delousing method with the exception of a few facilities 0.100 kW

to reduce the use and development of at one of our production plants. 0.050 kW resistance to anti-parasitic medication. 0.000 kW January February March April May June July August September October November December 2009 0.184 0.145 0.156 0.119 0.173 0.172 0.166 0.213 0.144 0.135 0.135 0.104 • We shall reduce our consumption of • We have only achieved this goal at one 2010 0.159 0.166 0.150 0.150 0.150 0.175 0.378 0.285 0.252 0.225 0.198 0.174 water by minimum 10% for all shore- of our companies. There are various based production plants. reasons for why this goal has not been

14 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201015 Target 2011 Short-term measures Long-term measures Target 2011 Short-term measures Long-term measures Accidental release Keep use of medication to a minimum, with careful Optimise conditions in cages and vessels Gain control of bacterial The target for accidental release shall be 0 Follow established procedures Innovation consideration of use problems in young fish facilities Optimise operating conditions Improve procedures Strategic utilisation of preventive factors Dyrevelferd or health in feed All operations shall comply with requirements Internal audits from the authorities regarding fish welfare Biodiversity Use of medication shall take place in a manner Take into consideration premises for All employees shall have completed a course Completion of courses which prevents negative impact on species approval of medication utilised on fish welfare in 2010 and 2011 surrounding the fish farms

Increase survival rate from release to slaughter Continual optimisation of operations New, larger young fish facilities Limit negative impact on stocks of Wrasse Prevent fishing of fish of reproductive age Chart data for overview of stock when undertaking test fishing prior to start-up of Wrasse - introduce requirement Reduction of mortality on release via quality Fight PD using long-term strategy that fishers keep log of catches assurance of release procedure. (LV) including data regarding area, species, size etc. Avoid release of high-risk groups Develop farming of Wrasse Lice 0 female lice of reproductive age during emigration Coordination of delousing Prevent damaging impact on species as result Monitoring of environment with MOM Phase-out facilities with score period for wild salmon of intervention in natural resources in fjords, of below 2 in the long term including sediments/fjord beds No facilities with a score of below 3 Reduce number of treatments for lice in 2011 Optimal utilisation of Wrasse Farming of Wrasse when compared with 2010 Fish feed Strategic utilisation of treatments Use of raw materials which are certified according Introduce requirements for feed suppliers to a standard of sustainability Strategic utilisation of lice inhibitors in feed Enter agreements with a focus on sustainability Control of lice without deviation from requirements Use of Wrasse July to December Use of Wrasse all year round, of louse regulation farming of Wrasse Cooperate with feed suppliers regarding a progress plan on this item Optimise treatment methods Improved unison rotation use (bathing with tarp, hydrogen peroxide, of medication over larger areas oral delousing)

Stay within the louse limits by less than 14 days Strategic utilisation of treatments Increase range of coordination of delousing

Introduce new methods Introduce new methods

Limit infestation pressure by preventing longer periods with female lice of reproductive age in the facilities also when using Wrasse

Medication Keep use of medication to a minimum, with careful All use of medication shall be subject to Further development of vaccines consideration of use thorough evaluation in relation to fish welfare Wrasse

16 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201017 Organisation of environmental and sustainability factors In Lerøy Seafood Group, environmental This is led by the CSR Supervisor. The competency groups report to the EVP and sustainability factors are organised The CSR Supervisor holds regular for Farming. as illustrated below. The person in charge meetings with representatives from the is the CEO. CSR is responsible for other competency groups, where quality coordination of the work for all companies and the environment are on the agenda. within the Group. Responsibility is also delegated to the Managing Director of Lerøy Seafood Group has established each subsidiary, while the Quality competency groups within: Manager is responsible for daily follow-up • Quality and the environment within the companies. A number of • Production of fish for consumption competency groups have been set up • Production of young fish in Lerøy Seafood Group. The different • Fish health Quality Managers make up a competency • Industry group for quality and the environment. • Economy

Group CEO

Group Production Manager CSR Responsible Competency group: Quality and Environment Fish farming Lerøy Seafood Group is involved in fish The Group’s operating procedures via: Attitudes - Action - Responsibility farming activities in close interaction developed within each fish farming throughout the entire value chain, from General Manager / Quality Manager with the environment. The Group company focus particularly on ensuring roe to market. companies all place a significant achievement of goals within these Halvard Lerøy Lerøy Sverige Lerøy Vest Lerøy Hydrotech Lerøy Midnor Lerøy Aurora Sjøtroll Havbruk emphasis on the role they play when important environmental areas. These exploiting coastal areas, and take form the foundations for environmental an active approach towards promoting management and are subject to annual good attitudes towards the environment internal and external audits. The Group among management and employees. has implemented advanced technology INTEGRATED Lerøy Seafood Group shall take a leading to secure and monitor operations and VALUE CHAIN role in constantly improving the has developed requirement specifi- interaction between fish farming and cations for our suppliers which shall the environment, aiming at generating contribute towards active participation positive and lasting environmental gains. by the suppliers in our efforts to achieve Four main areas related to fish farming our environmental goals. Successful receive particular focus: environmental work is a question of sound and clearly defined management. • Work to prevent accidental release The Group’s environmental work Eggs Smolt Farming Harvest Processing Distribution Customer of fish therefore has strong roots via a • Measures to reduce salmon lice decentralised management structure, • Reduction of discharge of nutritional where proximity to the environmental salt from facilities challenges is a major feature. Our Value chain • Raw materials for fish feed, require- environmental vision, “Take action Stig Nilsen What are our focus areas? greatest influence in terms of sustainability. greatest influence within the area of fish ment for sustainability and regulated today for a difference tomorrow” is EVP Farming For Lerøy Seafood Group as a corporation, We have therefore carried out a critical farming. A major share of our efforts fishing reinforced and defined by the efforts Lerøy Seafood Group it is essential to maintain a constant evaluation of our processes and reached related to the environment and sustain- made daily by the operating organi- focus on areas where we have the the conclusion that we currently have the ability will therefore focus on fish farming. sation to ensure a good understanding

18 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201019 The production value chain within fish farming Lerøy Seafood Group plays an active role Production of roe takes place mainly 45 million smolt per year in its own Farmed fish Once the smolt have been carefully in modern factories designed for in all parts of the value chain for in October, November and December. subsidiaries. Smolt production takes Production of salmon in the sea takes assessed to determine whether they are production of food and approved by production of salmon and trout. Roe is delivered from the breeding place in an onshore facility in fresh water, place in carefully selected locations. ready for sea water, they are released to the proper authorities. The fish is facilities to the young fish facilities where hatched larvae are delivered from An optimum environment must have sea. Production in these facilities takes anaesthetized and put to death in Roe production during the hatched larvae stage. The producer to each young fish facility. The good flow of water and the correct from 12 to 20 months, depending on accordance with applicable rules to avoid Lerøy Seafood Group has capacity to development of hatched larvae takes roe hatch and the fry receive start feed temperature range, topography, oxygen temperature, genetic potential and the unnecessary suffering and to ensure top produce 100 million fertilised eggs per place at defined temperatures, allowing in the young fish facilities. The first smolt content and exposure. The location must quality of the farming and care of the fish product quality. Lerøy Seafood Group year. for flexible delivery times within certain are delivered from the young fish be approved by the authorities, during the period. Production is monitred currently has five bytes to seven own limits. This allows the Group to adapt facilities to the production facilities 8 to environmental authorities and the at cage level, where cameras and facilities for full-range production, from Group production is Global Gap certified production, allowing for optimal 12 months after hatching. Lerøy Seafood coastal authorities before cages and fish sensors ensure optimal feed and control whole gutted salmon to processed and roe production is subject to utilisation of capacity in the young fish Group has regionalised its production of can be set out. All parts of the production to ensure optimum growth, fish health products within all categories. The particularly stringent requirements facilities. smolt in order to ensure optimal adaption equipment are certified in accordance and welfare. facilities meet applicable requirements on fish health and the environment. of smolt quality. Lerøy Seafood Group is with a specified standard in order to regarding discharges to the external Roe production involves taking parent Smolt production mainly self-sufficient with smolt within ensure that the facilities can withstand Production environment. fish ashore in May prior to stripping. Lerøy Seafood Group can produce the three production regions. exposure to the prevailing environment. Slaughtering and processing take place

20 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201021 From roe to plate Stripping The fish are stripped of their roe and milt. The inseminated roe are placed in the hatchery, where they take 60 days at a maximum water temperature of 80C to hatch out. Smolt, released into seawater (8-12 months old) Hatching When the eggshell breaks the eggs hatch out, yielding Ongrowing in sea-cages fry with yolk-sacs on their stomachs. The yolk-sac is the (5kg after 12-16 months) fry’s “lunch-box” for the first few weeks of its life before start-feeding, when it gradually begins to take dry feed.

Smolt After about one year in a hatchery tank, the salmon have Fingerling grown enough to be set out in seawater. At this point they have already undergone physiological changes that Stripping (autumn) enable them to live in the sea. An average smolt weighs 80-100 g when it is released into the sea. Smolt used to be set out in the spring, but this now also takes place at several other times of the year. Fry at start-feeding (3-4 months old)

Slaughtering, processing, packing and export.

Ongrowing in the sea slaughtered in specialised fish-processing plants. After just over a year in the sea the salmon have grown They are anaesthetised before they are slaughtered to a weight of about 5 kg. The rate of growth depends, and are then immediately cleaned, sorted, chilled and among other factors, on the water temperature. processed for further transport. Some fish are smoked or turned into fillets or“ table-ready” products, but Well-boats most are sold as cleaned whole salmon. Well-boats are used to transport both smolt from the Yolk-sac fry (two months old) hatchery to the ongrowing farms and fully grown live salmon from farms to the slaughterhouse. All salmon are Hatching after two months

