Mowi ASA

In its 2023 Integrated Annual Report, the company announces the submission of new targets for Science Based Targets initiative (SBTi) approval. According to the SBTi website, the company has committed to reducing absolute Scope 1 and 2 emissions by 50.6% by 2030, using 2019 as the base year. It also aims to decrease absolute Scope 3 emissions by 27.65% and Scope 3 FLAG emissions by 33.33% within the same period.

The company, as a global leader in seafood and the largest Atlantic salmon farmer with nearly 20% market share, reported a harvest of 474,664 tonnes in 2023. It manages a comprehensive value chain, including feed and farming operations, as well as sales and marketing of salmon products. The company operates feed plants in Norway and Scotland, with farming activities in Norway, Scotland, Canada, Chile, Iceland, and the Faroe Islands. Its emissions reduction targets for Scope 1, 2, and 3 have been validated by the Science Based Targets initiative (SBTi) to align with a 1.5°C scenario by 2023. However, it has not committed to setting a Net Zero Target for SBTi validation.

In its 2023 CDP Climate Change Report, the company reports engaging with suppliers on sustainability and environmental issues, through its Supplier's Code of Conduct and auditing processes. It collects carbon and climate-related data, focusing on feed suppliers, and follows Product Environmental Footprint guidelines and FLAG. The company collaborates with suppliers to reduce emissions from feed raw materials, particularly in agriculture for vegetable feed. Throughout 2023, the company conducted training events with vegetable feed suppliers on good agricultural practices, including regenerative agriculture. It also worked with Brazilian SPC suppliers to reduce their carbon footprint and increase sourcing from Europe. The company measures success in reducing Scope 3 emissions from feed raw materials, which fell from 1,825,745 tonnes of CO2 in 2022 to 1,774,230 tonnes.

The company has implemented Good Agricultural Practices (GAP) in its environmental supply chain due diligence, addressing GHG emissions through projects such as crop rotation, use of cover crops, agroforestry, soil health management, and farmer training. Additionally, the company has a dedicated Feed R&D team and emphasises its ownership of European feed production to reduce Feed Conversion Ratio (FCR), regarded as a major factor in its environmental impact. It invests in R&D to test low carbon footprint raw materials, develop more efficient feeds, promote sustainable fisheries for fish meal and fish oil, optimise energy efficiency in feed plants, and prioritise low-carbon technology. The company also focuses on feed innovation to reduce Scope 3 GHG emissions by collaborating with research institutions, industry players, and novel feed raw material suppliers through the Millennial Salmon project.

The company has implemented its Smart Farming concept across all operations, integrating digitalisation and automation to enhance efficiency and reduce greenhouse gas emissions by minimising the use of service vessels and associated fuel. Various efficiency measures are detailed in its 2023 CDP Climate Report. In its 2023 Integrated Annual Report, the company highlights the Mowi Jøsnøya case study, where fish are transported using stun and bleed vessels, arriving cooled at the processing plant, reducing CO2 emissions. In freshwater production, the company has focused on adjusting temperatures to lower energy consumption and thereby decrease greenhouse gas emissions. It has also installed energy management systems at selected Recirculating Aquaculture Systems installations.

The company reports its Scope 1 emissions at 121,589 tonnes of CO2e. Scope 2 emissions are 112,074 tonnes (market-based) and 84,242 tonnes (location-based) of CO2e. Total Scope 3 emissions amount to 2,135,209 tonnes of CO2e, including 594,608 tonnes of CO2e from Scope 3 FLAG emissions.

In the 2023 CDP Climate Change report, the company attributes 83,659 metric tons of CO2e to animal farming. Between 2022 and 2023, its Integrated Report notes an increase in emissions (Scope 1 and 2) from 311 to 316 kg CO2e/tonne biomass harvested (market-based) and from 199 to 203 kg CO2e/tonne biomass harvested (location-based). The company's 2023 CDP Climate Change report discloses Scope 1 feed emissions of 16,420 metric tons of CO2e from feed processing and notes feed sourcing as a contributor to Scope 3 agricultural emissions, which total 1,325,975 metric tons of CO2e. The Integrated Report also indicates a decrease in emission intensity in the feed business sector, with emissions falling from 58 to 33 kg CO2e/tonne of feed produced from 2022 to 2023, a 7% reduction. Additionally, the company reports Scope 3 FLAG emissions of 594,608 tonnes of CO2e in 2023, related to biogenic CO2, CH4, and N2O emissions from land use change and land management practices in its value chain.

The company responded to the CDP Climate Change questionnaire in 2023 and reports that its emissions data is verified annually by a third party.

The company reports a 9.6% increase in total GHG emissions (Scope 1, 2, and 3), from 2,135,982 tonnes of CO2e in 2022 to 2,341,040 tonnes in 2023. However, between FY2021 and FY2023, total absolute emissions decreased by 3.6%, from 2,261,548 to 2,181,127 tonnes of CO2e, reflecting an average annual decrease of 1.8%. In the Feed business area, the company achieved a reduction in GHG emissions intensity (Scope 1 and 2, market-based) from 58 to 33 kg CO2e per tonne of feed produced from 2022 to 2023, a 7% reduction in emissions intensity. However, the company does not disclose absolute reductions in emissions related to feed, enteric fermentation, or manure management.

