Salmones Camanchaca SA

The company aims to achieve carbon neutrality in its Scope 1 and 2 emissions by 2025 through a structured action framework. In 2023, it started developing science-based targets with 2022 as the reference year and plans to refine these objectives and outline medium- and long-term action plans throughout 2024.

The company aims to achieve carbon neutrality for Scope 1 and 2 emissions by 2025 and reduce overall emissions by over 40% from 2020 levels. A 32% reduction in Scope 1 and 2 emissions has been achieved so far. Clarification in future disclosures regarding the coverage of overall emission reduction targets would be beneficial. The company mandates that fish feed suppliers establish GHG emission reduction targets according to the Science Based Targets initiative by the end of 2023. Additionally, in 2023, the company began developing science-based targets for all emission scopes, using 2022 as a reference year.

The company aims to achieve carbon neutrality in its Scope 1 and 2 emissions by 2025, but has not committed to setting a Science Based Targets initiative (SBTi)-validated Net Zero target. In 2023, it will begin defining science-based targets using the FLAG methodology for alignment with a 1.5°C scenario, based on 2022 data. Plans for 2024 include refining these targets and developing long-term action plans.

The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming.

The company transitioned to renewable energy for its electricity contract in 2020, securing non-conventional renewable power for seven years. In 2022, it certified a forest management plan for its Hueñu Hueñu property, aiming to capture 7,000 tons of CO2 annually through native forest regeneration. By 2023, it replaced diesel at its Petrohué hatchery with renewable energy from the Hidro Elena hydroelectric plant, achieving a 72% emissions reduction and reducing noise pollution.

In FY2023, the company reports Scope 1 emissions of 23,685 tCO2 and Scope 3 emissions of 220,105 tCO2. Scope 2 emissions were 1,037 tCO2 market-based and 5,023 tCO2 location-based.

In its 2023 GHG Inventory, the company reports Scope 1 emissions from grow-out farms and hatcheries, based solely on fuel consumption, as 13,593 tCO2e and 2,772 tCO2e, respectively. Total emissions for 2023, including feed production and animal husbandry, are stated as 244,827 tCO2e, with 135,166 tCO2e attributed to feed production via suppliers. However, emissions specific to animal farming are not disaggregated. Additionally, the company does not disclose GHG emissions from land-use change.

The company has not responded to the CDP Climate Change questionnaire for 2023. However, its greenhouse gas (GHG) inventory has been audited and verified by Deloitte.

Between FY2022 and FY2023, the company reports an increase in absolute total emissions (Scopes 1, 2, and 3) from 207,486 tCO2e to 244,827 tCO2e. Over the time span from FY2020 to FY2023, emissions have risen by 0.18% from 244,378 to 244,827 tCO2e, equating to an average annual increase of 0.06%. In particular, emissions from feed production increased from 116,511 tCO2 to 135,166 tCO2 between FY2022 and FY2023. In 2023, the company disclosed 23,685 tCO2 in Scope 1 emissions, 1,037 tCO2 in Scope 2 emissions (market-based), and 220,105 tCO2 in Scope 3 emissions.

The company does not disclose information on a climate-related scenario analysis.

The company acknowledges several risks and related mitigation measures, although not all are fully addressed. Price volatility for raw materials like rapeseed oil, soy, and wheat, influenced by currency changes, weather, and global politics, is highlighted. To mitigate this risk, the company uses contracts with quarterly price adjustments and employs technological tools to improve feed efficiency. Climate change-related risks, including ocean temperature variations, algae blooms, storm surges, and reduced oxygen levels, are recognised. The company mitigates these impacts by diversifying farming sites, particularly prioritising the Aysén region, and employing technologies such as well boats, oxygenation, and upwelling systems. Veterinary and medicine costs are anticipated to rise by 20%, driven by increased preventative product prices and environmental health challenges. The company manages these costs through improved farming practices, focusing on reproductive management, biosecurity, stress management, and optimal farm site selection. Rising energy costs are acknowledged, with mitigation through renewable energy transition, the implementation of an Energy Management System, and energy-saving targets. The company aims to save 13,540,148 kWh by December 2024. Although Chile does not currently impose emissions taxes, the company is attentive to potential future implications for strategic planning. Extraordinary mortalities, including those caused by algae blooms and sea lion attacks, led to US$ 3.6 million in costs in 2023.

