Multi X

The company lacks a science-based emission reduction target and does not intend to establish one within the next two years.

The company, a Chile-based vertically integrated salmon producer, operates 50 farming centres and undertakes processing and value-added services in Chile, with sales and distribution in Brazil, the USA, Europe, Asia, China, and Chile. In 2023, the company established updated goals to reduce emissions by 2030, aiming for a 50% reduction in Scope 1 and 2 emissions and a 20% reduction in Scope 3 emissions, using 2023 as the baseline year. This year, the scope of Scope 3 emissions has been expanded to include emissions from the transportation of live fish during the freshwater phase, the transfer of raw materials between processing plants, and improved data on raw materials affecting emissions from fish feeding. However, it does not explicitly disclose if emissions from animal agriculture are included in Scope 3.

The company collects supplier emissions data and other climate-related information at least annually, currently evaluating 23% of suppliers. It has signed an agreement with the University of La Frontera to develop projects promoting sustainable agricultural practices throughout the value chain. This initiative aims to reduce agricultural emissions, improve water efficiency, and decrease fertiliser use. However, the geographic scope of the agreement is not specified.

The company is piloting alternative ingredient feeding plans with suppliers, incorporating protein concentrate from bacterial fermentation, insect meal, and Nuseed in fish diets. This reduces reliance on traditional protein sources like soy and fishmeal, potentially lessening its carbon footprint.

The company does not disclose the use of emission-reducing feed additives, despite discussing sustainable, alternative feed sources. However, it has developed a carbon neutrality plan and implemented various energy-saving and efficiency measures. In 2023, the company initiated the first phase of transitioning refrigerants to ammonia, enhancing heat exchanger efficiency in immediate processing post-slaughter. Additionally, it replaced conventional luminaires with LED lights in Fresh, Frozen, and Smoked process rooms, investing US$61,875. Furthermore, the company launched its first hybrid pontoon, which optimises seawater energy consumption by 40%. In 2023, the company also commenced implementing an energy efficiency system across the value chain, aiming for ISO 50.001 certification, with the certificate expected by March 2024.

The company reports its 2023 emissions as follows: Scope 1 at 80,768 tCO2e, Scope 2 at 6,087 tCO2e, and Scope 3 at 500,154 tCO2e.

The company reports Scope 1 emissions from its fish farming operations, including fattening/seawater (58,762 tCO2e), processing (16,643 tCO2e), hatching (4,566 tCO2e), and administration (832 tCO2e). Scope 3 emissions include 277,292 tCO2e from salmon feeding. Additionally, the company discloses greenhouse gas emissions from land-use change as 120,833 tCO2e for 2023.

The company has responded to the 2023 CDP Climate Change questionnaire and discloses that Control Union Chile Spa verifies its carbon footprint.

The company reports a reduction of 19.53% in its Scope 1 and 2 emissions intensity per ton of edible meat since carbon footprint measurements began in 2017. Between FY2022 and FY2023, total location-based emissions rose by 32.43% and market-based emissions by 32.85%. It is recommended that the company restates historic emissions data in its annual reports. Scope 3 emissions increased by 35.14%, from 370,178 tCO2e in 2022 to 500,154 tCO2e in 2023, partly due to an expanded calculation that increased the contribution from feed. For 2023, the company reports Scope 1 emissions at 80,768 tCO2e, Scope 2 emissions at 6,087 tCO2e, and Scope 3 emissions at 500,154 tCO2e.

The company has not conducted a climate-related scenario analysis, but aims to begin such an assessment by the end of 2024. Its 2023 Annual Report and TCFD Report include an initial assessment of climate risks and opportunities.

