Bakkafrost P/F

The company has set validated science-based targets through the Science Based Targets initiative (SBTi). It aims to reduce its absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 50% and its Scope 3 GHG emissions per tonne of product sold by 52%, both by 2030 from a 2020 base year.

The company has established Science-Based Targets aligned with the 1.5°C scenario, including validated reductions for Scope 1 and 2 emissions and a commitment for Scope 3 emissions. It is committed to achieving Net Zero emissions by 2050 and seeks validation of this target from the SBTi.

The company actively collaborates with its suppliers to reduce emissions from agriculture, focusing on raw material suppliers for feed production. It discusses improved primary data, specific CO2e emission factors, GHG reductions, and transitioning to low-carbon solutions. The company details these engagement efforts in its 2023 CDP Climate Change response. In 2022, the company hosted a Supplier Day in the Faroe Islands with its top 25 suppliers to discuss sustainability actions and ESG reporting. It introduced a sustainable procurement policy with eight principles for continuous development. These suppliers represent 6.25% of supplier-related Scope 3 emissions and 19.25% of procurement spend. Following the event, individual meetings were held for open dialogue. The company will begin monitoring suppliers' carbon footprints and has introduced a supplier award scheme to recognise climate change performance. Additionally, it engages suppliers through The Faroese Sustainable Business Initiative to set science-based targets and reduce carbon footprints by sharing best practices.

The company sources soy protein concentrate, wheat, and rapeseed oil for feed production, alongside marine trimmings and offcuts. Its R&D efforts focus on creating feeds with a reduced carbon footprint by prioritising sustainable ingredients. This includes trials incorporating insect meal as a low-carbon alternative. A recent commercial-scale experiment aimed to replicate its current feed's nutritional composition using plant-based ingredients. However, the plant-based feed tested had a 25% higher carbon footprint compared to its standard diet, and the company did not share details on the feed's farming methods.

The company is investing in and trialling Recirculating Aquaculture Systems (RAS) powered by electricity to improve feed efficiency and reduce fossil fuel use. It is also exploring electrification of other energy-intensive facilities, feed barges, and workboats. To reduce transport emissions, the company is shortening transport routes, decreasing product weight, and testing eco-friendly fuels. It is also improving energy efficiency in fishmeal production. A new project involves 'precooking' raw marine material using surplus steam energy within the factory, significantly reducing energy needs in the main cooking process.

The company discloses its 2023 emissions as 129,294 tCO2e for Scope 1, 32,860 tCO2e for Scope 2, and 437,884 tCO2e for Scope 3.

The company reports Scope 1 emissions of 18,666 tCO2e from Bakkafrost Farming and 43,088 tCO2e from its feed operations. For Scope 3 emissions, rapeseed oil and fishmeal account for 12% and 1%, respectively. In its 2023 CDP Climate response, the company states it does not report GHG emissions from land-use changes, as it neither owns nor manages land, but procures agricultural and forestry products from the upstream supply chain for fish feed and packaging.

The company responded to the CDP Climate Change survey in 2023, and its GHG inventory data is externally verified by Januar.

Between FY2022 and FY2023, the company increased its total scope emissions by 8.8% from 551,406 tCO2e to 600,038 tCO2e. It reports 129,294 tCO2e in Scope 1 emissions, 32,860 tCO2e in Scope 2, and 437,884 tCO2e in Scope 3. Despite the overall increase, there is a noted 27% reduction in Scope 3 emissions per tonne of product from feed production compared to 2020.

The company conducted a climate-related scenario analysis following TCFD guidelines, utilising three warming scenarios and timeframes. Completed in 2022, the analysis identified high transition risks in a "late transition" scenario and significant physical risks in a "hothouse" scenario, including carbon tax implications and supply chain vulnerabilities for its fishmeal and oil segments.