The company's 2023 CDP Climate Change and Integrated Annual Reports include a range of climate-related scenarios and propose a strategy for transitioning to low carbon emissions. Using data from IPCC reports, the company assesses the impact of projected temperature rises on climate risks and opportunities relevant to its operations. Following this, potential impacts are evaluated according to TCFD guidelines. Additionally, the company has conducted climate-related scenario analyses over both short and long-term horizons, informing the development of its science-based targets.

The company indicates that feed constitutes the largest portion of its total costs, making it vulnerable to fluctuations in feed raw material prices. It acknowledges climate risks, such as severe droughts, flooding, and impacts from El Niño events, affecting the availability and pricing of agricultural commodities. In response, the company is adapting its business model, enhancing the robustness of farming equipment, setting technical standards, and increasing measures relating to algae bloom management. It sources from deforestation-free regions and aims to reduce price volatility through regenerative agriculture and sustainable fisheries practices. By improving trimmings use and diversifying feed inputs, the company sees potential for sustainable feed production. Regarding climate-related risks, the company estimates that a 4°C rise in water temperature could lead to more frequent algae blooms, potentially causing increased mortality and escape incidents. It disclosed in its 2023 CDP Climate Change report that its mitigation strategies prevented an event of mass mortality, valued at €7.95 million. The company recognises the impact of climate change on fish diseases and parasites, particularly in Chile, Canada West, and Ireland, leading to increased veterinary costs. It mitigates these by employing best practices for fish health, such as vaccination, disease-resistant breeding, and integrated pest management. Continuous monitoring and rapid response plans are in place, alongside R&D investments to enhance fish health and reduce medicine dependency. Supplier engagement focuses on regenerative agriculture to improve fish resilience. Addressing the rise in fuel taxes affecting operational costs, the company is transitioning sea sites to land power, phasing out diesel generators, and utilising hybrid generators. Its processing plants are adopting renewable electricity sources to manage risk. Regarding potential increases in Norway's carbon tax, the company plans to implement a low-carbon operating model using hybrid technology and renewable electricity. In 2023, the company reports zero financially material events resulting from physical and policy-related climate risks.

The company has announced that it is aligning its capital expenditures with its greenhouse gas (GHG) emission targets in accordance with its Green Bond and Sustainability-linked loan. In 2023, it allocated 164 million EUR to green categories, including sustainable feed related to GHG emissions, and invested approximately 9 million EUR in energy efficiency initiatives. In its TCFD Disclosure Matrix, the company assesses the financial impacts of climate-related risks such as escape incidents, harmful algal bloom (HAB) events, and mortality, with detailed estimations included in its 2023 CDP Climate Change response. To address escape incidents, it reports spending 9.5 million EUR on engineering modelling and new equipment across 10 sites. For HAB events, it implemented a monitoring and mitigation system across 30 sites, costing 1.98 million EUR, which has prevented at least one mass mortality event, valued at 7.95 million EUR. To mitigate the risk of fuel taxation, the company is transitioning sites in Norway from diesel generators to land power, costing 190,000 EUR per site. In 2022, it invested 380,000 EUR, and 40 additional sites have been identified for conversion, requiring roughly 7.6 million EUR.

The company reports that 13.2% of its salmon feed comprises soya products, all of which are either Proterra or Organic certified and obtained exclusively from deforestation-free areas. Its Brazilian suppliers include Caramuru, CJ Selecta, and Bunge/Imcopa, although it is unclear if this list is comprehensive.

The company's sustainable salmon feed policy prohibits sourcing vegetable materials from deforested or converted areas. It collaborates with soy protein concentrate suppliers and participates in an Aquaculture Dialogue to ensure sustainable soy sourcing from Brazil. Additionally, it issues Traceability Certificates of Compliance for detailed tracking of soy origin, including ownership, lot details, transactions, and GMO compliance.

The company states that its SPC suppliers in Brazil undergo a Monitoring, Reporting, and Verification (MRV) audit in accordance with the Proterra Foundation Monitoring and Verification Guide. It confirms that the soy utilised is either Proterra or Organic certified, with each certification having mechanisms to address non-compliance. Additionally, the company assures that all feed ingredients are fully traceable, with Proterra certified Brazilian soy sourced from the regions of Mato Grosso, Minas Gerais, and Goiás.

The company plans to explore alternative feed sources, including co/by-products from alcohol fermentation, CO2 capture, and forestry, as well as insects. In 2023, it increased the use of novel raw materials to 4.1%, incorporating algal oils, pea protein, and krill meal.