The company has acquired commitments to annual measures of five sustainability indicators as part of its renegotiated long-term loans. These include achieving carbon neutrality across Scopes 1 and 2 by 2025 and reducing total emissions by over 40% from 2020 levels. In 2023, the company incurred US$ 3.6 million in direct costs due to extraordinary mortalities and related expenses, such as algae blooms and sea lion attacks, reflecting a US$ 2.7 million reduction from the previous year.

The company sources soy for animal feed but does not disclose the percentage of feed ingredients this represents. 100% of soy is not sourced from deforestation-free areas or suppliers. The company has not undertaken a deforestation-related risk assessment to identify high-risk sourcing locations.

The company ensures that all soy used is 100% RTRS certified, requiring either RTRS or Proterra certification from suppliers. The company aims for all fish feed to be certified as Deforestation and Conversion Free by 2025. The RTRS standard stipulates cut-off dates of May 2009 for ceasing the clearing or conversion of native vegetation, and June 2016 for all natural lands.

The company reports that 100% of its soy is either RTRS certified or covered by RTRS credits.

In 2023, the company used soybeans that were fully RTRS certified, with progress data verified by a third party. However, it did not disclose information in the CDP Forests Questionnaire, resulting in an F score.

The company requires suppliers to have RTRS or ProTerra certification for soy and RSPO certification for palm oil to ensure sustainability, along with compliance with its Suppliers Code of Conduct, which includes guidelines for biodiversity conservation and minimising ecosystem impact. Since 2021, the company has prioritised sustainability through agreements with feed suppliers BioMar and Skretting, focusing on managing environmental and social risks in its supply chains. By 2023, it expanded its integration of food batch quality data from Cargill, Skretting, and BioMar with external data, driven by digital transformation. To ensure transparency, the company mandates traceability tools for suppliers to disclose the sourcing details of vegetable raw materials, ensuring all fish feed procured is sourced from suppliers certified for sustainable soy, palm oil, and fishing practices.

The company reports that 100% of its soy volume is either RTRS certified or covered by RTRS credits, ensuring compliance with sustainability standards. Suppliers are required to provide traceability tools for fish and vegetable raw materials, with all fish feed meeting RTRS criteria. However, the company does not implement its own traceability system.

The company requires feed suppliers to complete a sustainability assessment form covering restorative land use and biodiversity practices. This information is considered when purchasing feed volumes. Suppliers must also detail their practices for preventing ecosystem degradation and biodiversity loss in their proposals.

The company reports that 100% of its salmon production is certified under the Best Aquaculture Practices (BAP). Additionally, it provides details of farming sites certified by BAP, Global GAP, and ASC, including their locations.

The company discloses the composition of its fish feed: 1.10% fish meal trimmings, 0.36% fish oil trimmings, 51% raw materials of vegetable origin, 22% raw materials of animal origin, 4.1% fish meal, and 6.4% fish oil. In 2023, 58% of salmon feed fish oil was IFFO Marine Trust certified, with 18.5% MSC certified. For fishmeal, 68% was IFFO Marine Trust certified, and 21% was MSC certified. All soy used was either RTRS certified or backed by RTRS credits. The company provides forage fish dependency ratios (FFDR) for fishmeal (FFDRm) and fish oil (FFDRo) over six reporting periods. In 2022, FFDRo was 1.54 and FFDRm 0.22, decreasing to 1.48 and 0.20, respectively, in 2023. These figures are calculated using ASC methodology and pertain exclusively to operations in Chile.

In the last reporting period, 18.5% of the fish oil used in the company's salmon feed was MSC certified, while 58% obtained IFFO Marine Trust certification. For fish meal, 68% was IFFO Marine Trust certified and 21% had MSC certification. In 2023, the company reported an improvement in the Feed Conversion Ratio (FCR), decreasing from 1.17 in 2022 to 1.16. This was due to reduced meal inclusion and increased use of diets with lower percentages of fishmeal and fish oil, including the incorporation of trimmings in Coho farms. The company has noted a decline in FFDRm, dropping from 0.40 in 2021 to 0.22 in 2022 and further to 0.20 in 2023. Similarly, FFDRo declined from 1.81 in 2021 to 1.54 in 2022, and then to 1.48 in 2023. The company disclosed that the total volumes of fish meal and oil used were 9,450 tonnes and 64,252 tonnes, respectively. Additionally, it reported that 1.10% of fish meal and 0.36% of fish oil are from trimmings. The company provided six years of data on the Feed Conversion Ratio (FCRe), calculated as kilograms of feed per kilogram of fish produced, using the formula: Total feed kg / (Final biomass kg - Initial biomass kg).