Insemination: roe + milt + water

22LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201023 FOU - Fish farming Research & development the development of precise methods for on optimal and cost efficient utilisation Research & development are central resistance testing, development of new of feed. Lerøy Seafood Group works factors in the work to further develop medicamental methods of treatment closely together with our feed suppliers the entire value chain in Lerøy Seafood and the utilisation of salmon lice and takes an active and influential role Group. The Group has a history of active genomics in order to develop more in the further development of feed participation in R&D projects via our precise research tools and treatment composition in order to ensure that it subsidiaries in order to ensure proximity techniques. is as highly adapted as possible to to and ownership of the projects and our fish farming environment and fish maximum exploitation of the input The use of Wrasse is an important material. There is also an active factors. element in Lerøy Seafood Group’s strategy to further optimise the feeding strategy to fight salmon lice. To date, phase, both in the form of optimal use of The Group’s R&D efforts in 2010 have we have purchased wild Wrasse from feeding equipment and the development focused on 4 main subjects. professional fishermen. Experience of knowledge and equipment to allow a) Fighting salmon lice indicates that wild Wrasse are very improved control of the actual feeding b) Feed / Feed utilisation / Feeding vulnerable in terms of handling and process. strategies injury. Lerøy Seafood Group has c) Fish health therefore implemented a programme Fish health d) Technology of close follow-up with our suppliers, Lerøy Seafood Group maintains in order to ensure the best possible a constant focus on fish health and Salmon lice quality for the Wrasse. To date, the use control of health at our facilities. The The company has a significant and of Wrasse has been very successful and fish farming industry is faced with principal focus on fighting salmon lice, Lerøy Seafood Group aims to extend its challenges related to health, which in the form of the principle for “Integrated utilisation of this method. In order to cannot be solved by vaccination or Pest Management”, i.e. the implemen- ensure a regular and reliable availability medication. One of these challenges tation of a number of measures to and to prevent unnecessary impact is Pancreas Disease (PD), a viral illness. prevent and fight salmon lice, wherein on the natural stocks of Wrasse, Lerøy In 2010, Lerøy Vest implemented a very treatment with medication is the very Seafood Group has in 2010 invested successful package of measures last measure utilised. Central elements heavily in 2 (of 4 existing) projects comprising an intensive monitoring of the principle include an extensive aiming to develop farming of Wrasse. programme of fish using PCR analyses utilisation of functional feed which In cooperation with SalMar ASA, we have (for detection of the presence of the makes salmon less attractive as a host recruited the company Profunda AS virus) and active utilisation of functional for lice and which stimulates the to develop a protocol for production of feed once detection has been occured. salmon’s own natural defences in order Wrasse. Through Lerøy Vest, Lerøy The result was only 3 instances of Wrasse to fight off lice which attach to fish. The Seafood Group is also a 25% owner of the enforced slaughter of fish mature for use of Ballan Wrasse and Goldsinny company Cleanfish AS, which is involved slaughter. Consequently, Lerøy Vest Wrasse are among other measures with in developing a protocol for and did not have any measurable financial which Lerøy Seafood Group has had commercial production of Wrasse. losses in 2010 caused by PD. Lerøy major success in 2010. Lerøy Seafood The majority of R&D work within farming Seafood Group has also actively taken New fish farming technology This involves projects which aim to Group is involved in a number of of Wrasse is coordinated via a control part in other R&D projects involving the The current production practice, with increase the security in existing comprehensive research projects group appointed by FHF (The viral illnesses CMS (heart lesions) and the use of open cages located in waters concepts and projects developing involving the fight against salmon lice. and Industry Research HSMB (heart and musculoskeletal close to the coast, represents the technology for fish farming in more As one of two fish farming companies, Fund). Lerøy Seafood Group chairs this infection) as central elements. One greatest advantage for the Norwegian open waters - offshore. Moreover, Lerøy Lerøy Seafood Group is part of the control group in addition to 2 of the result is the newly developed PCR fish farming industry, but the concept Seafood Group is involved in a project prestigious research program entitled group’s 4 members, via Profunda AS/ analysis method to detect the CMS brings certain challenges, for example assessing the use of closed fish farming “SFI Salmon Louse Research Centre”, Cleanfish AS. virus, providing hope that the treatment the risk of accidental release. Lerøy technology for extended smoltphase at an 8-year program with a total financial of the PD virus can also be used to fight Seafood Group is actively involved in the sea. The latter involves projects with a framework of NOK 200 million. The focus Feed and feed utilisation the CMS virus. The results of the work work to challenge current technology longer time scale and where all aspects in this programme is to strengthen both Feed is the largest individual input on the HSMB virus are also promising. in order to further develop the industry of this new form of production need to the unspecific and specific natural factor utilised by Lerøy Seafood Group to become as environmentally and be charted thoroughly before being defences of fish against salmon lice, and the Group places a significant focus financially sustainable as possible. applied at a commercial level.

24 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201025 ” Target for accidental release of fish: 0

The Environment Accidental release of fish Prevention of accidental release of fish In 2010, one incident of accidental release have already led to several amendments is an important and high priority area for was registered by Lerøy Seafood Group in our facilities in order to avoid similar Lerøy Seafood Group. Lerøy Seafood Group at Lerøy Hydrotech. During a vaccination events in the future. invests a considerable amount of work procedure at Lerøy Hydrotech on into optimising equipment and routines 4 February, fish were sedated and to avoid accidental release of fish. Actual transferred to vessels for vaccination. incidents of accidental release and all One of the vessels overturned and the ACCIDENTAL RELEASE OF FISH IN LERØY events that can lead to accidental releases fish fell into the sea. There were 15 fish SEAFOOD GROUP number of fish

are reported to the Fisheries Authorities. in the vessel. 35 000 Securing against accidental release is a question of maintaining a focus on None of our young fish facilities reported 30 000 execution/action, good planning of all accidental release in 2010. Following 25 000 operations in order to ensure safe execution accidents that could have caused, or and efficient re-examination of operations. actually did cause, accidental release 20 000 Key elements are: ATTITUDE, ACTION and of fish, it is of utmost importance that all 15 000 RESPONSIBILITY. However, these have no circumstances surrounding the episode impact if not clearly defined by manage- are made known to everybody in the 10 000 ment. Moreover, it is essential that all organisation. Such events are used 5 000 employees are made aware of their actively in personnel training and for responsibility for ensuring zero accidental optimising routines and equipment. 0 2008 2009 2010 release of fish within our company. The focus of accidental release in 2010

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201027 Lice Such changes include: actively in activities coordinated by • Increased requirements for main- Salmon lice have coexisted with salmon Lice conditions in the company’s This means that we can use somewhat • Replacement of nets FHL (Norwegian Seafood Federation). tenance inspections between each fish for a long time. The first written facilities in 2010 smaller Wrasse for larger fish. • Modernisation of equipment Moreover, our fish-farming companies accidental release record of salmon lice is from the 17th Salmon lice are practically absent from • Registration of dead Wrasse and • No nets in sea without drawings maintain close contact and communi- Century and in 1837 the zoologist Henrik our facilities in the north. In our facilities refilling throughout the season. • Never assembling a haul rope where cation with the authorities regarding The fish-farming companies in Leroy Nikolai Krøyer described the species and further south conditions have seen an The delousing substance emamectin has there is no cross rope prevention of accidental release of fish. Seafood Group will also in the future main- gave it the Latin name Lepeophteirus improvement in 2010 when compared only been utilised in North Norway due • Marking of nets tain a firm focus on prevention of Salmonis. Salmon lice have a natural with 2009. The number of moving salmon to resistance in the rest of the country. • Extensive use of camera/divers during/ In addition to public requirements accidental releases. The goal for 2011 co-existence with salmon. lice and fully grown female lice with eggs Both management and production after work on nets in respect of accidental release of fish, is zero accidental releases from our is measured and reported to the Food technicians have maintained a strong • New procedures for net handling we have also implemented the following fish-farming facilities. Male and female salmon lice develop at Safety Authorities on a regular basis. focus on salmon lice treatment and will • New log form for all work involving nets measures: slightly different rates; the male louse continue to do so in the future. We have grows somewhat faster than the female. Lerøy Seafood Group aims to utilise met all public requirements as to We can increase our: • Established a common preparedness The growth rate is influenced by Wrasse instead of medication when counting, registration and treatment. • Continual work on attitudes stock of 500 retrieval nets in Kristiansund temperature; a higher temperature leads fighting salmon lice. In 2010, the Group • Control/re-examination - always that are ready for deployment by a to faster growth. has achieved very positive results using The following areas will be focused on • Continual revision of procedures trained team when needed Wrasse in our facilities in the south. In in the time ahead: • Assessment of suppliers • Established a collaboration agreement At 5 ˚C it takes 11 weeks from order to succeed with the use of Wrasse, • Use of new technology for monitoring with other large players in Central Norway Copepodite to fully developed female lice. the following points should be noted: • More intensive use of Wrasse than where each company is committed to • Plenty of shelter in the cages - Lerøy before It is important that incidents which result keep a central preparedness stock of Important background information when Seafood Group has made use of sports • Use of alternative deployment in accidental release of fish result in 500 retrieval nets to be used by all combating salmon lice infestations: clubs and school children to create patterns and locality structures exchanges of experience between fish companies when helping the company shelters for Wrasse in the cages. • Continuous monitoring of deployment farming companies. The companies in the experiencing an accidental release • Some areas present greater challenges • Cleaning of nets - demanding work and localities Lerøy Seafood Group participate in groups situation than others in lice control but necessary. The cages are hosed • Treatment with approved treatment where experience and expertise are • Established a comprehensive internal • Some salmon farmers have good down every 10th day - The nets are agents shared among the players, and compe- control system with a high frequency and control, while others have poor control cleaned using 3 (4 where necessary) • Coordination among facilities tency are shared among the actors. scope of internal inspections • Some rivers have a good salmon return cleaning boats. Start-up in early July. In order to improve our preparedness we • Routine diver inspections of cages after rate, while others have a low rate • Release of Wrasse from 24 June Main goal: “We aim to avoid salmon lice also collaborate with other fish-farming deployment in sea, as well as through the • Some companies achieve good results took place simultaneously in all cages. of reproductive age”. companies in our vicinity and participate entire production phase with Wrasse while others fail • Goal of 5% Wrasse in all cages. • Reduction of mesh size in nets.

VOLUME OF SLAUGHTERED (HARVESTED) SALMON AND ESCAPES

900 000 Harvested volume 1 600 DEVELOPMENT OF LICE POPULATION IN NORWAY Escaped salmon FULLY DEVELOPED FEMALE LICE 800 000 1 400

0.70 700 000 1 200 0.7 mm 0.8 mm 0.60 Nauplius II Copepoditt Chalimus I 0.6 mm 1.1 mm 600 000 1 000 0.50 Chalimus II 0.40 500 000 800 1.3 mm 0.30 400 000 600 Chalimus III 0.20 Naupilus I 2.1 mm Tons harvestedTons escapedTons 1 000) (in 0.5 mm 0.10 300 000 400 Male Preadult II, male Preadult I, male 0 Adult male 4.3 mm 3.4 mm 5–6 mm I I I I I I I I I I I 200 000 200 J F M A M J J A S O N D

Female 100 000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 2007 2008 2009 2010

Schram, T.A. 1993 Preadult II, female Preadult I, female Scale: 5.2 mm 3.6 mm naupilus – chalimus = 0.1 mm Adult female 2010 had the lowest lice population in 6 years in the The table shows accidentally released salmon compared with the total preadult – adult = 1 mm Chalimus IV 8–12 mm 2.3 mm volume of harvested salmon in Norway. important summer period when smolt of wild salmon Sea lice: Lepeophtheirus salmonis migrates out.

28 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201029 We aim to achieve this goal by focusing • Treatment during optimum weather Use of Chitin inhibitors 2009 and 2010 on four main areas: conditions Number of Number of % of cages which are 1. Prevention: 4. Follow-up and corrective action. cages deloused cages deloused deloused using • Good locations in 2009 using chitin inhibitors chitin inhibitors • Good smolt Plans and goals for 2011 655 5 0.76 • Clean nets • Coordination of delousing Number of Number of % of cages which are • Common plan for fallow areas • Optimal utilisation of Wrasse cages deloused cages deloused deloused using 2. Monitoring: • Strategic utilisation of treatments in 2010 using chitin inhibitors chitin inhibitors • Counting of lice • Introduce new methods 686 18 2.62 • Notification of lice counts to • Limit infestation pressure neighbouring facilities • Farming of Wrasse • Better communication between • Improved rotation of use of neighbouring facilities medication over larger areas Bacterial treatment • Effectuate good monitoring for • Large Wrasse for parent fish and in Use of anti-parasitic agents The consumption of anti-parasitic agents We aim to achieve this goal using correct and timely treatments in order areas with more than one generation Salmon is by far the healthiest “farmed in 2009 was 0.00034% and the goal for experience gained, an increased focus to reduce treatment frequency • The capacity to execute treatments animal” among the species from which 2010 was to restrict use of medicines on fish health, production patterns, 3. Treatment: within authority deadlines in all food is produced here in Norway. In 2010, to below 300 kg. This goal has therefore quality of locations and the assessment • Use of delousing bath – skirt, tarp locations and coordinated throughout 164 000 tons of fish feed were utilised been achieved. and optimal use of vaccines. and well boat generations tin Lerøy Seafood Group. Of this volume, • Feed • Compliance with authority require- 266.1 kg were medicines. This represents The goal for use of anti-parasitic agents • Wrasse ments in the regulations regarding lice 0.000163% of total feed consumption. in Lerøy Seafood Group for 2011 is a • Rotation of medicines and zone regulations Our goal is to restrict the use of medi- reduction of 10% from 2010. • Common treatment in certain areas • Participation in collaborative work cines. correctly timed to suit emigration of wild smolt Medication for bacterial treatment, added to feed 2010 Consumption in 2010 of active substances kg DEVELOPMENT OF MOVING SALMON LICE DEVELOPMENT OF FULLY DEVELOPED FEMALE LICE Oxalic acid 17.1 LERØY SEAFOOD GROUP average number of lice per fish WITH EGG STRINGS, LERØY SEAFOOD GROUP average number of lice per fish Florfenicol 0.2 Moving salmon lice 2010 Limit moving lice Moving salmon lice 2010 Limit moving lice Floraqpharma 142.4 1.2 5 Total consumption 266.1