The company recognises the risks of local precipitation deficits impacting water supply to fish farms, temperature rises affecting fish food supply, and shortages of agricultural inputs like soybeans. It plans to invest in technology and diversify its raw material sources for fish feed by incorporating novel ingredients and increasing supplier diversity. Additionally, it acknowledges challenges from increasing sea temperatures affecting salmon farming, leading to reduced oxygen levels, algal blooms, and disease. In 2023, the company completed the initial stage of its Multisea project by seeding post-smolts to reduce fish exposure to seawater. It plans to incorporate technologies, such as nanobubbles, by 2026 to tackle harmful algal blooms and oxygen depletion. The Sea Water Management department also proposes increased investment in monitoring and oxygenation equipment. The company has initiatives to mitigate economic impacts from climate change, such as site remediation and oxygen input management to ensure animal welfare and reduce veterinary costs, amounting to USD 13.1 million in 2023. It recognises the risk of cost increases from emissions taxes and fossil fuel use, prompting technological changes for energy efficiency. Implementing ISO 50.001, the company introduced hybrid systems in seawater sites in 2023, expecting a 40% energy reduction, and improved energy performance at the Cardinol plant with a new refrigerant system. In 2024, projects to cut fuel and energy consumption are underway. The company set an internal carbon price for Scope 3 emissions to evaluate the environmental cost of its products and anticipates carbon pricing regulation within three years, estimating an annual tax of approximately USD 400,000. It aims to mitigate this by reducing emissions through energy efficiency measures, such as hybrid systems and innovative sea nets. The company confirmed no significant climate events with associated costs occurred during the reporting period.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

Soy protein accounts for 10.74% and soy oil 3.79% of the company's total feed composition, both reflecting an increase in usage compared to 2022. The company sources soy from Brazil, Argentina, the United States, and Paraguay, with all supply procured from RTRS-certified sources. While the company has not disclosed specific suppliers, it recommends transparency to confirm deforestation-free sourcing. Despite exclusively using certified soy, the company states that 66.8% of its soy is at high risk of deforestation. In 2023, it assessed its soy suppliers, identifying 66.8% as high risk, 28.6% as medium risk, and 4.6% as low risk. Although it partially discloses sourcing regions in Brazil and Argentina, it does not clarify whether these regions are designated high risk for deforestation.

The company aims for 75% zero deforestation by 2025 and 100% by 2030, with a 2020 cut-off date for both targets.

The company's commitment covers all the soy it sources and applies to all sourcing regions.

Whilst the company states that 100% of the soy it sources is RTRS certified and its environmental data is audited, it discloses that only 33.2% of soy is sourced from areas not at high risk of deforestation. Additionally, the company has not responded to the CDP Forests Questionnaire.

The company requires suppliers to commit to environmental care and sustainable production, operating in an environmentally friendly manner to minimise adverse impacts and comply with legislation. Its Sustainable Feed Policy promotes deforestation-free vegetable raw materials in salmon diets, complementing its supplier code of conduct. While the policy encourages good social and environmental practices and robust traceability mechanisms, the company does not detail support for improving deforestation-free production or traceability.

The company reports that 100% of its soy is certified by the Round Table on Responsible Soy (RTRS), which includes compliance monitoring and mechanisms for addressing non-compliance. It sources soybeans from various regions in Brazil, including Minas Gerais, Paraná, São Paulo, Mato Grosso, and Goiás, as well as from Santa Fe in Argentina. Additionally, it sources soybeans from Argentina, Brazil, the United States, and Paraguay without specifying regions.

The company launched a pilot programme to introduce insect meal into fish feed, starting with freshwater in 2021 and expanding to seawater in the Magallanes Region in 2022. By 2023, salmon fed with insect meal were harvested, marking the company as the first Chilean salmon farm to use this alternative feed. This reduces reliance on traditional protein sources like soy and fishmeal. The company also reported a significant reduction in its use of non-trimmings fishmeal and fish oil, with the percentage composition in feed decreasing from 2.9% to 0.66% for fishmeal and from 7.7% to 5.03% for fish oil between 2022 and 2023.

The company reports that 100% of its farms hold BAP certification. Additionally, 34% of its farms received ASC certification in the reporting period.