The company has not disclosed any collaborations with other industry entities to develop new ingredients beyond existing high-risk ones. While it acknowledges reusing organic waste from fish silage, frames, and trimmings to produce fishmeal and fish oil for various industries, it does not disclose a strategy to increase the use of alternative feed ingredients such as algae, insects, or single-cell proteins. The company's risk assessment considers the availability of fish feed materials and feeding practices, noting that currency fluctuations and seawater temperature changes can impact key ingredients like fish oil and fishmeal. To address this, the company utilises technology to minimise feed waste on the seabed, thereby improving feed conversion and efficiency.

The company reports a total R&D expenditure of $765,754 for the reporting period but does not disclose the proportion allocated to the development of novel ingredients. In 2023, the EPA+DHA content of its salmon was 0.98 g per 100 g. Furthermore, the company does not disclose a target for increasing the use of alternative feed ingredients based on its risk assessment.

The company reports sea lice counts for Atlantic Salmon as 2.5 for FY2023. It has also published counts from 2013 to 2023 on the GSI website, which displays average monthly compliance levels.

In 2023, the company treated 44% of its fish with lufenuron in freshwater to control Caligus, providing up to six months of protection and reducing antiparasitic use at sea. Since 2019, it has used hydrogen peroxide baths for environmentally friendly antiparasitic control, which decompose quickly into harmless substances. Additionally, its Salmoclinic wellboat effectively manages sea lice without environmental harm.

The company implements fish escape prevention plans in accordance with international standards and regulatory requirements, aiming for zero fish escapes across the value chain. It reported no escape incidents in 2022 or 2023, making financial costs from escape events non-applicable for 2023. The company employs measures such as physical barriers, seal nets, sturdy cages, and staff training. It conducts site-specific risk assessments and ROV inspections of aquaculture structures, including net tension checks for stability.

The company is committed to biodiversity conservation with certified strategies for evaluating and reducing environmental impacts, including protection for IUCN Red List species. It has a Biodiversity and Environment Commitment, provides employee training on wildlife, and records marine species interactions. The company requires its operations and tier 1 suppliers to assess each facility, identify threatened species, and design measures to prevent and mitigate impacts on them. It also organises beach clean-ups and has contingency plans for various environmental incidents. The company is aligned with ASC, BAP, and Global GAP certifications, and conducts Environmental Impact Assessments at its centres to protect local biodiversity. However, it has not provided sufficient details on its strategies for managing or mitigating biodiversity impacts through research initiatives. Furthermore, while contingency plans are mentioned, their specifics are not disclosed, and there is no timebound target to eliminate human-wildlife conflict.

The company acknowledges algal blooms as a significant threat to its operations and plans to equip its farming sites with advanced technologies to mitigate the impacts of stronger currents and algal blooms. Measures include transitioning to alternative species, implementing emergency oxygenation systems, and utilising bubble curtains. It also maintains backup sites and well boats for transferring live fish, which were fully operational in 2023. In line with Chilean regulations, each salmon farm must have a contingency plan for harmful algae blooms, approved and published by the Chilean Environmental Assessment Service.

The company conducted a water risk assessment through WRI and identified two facilities, including the Tomé processing plant and the Polcura Hatchery, in areas of high water stress. Other facilities in southern Chile are in areas of low water stress. It reported a total water consumption of 31,275,140 m3 in the reporting year and has established a water management plan at its processing plants. Measures include a water recirculation system at Petrohué Fish Farm, a desalination plant at the San José plant, and the installation of quick-closing valves and electrical water cutoff sensors in Tomé.

The company has set a target to reduce water consumption at its Tomé processing plant by 5% by 2024, using 2023 as the baseline. However, it has not established a time-bound target for reducing total water withdrawals across its facilities for the reporting year.