In 2023, 99% of the company's harvest achieved GSSI certification (ASC, BAP, Global GAP). The company had 148 ASC-certified sites, representing 55% of its seawater farms. ASC site numbers increased in Scotland from 21 to 37 and in Norway from 79 to 88. In Canada, ASC sites decreased from 4 to 2, though all remain 100% BAP certified. In Chile, ASC sites rose from 10 to 14, with all also BAP certified. Iceland and the Faroes had 5 and 2 ASC sites, respectively. Ireland maintained 100% organic and Global GAP certification but reduced ASC sites from 4 to 0. All farms in Scotland, Ireland, and the Faroes possess Global GAP certification, while those in Chile and Canada are entirely BAP certified. ASC coverage varies by region: 72.5% in Scotland, 73.5% in Norway, 60% in Ireland, 100% in Iceland, 86.2% in the Faroes, and 57.5% in Chile.

The company discloses the composition of salmon feed ingredients as follows: 19.0% vegetable oils, 4.0% supplements, 16.7% fish and krill meals, 12.8% fish and algal oils, 18.6% wheat derivatives, 13.2% soy products, 12.0% bean and pea derivatives, 0.6% corn derivatives, and 3.1% guar-based products. In 2023, procurement of marine and plant-based raw materials fully complied with sourcing guidelines. All marine ingredients were certified by MSC, MarineTrust, or were part of improvement initiatives for MarineTrust certification. Specifically, 28% were MSC certified, 38% were MarineTrust certified, and the remainder were involved in MarineTrust or Fisheries Improvement Projects. The company introduced algal oils into the feed formula, advancing its goal of using novel feed raw materials. All soy was sourced from deforestation-free, non-genetically modified areas and certified by Proterra or as Organic. The company reports the Forage Fish Dependency Ratios for Oils (FFDRo) and Meals (FFDRm) for 2023, 2022, and 2021, calculated using the ASC methodology. The FFDRo was 1.58 in 2023 and 2022, down from 1.81 in 2021. The FFDRm was 0.55 in 2023, 0.48 in 2022, and 0.50 in 2021. It also breaks down these ratios by operating countries: Norway, Scotland, Ireland, Faroe Islands, Canada, Chile, and Iceland.

The company sources all its soy from certified providers, and its marine raw materials are either MSC or MarinTrust Standard certified or part of projects targeting MarineTrust certification. In 2023, Mowi Feed included 4.1% emerging feed raw materials, such as algal oils, pea protein concentrate, and krill meal. Globally, the company reports a Feed Conversion Ratio (FCR) of 1.17, an increase from 1.15 in 2022. The Fish Feed Dependency Ratio for Fish Meal (FFDRm) rose from 0.48 in 2022 to 0.55 in 2023, although operations in Ireland and Chile reported reductions. Conversely, the Fish Feed Dependency Ratio for Oils (FFDRo) decreased from 1.81 in 2022 to 1.58 in 2023, with reductions also in Norway, Scotland, Ireland, Faroe Islands, and Canada. Chile's FFDRo remained constant at 0.30 for both years. In 2023, 29.5% of the fish meal and 30.5% of the fish oil used by Mowi Feed were sourced from trimmings. The company also disclosed the absolute volumes of fish meal and fish oil used. Additionally, the company reports a Protein Efficiency Ratio (PER) of 2.2, calculated as gain in weight divided by protein consumed.

The company collaborates with academics and industry partners to discover sustainable plant proteins and oils for salmon feed, aiming to reduce reliance on marine and common crop raw materials. It focuses on optimising fish trimmings for fishmeal and oil in both internal and external feed production, with a detailed strategy for utilising seafood trimmings. The company plans to incorporate 10-15% emerging feed materials by 2030. Its R&D influences feed ingredient choices, with novel ingredients making up 3% of the feed in 2022 and 4% in 2023, including algal oils, krill meal, and pea protein. A risk assessment of the soy and marine ingredient supply chain is conducted, as outlined in its Sustainable Salmon Feed Policy, considering price, nutritional quality, certification, climate impact, and reputation.

From 2015 to 2023, the company invested 5.9 million euros in researching new feed ingredients such as insect meal and algae. Annual investments were 1.51 million euros in 2021, 1.15 million euros in 2022, and 1 million euros in 2023. The company discloses its salmon contains an average EPA + DHA content of 1.200g per 100g. By 2030, the company aims for 10-15% of its feed to comprise emerging materials. In 2023, 4% of the feed composition consisted of novel alternative sources.

The company provides data on average sea lice levels (adult females) per fish across its farming regions from 2018 to 2023. It also reports that 2% of sites exceeded national sea lice limits in 2023, down from 5% in 2022.

The company employs cleaner fish, non-medicinal treatments, and preventive tools such as skirts, deep lights, and feeding strategies to manage sea lice infestation. It is also developing new solutions but does not disclose cleaner fish mortality data. The company has invested €253,500 in 2023 for R&D in cleaner fish husbandry. Research areas include feed development, vaccine research, production optimisation, and improving practices for capture, handling, and welfare.