The company reports its feed composition as follows: 5.03% fish oil, 10.8% fish oil from trimmings, 0.66% fish meal, 0.3% fish meal from trimmings, 24.14% animal proteins, 10.74% soy proteins, and 16.11% vegetable proteins, with the remainder consisting of micro-ingredients, carbohydrates, animal oil, and other plant-based ingredients. It states that 81% of fish meal and 62% of fish oil are certified by MSC and Marin Trust, and confirms that all procured soy is RTRS certified. The company discloses the Fish Feed Dependency Ratios (FFDR) for fishmeal (FFDRm) and fish oil (FFDRo) for the past six reporting periods, including the calculation methodology. Its operations are based solely in Chile and it reports on both FFDR and FIFO (Fish In Fish Out) ratios.

The company states that its soy is 100% RTRS certified, but only 81% of its fishmeal and 62% of its fish oil are certified, meaning not all marine and soy feed ingredients are certified. The company reports a decrease in the Feed Conversion Ratio (FCR) for Atlantic salmon from 1.07 in 2022 to 1.06 in 2023 and provides the calculation formula. It also reports a reduction in the Fishmeal Forage Fish Dependency Ratio (FFDRm) from 0.22 in 2022 to 0.13 in 2023. Additionally, the company discloses a decrease in the Fish Oil Forage Fish Dependency Ratio (FFDRo) from 1.74 in 2022 to 1.37 in 2023. For the last reporting period, it used 136,797,136 kg of feed across freshwater and seawater operations, with details on ingredient specifics. Among these, 6,880,895 kg were fish oil (5.03%), 14,774,090 kg were fish oil from trimmings (10.08%), 902,861 kg were fishmeal (0.66%), and 410,391 kg were fishmeal from trimmings (0.3%). The company records a protein conversion efficiency of 2.2 and shares its calculation methodology.

The company initiated the use of insect meal for sustainable fish feed, starting with freshwater in 2021 and expanding to seawater in the Magallanes Region in 2022. By 2023, it became the first Chilean salmon farm to harvest salmon fed with insect meal, reducing reliance on soy and fishmeal. The company commits to collaborating with industry stakeholders through organisations like GSI and SalmonChile to encourage sustainable feed ingredients. The company reports an increase in fish oil and meal from trimmings but lacks a clear strategy to further increase their usage. It aims to diversify feed ingredients but does not provide a detailed strategy. It views the shift to alternative ingredients as an opportunity and plans to increase their use by 1% by 2026, provided nutritional quality and cost-efficiency are maintained. However, there is no evidence that the company has conducted a risk assessment on the future availability of marine and soy ingredients.

The company invested USD 399,803.44 in developing alternative ingredients and reports that the EPA + DHA content in salmon is 0.88 g/100 g. It aims to increase the proportion of alternative ingredients used to 1% by 2026.

The company discloses the average sea lice count for Atlantic salmon for 2023. Historical data from 2013 to 2022 is available on the GSI website. In 2023, the company received nine notifications for exceeding regulatory limits on sea lice.

In 2023, the company employed non-medicinal methods for treating sea lice, such as freshwater baths with the Wellboat SalmoClinic and natural repellents like Lyptus and Rosseus, achieving over 90% efficacy. The company also participated in the Caligus Project with 12 other salmon companies to assess and implement non-medicinal treatments, providing regular progress reports. This question is not applicable to Chilean companies due to the ban on using native cleaner fish, and they are not scored on this aspect.

The company reports zero incidents of fish escapes for 2023, with no reported escapes from 2013 to 2022 according to the GSI website. It details preventive measures including investments in robust materials, designs, and sizes for cage rafts and nets to mitigate risks from climate threats, marine mammals, and deliberate attacks aimed at theft or reputational damage. Additionally, the company provides training on fish escape prevention procedures and contingency plans. It is committed to maintaining zero escape occurrences at its facilities.

The company has an Environmental Conservation Plan to protect biodiversity in its operating regions, focusing on regular risk assessments and minimising seabed impact. It collaborates with stakeholders and engages with the community through initiatives like marine mammal workshops and silage systems for dead fish. Additionally, it has invested in net designs to reduce marine mammal entanglement. The company reported one accidental lethal interaction with a marine mammal in 2023 and aims for zero negative interactions by 2024. To achieve this, it plans to use cone-shaped guards over buoys to reduce wildlife interactions.