The company disclosed a total water extraction of 31,275,505 m³ for FY2023, with surface water accounting for 28,389,659 m³, groundwater 2,744,376 m³, seawater 113,902 m³, and municipal supplies 27,568 m³. Water consumption includes 9,159,733 m³ in low-water stress areas, while the Polcura Hatchery and Tomé Processing Plant in high-stress regions consume 21,767,169 m³ and 348,238 m³, respectively. Water-related capital expenditures total USD 70,000, with operational expenditures at USD 3,223,548. The company's 2023 Annual Report, including water data, was audited by Deloitte. However, it did not report water-related data to the CDP, resulting in an F score. Between FY2022 and FY2023, water consumption decreased from 31,608,143 m³ to 31,275,140 m³, while water withdrawal also declined from 31,658,254 m³ to 31,275,505 m³.

The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.

The company reports a water footprint of 1.44 m3 per kilogram of salmon produced, with 20% of ingredients sourced from countries experiencing high to extremely high water stress. However, it does not specify the percentage of each ingredient from these regions or clarify whether this figure includes only raw feed materials.

The company, using the WRI Aqueduct tool, has identified two facilities in high-water stress areas, including its main hatchery, the Polcura Fish Farm. The remaining facilities are in low-risk areas in southern Chile. However, the company has not disclosed the proportion of animal protein produced in water-stressed areas. While there is no specific water consumption target for its fish farms, the company has a Water Management Policy applicable to all facilities. This policy underscores the importance of effective water resource management and outlines measures to reduce consumption and improve efficiency, such as calculating water footprints. The company utilises water recirculation systems at its main hatchery for water conservation compared to traditional open-flow systems. Additionally, it has installed flow meters to monitor usage and aims to ensure discharged water meets regulatory standards.

Since 2021, the company has engaged in a Clean Production Agreement aimed at promoting a circular economy and addressing climate change within the aquaculture industry. This initiative, led by the industry association SalmonChile and in partnership with the Chilean Climate Change Agency, includes calculating and publicly disclosing corporate water footprints. This data is available on the company's website.

In 2023, the company reported no violations of water quality limits or regulations. Based on the WRI's risk assessment, two of its facilities, the Tomé Processing Plant and the Polcura Fish Farm, are in areas of high water stress. However, none of its facilities are in regions of high water risk from a quality perspective. The company has not established targets related to either the quality or volume of wastewater.

The company reports the quality of water discharged from its processing sites and hatchery in 2023, detailing measures of oils and fats, suspended solids, Biological Oxygen Demand (BOD), nitrogen, and phosphorus, disaggregated by site. In 2023, it discharged 31,400,512 m3 of water, comprising 30,702,984 m3 into surface water, 669,960 m3 into seawater, and 27,568 m3 into municipal systems. Deloitte conducted a limited assurance engagement to review the data's consistency in the 2023 Annual Report according to the Global Reporting Initiative (GRI) Standard, which includes water effluent information. The company did not submit data to the CDP, resulting in a score of F.

The company reports that 35% of sludge from the Tomé RILes treatment plant was composted by expert firms, while all sludge from the Petrohué Hatchery and the San José primary plant was either composted or converted into humus through internal systems. Suspended solids at the Tomé facility decreased from 36.7 mg/l in FY2022 to 31.3 mg/l in FY2023. In contrast, at the San José facility, suspended solids increased from 89.4 mg/l to 161.0 mg/l over the same period. The Biological Oxygen Demand (BOD) and Nitrogen metrics improved at the hatchery, though phosphorous emissions rose in 2023. The company also reports a reduction in wastewater discharge, from 31,727,205 m3 in 2022 to 31,400,512 m3 in 2023.

The company mandates in its Sustainable Fish Feed Policy that suppliers demonstrate best practices for pesticide and fertiliser use to minimise environmental impact. All feed suppliers must adhere to proper fertiliser management and inform the company about its integration into the feed production process, including any additional costs. However, the company does not disclose any guidance, support, or incentives provided to suppliers on nutrient management and fertiliser application. Moreover, it has not disclosed any partnerships with third parties related to its sourcing or farming strategies, specifically concerning nutrient pollution or fertiliser usage.