The company explicitly acknowledges several climate-related risks and provides partial mitigation measures. Water-related risks, including water scarcity affecting water-intensive commodities like soy, wheat, and rapeseed, are highlighted, with trial projects in 2023 exploring alternative feed compositions such as algae oil and insect meal. The company also recognises the risk of rising temperatures leading to fish mortality, with potential impacts like storms, harmful algal blooms (HABs), sea lice, and jellyfish. Mitigation measures include expanding freshwater treatment capacity in the Faroe Islands and Scotland, shifting more farming on land, and investing in climate research, including DKK 2.1M to study the Faroese fjord environment. The company acknowledges extreme weather events as a high risk, particularly due to the exposed locations of marine operations. Mitigation includes enhanced freshwater treatment capacity and the use of farming service vessels with dual treatment systems targeting gill issues and sea lice. Despite this, the company does not explicitly address increased veterinary and medicine costs associated with these biological challenges. Energy cost risks, including increased electricity prices and rising demand due to automation and electrification, are disclosed. The company models these financial risks based on past consumption and projected growth scenarios. The company also acknowledges the risk of carbon taxes but does not specifically mention the impact of carbon taxes on electricity or animal protein production. Lastly, the company does not disclose the number of financially material events resulting from climate risks during the reporting period.

In its climate action targets to reduce emissions, the company has allocated 355 million DKK in its 2024-2028 CAPEX plans for the green energy transition. However, it does not report any costs related to climate risk.

The company manufactures fishmeal and oil at its own facility, Havsbrún, and sources feed ingredients. Soy Protein Concentrate (SPC) makes up 15.2% of its feed composition. The company sources soy from Brazil, which accounts for 43% and is considered a deforestation risk country, and from Serbia. Sourcing from the Russian Federation ceased after February 2022. The company asserts that all its soy complies with the Pro-Terra standard or similar, ensuring it is not sourced from deforested areas. However, it does not disclose its suppliers or confirm they are entirely deforestation-free.

The company expects suppliers of non-marine ingredients to comply with national and international land use laws and mandates soy producers to obtain certification from Pro-Terra or an equivalent standard. This indicates that reducing deforestation risk is part of the supplier selection process. The company has initiated dialogues with plant protein and oil suppliers to reduce its overall environmental footprint through collaborations. Additionally, all non-marine materials must be traceable to their source. However, it is unclear what direct support is provided to suppliers for improving traceability or ensuring deforestation-free production.

The company has not detailed its compliance monitoring process. However, as it sources only certified soy, compliance is overseen by certification bodies like Pro Terra, which includes measures for addressing non-compliance. The company states that 100% of the soy it sources is traceable to the country of origin.

The company does not discuss innovations or practices to move towards sustainable feed sources.

The company holds ASC and BAP certifications, with 100% of its Faroe Islands operations and 40% of its Scottish sites being ASC-certified. Its Scottish operations have also achieved Europe's first 4-star BAP certification. Additionally, the entire supply chain complies with the GLOBAL G.A.P. standard. The company discloses all its farms by certification category.

The company discloses its feed composition as: Wheat Products (17.6%), Plant oil (13.5%), Non-GMO SPC (15.2%), Marine proteins (37.3%), Fish oil (13.4%), and Others (3.2%). It reports that all soybeans are Pro-Terra certified and aims to source marine ingredients from fisheries certified as sustainable, yet does not specify the percentage of currently certified marine ingredients. In 2023, the fishmeal dependency ratio was 0.751 and the fish oil dependency ratio was 0.433. The company is a member of the GSI and uses the ASC's FFDR calculation method. It provides aggregated dependency ratios for fishmeal and fish oil but does not separate these figures for Scotland and the Faroe Islands.