To address severe physical risks, the company has developed a plan to mitigate harmful algal blooms and oxygen depletion. This plan includes technologies for identifying harmful algae and using nanobubbles to prevent oxygen depletion, scheduled for implementation by 2026. Additionally, the company conducts weekly phytoplankton sampling at its sea water locations, with daily sampling if abnormal quantities are detected. This data is employed to create risk maps for areas more prone to potential blooms.

The company has begun using the WRI Aqueduct tool to assess water risks related to the raw materials sourced by its feed suppliers. It discloses that most feed is sourced from local suppliers, generally unaffected by water scarcity. However, it acknowledges that inputs such as soybeans originate from countries like Paraguay, Argentina, and Brazil, where water conditions could be impacted by scarcity. Feed suppliers will be required to provide information on water scarcity for critical agricultural inputs to identify high-risk areas, particularly in soy production, the most used ingredient. Mitigation plans may be developed individually or jointly with suppliers. Additionally, the company has announced a partnership with the University of La Frontera to collaborate on sustainability projects with local suppliers and farmers, addressing critical areas, including efficient water use. However, it does not clearly provide comprehensive guidance or support to suppliers regarding water use in feed production. The geographical scope of this partnership is unclear, and the company is encouraged to provide further details in future reporting.

In 2023, the company reported a water footprint for feed production of 149,498 thousand m³, equivalent to 1.09 m³ per kilogram of feed or 1.29 m³ per kilogram of salmon, accounting for 94% of the water footprint. The company consumed 5,274,478 kg/year of freshwater and 131,522,658 kg/year of seawater, resulting in a total feed consumption of 136,797,136 kg/year. The company has adopted the WRI Aqueduct tool to evaluate water risk for raw materials sourced by its feed suppliers, categorising 4.2% as high risk, 58.4% as medium risk, and 37.4% as low risk of total feed kilograms. It notes that there are no direct contracts for raw materials; contracts are with feed producers, all of which are situated in low-risk zones.

In 2023, the company received a water-related fine of 16,185 USD for exceeding effluent discharge limits in 2021. The company reports no incidents of non-compliance in 2023. It states that its fish farms and processing facilities are categorised as "Low Overall Water Risk" according to the WRI Aqueduct tool, which includes water quality assessment. The company discloses effluent discharge limits as BOD5 less than 30 mg/L, TSS less than 50 mg/L, Total phosphorus less than 2 mg/L, and pH within the range [6-9], adhering to World Bank standards. The company aims to reduce wastewater discharge by 10,000 m³ by 2027.

The company measures water quality parameters, including pH, dissolved oxygen, and organic matter, providing data for 2022 and 2023. It reports a total water discharge of 55,017 megalitres to fresh surface water and 473.51 megalitres to third-party destinations. However, it is unclear if the water-related data is audited by a third party. The company has responded to the CDP Water Security 2023.

The company converts waste from processing facilities into compost and processes fish lost to mortality into bio-stimulants for agricultural use. It does not disclose wastewater quality data, making comparisons impossible. This is also the first year it has disclosed the volume of wastewater discharge, preventing historical comparisons.

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.

In 2023, risk analyses identified 27% of nutrient levels across 22 centres as high risk, with 36% categorised as medium and low risk. The company acquired licenses for "NewDepomod" software to model farming conditions aimed at minimising seabed deposition and organic matter. Environmental reports assess organic load decomposition capacities around farms. The company states it measures phosphorus and nitrogen levels at sites requiring certification. In 2023, 9% of its 55 seawater sites showed signs of exceeding carrying capacity due to anaerobic conditions. The company monitors fish feed consumption with underwater cameras to minimise losses to the seabed and surrounding environment and works to maximise feed conversion efficiency to reduce faecal matter deposition. It provides various methods and technologies for this purpose.