The company reports a decrease in escape incidents from 11 in 2022 to 4 in 2023, with fish escapes reduced from 50,138 to 3,497. Although it estimates a potential loss of 19 million EUR for 600,000 escaped fish, exact financial costs of escapes for 2023 are not provided. To address these incidents, the company is implementing strategies such as simplifying treatments, improving net quality, and enhancing employee training to prevent future escapes. The majority of escapes in 2023 occurred in its Icelandic operations. In response, the Icelandic division has fully integrated into the company’s internal training programme, improved standard operational procedures, and adopted an equipment management system. The company aims to achieve a positive trend towards zero escapes. It plans to conduct site personnel training under its 'Farming Excellence Program' to meet this goal. However, the timeline for achieving this target is not specified.

The company complies with environmental regulations in sensitive areas and in 2023 assessed its sites for nature priority. It is implementing 30 projects to reduce biodiversity impact, including monitoring native salmon migration patterns and studying the effects of sea lice on sea trout. Additionally, two salmon restoration projects have been undertaken in Scotland. The company has released a 'Biodiversity and Natural Capital Policy' that sets a target to eliminate human-wildlife conflict near its farming operations. To achieve this, it uses preventive measures such as bird nets and predator exclusion nets and evaluates potential conflicts when selecting new farming sites.

The company undertakes monitoring programmes for sites at high risk of algal blooms in Chile, Canada, Scotland, Ireland, and Norway. In response to harmful algal blooms, it employs measures such as aeration systems, cessation of surface feeding, and guiding fish to safer depths using deep lights. Additionally, the company may relocate salmon to unaffected areas if there is no biosecurity or welfare risk.

The company used the WRI Aqueduct tool to determine that 0.09% of its water withdrawal comes from areas with medium-high water scarcity risk, specifically in its Sales and Marketing operations. It operates three processing facilities—Mowi Vietnam, Mowi Shanghai, and Mowi France (Boulogne)—in regions with medium-high water scarcity risk. In 2023, these facilities withdrew 304,315 m3 of surface water, representing 0.09% of the company's total freshwater usage. In 2023, the company implemented water-saving measures across its facilities, resulting in a reduction of 38,487 m3 of freshwater usage. Initiatives included installing closed-loop systems in Boulogne, reducing cleaning pressure and adding new water jets in Zaragoza, improving conveyor belt flushing and microfiltration in Poland, enhancing nozzle pressure and cleaning efficiency in the US, and optimising systems in Japan, Korea, and Vietnam. The company reports overall water consumption as 622,000 m3 for the current reporting year.

The company has set a water intensity reduction target focused solely on water withdrawal, as it considers water consumption negligible. In 2021, it aimed to reduce water intensity by 10% at processing plants in medium-high water scarcity risk areas by 2025, using 2018 as the base year. This target is limited to the three plants located in such areas. Between 2022 and 2023, the company reported a reduction in freshwater withdrawal intensity from 0.65 to 0.57 m3 per kg of fish produced.

The company discloses its total water withdrawals amounted to 337,400,000 m³ in 2023, reflecting an 8% reduction from 367,268,000 m³ in 2022. It further specifies withdrawals from different freshwater sources: 276,914,000 m³ from surface water, 27,029,000 m³ from groundwater, and 33,457,000 m³ from third-party water. Total water consumption was 622,000 m³, split as 267,000 m³ from surface water, 94,000 m³ from groundwater, and 260,000 m³ from third-party sources. A negligible 0.09% of water withdrawals come from areas with medium-high water scarcity risk, sourced from its Sales and Marketing operations in China, Vietnam and France. Its feed and farming operations use no water from scarcity areas. The company's water-related capital expenditure (CAPEX) is derived from its Green Bond Impact report and is set to rise in pursuit of 100% green or sustainable financing by 2026. Since 2020, it has added five new projects to Mowi’s Green Register, focusing on freshwater facilities with recirculating aquaculture systems to reduce external freshwater dependency. It earmarked 36 million euros from its green bond for water efficiency improvements. The 2023 CDP Water response projects a CAPEX increase of 29%. The company reports water-related operating expenditure (OPEX) of -2.2% at three processing plants in water-stressed areas, citing reduced production volumes and changes in processing. It predicts a 3.2% rise in OPEX due to increased environmental analysis service costs, additional maintenance, and the development of new products. The company confirms its freshwater withdrawal and consumption data is audited by an independent third party and has responded to the CDP Water Questionnaire in 2023.