1

3.75 0.8

0.6 2.50

0.4

1.25 0.2

0 0 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Number of cages deloused in Lerøy Seafood Group Alphamax/ Alphamax/ Alphamax Betamax Salmosan Releeze Emamektin Betamax Salmosan H2O2 Ektobann 2009 408 56 94 5 92 2010 223 88 215 15 29 13 88 12 3

30 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201031 Locations All the locations utilised by Lerøy • Sensory investigation (gas, colour, On the basis of these investigations, Seafood Group are approved for fish odour, consistency, dredge volume the individual location receives a score farming by a number of Norwegian and mud depth) from 1 to 4, where 1 is the most positive. bodies. Before starting operations at a location, approval is required from All parameters are allocated points The score achieved also provides a number of official and private bodies. according to how much sediment is an indication of when the next MOMB Furthermore, approval requires impacted by organic materials. investigation should be carried out. compliance with numerous analyses, A poor score often requires more frequent requirements and local conditions. The difference between acceptable and seabed investigations than a good score. unacceptable sediment condition is One of the assessments carried out established as the largest accumulation Lerøy Seafood Group has a target in both prior to approval for operations at which allows for survival of digging 2011 to achieve a score under 3 for all a location and during fish farming at the bottom fauna in the sediment. The locations. In the long term, the aim is facility is a so-called MOMB evaluation. investigation in carried out is executed to achieve a score of less than 2 at all when production of one generation is locations. MOM-B stands for: at peak.

M - matfiskanlegg (production facility) STATUS OF LOCATIONS, LERØY SEAFOOD GROUP AS OF. 31.12.10 O - overvåkning (monitoring) number of locations M - modellering (models) 80

A MOMB evaluation is carried out by 70 a third party enterprise and involves extraction of samples from the seabed 60 under cages and around the cages in 50 a facility. 40

• The samples are taken in accordance 30 with Norwegian Standard 9410. A trend investigation of the seabed conditions 20 under a facility. 10 • The investigation has 3 parts: • Fauna investigation 0 Number of locations Number of locations Number of locations Number of locations • Chemical investigation (pH with status 1 after with status 2 after with status 3 after with status 4 after MOMB MOMB MOMB MOMB and oxidation-reduction potential)

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201033 Fish feed Exploitation requirements for its suppliers of fish feed quotas are allocated as far as possible In the years to come Lerøy Seafood to make sure that raw materials for the in conformance with accepted scientific Group together with its feed suppliers fish feed are managed in a satisfactory recommendations, (reference is made will assume an active role in ensuring that manner. Moreover, in the time ahead to ICES, FAO, IMARPE, CERNAPESCA, etc.) the raw materials used in our feed are: Leroy Seafood Group will require its We require that all our feed suppliers • fished/harvested in an ethically sound suppliers to closely monitor how quotas make use of raw materials which have manner are established and respected, and how been certified in accordance with IFFO’s • fished/harvested in compliance with the catch is used. Lerøy Seafood Group standard for sustainability or raw legal frameworks requires that the raw materials in its fish materials with MSC certification. The • based on sustainable fishing feed must come from geographic areas process for determining annual quotas regulated by national quotas for the for wild fish in the North-East Atlantic Lerøy Seafood Group has established respective species, and where the is managed as follows:

Review group Advice drafting group ICES Fishing ACOM expert Assessment The ICES Advisory Data Working group Committee (former ACFM)

TAC/Quota RAC ICES ADVICE Regulation

STECF EU Scientific, Technical EU COUNCIL PROPOSAL EU Commission and Economic Committee for Fisheries

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201035 Management of different species used in fish feed Fish feed will require us to further optimise our sprat in baltic sea, comparing scientific advice, agreed TAC and actual catch 2010. 1 000 tons nss herring, comparing scientific advice, agreed Fish feed is the most important input utilisation of fish oil in fish feed. The 1 000 tons TAC and actual catch. factor for production and quality Omega 3 fatty acid requirement for fish 600 ICES advice Agreed TAC 1 800 assurance is absolutely essential. is more than amply covered by current ICES advice 500 Catch 1 700 1 600 Agreed TAC In 2010, Lerøy Seafood Group purchased feed. However, a reduction in the mix of 400 Catch 1 500 most of its fish feed from EWOS and Omega 3 rich fish oil will result in a 300 1 400 1 300 Skretting, in addition to a minor volume reduction in the level of Omega 3 in the 200 1 200 100 1 100 from Biomar. Lerøy Seafood Group fish. Irrespective of this, fish such as I I I I I I I I I I I 1 000 1 2 3 4 5 6 7 8 9 10 11 12 900 continuously benchmarks the Atlantic salmon will have a level of Omega 800 700 commercial feed utilised. This process 3 which is several times higher than any 600 is carried out by an institution on contract other high-volume foodstuff. 500 I I I I I I I I I I I I 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sardine/Anchovy - Chile, comparing scientific (Helgeland Forsøksstasjon in 2010) advice/quota and actual catch. 1 000 tons which provides independent feeding In recent years, a new major consumer of There was no agreenment on the TAC from 2003 till 2006. The number is the and sampling. Lerøy Seafood Group has Omega 3 rich fish oils has emerged on the 3 300 sum of quotas from the individual parties. 3 100 introduced a comprehensive sampling market - the Omega 3 industry producing 2 900 Catch Chile 2 700 Quota Chile programme for re-examination of feed pills and capsules. In 2010, this industry 2 500 north sea herring, comparing scientific advice, 2 300 agreed TAC and actual catch. 1 000 tons in terms of chemical content, dust, utilised approx. 19% of the worldwide 2 100 1 900 presence of foreign agents etc. The supply of fish oil for production. The 1 700 700 ICES advice 1 500 feed supplier carries out audits of own retention and biological value of Omega 3 1 300 600 Agreed TAC Catch fatty acids will in the majority of cases be 1 100 500 suppliers and Lerøy Seafood Group 900 700 400 executes annual audits of the feed higher in the use of fish feed than via 500 I I I I I I I I I I I 300 companies. These measures, combined capsules. 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 200 with the internal control by feed suppliers 100 I I I I I I I I I I I I 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 and traceability allow us to maintain Rapeseed oil is used in combination with control of feed content and quality. fish oil as a source of oil/energy in fish Blue Whiting, comparing scientific advice, 1 000 tons feed. Demand for rapeseed oil has also agreed TAC and actual catch.

Barents sea capelin, comparing scientific advice, Access to feed raw materials is good, seen an increase in 2010. This is 2 500 agreed tac and actual catch 1 000 tons 2 300 ICES advice despite a number of external factors primarily due to the fact that rapeseed oil 2 100 Agreed TAC 700 ICES advice which impact on supply. There are no is utilised for biodiesel production. Higher 1 900 Catch 600 Agreed TAC 1 700 1 500 500 Catch oil prices have resulted in higher requirements for use of special raw 1 200 400 materials for fish feed (e.g. fishmeal) profitability from production. Moreover, 1 100 1 000 300 but there are clearly defined nutritional a number of countries have increased 500 200 300 100 requirements for the content of raw their requirement for the volume of 100 I I I I I I I I I I I I 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 I I I I I I I I I I I I materials. Supply of fishmeal was good biodiesel in standard diesel, resulting 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 in 2010, despite considerable pressure in an increase in demand for rapeseed oil The fishing of Barents Sea Capelin was stopped between 2004–2009. from the chicken and pork market in Asia. for technical purposes. In the EU, 65-70% By introducing a cost-efficient optimi- of all rapeseed oil is currently utilised for limited supplementary value in connect- for sustainability. The concept of “fish sation of recipes, the volume of fishmeal biodiesel production. ion with nutrition for humans and cannot in - fish out (FIFO)” is very common in sandeel, comparing scientific advice, agreed TAC and actual catch. 1 000 tons in fish feed saw a slight reduction in 2010, be justified in relation to sustainability. relation to fish feed, i.e. how much wild without this having a measurable impact Lerøy Seafood Group maintains an active fish it takes to produce one kilo of farmed 1100 ICES advice on growth or fish health. Fish oil is the approach to and continuous assessment There are many ways of assessing salmon. The SAD programme is reaching 900 Agreed TAC Catch only Omega 3 rich source of oil available of the raw materials market, closely sustainability and a number of interest its final stages and the formula for 700 when it comes to the essential fatty monitoring the impact of decisions made groups have compiled their own calculation of FIFO has been defined. 500 acids, EPA and DHA. The aquaculture on our end product. A strong focus on definitions of this subject. The WWF has It is natural to calculate one value for 300 industry currently uses 70-75% of the sustainability and optimal utilisation introduced a process known as Salmon FIFO protein and one value for FIFO oil, 100 I I I I I I I I I I I of limited feed resources combined with 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 worldwide production of fish oil. The Aquaculture Dialogue (SAD) which has as these two raw materials have very continued growth in global aquaculture the size of our production implies that we gathered together Stakeholders from the different characteristics. For 2010, production combined with a standstill do not produce special products such as global industry, with the aim of preparing the FIFO value for protein at Lerøy will in the worldwide stocks of wild fish and salmon with extra high levels of Omega 3. a uniform standard which will define be approx. 0.8 (kg wild fish per kg farmed an increasing level of direct consumption This type of product would have a very items such as measurement parameters salmon), while the FIFO value for fish oil

36LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201037 will be approx. 3.1. The targets set in the The following actions have been initiated increase in vegetable sources of raw Fish feed in Lerøy Seafood Group 2010 2009 2008 SAD standard are: FIFOprotein lower than in order to reduce the feed factor: materials for fish feed. This leads to a Tons of feed used 163 738 166 178 148 037 1.31 and FIFO oil lower than 2.85. Lerøy • Investment in better monitoring reduction in the utilisation of marine raw Produced volume of salmon / trout 113 000 108 267 92 560 Seafood Group has established a goal to equipment materials and, in turn, reduced utilisation Feed factor 1.18 1.16 1.18 be fully in compliance with these figures • Training of personnel of different fish species. Goal for feed factor 2011 is 1.15 in 2011. • Implementing new location structures Improved fish health with special focus Within the farming of salmon and trout, Feed factor on salmon lice fish feed is the most important individual Content in fish feed supplied to Lerøy Seafood Group in 2010 The feed factor is an important indicator Oxygen adapted feeding component in relation to environmental Fishmeal Feed supplier 1 Feed supplier 2 of how efficiently we convert feed into • Increased focus on clean nets accounting and in terms of costs. Lerøy Latin 2010 2009 2008 2007 2010 2009 2008 2007 fish. Salmon farming is exceptionally Seafood Group relies on sustainable Anchovy Engraulis ringens 16% 8% 4% 13% 23% 45% 33% 23% efficient compared with domestic In 2010, the largest input factor among production of the fish used in fish feed Blue whiting Micromesistius poutassou 7% 9% 24% 38% 5% 8% 23% 33% animals. The feed factor for chickens is raw materials in fish feed was anchoveta in order that the Group can continue to Capelin Mallotus villosus 6% 2% 1% 4% 10% 2% 1% 2% approx. 2, for pork approx. 3.5 while for and fish cuttings. The highest input produce tasty and healthy seafood in Herring Clupea harengus harengus 6% 15% 17% 14% 11% 19% 20% 18% salmon in 2010, Lerøy Seafood Group’s factor among vegetable materials was the foreseeable future. In principle, Sand Ammodytes sp. 18% 14% 24% 3% 12% 6% 5% 3% fish farming companies reported a feed soya and rape. it is desirable that all fish suitable for Herring cuttings Clupea harengus harengus 11% 16% 6% 5% 14% 8% 6% 3% factor of 1.18. consumption is used as human food, but Sprat Sprattus sprattus sprattus 10% 14% 7% 8% 5% 5% 2% 5% In recent years, there has been a marked in practice this is not always possible. Trimmings 16% 7% 3% 4% 2% 2% Mackerel Scomber scombrus 1% 2% 3% 2% Horse mackerel Trachurus trachurus Wild fish needed for fishmeal Jack mackerel Trachurus sp. 3% 14% 17% 15% 1% 2% 4% 5% Lerøy 2010 Skretting 2010 Skretting 2009 Pacific Mackerel Wild fish needed for fishmeal 2010(1) 2010(2) 2009(2) Boarfish Capros aper 9% 2% Fishmeal 14.63 16.03 34.70 Norway Pout Trisoperus esmarklii 4% 4% Yield fishmeal 23% 23% 23% Pilchard 2% Annet 3% 3% 1% FCR 1.1 1.1 1.1 Total 100% 100% 100% 100% 100% 100% 100% 100% Grams fishmeal per kg feed 146 160 347 Grams fishmeal per kg salmon 161 176 382 Fish oil Feed supplier 1 Feed supplier 2 Latin 2010 2009 2008 2007 2010 2009 2008 2007 FFDR fishmeal 0.71 0.78 1.68 Anchovy Engraulis ringens 9% 11% 10% 19% 15% 32% 36% 24% Blue whiting Micromesistius poutassou 2% 8% 8% 1% 1% 7% 12% Wild fish needed for fish oil 2010(1) 2010(2) 2009(2) Capelin Mallotus villosus 2% 3% 3% 2% 1% 1% Fishoil 13.53 13.53 14.70 Herring Clupea harengus harengus 8% 8% 15% 17% 16% 33% 25% 35% Yield fishoil 8% 8% 8% Sand eel Ammodytes sp. 10% 4% 10% 9% 10% 1% 5% 3% FCR 1.1 1.1 1,1 Herring cuttings Clupea harengus harengus 22% 13% 5% 4% 11% 16% 7% 4% Sprat Sprattus sprattus sprattus 18% 18% 14% 17% 28% 7% 8% 17% Grams fishmeal per kg fish 135 135 147 Trimmings 7% 3% 5% 2% Grams fishmeal per kg salmon 149 149 162 Mackerel Scomber scombrus 1% 3% Horse mackerel Trachurus trachurus 2% FFDR fish oil 1.86 1.86 1.97 Jack mackerel Trachurus sp. 1% 3% 2% 2% Boarfish Capros aper 1. Data based on products purchased by Lerøy 2010 Norway Pout Trisoperus esmarklii 1% 2. Data based on average figures for Skretting’s purchase of raw materials Pilchard 6% 18% 15% 9% Menhaden Brevoortia patronus 17% 20% 1% 11% 7% 6% Capelin Mallotus villosus 2% 1% Pearlside Argyripnus iridescens 1% Protein used from wild (gram) 109 120 260 Unknown 5% Protein produced per kg salmon (gram) 180 180 180 Other species 2% 2% 1% 4% Net fish protein producer 165% 150% 69% Total 100% 100% 100% 100% 100% 100% 100% 100%

38LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201039 Greenhouse gas emissions Below is a brief summary of the general The table below provides a summary of from Statistics Norway’s publication, framework and assumptions made when consumption of fossil fuels, electricity The Norwegian Emission Inventory 2010. calculating greenhouse gas emissions for and greenhouse gas emissions. Lerøy Seafood Group in 2010. Indirect emissions Direct emissions Consumption of electricity also results The framework selected for calculating Direct emissions of CO2, CH4, and N2O in the emission of greenhouse gases. emissions includes emissions from are calculated on the basis of available We have calculated our emissions of combustion processes required for the data and information. CO2 based on a Norwegian mix of operation of the Group’s fish farming electricity. This includes Norwegian companies and the related processing CO2 emissions are only calculated for production and import. The source of activities. This is referred to in total as combustion of diesel, heating oil and data for emission factors is the Norwegian Direct Emissions. The Group also wanted undefined fossil fuels. Undefined fossil Climate and Pollution Agency. The to gain an overview of the indirect fuels are defined as diesel/heating oil. consumption of electricity is classified influence on global warming from the as indirect emissions. company’s activities and has therefore Emissions from combustion of petrol included CO2 emissions from the are assumed to come from passenger Global warming potential (GWP) production of electricity consumed by vehicles and this has allowed for Different greenhouse gases have a the company’s production units in Norway. calculation of CO2, CH4, and N2O- different potential when it comes to global emissions. warming. GWP provides an indicator Significant sources of greenhouse gas with which to weigh all greenhouse gas emissions from Lerøy Seafood Group’s Emissions from combustion of marine gas emissions in comparison with each other core activities in Norway have been oil are assumed to come from boats and and to produce total potential CO2 included in the calculations. this has allowed for calculation of CO2, equivalents. Over the perspective of the CH4, and N2O-emissions. next 100 years for example, the emission The purchase of products and services, of 1 ton CH4 will have just as large an of which fish feed and transport services All CH4, and N2O emissions are converted effect on global warming as the emission make up a major share, have not been to CO2 equivalents in order to allow total of 25 tons of CO2. To find out more, go included in the calculations. Lerøy Seafood reporting. to http://www.ipcc.ch/pdf/assessment- Group is currently working on obtaining report/ar4/wg1/ar4-wg1-chapter2.pdf a good basis for calculating the above. All factors and densities have been taken

Fishermen will first try to deliver their are champions when it comes to depended on a supply of wild fish since a catch for human consumption. However, recycling of industrial fish. At the same lot of fish oil is consumed. In recent years Consumption of fossil fuels and purchase of electricity capacity onshore to process the fish is time they bring the healthy and vital fatty this dependency has been significantly Lerøy Seafood Group Diesel Petrol Oil Marine gas oil Kwh often insufficient. A large volume of the acids into human consumption. In nature, reduced, since much of the fish oil has (litres) (litres) (litres) (litres) Purchase of electricity parts of the fish used for fish feed come fish is a part of the salmon’s diet and been replaced with vegetable oils. Today Total farming LSG 2 552 064 793 964 224 330 567 185 49 447 901 from by-products from the actual fish. farmed salmon is therefore a fantastic approx. half of the oil used comes from Demand for raw materials is a prerequisite vector for introducing valuable marine vegetable sources. for sale of fish for human consumption. proteins and oils into the human diet. We Total consumption of fossil fuels and greenhouse gas emissions In this context it is important to remember feel privileged to be part of this, and to be Development of raw materials in feed Lerøy Seafood Group Fossil fuels CO2e emissions CO2e emissions CO2e emissions that fish not suited for direct human able to participate in its future develop- (litres) direct (tons) indirect (tons) total (tons) 80 Marine Vegetable ment. 1 632 10 746 consumption is best used in production 70 Total farming LSG 3 425 699 9 114 of other fish species. It is paradoxical to 60 maintain that salmon farming is a Other raw materials 50 problem in the use of industrial fish as Salmon feed contains both fishmeal and 40 long as we know that 50% of all fish oil. These raw materials mainly come 30 is used for raising other domestic from wild fish which is not suited for 20 10 animals such as pigs, chickens and other human consumption or not in demand. 0 warm-blooded species. Salmon and trout Salmon farming has traditionally 2007 2008 2009 2010

40 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201041 Environmental Accounting Lerøy Seafood Group has until further Environmental marking household baking oven, the CO2 value LCA, Life Cycle Assessment notice decided not to prepare separate A few countries have started to mark will be higher. The average consumer will Sampling accounting for CO2 equivalents dis- a number of products with their CO2 probably not be able to consider these of charged into the environment from our footprint. However, as of today there is factors. It will therefore be to everybody’s resources production by means of the LCA method. no established standard for how this is advantage if a standard is established for We have, however, participated in various to be implemented. As we see it, without how far in the cycle we should go when Refining projects for analysing discharges of a standardised marking for CO2, we risk calculating the CO2 value that sub- Disposal of environmental gases from production of confusing the consumer when trying to sequently will be entered on the product. materials salmon, both as whole fish and as fillets. compare the various CO2 markings on Basic information different products. For this reason we In 2010 a committee was appointed In 2009, on assignment from FHL have decided to postpone the marking in Norway to formulate a standard for Composition Substance of of production concern of our products until a standard procedure climate labelling of seafood. Lerøy Input Output (Norwegian Seafood Federation) and energy materials CO2 the Norwegian Fishermen’s Association, is established. Seafood Group is participating in this NOx SINTEF Fisheries and Aquaculture, work, together with the Norwegian together with SIK, the Swedish Institute We input various resources to the value Seafood Federation. The aim is to have Manufactures for Food and Biotechnology, carried out chain and at the same time climate gases a standard ready by summer 2012. Use of products of a study of Norwegian seafood under the are emitted from the production chain. The standard will be submitted as an products heading “Carbon footprint and energy The resources used and the gas ISO standard and the objective is for this Recycling use of Norwegian seafood products”. emissions are converted to CO2 equivalents to be an international standard for climate This study is representative of the that are used in the environmental labelling of all types of food products. Transportation products we produce. accounting. The amount of CO2 influencing of products Reuse the environment depends on where in the The result from this study shows that cycle we are. It is important to keep in climate gas emission for whole salmon mind that the product influences the is 2.0 kg CO2e per kilo live weight. environment with the sum total of CO2 The majority of products and services do company understand how its products • Include climate impact as a factor when equivalents throughout the entire cycle. not, in themselves, contaminate to any and services contribute to climate change selecting suppliers, materials, product Lerøy Seafood Group has decided to focus great degree. However, it is the manu- and which parts of the process should be development and production processes on processed products with an emphasis For example: if we mark a product as it facturing plants that produce them, the focused on in order to reduce climate • Show environmental and social on processing in Norway. One of our is taken out of the shop, a raw portion lorries that transport them, the consumers impact. A life-cycle assessment of responsibility environmental goals for 2009 was to of salmon will be marked with a lower who consume them, as well as waste a product may help a company to: • Provide customers and consumers increase our share of processed products CO2 value than a heated salmon portion incineration plants, which are responsible with information regarding the product’s/ by 25%. We exceeded the goal with an taken from the warm counter. However, for the greatest amount of emissions. • Reduce greenhouse gas emissions service’s climate impact increase of 26.4%. if we look at the entire cycle, the warm Life-cycle assessments will help a • Identify cost saving options salmon portion will normally score better One of the reasons for setting this goal than the cold one because it is probably was to achieve a reduction in climate heated in an industrial oven in the shop. gas emissions per kg edible seafood. If you bring a cold salmon portion home Greenhouse Gas emissions to the kitchen and heat it in an average (kg CO2e/kg edible part at slaughter/landing)

30

Greenhouse Gas emissions PROCESSING IN NORWAY VS. ABROAD GHG emissions (kg CO2 e) per 8 oz fresh salmon 25 (kg CO2e/kg live-ROUND weight) GREENHOUSE GAS EMISSIONS (KG CO2) fillet farmed in BC delivered to San Francisco

Other 0.6 20 Feed production Feed production 5 Aquaculture (excl. 0.5 feed production) 4 0.4 15 2 Processing 3 Product Transport 0.3 Transport packaging 10 0.2 2 1 0.1 1 5 0 0 Primary Processing/ Transportation Wholesale- Salmon Salmon fillets Production Packaging Consumption 0 0 processed processed in Herring Mackerel Haddock Cod Salmon Chicken Pork Beef Farmed abroad Norway salmon Peter Tyedmers, Dalhousie University, Ecotrust, SIK-Swedish Institute for Food and Biotechnology.

42LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201043 By-products By-products products are fillet and salmon and trout Most important by-products Lerøy Seafood Group works to achieve the portions with or without skin. Backbone 11-13% of gutted weight highest possible rate of utilisation of raw Head 10-12% of gutted weight materials produced or caught. This implies The utilisation rate for fillet is between Belly cuts 8-15% of gutted weight a goal of 100% utilisation of all nutritious 55% and 74%, which means that between Portions 45-68% of gutted weight raw material not used in the main 55% and 74% of the salmon (gutted Cuts of skin production. The by-product share depends weight) becomes main products while the without bone Depends on main product on the type and specification of our main rest becomes by-products. For portions Rest cuts processed products and their speci- the utilisation rate is between 45% and with skin Depends on main product fication. The most important processed 68% depending on the specification.

Use of by-products By-products Sale where by-products are used for Internal processing Alternative Salmon heads Production of soup, juice External use*) Backbone Production of soup, juice, forcemeat, scraped meat Scraped meat, forcemeat for burgers, fish food External use*) and sandwich spreads Belly cuts Processing for sushi External use*) Skin External use*) Cuts of skin and boneless slivers Ingredients in other food Ingredients in burgers and sandwich spreads External use*)

* By-products which are not utilised in our own facilities or sold to other industrial customers as food products, are divided into two groups: End products for human consumption, for example Omega 3 pills, oils or other nutritional concentrates. End products which are not used for human consumption, for example fishmeal, animal feed etc.

44LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201045 Distribution Distribution Road transport companies have developed services How can we contribute to environmental The majority of distribution still takes involving rail transport of entire articu- protection by thinking green for all our place by road. This is mainly due to the lated trailers to Germany and Holland logistics? logistic systems currently available for provides us with new potential to make transport in regional areas. A number of extensive use of rail transport. By being environmentally conscious in our customers choose to provide transport our choices of logistics solutions, we will themselves and therefore pick up products Air transport contribute to reduction of CO2 emissions. directly from our facilities. We work The volume of fish transported by air Carbon dioxide is a colourless and closely together with our transport has seen an increase in the past year, odourless gas. It is produced naturally by suppliers, reinforcing the importance of due to increased sales to Asia, Australia humans and animals and in connection environmental protection for all transport. and the USA. We work closely with our air with human activities such as combustion All told, the vehicles we use in our transport supplier in order to identify the of petrol, diesel oil, coal, fuel oil and wood. distribution are far younger and better than best air freight systems and the best those our customers have been using so solutions for the environment. For our In our day-to-day activities we face by switching some of the transportation distribution by air we have worked closely requirements to both the environment to our distribution network we achieve a with a large airline company that has and to profitability. Expensive transport reduction in total CO2 emissions. scheduled passenger flights covering all which at the same time damages the our markets. We make use of the cargo environment is, of course, a solution we We continuously look for new distribution capacity on these planes, which are do not want. If the solution is kind to the solutions that still are price competitive modern and mainly fly the shortest environment but not profitable for the and generate the same level of service distance possible from A to Z. By company, the environment is protected as before. For example, in 2009we altered consciously focusing on this type of air but the solution is bad for the company. our most heavily used route to France. freight, we are able to meet our market The optimal transportation solution is Earlier we had transported salmon fillets demands using the most modern and good for the environment while at the in fully loaded trucks from Norway to least polluting planes. Conscious choices same time contributing to the company’s Arras in France, while we now use rail and an emphasis on environmental earnings. Such solutions will also be transport for part of the journey. This has attitudes enable us to fly less of our strongly motivating and therefore easier reduced our costs as well as our CO2 products with dedicated cargo planes. to implement. Often we discover that emissions. Solutions like this will make environmentally friendly solutions do not it easier for us to contribute positively Rail transport cost as much as we thought, and that a to environmental protection. Our products from Northern Norway are focus on the environment in fact transported to Southern Norway mostly contributes to increased profitability. By making use of rail transport on parts by rail. This system works well during the of the route between Trondheim and summer months. During the winter we Hallvard Lerøy AS is the largest sales Rotterdam, we have achieved a reduction sometimes experience delays of varying and distribution company within the in CO2 of 68.5%. Our CO2 emissions have magnitude that force us into uneconomical Lerøy Seafood Group. In 2010, transport been reduced from 3.91 to 1.23 tons. solutions that may also be less than was distributed as illustrated below. The fact that the major transport optimal for the environment.

DistribuTION iN Hallvard Lerøy 2008-2010 Primary energy Carbon Dioxide Sea transport Our increased focus on processed fish together to maintain a sustainable Resource consumption greenhouse-gas, global warming Our frozen seafood is currently tran- and the fact that we process the main industry. Our goal for the future remains 60% 2008 2009 2010 Megajoule Tons sported by ship. We will maintain our part of our products in Norway allow “Lerøy in every kitchen”. 50% 60 000 4.0 focus on environmentally friendly us to make positive contributions to 40% 3.0 40 000 logistics in the years ahead and will environmental protection. 30% 2.0 20% collaborate closely with our main 20 000 1.0 10% suppliers of distribution services Customers 0 0 0 in order to contribute to reduced We aim to achieve closer cooperation Road Ship/Container Air Pick up self Lorry Train Combined Lorry Train Combined environmental impact in this area. with our customers so that we can work

46LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201047 Input from our partners All Skretting’s facilities carry out risk materials. Further, we encourage our EWOS works on a regular basis with the transport company in Norway to gain Terminal operations Skretting analyses according to the HACCP partners to invest, for example, in new development and maintenance of environmental certification in accordance Schenker’s environmental work comprises Skretting is the leading manufacturer of principles (Hazard Analysis and Critical cargo boats which can supply feed at suppliers and raw materials, in order with NS-EN ISO 14001. The main terminal control, reporting and follow-up of: feed for farmed fish in Norway. The name Control Points). lower energy costs. to ensure flexible and sound availability in Alnabru in Oslo received certification Emissions to air, drainage and ground and brand also enjoy a leading position of raw materials. on 6 March 1998. The other 20 terminals Water consumption internationally with production and sales Skretting’s sustainability programme For several years now, Skretting has in Norway gained certification that same Energy consumption in more than 40 countries. Aquaculture is (SEA) established its own sustainability targets year. The entire Schenker AS Group had Noise a primary industry, where added value is Skretting views sustainable development and worked hard to achieve these targets. full certification by 1 January 2007. Source separation/Recycling generated from natural resources. As as an absolute condition for continued Skretting’s annual environmental report DB Schenker Schenker AS now has certification such, Skretting and the entire fish farming growth within fish farming. Our work to provides an overview of all such activities. DB Schenker in Norway according to NS-EN ISO-9001:2000 and Transport industry are fully reliant on sustainability contribute towards the above covers a Number of terminals/offices in Norway: 31 NS-EN ISO 14001:2004. The certificates Target: 50% reduction in CO2 by 2020 and long-term perspectives in their number of areas. All such activities are No. employees: 1 400 are valid until 29 November 2013. management of these natural resources. covered by the SEA programme (Sustain- No. drivers: 1 100 DB Schenker’s 4-point climate strategy If we are not able to run our business in able Economic Aquafeeds). EWOS DB Schenker’s Environmental Policy 1. The driver harmony with nature, we have absolutely EWOS products are based on a sustainable The DB Schenker Group Schenker AS shall contribute towards a) Eco-driving course, potential to reduce no grounds for existence. Fishmeal and fish oil are important resource management, in line with the The Schenker Group is a global corporation sustainable development by ensuring consumption by 10% components in feed for farmed fish. Group’s main principles of sustainability. with strong local roots in over 130 efficient transport with minimal 2. The fuel Skretting is committed to: As the fish farming industry has grown, As an integral part of this work, EWOS countries. The Group generates annual environmental impact. By regularly a) Where possible, use environmentally 1. Reducing discharges, specifically the requirement for these marine raw gives priority to the utilisation of raw turnover of EUR 19 billion, has 91,000 charting our activities, we aim to friendly and sustainable fuels which are energy consumption, via systematic materials has also increased. Skretting materials as by-products, and other raw employees and around 2,000 offices. cooperate with our suppliers to further available improvements to energy efficiency, aims only to utilise materials such as materials which are normally not used Schenker is part of the transport and develop efficient systems for minimising 3. The vehicle optimised utilisation of energy sources fishmeal and fish oil, produced from fish for human consumption, where possible. logistics division of Deutsche Bahn AG. our impact on the environment. a) Minimum Euro IV engine in vehicles and increased utilisation of renewable stocks which are managed according to In terms of competition within the in scheduled traffic energy sources. a long-term perspective and which are EWOS currently purchases marine industry, the Schenker Group is the DB Schenker’s Environmental 4. Means of conveyance and exploitation 2. Minimising the impact on the external not overfished. Together with the entire resources exclusively from absolute market leader within European Organisation a) Module-based HGV 25.25 m environment, preventing pollution and fish farming industry, we have a collective which are monitored and are covered land transport, has second place within All terminals have their own environ- b) Use of rail where possible ensuring that our business is sustainable responsibility to ensure sustainable by management recommendations from global air freight and third place within mental coordinator who is responsible c) Full vehicles and round trips where by maintaining a continuous focus on exploitation of these resources. recognised international organisations global ocean freight. locally for environmental measures. both outgoing and return journeys have improvements. (e.g. ICES and IMARPE, Peru). There is also a central unit which has full cargo 3. Doing our utmost to ensure a safe Fish feed manufacturers and fish farmers Certification overall responsibility for systems, working environment by maintaining must make efficient use of the marine raw Based on the limited availability of marine In 1994, Schenker’s inland business unit certification, reporting and professional Environmental certification of transport a constant focus on improvements materials, so that we can provide the resources, EWOS has followed a strategy was the first consolidated shipper in support to local environmental coordinators. companies and drivers and welfare measures to prevent injuries, highest levels possible of fish protein for over several years of reducing the input Norway to gain certification in accordance Transport companies which provide accidents and unnecessary strain or human consumption, without increasing of marine ingredients in its products, a with NS-EN ISO 9002:1996. This involved Environmental control and follow-up transport services for DB Schenker shall illness. the use of fishmeal and fish oil. Our final project which receives high priority within certification of the company for all The purpose of environmental control and have environmental certification. target is to be a net producer of fish the company’s research and development aspects of business, including thermal follow-up is to ensure that Schenker Certificates protein, i.e. that we provide more fish programme, in order to further reduce the transport. remains in compliance with all internal 90% of the transport companies’ drivers Skretting Norway has achieved protein in the form of fish for consump- marine quota in the future. and external environmental requirements. who provide services for DB Schenker the following certification: tion than we use in the form of fishmeal. For our customers and Schenker, this shall have completed courses in • NS-EN ISO 14001–2004 Raw material purchases are based on certification is confirmation of the high Environmental control and follow-up is eco-friendly driving. (the Environment) Sustainability and long-term perspectives approved raw material specifications with international standard which we hold. a line responsibility. The environmental Vehicles in scheduled traffic shall have • NS-EN ISO 9001-2008 (quality) also involve finances. Skretting makes an emphasis on nutritional content and We have now integrated NS-EN ISO coordinators at the terminals carry out minimum Euro IV engines and not lower • ISO 22000. (Food Safety) significant contributions to research micro biologically and chemically safe 9001:2000 into daily operations. assignments related to the environment, than Euro II. Skretting is an approved feed supplier, and development. As such, we are able substances. Quality assurance allows us to provide described in “Tasks for the environmental Fuel used shall be as environmentally- in accordance with the GLOBAL G.A.P. feed to identify financially sound alternatives our customers with a guarantee and the coordinators”. These include reporting, friendly, traceable and sustainable as standard. With effect from and including to raw materials which may be seen Raw materials are purchased from assurance of safe transportation of all using a specific reporting tool developed possible. 2010, it is now possible to gain certifi- as questionable from a sustainability approved suppliers who are able to deliver types of goods. for Schenker’s Intranet. The Quality and cation in accordance with updated perspective. We also make investments goods in accordance with our specifications Environment Department is responsible DB Schenker North Rail Express GLOBAL G.A.P. standards, a new target in production equipment, allowing us and in line with our quality systems Environmental certification for systems and coordination of Introduced own train route between Oslo for Skretting. to make use of a wider range of raw and approval from authorities. The inland business unit was the first environmental activities. and Narvik in January 2011.

48LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201049 The customer shall have full ” confidence in products from Lerøy

Food Safety

Lerøy Seafood Group is actively involved ing plants to finished product in a box manufacturer is obliged to prepare a plan in all parts of the value chain in order to and, in certain cases, up to delivery to for measures. The deviations are to be ensure supply of safe products to the the customer. resolved within a specified deadline. consumer. Based on experience gained over many years, we have developed a Lerøy Seafood Group currently has a All products are marked in relation to quality system which contains routines large number of manufacturers of fish prevailing marking regulations in and procedures to ensure supply of safe and shellfish. Our audit system includes Norway/EU and customer requirements products. a risk analysis of manufacturers in order from import countries. to determine how often the individual As a part of our quality assurance manufacturer is to be audited. The Experience from individual cases of poor routines, we carry out control and analysis covers risk related to product, food safety within different protein monitoring of our manufacturers and volume purchased, customer require- groups in different parts of the world over partners. This involves making require- ments, history of complaints and results recent years has resulted in an increased ments on their quality systems and of audits. focus on food safety. Lerøy Seafood procedures, and making analyses and Group takes this work very seriously and monitoring operations. Our quality team A specific audit form is utilised during has invested significant resources in carries out between 150 to 200 external an audit, based on Lerøy Seafood Group’s developing satisfactory procedures and quality audits every year. This is required requirements. An audit involves auditing systems in order to ensure that we are so that we can feel safe that the products the manufacturer in relation to: HACCP, in compliance with the strict require- we purchase are in compliance with the legislation, traceability, marking, ments we have established and the requirements we place on our own hygienic design, fish welfare and requirements we must fulfil from bodies products. Moreover, the products are bacteriological analyses of equipment, responsible for food safety. controlled by Lerøy Seafood Group at product and water. After the audit, different stages throughout the entire the manufacturer receives a deviation production process, from egg/process- report, based upon which the

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201051 Feedback detail overview

Claim no. 25361 Team Quality Source Production Claim Type Recall test Producer Austevoll Fiskeindustri AS

Case history

Description Registered by Date Status Annual recall test H 72 [email protected] 13.04.2010 14:48:50 New

Drill starts at 13:30

Preparedness The authorities in Vietnam have identified medicine residue in a batch of frozen salmon Recall be recalled and which bodies are to be These may be: heads cut and packaged at H-72 on 22 October Lerøy Seafood Group has full traceability notified. • Media 2009. The customer, A&D Co. Ltd. has pur- for all products from boat/cage to • Customers chased 50 boxes, total weight 1,027.1 kg. customer. Every year, recall tests Preparedness group • Authorities are carried out in relation to our major The preparedness group comprises • Organisations The authorities have ordered the customer manufacturer. In 2010, Hallvard Lerøy representatives from management, • Consumers and ourselves to recall all fish corresponding carried out 5 recall tests. These involve production, market, quality and environ- • In-house, accident/crises which affect with this batch. contacting a manufacturer about a ment. The group has primary responsi- employees fictional matter and tracing the products bility, both internally and externally, for On this basis, it is important for us to find out from production, identifying which communications, handling and execution A separate directive has been compiled which facility the fish come from so that we customers have received the product. of relevant challenges/crises which for preparedness and recall of products. can trace who has received the same fish. A risk assessment is carried out to occur in relation to different bodies which [email protected] 13.04.2010 14:48:50 New determine whether the product should enforce requirements on the Group. The test started on 13 April 2010 at 13:30. The batch was identified and traced by 13:51. Organisation of the preparedness group [email protected] 13.04.2010 14:48:50 New The batch contained a total of 2,840 kg Group CEO Preparedness group: of salmon heads, all delivered to the same Group Production Manager customer in Vietnam (Sojitz). The salmon Group Marketing Manager originated from Sauøy, cages 8 and 14, CSR Responsible batch number 121129. The Norwegian Food Safety Authority has [email protected] 13.04.2010 14:48:50 Approved Technical Director fish feed been notified of the test. [email protected] 13.04.2010 14:48:50 Closed Automatically approved when closed.

General Manager / Quality Manager Tracing test took 21 minutes - the batch number was controlled and corresponds Halvard Lerøy Lerøy Sverige Lerøy Vest Lerøy Hydrotech Lerøy Midnor Lerøy Aurora Sjøtroll Havbruk with Sauøy Cages 8 and 14. Success.

52LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201053 Traceability Lerøy Seafood Group aims for 100% trace- ability of all products. For species related to fish farming, such as salmon trout, cod etc. the customer can go to Lerøy Seafood Group’s website, www.leroy.no, to down- load traceability information for products sold via Hallvard Lerøy AS. Lot: 125381 Specie: Norwegian Atlantic Salmon

The current traceability system follows Trace Information a fish from roe stage to finished, packaged product. When customers log on to the system, they receive detailed Broodstock information on the product throughout the entire value chain. All data is entered Broodstock Centre Aakvik in the Group’s database and can sub- Licence GGN: 4049929544451 sequently be downloaded on request Strain Aquagen via the traceability system. Individual customers are allocated user accounts where they have access to traceability Juvenile in relation to specific invoices. Each LOT provides the customer with traceability Hatchery Skorild Smolt Plant Skorild information from parent fish to slaughter, License GNN: 4049929914780 License GNN: 4049929914780 regarding factors such as location, Hatching Period 2009-06-11 Wellboat treatments and quality information Smolt weight 63 g such as fat, colour and condition.

Lerøy Seafood Group has for many years Farm worked towards the goal of quality assurance and has developed a control Fish Farm 1912 Tussøy Last day of feeding 2011-01-23 system based on Global Gap, MSC****, Farm License GNN: 4050373034542 Temp. last day of feeding 3.8 C HACCP***, BRC** and ISO 9001*. Location License 25855 Date of sea transfer 2009-06-10 Name of Fjord Wellboat Our fish farming companies, in addition Cage Density 15 kg/m3 Duration of transport 0 hours to Sjøtroll Havbruk, have Global Gap Cage Number 9215 certification. Our production plants have BRC certification and the sales depart- ment at the Bergen headquarters is Packing Station certified in accordance with ISO 9001, MSC and Global Gap. Packing Station Lerøy Aurora AS T126 Packing Date 2011-02-14 License T-126 Core Temperature 2.0 C *ISO 9001 - Quality Management Systems - Requirements **BRC (British Retail Consortium) - Quality Processing standard with focus on food safety. ***HACCP – (Hazard Analytical Critical Processing Plant Lerøy Aurora AS Skjervøy Control Point) – Risk analysis containing License T-125 critical control points Processing Date 2011-02-14 ****MSC (Marine Stewardship Council) a standard for sustainability for fish caught in the wild

54LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201055 Product information SALE OF PRODUCTS BASED ON OUR OWN RAW MATERIAL % of turnover

50

40

30

20

10

0 Products based Products based on our own fish on external seafood

KRAV marked products sold via KRAV marked products sold by Sales from Swedish companies Norwegian companies LSG Volume kg Volume kg Volume kg KRAV Salmon Norwegian 1 614.2 Haddock fresh with head III KRAV Cod 383.09 KRAV 1-1.5 kg 129.60 Global Gap KRAV Haddock 102.88 Haddock fresh fillet with bones Global Gap is primarily a standard for Focus areas: The road ahead KRAV salmon fillet 5 780.74 without skin KRAV 5 kg 37 019 environmental conditions in our • Food Safety: The standard is based With the establishment of Global Gap, KRAV Cod fillet 7 999.04 Cod fresh whole without head production activities and our employees’ on criteria for food safety developed Lerøy Seafood Group has introduced KRAV Haddock fillet 36 513.09 KRAV 1-2 Kg, 10 kg 596.50 working environment. from the application of generic HACCP further improvements to their proce- KRAV Mussels NATURAL 110 785.70 Cod fresh fillet with bones without principles dures and systems. As an organisation, KRAV Herring in mustard in pieces PK x 1.2kg 746.80 skin KRAV 5 kg 3 020 • The Global Partnership for Safe and we have achieved significant advances KRAV Herring in onion in pieces PK x 1.2kg 733.24 Sustainable Agriculture • Environment: The standard is in two as a result of this process. We are now Herring marinated in vinegar in pieces KRAV barrel 1 parts, one for environmental protection evaluating whether to gather forces yet KRAV Fresh shrimp 85 Scope of the standard: and one for Good Aquaculture Practices again to take us up to another level. Total 164 744.70 40 635.50 205 380.20 Roe - Smolt - Fish for consumption - (GAP) developed to minimise negative Our goal is to be the leading company in Production environmental impacts of aquaculture terms of the environment and sustain- ability, and therefore aim to introduce MSC products sold via MSC products sold via MSC products The standard covers the production • Employees’ health, safety and welfare: even more stringent routines regarding Swedish companies Norwegian companies sold via LSG process from roe stage to fish slaughter The standard sets forth global criteria for certain key performance indicators for Volume kg Volume kg Volume kg working environments and for workers’ the environment and sustainability in MSC Hjälmar Zander 0.7-2 kg 12 610.48 MSC saithe fillet 3 260 The Global Gap standards relate to the health and safety in the production our facilities. We have yet to choose MSC Hjälmar Zander fillet with skin 1 508.46 MSC saithe without head 1 511 625.70 following areas: facilities. The standard also contains which path to follow. There is an ISO MSC saithe fillet 33 849.66 MSC haddock without head 8 43 067.81 • Fruit and vegetables guidelines for increased awareness and 22000 standard which relates to food MSC Atlantic halibut Canada 20/40 lb 69.13 MSC cod without head 273 964 • Flower and ornamental shrubs responsibility for social relations in the safety and a completely new standard MSC Cape hake fillet 110-170g frozen 219 980 • Integrated agriculture, module for workplace. However, this should not be currently being developed - ASC or MSC saithe loin frozen 2 750 sheep, pigs, cattle, poultry and dairy seen as a substitute for local company Aquaculture Stewardship Council - MSC Atlantic halibut fillet frozen 882.95 produce audits of internal and external social as an alternative to MSC for fish farming. MSC Blue hake fillet frozen 4975 • Coffee policies We intend to wait for the outcome of this MSC shrimp in brine x 1kg Leröy 7 828 • Integrated aquaculture - salmon and standard before making a final decision MSC smoked matie 20.8 trout • Fish welfare: The standard sets forth about the road ahead. The final draft of MSC deep-fried fillet of cod frozen 10 • In the pipeline: pangasius, shrimp, global criteria for a minimum level of fish the ASC standard for Salmon is expected MSC-PL plaice fillet MAP 1 511.89 tilapia welfare in production facilities in the autumn of 2011. Total 285 996.40 2 631 917.51 2 917 913.88

56LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201057 Eat fish - stay healthy! “Fish is good for your health, all year • Choose cooking oils, liquid and soft products. We aim to provide our custom- round”. This Norwegian saying has margarine instead of hard margarine ers with healthy and safe products which repeatedly been confirmed by research and butter also have health-related benefits. in recent years. It has been shown that • Choose foods with low salt levels and eating seafood lowers the risk of limit the use of salt when cooking and on Fish is rich in protein and Omega 3, and cardiovascular diseases. Norwegian food does not contain sugar. There is a current health authorities and WHO, the World • Avoid daily intake of food and drink with trend for diets rich in sugar and excessive Health Organisation, recommend that a high sugar content levels of Omega 6. By replacing parts of everybody should eat more seafood. • Drink water to quench your thirst your diet with seafood, you gain a double The Directorate of Health in Norway has • Keep a good balance between your benefit. You eat less sugar and less published new dietary advice where they energy intake in the form of food and Omega 3 while at the same time recommend eating seafood 2-3 times a drink, and the energy you use in various consuming more Omega 3 and other week. activities important nutrients. Omega 3 and Omega 5 are different types of fatty acids. It is Key advice for a healthy diet generally believed that it is the marine What you eat and drink has a direct n-3 fatty acids - such as Omega-3 - that influence on your health. The Directorate play an important role in generating of Health recommends a varied diet with positive health benefits. We find a lot a lot of vegetables, fruit, berries, whole- of these fatty acids in fat fish such as grain corn products and fish, and limited salmon and trout. amounts of processed meat, red meat, salt and sugar. Products carrying the The most important Omega-3 fatty acids keyhole symbol are also recommended. are Docosahexaenoic Acid (DHA) and Look for products with the keyhole Eicosapentaenoic Acid (EPA). These are • You should eat at least five portions symbol! essential fatty acids, meaning that the of vegetables, fruit and berries every day The keyhole symbol makes it easier for body needs them for the maintenance • You should eat whole-grain corn customers to choose healthy products. of several vital functions. These essential products every day The Directorate of Health and the fatty acids are only found in seafood and, • Your daily diet should also include Norwegian Food Safety Authority are moreover, the Omega-3 type of fatty acid low-fat dairy products behind the keyhole system. can only be obtained through the food we • Eat fish for dinner two to three times When compared with other foods of the eat since the body does not produce it. a week. Fish is also recommended as same type, products with the keyhole It is therefore vitally important to supply sandwich fillings. This corresponds to a symbol fulfil one or more of the following the body with enough of the right type of total 300-450 grams of pure fish a week. requirements: fatty acids such as Omega-3. • Six portions of sandwich filling with fish equals around one dinner portion • Lower and healthier fat content A lack of essential fatty acids will manifest • At least 200 grams of this should be • Less sugar as skin ailments, nerve disorders andn fatty fish such as salmon, trout, • Less salt reduced growth in children. Present day mackerel or herring • More fibre and whole-grain discussion about nutrients focuses to • We recommend fish products carrying a considerable degree on the importance the keyhole symbol Sale of products carrying the keyhole of fatty acids in preventing, for example, • Choose lean meat and lean meat symbol in 2010. cardiovascular diseases and arterio- products. Limit the amount of processed Lerøy Seafood Group focuses on the sclerosis. Imbalance between Omega 3 and red meat you eat keyhole symbol when developing new and Omega-6 fatty acids contributes to

Sales of products with keyhole symbol 2010 Swedish companies Volume in kg HLS AS Volume in kg Total sales via LSG in kg Various products 240 000 Various products 3 304 501 3 544 501

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201059 lifestyle diseases such as heart disease, Lifestyle diseases will probably constitute a global challenge in coming years. intake (TWI) of dioxin and dioxin show that in 2009 the fish contained maximum values of TE. Recommended diabetes 2, cancer and mental ailments. equivalents like PCB is 14pg TE per kg approx. 0.81pg TE/g. A portion of salmon limits are usually set with a considerable The ratio of these two acids in the blood WHO has estimated that: Can be prevented by: bodyweight per week. This means that normally weighs 200 grams. This means safety margin. With seafood we also cover should be 2:1, i.e. more Omega 3 than 80% of all heart attacks Improved nutrition a person weighing 70 kg can eat 980 pg that when eating a salmon meal with 200 the daily needs for other vital nutrients Omega-6. There is also a growing body 90% of all type 2 diabetes cases Physical activity TE per week, (TE - toxic equivalents/ grams of fish, the intake is approx. such as vitamins B12, D and E. of evidence indicating that people with 30% of all cancer cases Not smoking pg= Pico gram). 162 pg TE. In other words, we can eat rheumatic ailments, such as inflammation 6 salmon meals with 200 grams fish of the joints, are able to reduce the Cardiovascular diseases 1999: 2025: Tests of Lerøy Seafood Group’s salmon each without exceeding the recommended inflammation reaction with ingestion of Obesity 60% of all deaths 73% of all deaths fish oils - preferably together with vitamin Diabetes 43% of all illness 60% of all illness Nutrient content in salmon, (NIFES): E and the trace element Selenium. Osteoporosis Product Ash Energy Fat Protein Carbohydr. Solids g/100g g/100g g/100g g/100g g/100g g/100g EFSA, the European Food Safety Authority, Salmon 0.9-1.3 784-1 202 9-23 14-26.1 0 30-42 recommends that healthy people have a The increasing incidence of obesity will prevents the development of heart and daily intake of 0.25 grams EPA and DHA, be one of our greatest challenges in the cardiovascular diseases. Consumption of 1.75 grams per week, in order to prevent years ahead, in part because it may cause fish and other seafood is also important Water-soluble vitamins Fat-soluble vitamins Minerals Trace elements Amino acids cardiovascular disease. On average, diabetes. Diabetes is a growing health for development of the foetus, particularly Biotin Alpha tocopherol (Vitamin E) Phosphorus (P) Fluoride (F) Alanine 100 grams of salmon contains 2.1 grams problem both nationally and globally and as regards weight gain and neurological Folate acid Gamma tocopherol (Vitamin E) Potassium (K) Iron (Fe) Arginine of EPA and DHA. So by eating 100 grams it has been estimated that 300 million development. Other investigations have Cobalamin (B12) Vitamin A1 (Sum retinol) Calcium (Ca) Iodine (I) Aspartic acid of salmon, you consume the recommended people will suffer from type 2 diabetes shown positive effects on illnesses such Niacin Vitamin A2 (3.4 didehydro-all-trans-retinol) Magnesium (Mg) Copper (Cu) Glutamine acid volume and more. in 2025. Meanwhile, other studies as dementia, post-partum depression, Pantothenic acid Vitamin D (D3) Natrium (Na) Selenium (Se) Glycine suggest that fish protein can protect osteoporosis, skin disease, migraine and Pyridoxine (B6) Zinc (Zn) Histidine A varied diet with different types against the risk of diabetes. hyperactivity. Riboflavin (B2) Hydroxyproline of seafood is the best guarantee for Thiamine (B1) Isoleucine providing your body with essential Correct food intake is extremely What eventually could limit the consump- Leucine nutrients. Eating fish is a good investment important in the prevention of disease. tion of fat fish is its content of dioxins and Lysine in your own health. What’s more, it is similar substances like PCB, but with Metionine delicious and can be prepared in a whole There is overwhelming documentation today’s control of raw materials in fish Phenylalanine number of different ways - on the that, generally, eating fish is good for our feed and the fish itself, the limits for Proline barbecue, in the oven, boiled, fried or just health. Also, there are strong indications environmental toxins in fish are far below Serine raw. that consumption of fat fish slows and recommended values. Tolerable, weekly Taurine Threonine Research has shown that a combination Tryptophane of fat and sugar may lead to obesity. And Beneficial effects of marine omega-3 polyunsaturated Tyrosine of interest to weight watchers, the data fatty acids (n-3 pufas) on consumer’s health Valine indicates that it makes a difference if the Improve fat in your food is combined with sugar Intelligence rather than with protein. An investigation Content of the essential fatty acids EPA+DHA in Salmon from Lerøy Seafood Group g/100g Reduce the risk of Stress, depression, carried out at the National Institute for heart disease SEAFOOD AND HEALTH schizophrenia 2008 2009 2010 Nutrition and Seafood research shows EPA + DHA 1.8 1.7 1.9 Decreased risk of Prevention of that diets composed of sugar in combi- developing Alzheimer’s obecity nation with fat resulted in significantly Decrease risk of Decrease risk of Content of dioxins and dioxin-like PCB in salmon from Lerøy Seafood Group TE (WHO) more obesity than a diet composed of asthma cancer protein and fat. The diet composed of pg/g Important for brain Improve skin 2006 2007 2008 2009 2010 protein and fat also resulted in less weight develpment conditions gain than a diet with less calories. The Dioxins and dioxin-like PCB 1.56 1.07 1.41 0.81 0.95 reason is probably that when limiting the Cut the risk Improvement of of diabetes migraine supply of sugar, production of sugar for energy to the brain and other organs must Positive influence on dyslexic and hyperactive come from consumption of fatty tissue. children

60 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201061 Procedural improvements - ” generate increased earnings

Economy

2010 will go down in history as the best to ensure cost-efficiency, availability innovative efforts over the past century. year ever for Lerøy Seafood Group. and flexibility. Our aim is to process fish We aim to continue in this way, and have to the highest degree possible before a target is to be at the very forefront in The Group has enjoyed continual growth transport to the customer. This provides terms of innovation within every part of over the past two decades, reaching a both environmental and social benefits, our value chain. total turnover in 2010 of NOK 8.9 billion. including increased employment and Lerøy Seafood Group is now a leading value creation in coastal communities, For more detailed information, please global seafood group, in which the in line with our ambition to be at the refer to the company’s annual report. employees are the Group’s most forefront of developments within our important resource. field.

Lerøy Seafood Group aims to invest An expansion in innovation is increas- in processing of seafood in Norway, ingly underlined as a fundamental in combination with processing facilities element for the future of Norway. Lerøy in areas close to our customers in order Seafood Group is recognised for its

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201063 Key figures and graphs for the Group

TURNOVER NOK(mill. million NOK)

9 000 8 500 8 000 7 500 7 000 6 500 6 000 5 500 5 000 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1990 1995 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

OPERATING PROFIT BEFORE ADJUSTMENT OPERATING PROFIT BEFORE BIOMASS ADJUSTMENT LERØY SEAFOOD GROUP NOK million PRODUCTION (mill. NOK) NOK million

1 600 1 400 1 500 1 300 1 400 1 200 1 300 1 100 1 200 1 000 1 000 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010

SALES PER MARKET OPERATING PROFIT SALES AND DISTRIBUTION NOK million EU 54.7% ASIA PACIFIC 11.1% 280 NORWAY 15.4% 260 USA AND CANADA 7.7% 240 Rest OF EUROPE 8.7% 220 OTHERS 2.4% 200

180

160 SALES PER PRODUCT 140 120 WHOLE SALMON 49.8% 100 PROCESSED SALMON 27.9% 80 WHITE FISH 7.9% 60 PELAGIC FISH 0.9% 40 OTHERS 3.6% 20

SHELLFISH 4.6% 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 SALMONTROUT 5.2%

64LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201065 ” Lerøy - we care

Social Factors

Employees to disabilities. For employees or work environment and cooperative atmos- The parent company Lerøy Seafood applicants with disabilities, the company phere are good. Group ASA has its main offices in Bergen, will arrange for individually adapted work Norway. In addition to the Group’s CEO, tasks and environments. The different companies in Lerøy the parent company has six employees. Seafood Group have their own employee Administratively, all personnel functions The company is a player in a global representatives who take care of the are handled by the wholly-owned industry and the company’s working formal cooperation between company subsidiary Hallvard Lerøy AS. At the end environment changes continuously. and employee. With regard to the rest of the year there were 1,794 employees This requires flexible employees who of the organisation, Lerøy Seafood Group in the Group including 542 women and are dynamic, willing to adapt and learn. aims for an open organisation with the 1,252 men, compared with a total of best possible working environment for 1,563 at the same time in 2009. Of the In 2010, only minor injuries were its employees. Group’s total number of employees, reported for employees. Furthermore, 1,415 work in Norway and 379 abroad. our Norwegian subsidiaries have Lerøy Seafood Group is made up of Independently of the demand for equal reported an accumulated sick leave a group of people with high levels of opportunities for men and women, the of 4.5%, down from the 5.9% reported expertise, a good sense of humour and Group has always placed decisive in 2009. Sick leave comprises 2.3% who enjoy working hard. They are a very emphasis on individual skills, perfor- long-term sick leave and 2.2% short-term capable team who all experience the mance and responsibility in its recruit- sick leave. The Board is pleased to “Lerøy spirit” from time to time. ment policy and salary systems. observe that the Group works actively Furthermore, the Group ensures at all to keep sick-leave as low as possible. Each company has different types of times equal employment opportunities Comparable sick leave statistics are not events they organise. These may be and rights for all employees and works available from our foreign subsidiaries. family days, social gatherings, moti- hard to prevent discrimination based However, the organisations in the vation meetings or events involving on national origin, ethnicity, colour, individual subsidiaries are continuously sports. The majority of our subsidiaries language, religion or personal philosophy. being developed to ensure that they can offer different types of sports for their One of the company’s goals is to provide deal with new challenges and changes employees. a workplace without discrimination due in framework conditions. The working

LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201067 Sick leave* 2008 2009 2010 Target for 2010 Target for 2011 Short-term sick leave 2.7 2.5 2.2 2.3 2.1 Conditions at the workplace Long-term sick leave 3.6 3.1 2.3 2.9 2.3 Lerøy Seafood Group is involved in to ensure good guidance and follow-up, purchase of or acceptance of sexual business and working relationships all helping avoid accidents or other negative favours on occupational trips or other over the world. In order to safeguard all incidents. We shall pave the way for assignments on the company’s account. Accidents* 2008 2009 2010 Target for 2010 Target for 2011 our activities, we have prepared a set of children and youth to attend school and This also applies to employees’ leisure Accidents resulting in absence 40 37 26 25 20 ground rules which apply to us and our gain an education. time when on such assignments. Number of near-accidents registered 471 542 397 705 500 partners on a daily basis. They are * only Norwegian companies, as the foreign companies do not have a similar overview intended as guidelines. The ground rules All forms of discrimination at work based Employees shall have a safe and healthy are: on ethnicity, religion, age, disability, working environment. Necessary Ethical guidelines Group’s quality systems/procedures. information shall be correct, fully gender, marital status, sexual orientation, measures shall be implemented to Lerøy Seafood Group is very much aware The Group has a principal rule that the registered and presented in accordance Any form of forced labour, slave labour or trade union membership or political prevent and minimise accidents and of its social responsibility. Our goal is to strictest requirements shall be met. with laws and regulations, including involuntary labour is strictly prohibited. beliefs are strictly prohibited. Measures damage to health as a result of, or in combine healthy business management relevant accounting standards. In Employees shall not be obliged to submit shall be established to safeguard against relation to, conditions at the workplace. with a clear responsibility for society and In the event of deviations, measures relation to prevailing laws regarding a deposit or identity papers to the sexual harassment, threatening, Employees shall complete regular and the environment. shall be implemented to improve the securities and standards for stock employer and shall be free to terminate insulting or exploitative behaviour and documented training in health and situation. Our goal is to contribute exchange listing, Lerøy Seafood Group their employment with a reasonable to prevent discrimination or dismissal on safety. Health and safety training shall Employees shall behave in a manner towards improving human rights, labour ASA is obliged to ensure complete, period of notice. unfair grounds, e.g. marriage, pregnancy, be repeated for new recruits. which displays social consciousness, rights and environmental protection, precise, accurate and understandable parental status or status as HIV infected. professionalism and respect for both within our own Group, in relation information in interim financial state- Employees shall be entitled to join or Employees shall have access to clean colleagues and other partners. to our suppliers and subcontractors ments and other documents. establish trade unions as they choose, Physical cruelty or punishment or sanitary facilities and clean drinking and in relation to our trading partners. and the employer shall not discriminate threats of physical cruelty are strictly water. If the employer provides accom- As a general rule, Lerøy Seafood Group against trade union representatives, forbidden. The same applies to sexual modation, this shall be clean, safe and together with its suppliers and sub- Lerøy Seafood Group’s business or prevent them from carrying out their or other abuse or different types of sufficiently ventilated and with access contractors shall fully comply with the information will be precisely and trade union tasks. humiliation. to clean sanitary facilities and clean legislation in the respective country elaborately communicated, both We have a particular responsibility drinking water. and the company’s own/Lerøy Seafood inter-nally and externally. All accounting in relation to children and the young, Lerøy Seafood Group does not accept

68LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201069 Salaries paid to employees shall as a employment shall not be evaded via Seafood Group or other companies which into consideration throughout the minimum comply with the national utilisation of short-term positions is of a sensitive, private or confidential production and distribution chain, from provisions regarding minimum wage or (such as use of contract workers, casual nature, to subscribe to or trade securi- production of raw material to sales, and the industry standard, and shall always workers and day workers), subcontractors ties, whether on a private basis or on shall not be delimited to the company’s be sufficient to cover basic needs. Payroll or other employment relationships. behalf of Lerøy Seafood Group. own activities. All attempts shall be made conditions and payment of salary shall to safeguard local, regional and global be agreed upon in writing before All employees are entitled to an employ- Lerøy Seafood Group does not accept environmental aspects. employment starts. ment contract in a language they payments/other remuneration which understand. The apprenticeship contravenes Norwegian legislation, Aspects regarding animal ethics shall This agreement shall be in a format which programme shall be clearly defined whether directly or via an intermediate – also be taken into full consideration. the employer can understand. Disci- in terms of duration and content. section 276 of the General Civil Penal plinary deductions from salary are not Code. Gifts, payments or offers of permitted. Working hours shall comply Lerøy Seafood Group encourages entertainment which may affect the with national legislation or the industry employees to show moderation when integrity of the recipient shall not be standard, and shall not exceed working travelling, entertaining etc. Transactions accepted or offered. hours in accordance with prevailing entered into on behalf of Lerøy Seafood international conventions. Group shall be documented in line with Participation in social gatherings is a part good business practice. Employees must of the company’s activities and a natural Employees shall have a minimum of be able to explain and document any part of courteous business relationships. 1 day off a week. Overtime work shall expenses, and these must be signed by The extent of such gatherings must not be voluntary and should be limited to a supervisor. be allowed to develop to a stage where a maximum of 12 hours per week. they may impact decision-making Employees shall always receive overtime All employees have a duty of confidentia- processes or give an impression of such pay, at the minimum rate in compliance lity regarding information of a sensitive, to external parties. with prevailing agreements and private or confidential nature which legislation. relates to Lerøy Seafood Group’ business. Lerøy Seafood Group encourages all All employees shall protect sensitive and employees to notify the company of Obligations in relation to the employees, confidential information and shall store conditions they find worthy of criticism. in line with international conventions documents, data and telephony in a safe and/or national regulations and manner. No individual shall use, or help regulations regarding regulatory others use, information regarding Lerøy

Conditions outside the workplace The employees shall refrain from all indirectly contribute to the removal of right to take part in the public debate, types of environmental crime or ruthless the basis of income for marginalised when in the interests of the Group. exploitation of resources in the local communities, for example by exploiting environment. The local environment vast areas of land or other natural All communication which is not of a local surrounding the production facilities resources on which these communities nature shall be communicated to the shall not be damaged by pollution. rely. media/press etc. by the company CEO. Hazardous chemicals and other substances shall be properly and safely Lerøy Seafood Group shall make a Production shall not conflict with national managed. Production and selection of positive contribution to sustaining a good or international legislation and regu- raw materials for production shall be environment in the local communities lations related to the environment. organised such that it avoids destruction where our companies are located. Relevant permits shall be obtained where of resources. Lerøy Seafood Group does not support necessary. individual political parties or individual Lerøy Seafood Group shall not directly or politicians. Lerøy Seafood Group has the Environmental aspects shall be taken

70 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201071 Contributions to the local community Our companies are often located in As yet another consequence of our Spin-off effect from Lerøy Aurora (Made by NHO) decentralised areas, making significant decentralised locations, we make contributions to employment and income contributions to investments in 150 man-years in the local communities. buildings, infrastructure, quays, floating in Lerøy Aurora AS quays and modern equipment in small,

N We aim for positive, close cooperation local communities. These form the taxesOK and 60 millionduties in with these communities and make grounds for local commerce. For certain

OK 372 million in contributions to many areas of the suppliers in the municipalities in which N purchase of goods communities in which we are located. we have facilities, we represent between and services We sponsor and support local sports 25 to 80% of their economical basis. clubs and sponsor a number of local Able to finance Contributes to 480 festivals/various events, serving salmon NOK 109 million in salaries for 318 man-years for taxes and duties to visitors and participants. We hold man-years in the Norwegian suppliers public sector “environmental days” in several municipalities. These involve a number of activities where our employees Mutual dependence cooperate with the local community to make contributions to the environment by tidying beaches, picking up rubbish etc. Framework conditions and faciliation PUBLIC SECTOR VALUE CREATION BY BUSINESS AND COMMERCE COMMUNITY Jobs and tax income

Social accounts show business contribution to public sector and the community in the form of jobs and taxes and fees. Businesses are on their side dependent on public sector organization the framework for a sustainable and competitive business.

Sources utilised Lerøy Aurora AS: Annual accounts 2009 Statistics Norway: National accounting figures for 2004-2009 Statistics Norway: Input-output analysis for 2007 Statistics Norway: Accounting statistics for 2004-2006 Statistics Norway: KOSTRA (Municipality-State-Reporting) 2009 Ministry of Finance: Tax and duties 2009

72 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 201073 RESULT SOCIAL ACCOUNTING

The figure shows the tax contribution arising from corporate activities, from business and from suppliers and how much public welfare equivalent within three key areas of public welfare. Costs that are the basis for public welfare services is taken from KOSTRA and the average cost for the entire country in 2009.

Lerøy Aurora AS Branch Fish farming Municipality Tromsø, Skjervøy, Lyngen, Karlsøy and Kåfjord Year 2009

Production 574 470 - Consumption of goods and services (incl. capital goods) 372 290 = Value creation 202 180

Tax contibution from employees 24 390 + Tax on profit 35 340 = Total tax contribution 59 720

Man-years 150 Value creation per man-year 1 350 Tax contribution per man-year 400 Tax as percentage of value creation 30%

Norwegian subcontractors Value creation 312 600 Tax contribution from company and employees 108 700 Man-years 480 Tax as percentage of value creation 35%

Company and subcontractors, total + Production 574 470 - Share from import 10% = Norwegian value creation 514 800 (Foreign value creation) 59 670

Tax contribution 168 500 Employment 630 Tax contribution as percentage of value creation 33%

Public sector Tax income 168 500 Man-years in public sector 318 Number of nursery places 1 264 Number of primary school children 2 032 Number of hospital beds 209

74 LERØY SEAFOOD GROUP • ENVIRONMENTAL REPORT 2010 Lerøy Seafood Group ASA Bontelabo 2, P.o.Box 7600 N-5020 Bergen, Norway www.leroy.no

JØMERK IL ET M

2 4 0 1 0 6 Trykksak

The Annual Report is printed on environmental approved paper.