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 reports that none of its farm sites are located in areas with high water quality risk, based on a World Resources Institute assessment. However, it fails to disclose the metrics or methods used to measure organic or inorganic loading around farms. While the company has signed a Clean Production Agreement through Salmon Chile, committing to set inorganic solid waste recovery targets, it does not provide specific metrics for achieving these goals. It conducts nutrient monitoring at seawater sites for ASC certification. The company has not disclosed the percentage and location of sites that exceed the local environment's carrying capacity by operating country. In 2023, 68% of its sites were left fallow between production cycles. Additionally, the company employs underwater cameras to monitor feeding and reduce feed waste.

The company engages with local communities surrounding its operations through meetings and presentations on new sites and projects. It operates a complaint system, receiving and resolving 21 community complaints in 2023. Additionally, the company monitors two water quality parameters to assess the effluent from the Petrohué Hatchery, with data accessible to the community. It also publishes a monthly environmental newsletter with updates on the effluent status.

The company's antibiotic policy prohibits the use of antibiotics for growth promotion, routine prophylactic treatments, and routine use. Antibiotics are administered only with a veterinarian’s clinical diagnosis. The policy covers all operations and includes measures such as vaccination programs, sea lice control, optimal environmental conditions, reduced stocking density, and functional diets to reduce disease incidence and antibiotic use. The company aims to decrease antibiotic use by 50% by 2025, using 2017 as the baseline, and participates in initiatives like the PROA program and the Pincoy Project to optimise antimicrobial use and explore alternatives. Additionally, some farms have obtained antibiotic-free certifications, and the company does not engage in routine mutilation.

The company reports antibiotic use in industry-standard units, specifically grams of Active Pharmaceutical Ingredient (API) per biomass produced. In 2023, antibiotic use for Atlantic and Coho salmon decreased from 452.4 grams API per tonne of biomass in 2022 to 312 grams in 2023. Seventy-two percent of the harvested biomass was treated with antibiotics, with 96% using florfenicol and 4% using oxytetracycline, both classified as highly important by the WHO. Antibiotic use is primarily attributed to managing Rickettsial Salmon Syndrome (SRS). To address this, the company has integrated the Pincoy Project and the Yelcho Project, which focus on developing vaccines and alternative solutions. The company's antibiotic usage data is verified by external auditor Deloitte.

The company prioritises animal welfare through a comprehensive policy aligned with the Five Freedoms. This includes ensuring thermal and physical comfort, health and pain monitoring, and reducing fear and stress via handling protocols. It maintains optimal environmental conditions, humane slaughter practices, a genetic programme for fish resistance, and continuous staff training on biosecurity and animal welfare. The company's animal welfare policy includes a monitoring programme for welfare indicators, comprehensive handling protocols to enhance fish health and welfare, and training for personnel involved in production and healthcare. It has disclosed the use of a pneumatic stunner for fish.

The company reports a farming density of 9.6 kg/m³ for Atlantic Salmon and 6.4 kg/m³ for Coho Salmon, both below the set thresholds. It complies with Chilean regulations, which mandate maximum densities of 17 kg/m³ for Atlantic Salmon and 12 kg/m³ for Coho Salmon. The company monitors animal welfare indicators, including fish mortality before slaughter, health and disease metrics, injuries, wounds, and density.

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

The company reports a 2023 mortality rate of 4.99% for Atlantic Salmon and 10.07% for Coho Salmon at sea, with freshwater salmon and Coho salmon showing mortality rates of 13.7% and 6.8% respectively. The main causes are identified as oxygen deprivation from algae blooms, mechanical damage, and transport issues. However, the company does not disclose any time-bound targets to reduce mortality rates in sea or freshwater operations.

In 2023, the company reports no disease outbreaks or increased mortality linked to transmissible agents of unknown origin, but does not disclose the total number of disease outbreaks. It employs non-medicinal and non-chemical strategies to prevent disease, including regular veterinary check-ups, daily removal of mortalities, maintaining optimal environmental conditions, use of vaccines during freshwater stages, functional diets for immune enhancement, and genetic improvements.

The company's Human Rights Policy includes a high-level commitment to respect human rights in alignment with the Universal Declaration of Human Rights and ILO conventions.