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 a comprehensive antibiotics policy that governs the conditions and methods of antibiotic use, including prophylaxis, metaphylaxis, and therapeutic administration. It only uses Florfenicol and Oxytetracycline, always under veterinary prescription, to avoid antibiotics critical to human health. The company aims to reduce antibiotic use by 60% by 2025. Antibiotics are not used for growth promotion, and only therapeutic usage, authorised by a veterinarian, is allowed. The company does not utilise antibiotics classified as critically important by the World Health Organisation, adhering to Florfenicol and Oxytetracycline only when necessary. To promote animal welfare and minimise antibiotic use in aquaculture, the company employs biosecurity protocols, vaccination programmes tailored to geographic disease threats, and fortified diets to boost fish immune systems. It maintains a stocking density of 17 kg/m³ and uses non-medicinal treatments for parasite management, such as freshwater baths via the Wellboat SalmoClinic and natural active ingredient products. No routine mutilation is practised, except in reproduction and genetic programmes.

The company reports using 463 grams of antibiotics per tonne of salmon produced (live weight equivalent) in 2023, an increase from 322 grams in 2022. This includes 55,937 grams of Florfenicol and 28 grams of Oxytetracycline, with 81.73% classified as of high medical importance by the WHO. Antibiotics are used to control endemic bacterial diseases like Salmonid Rickettsial Septicaemia and Bacterial Kidney Disease, which are not fully managed by vaccines. The company discloses that its antibiotic usage data undergoes third-party audit. Control Union Services S.A.C. conducted a comprehensive assessment of the Sustainability Indicators of the Global Salmon Initiative (GSI) for January to December 2023, which included a detailed review of antibiotic treatments, veterinary prescriptions, and production reports.

The company's Animal Welfare Standard, based on the "Five Freedoms" from the Worldwide Agriculture Welfare Council, addresses fish well-being by replicating natural habitats through advanced technologies. Daily monitoring of oxygen levels, temperature, and water quality ensures thermal and physical comfort. Veterinary oversight and vaccination strategies enhance fish immunity, while functional diets boost health and disease prevention. Fish stress is minimised by following strict protocols, reducing handling, and using anaesthesia during vaccinations and examinations. The company adheres to globally applicable protocols to minimise fish handling as part of its animal welfare strategy, leveraging technology for improved welfare outcomes. Handling practices are conducted under strict conditions with approved anaesthetics to minimise stress. Continuous monitoring and the integration of technology aim to eliminate unnecessary handling. The company uses percussion stunning, regarded as humane, and thermal shock, which is not, but does not disclose the implementation ratio of these methods.

The company complies with strict stocking density regulations, keeping salmon stocking density below 17 kg/m³. It also discloses comprehensive animal welfare metrics, including stocking densities, the proportion of fish at sea without lesions or wounds, and bulk oxygen uptake during transport to processing facilities.

In 2023, the company invested USD 13.1 million in environmental enrichment projects to enhance fish welfare, involving site remediation, oxygen inputs, and continuous monitoring and analysis for optimal conditions.

The company reports mortality rates for both seawater and freshwater operations in 2023, with figures of 4.95% for Atlantic salmon in seawater and 32.20% in freshwater. It provides a breakdown of incident-based mortality, citing causes such as bacterial infections, viruses, parasites, predators, treatments, life cycle issues, oxygen levels, blooms, and transportation. The company has set quantitative, time-bound targets to reduce these rates, aiming by 2024 for a seawater mortality rate of 9.16% and a freshwater mortality rate of 30%. In 2023, the seawater mortality rate rose from 4.72% in 2022 to 8.8%, while the freshwater rate increased from 25.78% to 32.20%. It has also reported its progress against targets for 2022 and 2023, with projections for 2024.