The company outlines its freshwater use policy, which guides its feed supply chain in freshwater stewardship. Its sustainable feed sourcing policy incorporates good agricultural practices, addressing water use and requiring vegetable feed raw material suppliers to conduct water risk assessments. This approach helps the company evaluate risks and determine necessary measures to mitigate water-related dangers. Suppliers are also encouraged to set water reduction targets and adopt regenerative agricultural practices. In 2023, the company performed a water risk assessment using a water risk index and initiated an engagement programme with suppliers identified as medium and high risk. It provided direct support and guidance on water stewardship to suppliers, including training events with Soy Protein Concentrate suppliers and other vegetable feed raw materials, to explain good agricultural practices and identify best practices for improved efficiency. Additionally, it integrated questions related to water stewardship into its environmental due diligence. The company's SPC suppliers in Brazil are implementing projects focusing on responsible water use and engaging in sustainability programmes like ESG in the Field and Sustentar, which target responsible management of water and nutrients. Furthermore, the company has established the Aquaculture Dialogue on Sustainable Soy Sourcing from Brazil to promote sustainable soy sourcing through the Proterra standard, incorporating water management criteria.

The company reported that Mowi Feed used a negligible amount of water in production, with an intensity of 0.0006 m3/kg for the feed. In 2023, only three of its vegetable raw material suppliers were identified as high or extremely high risk according to Aqueduct baseline water stress mapping, accounting for 5% of all suppliers. Two high-risk suppliers are located in India, providing guar protein, and the other provides soy protein.

In 2023, the company reported that none of its processing plants incurred penalties for wastewater discharge volumes or quality. Three processing plants, in Shanghai, Vietnam, and Boulogne, France, have been classified as having a high or medium risk of water stress from a quality perspective. The company aims for all discharged waste and water to meet regulatory limits for both volume and quality, and it follows the World Bank's wastewater limits where applicable. However, this suggests those standards are not consistently met in all regions. The company monitors water quality metrics such as Chemical Oxygen Demand (COD), Biological Oxygen Demand (BOD), Total Nitrogen (TN), and Total Phosphorus (TP), aligning with relevant limits for specific areas. It discloses that metrics for high-risk sites meet World Bank Standards. When discharging to freshwater, the company complies with local regulations for both volume and quality, but it lacks a target for reducing wastewater volume.

The company discloses the average water quality at its high-risk sites in China, Vietnam, and France for 2023, with all measures for BOD, Total Phosphorous, and COD falling within World Bank limits. However, Total Nitrogen exceeded these limits at its Vietnam site. It does not disclose the average wastewater quality for the company as a whole for the current reporting period. The company reports wastewater discharge volumes for 2023 as 336,020,198 m3, including 217,431,080 m3 to the sea, 116,803,828 m3 to surface water, and 1,785,290 m3 to third parties. This data is audited by a third party. The company also responded to the CDP Water Questionnaire 2023.

The company uses sludge from freshwater plants for biogas production and agricultural compost. It discloses wastewater quality data for its high-risk sites in 2022 and 2023, showing improved chemical oxygen demand (COD) and biological oxygen demand (BOD) levels. However, total phosphorus (TP) and total nitrogen (TN) levels increased. Wastewater discharge volumes also rose significantly, from 88,282,843 m3 in 2022 to 336,020,198 m3 in 2023.

The company reports conducting surveys among its suppliers to assess water-related risks, specifically focusing on protecting water bodies from agricultural pollution. It expects suppliers to use water responsibly and undertake risk assessments to understand their full exposure. However, there is no disclosure of a requirement to exclusively purchase or produce feed with a nutrient management plan. The company's Supplier Code of Conduct mandates that suppliers advocate for eco-friendly technologies to reduce waste and emissions and lessen biodiversity impacts. Its policy on sustainable salmon feed urges suppliers to manage nutrients properly and prevent runoff from improper fertilizer use and storage. Feed suppliers are reportedly involved in initiatives to improve the sustainability of feed production, focusing on nutrient management and advanced farming techniques to optimise land use and soil health. The company's direct involvement in these initiatives remains unclear. The company conducts water-related assessments of its feed crop suppliers and engages those identified at medium or high risk. In 2023, it undertook training with SPC and other vegetable feed raw materials suppliers on good agricultural practices, including soil and nutrient management. Through its membership in the Global Sustainable Salmon Initiative (GSSI), the company gains access to guidance on sustainable fertiliser use in feed production. However, this is a supplementary component, and the extent of implementation in the company's feed supply chains is unclear, as it does not disclose this in its own reporting. Consequently, a limited geographic scope has been applied.

The company is undertaking projects to identify more sustainable alternative feed ingredients, such as insect meal, in place of soy and maize. Its suppliers are involved in initiatives to promote good agricultural practices, including responsible nutrient use. The company reports that its vegetable feed raw material suppliers adhere to responsible pesticide use. Through Proterra Certification, it ensures that SPC suppliers do not use pesticides listed in WHO classes (Ia, Ib), the Rotterdam Convention, and the Stockholm Convention, nor those banned by local, national, and regional laws. Consequently, part of the feed supply chain is free from highly hazardous pesticides. The company also mentions implementing integrated pest management strategies, primarily targeting sea lice control rather than pests in the feed supply chain.