The company discloses that all its soy is certified, but it is unclear if 100% of its marine ingredients are certified. It deals exclusively in salmon. The biological feed conversion ratio decreased in Scotland from 1.26 to 1.18, but increased in the Faroe Islands from 1.06 to 1.096 between 2022 and 2023, indicating regional variations. The Fishmeal and Fish Oil Dependency Ratio (FFDRm) decreased from 0.91 in 2022 to 0.751 in 2023 across all regions. The Fish Oil Dependency Ratio also fell from 0.72 in 2022 to 0.433 in 2023. In 2023, 51% of the fishmeal and 81% of the fish oil used in the company's feed were sourced from fish trimmings. Its feed company, Havsbrún, sourced 467,000 tonnes of marine raw ingredients and sold 19,000 tonnes of fish oil and 63,000 tonnes of fish meal externally. The company used 124,321 tonnes of feed in 2023, comprising 37.3% marine proteins (49,008 tonnes) and 13.4% fish oil (17,602 tonnes). The company does not disclose its protein conversion efficiency or the associated calculation methodology.

In 2023, the company's integrated feed supplier innovatively incorporated algae oil and insect meal as alternative feed ingredients. The company has disclosed its 'Trimming Strategy for Sustainable Feed Production', committing to procure all available trimmings from pelagic factories within the Faroe Islands, although usage volumes may vary based on local fisheries and quotas. The company prioritises marine raw materials in feed production for their lower carbon footprint compared to plant-based ingredients. While it is trialling insect meals and algal oils, it has only committed to ongoing research without specifying the target proportion for alternative ingredients or detailed strategy with timelines and goals. In its TCFD climate-related scenario analysis, the company notes the availability of soy and marine proteins as a risk area but lacks a comprehensive evaluation addressing biodiversity and regulatory risks specific to these ingredients.

In 2023, the company reported 509 million DKK in Research and Development activities but did not specify if this budget is connected to developing novel feed ingredients. Additionally, while the EPA+DHA content of its salmon was 1.31 g/100g, the company has not disclosed any targets for increasing the use of alternative feed ingredients.

The company provides sea lice count data for the Faroe Islands from 2016 to 2023, and for Scotland, from 2019 to 2023. It has fully complied with statutory obligations for lice management in both regions.

The company discloses its strategies for preventing sea-lice infestations, which include using cleaner fish and other non-medical treatments, along with specific treatments employed between 2021 and 2023. It also addresses the health and welfare of Lumpfish within its production systems but does not provide mortality rates for cleaner fish in the reporting period. The company highlights the importance of cleaner fish in controlling salmon lice, especially under low lice numbers. It has introduced initiatives to improve the well-being of these fish, such as specialised feed, better transportation methods, ongoing vaccine research, and enhanced daily care. Furthermore, the company has invested in new shelters and equipment to support cleaner fish within cage systems.

In 2023, there was an incident of fish escape in the company’s Faroe Islands operations, with 251,344 fish escaping, whereas no such events occurred in its Scotland operations. The company maintains a zero-tolerance policy for fish escapes. It invests in the upgrade of nets across all sites to improve resistance against weather and predator damage. Additionally, divers and ROVs regularly inspect the nets. The company employs containment measures, regular inspections, and advanced technology for early threat detection and aims to achieve zero fish escapes by 2026.

The company collaborates with partners and industry experts to acquire advanced technology and biodiversity-related knowledge, but it does not provide examples or details of this collaboration. While committed to minimising biodiversity impact throughout its value chain and preserving local bird populations by ensuring zero fatalities from its farms, the company lacks a specific time-bound target to eliminate all human-wildlife conflicts.

The company does not disclose a management plan in the event of algal blooms.

Using the WRI Aqueduct tool, the company determined that one facility in the US is located in an area of high water stress. Facilities in the Faroe Islands and Scotland are in regions prone to water stress in summer, with a low to medium risk of variability. Its 2023 CDP Water report evaluates facilities in Wayne, NJ, and Munebko, Denmark, as situated in areas with low to medium water stress. The feed production site at Havsbrún operates in a high water stress area, but accounts for less than 1% of the company's operations. The company's water consumption for FY2023 was 0.18 million m3. It has enhanced its water recycling technology at hatchery sites in the Faroe Islands and Scotland, using Recirculating Aquaculture Systems (RAS). In 2023, RAS recirculation rates were 99.1% in the Faroe Islands and 94% in Scotland. Investments in RAS at freshwater farming sites reduced freshwater use by up to 99.7%. Additionally, the company is installing equipment on farming service vessels to convert saltwater into freshwater through reverse osmosis for bath treatments.