From 2021 to 2022, the company collaborated with SustainaLab to conduct human rights due diligence across its workforce, subcontractors, and suppliers, identifying and prioritising significant risks and considering affected stakeholders. The company conducts supplier evaluations, including audits, to assess ethical processes and human rights compliance. Although the company states evaluations may lead to corrective action and improvement plans, it lacks evidence of providing support for such implementations. In 2023, 26% of suppliers underwent external audits, while 80% completed self-assessments. However, while the company's operations are audited by ASC and BAP for human rights, it does not specify further actions if risks are identified. During the reporting year, the company provided human rights training to 8% of its security personnel. However, it has not demonstrated how it mitigates risks or provides remediation for people and communities within its supply chain.

The company has identified potential human rights risks within its operations and supply chain, including issues related to health and safety, inclusion, decent work, forced and child labour, living standards, and privacy protection. In 2023, it required a supplier with low human rights compliance scores to implement an action plan to improve freedom of association and collective bargaining rights. However, the company does not disclose the locations of identified risks or provide evidence of remediation efforts from its human rights due diligence. Additionally, details of the action plan and its implementation status have not been disclosed.

The company prohibits discrimination, child labour, forced labour, and harassment or abuse. It states it provides a living wage to all employees, determined using the Anker method. Regular internal audits are conducted to ensure adherence to the Code of Conduct, including these policies. The company requires its suppliers to prohibit discrimination, child labour, forced labour, and harassment or abuse. While it monitors suppliers' employees' salaries, it does not confirm this ensures the provision of living wages. Additionally, the company adheres to Chilean labour laws concerning sick pay, offering workers a subsidy covering 100% of salary for illness exceeding 11 days. However, for shorter absences, salaries are paid minus three days, potentially not meeting the additional minimum or living wage standards recommended by the CIPD.

The company's supplier assessment process involves evaluating suppliers against a Supplier Code of Conduct covering ethics, human rights, occupational health and safety, community, and environmental concerns. Critical suppliers undergo external audits to ensure compliance and identify improvements, with 30 such audits conducted in 2023 for suppliers with significant ESG risks, representing 26% of those evaluated. The company has established a communication channel for directors, executives, employees, stakeholders, and third parties, including suppliers, to report behaviours or incidents potentially violating the crime prevention model. Although the company claims the channel supports anonymous reporting, inspection reveals that complainants are required to provide identifiable information, such as name and tax code. This requirement for a valid RUT code complicates reporting for suppliers outside Chile. In 2023, the company received eight grievances through its official complaints mechanisms, with none concerning human rights. It is advised that the company further categorises these reports for clarity.

The company has issued a general statement affirming its commitment to safeguarding employee health and safety. It is working to enhance working conditions, protect employee health, and strengthen preventive safety measures. Two of its facilities, the Tomé plant and the San José Primary plant, have achieved ISO 45001 certification. The company reports having an OHS Council and Joint Committees that meet monthly to oversee reportability and prevent retaliation in OHS matters. While it states that at least three facilities have Joint Committees, the percentage of facilities covered by such committees is unclear. The company has not disclosed any information on assessing or discussing antimicrobial resistance risk for its workforce.

The company reports a Lost Time Injury Frequency Rate (LTIFR) of 10.82 per million hours worked in 2023, up from 6.2 in 2022. Historically, the LTIFR was 11.39 in 2020 and 12.47 in 2021. The company recorded zero fatalities in both its own workforce and subcontractors from 2022 to 2023. It discloses a turnover rate of 27.8% for 2023, disaggregated by seniority.

The company supports the right to freedom of association in its human rights policy, with 603 employees, or 31% of its workforce, as union members. In 2023, it reported having three unions and two collective bargaining agreements but did not provide specifics about these agreements or measures to support freedom of association. The company expects its suppliers to respect their employees' rights to collective bargaining and union membership.

The company reports that 603 employees are union members, comprising 31% of the workforce, with 83 located at farming sites and 520 at the Tomé processing plant. It has two collective agreements in place. The company provides a breakdown of employment types and gender, noting that 67.63% are on indefinite contracts, 29.67% on fixed-term contracts, and 2.69% on task-based arrangements. Additionally, 94.5% of employees work full-time. However, the number of subcontracted workers used in the reporting year is not disclosed.