The company states it conducts risk evaluations for new suppliers as part of its onboarding procedure. It monitors the impact of fish farming on nutrient levels and macroalgae and claims all farms are in areas of low water stress risk. Despite this, 6% of operations are identified as at risk, with sites located in Chile, Canada East, Ireland, Scotland, and Norway. In 2023, the company conducted national surveys to assess the impact of organic loading from farming activities on the seabed. Results showed 94% of surveyed sea locations had negligible impact on nearby faunal communities or sediment chemistry. In Canada West, Iceland, and the Faroes, all sites were classified as very good or good. The company performs benthic assessments varying by region, measuring organic and inorganic substances. However, it only references inorganic substances like sulphides in Canadian assessments, indicating a partial geographic scope. The company shares results of MOM-B analysis, identifying sites with unsatisfactory scores, including locations in Chile, Canada East, Ireland, Scotland, and Norway that exceeded carrying capacity. The company has begun using environmental modelling to identify fish farming locations with reduced benthic impact. In Norway, it is testing underwater systems to collect and upcycle organic waste, reducing organic loading. In Scotland, it is exploring co-farming salmon and shellfish to enhance productivity and environmental sustainability. However, the geographic scope is limited, as there is no strategy disclosed for eliminating faecal matter and uneaten feed across the entire group.

The company places significant emphasis on engaging with local communities. It prioritises relevant stakeholders through its communication and sustainability networks. The company has a community engagement policy detailing how it shares information about its sites' environmental performance, including benthic assessments, with local populations. Community meetings are held at least annually or more frequently if pollution is detected.

The company has an antibiotics policy for its veterinary and aquaculture operations, aligning with the World Health Organisation's guidelines on Critically Important Antimicrobials for Human Medicine. The policy prohibits the use of antimicrobials for growth promotion, disease prevention, or dissemination control. Antibiotics are administered only under veterinary prescription and supervision, primarily for therapeutic purposes when alternatives are unavailable. In aquaculture, the policy forbids routine antibiotic use, including for growth promotion and disease prevention, allowing antibiotics solely for therapeutic purposes when fish health is at risk from specific bacterial infections. It does not permit prophylactic or feed efficiency use. Highest Priority Critically Important Antimicrobials are allowed under specific exemptions based on sensitivity results, ensuring prudent use. The company employs various measures to limit antibiotic necessity in aquaculture, such as biosecurity protocols, health monitoring, vaccination programmes, employee training, plankton monitoring, stress mitigation, fish behaviour observation, and responsible medicine use.

The company discloses antibiotic usage in standard units as grams per tonne of biomass, with a regional breakdown. For 2023, overall usage was 82 grams per tonne. Regional data show 0 grams per tonne for Norway and the Faroes, 23 for Scotland, 350 for Ireland, 50 for Canada, and 443 for Chile. The antibiotics used are oxytetracycline and florfenicol, both Medically Important Antimicrobials. No HPCIA or CIA were used. Antibiotic usage decreased in Chile and Scotland due to fewer Pasteurella skyensis cases and improved practices in Chile, though challenges with Salmonid Rickettsial Septicemia persist. In contrast, usage increased in Canada due to mouth lesions and in Ireland due to more SRS cases. There was a slight overall increase in antimicrobial use from 76g per tonne in 2022 to 82g in 2023. This data is independently audited by EY.

The company demonstrates a strong commitment to animal welfare through comprehensive policies aligned with the Five Freedoms and the World Organisation for Animal Health (OIE) definition. These policies focus on thermal and physical comfort, health monitoring, pain reduction, and minimising fear and stress with appropriate handling and transport protocols. The company applies a global handling policy that minimises animal interaction and employs approved anaesthetics when necessary. Additionally, staff are trained to handle animals humanely, following stress-reducing practices. For salmon, the company utilises percussive stunning methods in all regions before slaughter. Manual percussive stunning serves as a backup in case of automated stunning failures.

The company reports maintaining stocking densities below the regulated maximum of 25 kg/m³, with an average monthly density of approximately 7 kg/m³ across its seawater sites, but does not confirm that densities always remain below 17 kg/m³. The company monitors and reports key welfare metrics, including the condition of fish at sea and oxygen levels during transport. It tracks fish mortality causes, stating that approximately 98.5% of its farmed salmon have been free from sores or wounds in recent years, and monitors water quality parameters to minimise transport stress.

The company reports zero research and development expenditure on environmental enrichment in 2022.

The company provides data on survival and mortality rates in seawater and freshwater environments. It reports a monthly seawater survival rate of 99.2% for both 2023 and 2022, translating to a 0.8% mortality rate, and disaggregates this data by country over several years. The average monthly freshwater survival rate for the group was 99.4% in 2023 and 99.2% in 2022, with mortality rates of 0.6% and 0.8% respectively, and specific rates offered for each country. The company also discloses incident-based mortality data, including significant events such as disease outbreaks and oxygen deprivation, reporting a total of 15.6 thousand tonnes of incident-based mortality in 2023, which accounts for 26.2% of total mortality by volume. Additionally, the company has set a quantitative, time-bound target to achieve a survival rate of over 99.5% in both seawater and freshwater by 2025 and reports current progress with survival rates of 99.2% and 99.4% respectively.