The company does not disclose a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.

The company discloses a total freshwater withdrawal of 14,581,655 m³ for FY2023, including 14,232,623 m³ of fresh surface water and 282,863 m³ of non-renewable groundwater, with 66,169 m³ sourced from third parties. This represents a decrease from 15,013,324 m³ in FY2022, all withdrawn from areas with low water stress according to the WRI Water Risk Atlas. However, consumption increased from 48,184 m³ to 184,343 m³ during this period. In 2023, the company allocated 51.5 million DKK for water-related capital expenditures, including site expansions, new pipelines, and freshwater treatment equipment. Operating expenses amounted to 1.25 million DKK, mainly for land rentals and infrastructure replacements related to water activities. All quantitative data has been verified by third-party auditor, Januar. The company also participated in the CDP Water questionnaire for 2023.

The company predominantly sources marine trimmings, offcuts, soy protein concentrate, wheat, and rapeseed oil for its feed. Its annual report claims that its feed policy considers water use and scarcity responsibly across its supply chain, although this is not mentioned in the externally published feed policy. The freshwater policy, however, indicates a preference for sourcing agricultural feed raw materials from certified suppliers with full traceability in low water scarcity areas. The company does not specify water reduction targets for suppliers. In 2023, the company engaged with suppliers on sustainability issues, including water, particularly focusing on suppliers of water-intensive commodities like soy protein concentrate. The 2023 CDP Water report notes increased efforts in supplier engagement regarding water security, with plans to address water-related issues with key agricultural commodity suppliers from late 2023 to early 2024. The company intends to develop an engagement programme in the latter half of 2023, prioritising supplier interactions, engagement types, and deadlines. There is no evidence of a partnership with a third party to inform its water use strategies in feed sourcing and farming.

The company has not disclosed information on the water intensity of its feed. It does, however, provide data on feed sources by water stress levels: 17.35% from areas of low water stress, 72.4% from low-medium, 5.5% from medium-high, 1.9% from high, 0.2% from extremely high, and 2.5% from undefined areas.

The company reports that less than 1% of its fish and seafood aquaculture production is located in water-stressed areas. According to the CDP Water Security response, its operations in Wayne, NJ, are marked as "high" water stress by the WRI Aqueduct tool. The company addresses water scarcity through various policies and initiatives to ensure efficient water use and minimise withdrawals. Its freshwater use policy treats water as a valuable and limited resource, covering all phases of operation, including land-based egg and smolt production and activities at fishmeal, oil, feed, and processing plants. The company has set a target to achieve over 97% water recirculation in all hatcheries by 2026. As of 2023, hatchery recirculation rates were 99.1%; at the Applecross RAS site in Scotland, it was 94%. The company implements projects and technologies to manage water use efficiently in aquaculture operations. It finds significant benefits in using recirculating aquaculture systems at freshwater facilities to reduce water demand. Additionally, its farming service vessels utilise Reverse Osmosis equipment to purify seawater, providing freshwater daily.

The company acknowledges its responsibility to engage and collaborate with stakeholders and lists memberships with organisations such as the Global Salmon Initiative and the Faroese Aquaculture Association, which it helped establish. It is also a member of the EU Fishmeal Initiative. These organisations concentrate on sustainability issues, including water use. However, the company is advised to detail in future reports how these partnerships influence its farming strategy concerning water use.

The company reports zero instances of non-compliance with environmental laws and regulations. It conducts water-related risk assessments of its direct operations, including water quality at the basin/catchment level. Based on these assessments, the company indicates its operations in Scotland and the Faroes are in areas of low water stress, while operations in New Jersey, USA, and Munkebo, Denmark, are in areas of low-medium water stress. However, the company currently has no targets linked to water pollution but expects to establish one within the next two years. It does have a target to reduce wastewater volume.