The company discloses causes and associated mortalities over the past three years but does not show a consistent downward trend. Although it uses visual aids to indicate fluctuations in fish and biomass losses due to infectious and non-infectious diseases, it does not provide direct figures. In its aquaculture operations, the company adopts non-medicinal and non-chemical measures to prevent disease outbreaks. These are part of a health and nutrition programme intended to enhance fish immunity without relying on medicines or chemicals. Strategies include vaccination, functional diets, regular personnel training, and advanced monitoring systems. The company also utilises innovative methods such as the Wellboat SalmoClinic for freshwater baths and natural products with essential oils to control parasites like Caligus.

The company has a publicly available, comprehensive human rights policy that extends to all its contractors and subcontractors. It affirms respect for all human rights recognised in the Universal Declaration of Human Rights.

The company discloses its process of assessing actual and potential human rights risks through due diligence conducted by SustainaLab. This process, building on a 2022 analysis, involves identifying and categorising risks, evaluating their severity and probability, managing impacts, and establishing improvement plans. The scope includes operations, the value chain, commercial relationships, and key stakeholders, such as contractors, suppliers, clients, consumers, and joint ventures. The company is committed to a continuous and evolving human rights due diligence process, aligned with UN and OECD guidelines, incorporating regular reviews and updates. This approach ensures proactive management of human rights risks in its operations and supply chains. Key elements include implementing robust policies and management systems, assessing and mitigating risks, monitoring effectiveness, informing stakeholders, and collaborating in reparation efforts when necessary. In 2023, the company disclosed several mitigating actions for each identified salient human rights risk in its operations and supply chain.

In its Human Rights Due Diligence process, the company identifies key issues such as work discrimination, harassment, unsafe working conditions, impacts on cultural expression, community health and safety, and food security for consumers. In its annual report, the company discloses providing remediation for human rights violations in 2023, including cases related to health and safety. Remediation included compensation for two physical injury cases, mental health support for employees, and evaluation of exceptional work hours. However, the company does not report the locations of identified risks and violations.

The company prohibits child labour, forced labour, harassment, and discrimination. It provides evidence of ensuring its workers receive a wage meeting or exceeding the cost of living. However, it does not disclose audit measures to monitor compliance for these policies in its direct operations. The company expects its suppliers to prohibit child labour, forced labour, harassment, discrimination, and to promote freely chosen employment, but only requires them comply with regional wage legislation, not a fair or living wage. Additionally, while the company offers various employee benefits such as health insurance, it fails to mention sick pay provision.

The company does not disclose the monitoring of compliance for selected policies in its supply chain through audits. The company provides a whistleblowing channel available to all employees and third parties for anonymous reporting of violations of its Code of Ethics, policies, and other norms. Additionally, it has an anonymous grievance mechanism for its supply chain. In 2023, the company received 10 reports through its whistleblowing line, four of which pertained to "mistreatment." However, these are not further categorised by violations of workers' rights or health and safety.

The company is committed to occupational health and safety, holding the ISO 45001 certification. It has joint health and safety committees at 100% of its processing sites and piscicultures, but only 1.8% of its cultivation centres. There is no evidence that the company has assessed antimicrobial resistance risk for its workforce.

The company reports a significant improvement in its Lost Time Injury Frequency Rate (LTIFR) for 2023, decreasing from 23.49 to 8.8 for employees and from 13.03 to 11.65 for contractors. Employee fatalities remained at zero, while contractor fatalities increased to one in 2023, compared to none in 2022. The company registered a total voluntary turnover rate of 38.9% for 2023 and provided a breakdown by seniority level, age, and gender.

The company allows 56.2% of its workforce to be represented by a union and supports collective bargaining by detailing the 2023 collective agreement and providing designated spaces for negotiations. However, it does not disclose specific measures to support workers' right to freely associate. Suppliers are encouraged, but not required, to respect freedom of association and collective bargaining rights.

The company discloses that collective bargaining agreements cover 52% of its workers. It employs 2,684 full-time direct workers and 2,757 subcontracted workers, making up 51% of the workforce. There are no part-time workers.