The company discloses losses related to diseases like Salmonid Rickettsial Septicaemia (SRS), Cardiomyopathy Syndrome (CMS), Pancreas Disease (PD), Infectious Salmon Anaemia (ISA), and Pasteurella over the past three years, without showing a downward trend. The types of diseases reported vary annually. The company employs non-medicinal and non-chemical methods to prevent disease outbreaks, such as optimal pen placement, strict biosecurity measures, cleanerfish utilisation, and systems for monitoring fish health and environmental conditions. It also invests in research and development for innovative solutions, including preventive management tools like skirts, deep lights, and deep feeding, to enhance fish health and welfare.

The company is committed to human rights across its operations and supply chain, adhering to the Universal Declaration on Human Rights and the International Labour Organisation’s Core Conventions.

Under the Norwegian Transparency Act, the company commits to ensuring human rights and decent working conditions in its supply chain and operations through a human rights due diligence process aligned with industry best practices and OECD guidelines. It states that all suppliers have been risk assessed and rated using its Country Risk Assessment, with critical suppliers also evaluated using the Mowi Risk Assessment based on its Code of Conduct principles, including human rights. The company maintains a continuous human rights due diligence and risk management process to identify and mitigate risks across its operations and supply chain. This process includes ethical practices, the ONE Mowi policy framework, structured assessments, KPI monitoring, and transparent reporting, bolstered by educational efforts and stakeholder collaboration. Detected risks are managed through the company's internal governance system, which implements and monitors suitable measures. To mitigate and address potential adverse impacts, the company reports implementing various programmes, including compliance monitoring, policy implementation, surveys, health and safety, privacy, fair work conditions, union collaboration, diversity and inclusion initiatives, community engagement, migrant support, and Indigenous interactions.

In its Transparency Act Statement, the company reports finding no human rights violations in its direct operations or supply chain. It categorises Vietnam as a high-risk area due to concerns about freedom of association and civil and political rights. In its supply chain, risks are identified in transport suppliers for Mowi Markets Norway AS, focusing on working conditions. No suppliers are rated as high-risk for human rights violations. While the company provides general mitigation measures, such as engaging with unions and suppliers, it does not specify actions addressing the primary risks related to freedom of association and civil and political rights in Vietnam, or working conditions in its Norwegian transport suppliers.

The company prohibits discrimination, forced labour, child labour, and harassment within its operations, ensuring no employee is paid less than the national living wage for their region. Compliance with these policies is verified through audits by certifying bodies like the Aquaculture Stewardship Council (ASC), with 148 sites, approximately 55% of active seawater farming facilities, receiving ASC certification. The company extends its policies on forced labour, child labour, discrimination, and harassment to its suppliers. However, it does not require them to pay a living wage. Furthermore, the company states all employees receive at least the official national living wage, including for overtime, paid sick leave, and benefits, in line with applicable laws and ILO standards. However, it is unclear what constitutes an "official" national living wage, as research by FAIRR did not identify such legislation in the company's countries of operation. Enhanced disclosure on how sick pay is determined would be beneficial.

The company audits suppliers deemed high or medium risk for human rights issues according to its supply chain management platform, which aligns with ILO conventions. However, this audit process covers only a limited number of suppliers. The company operates an online whistleblowing system managed by PWC, allowing anonymous complaints from both internal and external stakeholders. In 2023, it received 46 complaints: 16 related to workplace harassment (including one involving sexual harassment), 14 concerning internal policy violations, 10 regarding legal issues (such as discrimination, conflict of interest, theft, financial misconduct, unjust termination), and 6 from the local community. All complaints were investigated, with none found to violate the company's Human Rights policies.

The company ensures a safe and healthy environment for personnel and visitors, adhering to local health and safety standards. Its sites in Chile and Ireland hold ISO 45001 certifications, and all harvested salmon production complies with the Global G.A.P. Aquaculture Standard for occupational health and safety. All business units have safety committees with management, employee, and labour union representation. The company claims a negligible risk of antimicrobial resistance among its workforce due to limited antimicrobial use. However, it is encouraged to disclose whether a formal health hazard assessment has been conducted.

The company reports a reduction in its long-term injury (LTI) rate from 2.3 per million hours worked in FY2022 to 2.1 in FY2023. It states there were zero fatalities in its operations for both FY2022 and FY2023. In 2023, the global turnover rate was 16%. Breakdown by seniority shows 60% turnover among employees with under 5 years of service, 25% for 5-10 years, 10% for 10-20 years, and 5% for over 20 years. The turnover was 41% female and 59% male, with 16% in white-collar roles and 84% in blue-collar roles.

The company states that it respects employees' right to freedom of association, with 24% unionisation in 2023. It regularly engages with unions to discuss current issues, long-term plans, and collective bargaining agreements, providing union representatives a platform to address health and safety concerns with management and workers. Additionally, the company requires its suppliers to adopt a policy supporting employees' freedom of association and collective bargaining rights.