The company asserts that its wastewater discharges meet local regulations, but it has not disclosed the specific quality of the discharged water. In 2023, the company discharged 14,397,312 m³ of water: 10,830,232 m³ to brackish surface water or seawater, 69,041 m³ to third-party destinations, and 3,498,039 m³ to fresh surface water. Its quantitative data, including wastewater figures, has been audited by Januar, and the company has reported data to CDP Water Security 2023.

The company's FÖRKA biogas plant processes biological waste from animal manure and hatcheries into renewable biogas for electricity and heat production. It also produces an enriched liquid fertiliser for agricultural use. These outputs are sold to the energy grid and customers for revenue, rather than being utilised within the company's operations. The company reports a reduction in the volume of wastewater discharged, from 14,792,551 m³ in 2022 to 14,397,312 m³ in 2023. However, it has not disclosed any information about improvements in wastewater quality compared to the previous reporting period.

The company does not address nutrient management in its code of conduct. It does not disclose a requirement for feed suppliers to have a nutrient management plan in place, nor does it provide guidance, support, or incentives to suppliers/growers on nutrient management or fertiliser use in crop production.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company conducts annual environmental impact evaluations at all locations, implementing measures to reduce environmental effects accordingly. It uses the MOM-B scoring system in the Faroe Islands and the SEPA benthic monitoring scoring system in Scotland to assess seabed organic loading. The company discloses emissions of nitrogen, phosphorus, zinc, and copper, estimating these based on substances emitted from salmon faeces post-feeding. It reports organic loading rates, indicating that 97% of farms in the Faroe Islands have a low to medium impact, whereas in Scotland, none fall within this range. Benthic monitoring procedures are detailed, with underwater cameras deployed to prevent over-feeding and reduce excess feed emissions to the seabed. Assessments show no excessive organic loading at any Scottish sites, and only 3% of sites in the Faroe Islands are affected by organic loading.

The company does not disclose the treatment or metrics of effluent pond water. It does not disclose a neutral impact on water or provide evidence of a community engagement plan.

The company has adopted a stringent policy prohibiting antibiotic use across all operations, producing antibiotic-free salmon in the Faroe Islands since 2004, and in Scotland since 2010. To minimise antibiotic use, the company employs strategies including robust biosecurity measures, comprehensive vaccination programmes, and enhanced animal welfare practices. It utilises vaccines to prevent diseases, conducts routine health monitoring, and maintains optimal water quality. For sea lice management, the company uses medicated feed, non-medical treatments such as freshwater baths and mechanical methods, and increases the size of smolts to enhance resilience.

The company reports that all salmon produced in 2023 were antibiotic-free, with this data audited by an independent third party, Januar.

The company is committed to animal welfare through biosecurity protocols, selective breeding, vaccination programmes, routine health monitoring, and stress-reducing handling protocols. It employs strict routines for handling and transporting live fish, including continuous water quality monitoring, equipment to maintain oxygen levels, and employee training. Additionally, gentle pumping systems and comprehensive handling protocols are used to ensure fish welfare. The company discloses using percussive stunning on all fish before slaughter in all regions, adhering to high welfare standards.

The company operates under Faroese law for stocking density in the Faroe Islands, and adheres to standards set by the Marine Directorate and the Scottish Environment Protection Agency (SEPA) in Scotland. In 2023, the average stocking density was 7.59 kg/m³ in the Faroe Islands and 8.14 kg/m³ in Scotland. It has harvesting and processing facilities solely in Scotland and the Faroe Islands. The company monitors and discloses key animal welfare metrics, including stocking densities, fish health, and oxygen uptake during transport. In 2023, the salmon survival rate was 92.7% in the Faroe Islands and 79.4% in Scotland, with oxygen saturation levels during transport maintained above 70%.

The company does not disclose information regarding eye-stalk ablation of shrimp.