The company holds multiple food safety certifications, including GlobalG.A.P. and BAP, both recognised by the Global Food Safety Initiative (GFSI). It reports that all company plants and 50% of Salmones Camanchaca's contract manufacturing suppliers are BAP-certified under GFSI standards. Furthermore, 100% of its food suppliers obtain GFSI-recognised certifications, such as GlobalG.A.P. However, it is unclear if this certification is a requirement. The company collaborates closely with its feed suppliers to achieve these certifications.

The company conducts annual internal audits alongside BAP and ASC CoC audits at every primary and secondary processing plant. In the most recent audits, no major non-conformities were identified. The San José plant had one minor non-conformity, and the Tomé plant had three, all of which were resolved, resulting in a 100% corrective measures rate for minor non-conformities. The company discloses information on non-conformities and corrective actions. It has implemented a traceability system tracking processes from raw material acquisition to production by integrating various data sources. However, there is no direct evidence that this system addresses food safety issues or is accessible to consumers, as it primarily serves internal purposes and compliance with certification audits.

The company has an effective recall policy for managing non-conforming products, led by the Quality Assurance manager who coordinates with logistics and notifies Sernapesca. It includes a recall evaluation team, product recovery management, and implementing corrective actions, with biannual product recovery drills. In 2023, the company reported no recalls.

The company experienced a market ban in Russia from February to June 2023 due to the detection of Basic Blue 7, likely due to cross-contamination. Counter-samples tested in both Russia and Chile indicated negative results for Basic Blue 7. Exports to Russia were suspended but corrective measures were implemented, resulting in no significant financial impact.

The company's Sustainability Committee, which includes the Vice President, key executives, senior management, and a Board member, meets quarterly to oversee the Sustainability Strategy. It ensures the implementation of initiatives and reports on environmental and social matters to the Board. The committee also supports and tracks progress towards the company's carbon neutrality goals. For its 2023 annual report, the company conducted a double materiality study to determine its primary positive and negative business impacts. This study analysed stakeholder inputs to assess financial and impact materiality using ESG standards such as GRI, SASB, DJSI, and the Coller FAIRR Protein Producer Index, alongside academic research and a comparative study of leading ESG companies. Key material issues identified include Innovation and R&D, Health and Occupational Safety, Employee Development, Responsible Supply Chain, Responsible Community Engagement, Food Safety and Nutrition, and Climate Change Adaptation. The Sustainability Committee validates these material issues. The company discloses Board members with sustainability expertise, such as Ricardo García Holtz, formerly Co-Chairman of the Global Salmon Initiative, and Joaquín Villarino Herrera, who has experience with the Presidential Advisory Commission for the reform of the Environmental Assessment System, the Energy 2050 Commission, and the Decarbonization Bureau. Several Board members have food industry experience; however, their expertise in food safety is unclear. The company does not report having a Board member with expertise in product development and innovation.

The company provides performance-related pay to the CEO and senior executives linked to sustainability objectives, with climate-related KPIs comprising 5-10% of the bonus and health and safety metrics carrying a weight of 10%. The company engages with various national and international organisations to enhance sustainability in the salmon-producing industry. It participates in SalmonChile's APL initiative and has signed the Clean Production Agreement, focusing on climate change, the circular economy, and waste reduction strategies. It is also involved in initiatives such as the Pincoy Project, the Yelcho Project, and the Chilean Salmon Antibiotic Reduction Program, which aims to reduce antibiotic use by 50% among members. Furthermore, the company collaborates with SalmonChile to advance gender equity in the sector. The company is a member of trade organisations including the Chilean Salmon Industry Association AG, SalmonChile, the Global Seafood Alliance, and the Global Salmon Initiative. It reports that these associations do not engage in lobbying on energy issues contrary to the Paris Agreement, however, there is no evidence of a commitment to align its policy engagement with restricting global temperature rise to 1.5°C.

The company’s R&D department, established in 2017, focuses on four areas, including sustainability and environmental quality. An example of its work is the development of upwelling systems to improve fish welfare in adverse conditions. The company discusses its ESG performance in indexes such as the Dow Jones Sustainability Index (DJSI) and the Coller FAIRR Protein Producer Index, highlighting its consideration for sustainability relative to competitors.

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.