In 2023, 24% of the company's employees were union members. Collective bargaining agreements covered workers in 23 business units, representing 90% of the workforce, regardless of contract type or union status. The company reports employing 14,142 full-time equivalent staff, comprising 10,322 permanent, 1,322 temporary, and 2,498 third-party employees. However, while the company monitors part-time employment, it does not disclose the number of part-time employees for the reporting year.

The company's processing plants are certified to Global Food Safety Initiative (GFSI) recognised standards, such as FSSC 22000, BRC, and IFS. It reports that 100% of its processing plants meet these standards. The company aims for all suppliers to achieve GFSI-recognised certification. Currently, 96% of its seafood suppliers are certified, but it does not specify whether certification is mandatory for all suppliers.

The company conducted a total of 686 food safety audits in 2023, including 296 internal and 390 external audits by certification bodies, food safety authorities, and customers. Of the external audits, 42 related to Global Food Safety Initiative (GFSI) standards, revealing five major non-conformities, all of which were resolved within 30 days with a 100% closure rate. The company is enhancing food safety using consumer-facing technology, incorporating Industry 4.0 and Smart Operations technologies, such as AI and vision technologies, to optimise operations. The company's packaging also features QR codes leading consumers to a website for product information, transparency, and traceability.

The company has a comprehensive product recall system under its ONEMowi programme, with incident reporting and crisis management policies in place. A crisis team is established within each business unit, supported by a global incident reporting tool. Key procedures include incident assessment, product tracing, and communicating recalls to customers and authorities. Regular mock recalls and traceability tests are conducted to ensure system effectiveness. In the reporting year, the company experienced five food safety incidents, three of which led to recalls amounting to 8.5 tonnes of products due to Listeria detection, incorrect labelling, and the presence of white plastic, incurring a cost of EUR 0.2 million. In response, the company ceased using the implicated supplier, increased control check frequencies, and conducted internal and customer audits. It also implemented preventive measures including e-learning courses on food safety hazards and HACCP in nine languages at Mowi Academy, and conducted a global food safety culture survey.

The company reports no market bans in the reporting year.

The company states that its Board of Directors oversees ESG matters, including the development and enhancement of its sustainability strategy, policies, and targets. In 2023, the company updated its materiality matrix, making minor adjustments to identified risks and adopting sector-specific GRI 13 disclosures to improve comparability with other aquaculture organisations. Its double materiality assessment highlights key issues such as preventing fish escapes, responsible sea lice management, sustainable fish feed, climate-friendly food production, and ensuring fish health. It also includes responsible waste management, healthy and safe seafood, third-party certification, ethical business conduct, operational excellence, and reliable shareholder returns. The board has final approval of this assessment. The company has a board member with sustainability expertise, Lisbet K. Nærø, who has experience in implementing UN SDGs in the banking sector. Renate Larsen contributes expertise in food safety and quality. Additionally, board members Lisbet K. Nærø and Peder Strand have expertise in product development and innovation.

The company awards management incentives based on ESG performance, with the Chief Sustainability Officer having 10% of their variable compensation linked to energy efficiency targets. The company engages with public policy officials and industry collectives on ESG issues such as climate change, pollution, working conditions, ESG disclosure regulation, animal welfare, and antibiotic use. It discloses its stance on each of these issues, excluding alternative proteins. The company discloses its policy engagement activities align with the goal of restricting global temperature increases to 1.5°C. Key partnerships and memberships include the Norwegian Seafood Federation, the Federation of European Aquaculture Producers, and the Canadian Aquaculture Industry Alliance.

The company reveals that its research and development department aims to optimise farming technologies, enhance survival rates and fish welfare, non-medically control sea lice, adopt sustainable alternative feed ingredients, optimise product processing, and control environmental contaminants in feed. It also aims to use data analytics for business decisions and is engaged in multiple innovative farming projects, employing 17 technical experts within its Global R&D and Technical Department. Furthermore, the company utilises the Coller FAIRR Protein Producer Index, the Seafood Stewardship Index, and the Food and Agriculture Benchmark to assess its sustainability and innovation positioning.

The company is exploring methods to meet increasing consumer demand for plant-based protein products. However, it has not formally recognised protein diversification as a strategic risk mitigation measure to ensure medium to long-term business resilience. Additionally, the company does not disclose revenues from alternative protein sources or have a timebound target to diversify these sources. An update on its alternative protein strategy is encouraged.

The company states it is exploring ways to meet the rising demand for plant-based protein products and has engaged with key customers since 2022 to develop plant-based alternatives to various fish products. While vegan alternatives are described as integral to its innovation strategy, this is not reflected in its 2023 Integrated Annual Report. Online, the company reports success in the sushi segment, with roughly 10% of offerings being vegetable-based. However, it is unclear if it currently offers fish substitute products, nor has it established an alternative protein brand. There is no indication of investment in future growth for alternative proteins.