The company discloses mortality rates for fish at sea, reporting a rate of 7.3% in the Faroe Islands and 20.6% in Scotland for 2023. In the same year, an incident resulted in the escape of 251,344 fish from a farm on the southernmost island of the Faroe Islands due to extreme weather. The company has set time-bound targets to decrease salmon mortality at sea, aiming for a salmon survival rate of 96% in the Faroe Islands and 92% in Scotland by 2026. Annual updates show progress, with mortality rates in the Faroe Islands decreasing from 8.24% in 2021 to 7.3% in 2023, and in Scotland from 21.71% to 20.6% across the same period.

The company does not disclose the number of disease outbreaks for the past three years. It employs mechanical sea lice treatments and non-medicinal approaches, including lukewarm water, pumping systems, and freshwater treatments, to prevent disease outbreaks. Additionally, it implements biosecurity protocols, selective breeding, increased smolt size, optimal pen placement, controlled stocking density, and continuous pathogen monitoring.

The company commits to adhere to the United Nations Guiding Principles on Business and Human Rights and is a signatory to the UN Global Compact.

The company conducts human rights assessments through internal audits and certification with ASC and BAP, while suppliers are audited according to SEDEX requirements. Supplier risk is evaluated using tools from international NGOs. However, it does not disclose undertaking a comprehensive human rights due diligence process to analyse country dynamics, map supply chains, or identify and rank risks. The company states it uses SEDEX for supplier audits and requires suppliers to complete human rights questionnaires and sign guidelines every three years. Human rights monitoring procedures for its operations are audited, but it does not specify subsequent steps if compliance issues are detected. Induction days include human rights and health and safety topics. The company held a supplier day in Scotland, focusing on sustainability and updated procurement guidelines. Despite emphasising policies, the engagement’s role in mitigating supplier human rights risks remains unclear.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.

The company ensures fair living wages through union agreements in the Faroe Islands and supports the Real Living Wage Initiative in the UK. It prohibits forced labour, child labour, and discrimination, but only addresses inhumane treatment in its Scottish operations. The company conducts internal audits on its human rights policy and external audits via standards such as ASC and BAP. While it requires suppliers to forbid child labour, it does not have an explicit policy requiring suppliers to prohibit forced labour, abuse or discrimination, or to promote fair wages. All employees are covered for income loss due to sickness, with benefits provided by either the company or the government.

The company audits its suppliers using SEDEX, covering all relevant policies. An online grievance mechanism is available for the public, and employees have access to whistleblowing systems to raise concerns anonymously. However, there is no disclosure on whether these systems were developed in consultation with stakeholders. Although there is a separate complaints channel for the public, the company does not confirm if it allows anonymity. In 2023, only one grievance was filed through the whistleblower programme, which was not related to severe human rights violations; however, the specific nature of the report is not disclosed.

The company prioritises health and safety, ensuring a secure working environment. All sea farming locations in the Faroe Islands hold ASC certification, and the company is ISO45001 certified in Scotland and administratively in the Faroe Islands. However, it does not disclose certification statuses for processing facilities in the US or Denmark. In the Faroe Islands and Scotland, 100% of facilities have health and safety committees consisting of worker representatives, but it is unclear if this applies to US facilities. The Faroe Islands has been antibiotic-free since 2004 and Scotland since 2010, reducing the risk of antimicrobial-resistant bacteria transferring to workers.

The company reports a decrease in its Lost Time Injury Rate (LTIR) per million working hours from 14.88 in 2022 to 13.98 in 2023. It has maintained a zero fatality rate in 2023 and 2022, with no fatalities reported in the Faroe Islands since 2017 and in Scotland since 2019. The company discloses a total turnover rate of 27% in 2023, providing details of this figure broken down by seniority level, age, and gender.

The company affirms its respect for the right to freedom of association and reports high union density in some regions, although it does not disclose an explicit unionisation rate. It participates in collective bargaining agreements with the Faroese Employers’ Association and engages in regular meetings with unions, allowing employee representatives time off for union responsibilities, including training. The company requires suppliers to adhere to its Supplier Standards, which encompass human rights, freedom of association, and collective bargaining. However, it does not explicitly mandate suppliers to respect freedom of association and collective bargaining.