The company reports that 100% of its finished products and harvest are certified in accordance with Global Food Safety Initiative (GFSI)-recognised standards, specifically Global GAP, BRCGS, and BAP, with the latter valid until 29 January 2025. Its facilities have achieved GFSI certification, and its own plants attained Global GAP, BRC, and IFS certification by 2023. Additionally, the company requires suppliers of critical food safety materials to be certified by a GFSI-recognised programme or undergo audits by the company or independent third parties. All significant suppliers of safety-related inputs have obtained GFSI certification.

The company demonstrates a commitment to food safety by conducting regular audits. In 2023, it audited 33 facilities, including 3 piscicultures, 29 cultivation centres, 3 processing plants, and 10 cold storage facilities. This resulted in identifying 61 major and 193 minor non-conformities, all of which were resolved with 254 corrective actions, achieving a 100% resolution rate. Consumer-facing technology has been implemented through scannable QR codes, providing detailed traceability information that allows customers to access the full history and origin of farmed salmon, thereby enhancing transparency and trust in the company's products.

The company has implemented a comprehensive product recall system that includes protocols, roles, responsibilities, documentation, and disposal procedures. The system can be activated due to complaints, contamination threats, production errors, or the presence of harmful substances, ensuring continuous traceability and effective recall actions. In the reporting year 2023, the company disclosed that there were no product recalls or market bans.

The company reports no market bans for the reporting year 2023.

The company has a Sustainability Committee responsible for overseeing sustainability and ESG issues. This committee includes five directors from various organisations, with permanent participation from the General Manager and Managers of People, Sustainability, and Corporate Affairs. The committee meets quarterly with 90% attendance, addressing issues such as carbon neutrality, energy efficiency, and health and safety indicators. It reports directly to the Board of Directors, integrating sustainability into strategic and operational decisions. In 2023, the company conducted a materiality assessment following GRI 2021 guidelines. The process involved information analysis, employee workshops, and executive review, ensuring board oversight. This assessment identified 18 key issues, including sustainable raw materials, climate action, cybersecurity, and community engagement. The company discloses that two board members have sustainability experience, including the chair of the board. Elke Schwarz Kusch, an independent director, possesses extensive expertise in sustainability, reputational risk management, and strategic communication, with a notable career in corporate communications and sustainability. Additionally, Ricardo Grunwald Aravena, a director with over 40 years of experience in aquaculture, has significantly contributed to market expansion, innovation, and product development since joining the company in 1992. The company lacks a board member with specific expertise in food safety.

The company has a remuneration system to motivate executives to achieve key objectives but does not specify if it is linked to sustainability performance. It engages with the Global Salmon Initiative and SalmonChile on issues including climate change, working conditions, animal welfare, and antibiotics. The company is actively involved in industry groups such as SalmonChile, the Asociación de Productores de Salmón y Trucha de Magallanes (APSTM), the Global Salmon Initiative (GSI), and CORPAYSEN. Additionally, it is committed to establishing a management system to ensure its policy engagement activities align with the goals of the Paris Agreement.

The company's Innovation and Development department oversees Multi Xplora, an internal programme that encourages technological advancements within the value chain. In May 2023, it held its first Innovation Pitch Day, funding three winning projects. Notable achievements include Multisea's shipment of post-smolts to farms in September, the launch of the Remote Feeding Centre serving 60% of seawater farms from Puerto Montt, and the introduction of Multi X's first hybrid pontoon, Pontón Concepción. In the processing area, there have been significant advancements with the introduction of line five and sustainable cold generation systems, amounting to a $7 million investment. The company benchmarks its performance against peers using the Dow Jones Sustainability Index and the Coller FAIRR Protein Producer Index.

The company identifies competition from the protein industry, including both animal and plant-based proteins. It acknowledges the risk of losing market position due to emerging alternative proteins and potential financial losses from market contractions. Its strategy includes incorporating alternative proteins in salmon diets and creating value-added products to expand the market. The company aims to increase the percentage of Whole Fish Equivalent (WFE) tons of finished product for smoking and portions to 30% by 2024, having reached 15.1% in 2023. However, the company does not provide evidence of tracking and reporting revenue or sales related to alternative protein sources.

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