The company reports that 63% of its employees are covered by collective bargaining agreements. It provides a breakdown of employees according to temporary versus permanent employment and full-time versus part-time employment. Additionally, it discloses the number of non-guaranteed hours workers employed in 2023.

The company's entire value chain, from feed production to processing, is certified according to international standards such as BRCGS, IFS, GlobalGAP, and BAP, all recognised by the Global Food Safety Initiative (GFSI). It ensures that all primary and secondary processing plants and feed suppliers meet these standards, focusing on stringent food safety, quality, and sustainability criteria.

The company details its food safety management and certifications but does not disclose the number or frequency of internal or external food safety audits. Additionally, it does not reveal corrective action rates for facility non-conformances. The company has implemented a traceability system that enhances food safety and transparency by controlling the entire value chain. It uses QR codes on products, enabling consumers to access detailed information about the product's origin and journey.

The company has a product recall system, demonstrated by a 2023 recall event due to a best-before date mislabelling error. This error arose from a mix-up between European and US date formats, affecting a batch of 100g smoked salmon sold in the Faroe Islands. The recall system includes Business Continuity and Incident Management procedures, with regular exercises. Following the incident, corrective actions were taken to prevent future occurrences. However, the company's disclosures lack comprehensive information on aspects such as documentation, disposal procedures, and a full recall protocol.

The company reports no market bans in 2023.

The company's Board oversees sustainability matters, including climate change issues, with a Sustainability Committee led by the CEO convening at least six times annually to monitor the implementation of its sustainability commitments. In 2023, the company conducted a comprehensive double materiality assessment, evaluating risks based on financial and impact materiality. The assessment covered Climate Change, Pollution, Water and Marine Resources, Biodiversity and Ecosystems, Circular Economy, Workforce, Value Chain Workers, Consumers and End-Users, and Business Conduct. However, the company does not disclose the Board's involvement in the materiality assessment. Rúni M. Hansen, the Chairman of the Board, demonstrates expertise in sustainability through membership in the UN Global Compact's Platform for Sustainable Ocean Business. However, no board members possess expertise in food safety, product development, or innovation.

The company states that all employees, including executives, are part of a bonus scheme that incorporates sustainability-related KPIs. It is also considering including climate-related performance in the compensation policies for its board and management. The company actively engages with various organisations, such as the Faroese Working Environment Service, Faroese Maritime Authorities, Faroese Employers Association, Faroese Aquaculture Association, and the Global Salmon Initiative (GSI), addressing issues like human rights, fish health and welfare, and pollution. It is a founding member of the Faroese Sustainable Business, which promotes industry collaboration on sustainability, including climate action. Additionally, the company is a member of the Faroese Fish Farmers Association, Salmon Scotland, the IFFO, and the EU Fishmeal Initiative. The company asserts that its policy engagements align with the climate targets of its Health Living Plan. However, its CDP report reveals it lacks a public commitment or formal stance on aligning engagement activities with the objectives of the Paris Agreement.

The company invests in research and development with a focus on non-medicinal sea lice treatment, environmental monitoring systems, and feeding technology. It has established a biogas plant, FÖRKA, which uses waste products to produce renewable energy and natural liquid fertiliser locally. The plant's latest project aims to create biomethane from CO2 and green hydrogen to fuel heavy vehicles in the Faroes. Additionally, the company collaborates with the Nordic Council of Ministers, the Faroese Government, and SEV to develop the fully electric workboat, Grønarók, supporting sustainable solutions in remote areas. The company benchmarks its sustainability practices using several indices, including the Coller FAIRR Protein Producer Index, Sustainalytics, S&P Global's Corporate Sustainability Assessment, ESG100, OBX® ESG Index, and MSCI ESG ratings.

The company does not explicitly acknowledge that protein diversification is a material business issue. Furthermore, it has not yet set a time-bound target to diversify protein sources, nor does it report revenue or sales linked to alternative protein sources.

The company does not indicate an approach to diversifying its product range to include plant-based and alternative protein options.