About Lerøy

Our focus areas

For Lerøy Seafood Group as a corporation, maintaining a constant focus on areas where we have the greatest influence in terms of sustainability is essential.

Based on a critical evaluation of the value chain and our processes, we have concluded that we currently have the greatest influence within our work on the different areas related to our fish-farming activities. A major share of our efforts related to the environment and sustainability will therefore focus on fish farming.

Quality and sustainability policy

We live by what is produced in the ocean and rely on sustainable management of resources. This enables us to produce and sell quality seafood in the future. Through close cooperation with professional bodies, customers and suppliers, we will deliver: a safe working environment, high professional competence, the right quality and sustainable solutions throughout the value chain.

Our values

The values of the company are to be creative, honest, open and responsible.

Value chain analysis sustainability

Download our value chain analysis regarding sustainability below.

Composition of the highest governance body

Chair of the Board

Chair of the Board Arne Møgster (He/him) (1975) was elected to the board at the annual general meeting on 26 May 2009. He holds a Master of Science (MSc) in International Shipping and a Bachelor degree in Business and Administration.

Arne Møgster is the CEO of Austevoll Seafoood AS, and a board member for a number of companies in the Austevoll Seafood Group. Prior to joining Austevoll Seafood ASA in 2006 - Arne Møgster earned himself versatile experience working within fishing, shipbuilding and the offshore supply market. He was the Managing Director of Norskan AS for 3 years, with one year based in Brazil.

Through his position as CEO and board member in listed companies for more than a decade Arne has extensive knowledge of a broad range of subjects including wide experience in working with ESG.

Austevoll Seafood is the majority owner in Lerøy Seafood Group, and the majority owner in Austevoll Seafood is Laco AS. Arne Møgster is a shareholder in Laco AS, and indirectly holds shares in Lerøy Seafood Group ASA. There are some transactions between companies in the Austevoll Seafood Group and Lerøy. Such transactions take place according to the arm’s length principle and are described in the company’s annual report.

Board members

Board memeber - Siri Lill Mannes (She/her) (1970) was elected to the board at the annual general meeting on 23 May 2018. Siri Lill holds a Master degree in history, and has also studied Russian and political science. She also completed the Armed Forces’ course in Russian (officer's training school) and studied political science in Georgia, USA, on a one-year Rotary Club scholarship.

In 2017, she completed the Senior Executive Coure at the Norwegian Defence University College (Sjefskurset, Forsvarets Høyskole). Having worked as a TV host and entrepreneur, Siri Lill Mannes has an extensive background in journalism. She started working for TV2 in 1992, when the channel was founded. Since 2010, she has been director of the communications company SpeakLab AS, where she is also a partner and founder.

Through her positions and experience Siri has extensive knowledge within among others international politics and communication. Siri Lill regularly moderates conferences on security, digitalisation and cybersecurity. Since 2015, she has been moderator for the National Security Conference by the Norwegian National Security Authority (NSM).

Siri Lill Mannes is an independent director in the board. She owned no shares in the company as of 31 December 2023.

Board member Didrik Munch (He/him) (1956) was elected to the Board at the annual general meeting on 23 May 2012. He has a law degree from the University of Bergen. Didrik Munch qualified as a police officer at the Norwegian Police University College in Oslo and held a number of positions within the Norwegian police force (1977–1986).

From 1986 to 1997, he worked in finance, primarily in the DnB system, where he ultimately joined corporate management as Director for the DnB Corporate Customer division. From 1997 to 2008, Didrik Munch was CEO of Bergens Tidende AS. He was CEO of Schibsted Norge AS (formerly Media Norge AS) from 2008 to 2018 and is currently self-employed. Didrik Munch has served on several boards in a number of companies, both as chairperson and ordinary member.

He is currently Chairman of the Board for Storebrand ASA, Solstrand Fjordhotell Holding AS, and NWT Media AS and a board member for Grieg Maritime Group AS, SH Holding AS and Jonstadveien 6 AS. Didrik Munch is currently chair of the audit committee in Lerøy Seafood Group ASA. He has far-reaching knowledge also within ESG, through his extensive experience from both the management and board of some of Norway’s largest companies. Didrik Munch is an independent director in the board. He owned no shares in the company as of 31 December 2023.

Board member Britt Kathrine Drivenes (She/her) (1963) was elected to the board at the annual general meeting on 20 May 2008. She holds a Bachelor of Business Administration from the Norwegian School of Management (BI) and a Master of Business Administration in Strategic Management from the Norwegian School of Economics (NHH).

She is CFO of Austevoll Seafood ASA and also a board member in a number of companies in the Austevoll Seafood Group. She has also been part of the Board in FHF – Norwegian Seafood Research Fund since 2019. FHF’s goal is to create added value to the Seafood industry through industry-based research and development.

Britt Kathrine Drivenes has extensive experience from the fish industry as well as financing, accounting and ESG. She is the Board member who is responsible for overseeing ESG related issues. Britt Kathrine Drivenes owns shares indirectly in Lerøy Seafood Group ASA, as a shareholder in Austevoll Seafood ASA.

Board member Karoline Møgster (She/her) (1980) was elected to the board at the annual general meeting on 23 May 2017. Karoline Møgster has a law degree from the University of Bergen (Candidata juris). She also has a Master of Science in Accounting and Auditing (MRR) from the Norwegian School of Economics. She worked as a lawyer with Advokatfirmaet Thommessen AS and is now employed as a lawyer for the Møgster Group. Karoline has extensive experience within Corporate Governance and corporate law as well as accounting and financing.

She is a board member for Laco AS, and Fiskebåt South. Karoline has board experience from other listed companies. Fiskebåt is an interest and employer organisation for the Norwegian ocean-going fishing fleet, and represent the majority of ocean-going fishing vessels.

Laco is the ultimate parent company of Lerøy Seafood Group. There are some transactions between companies in the Austevoll Seafood Group and Lerøy. Such transactions take place according to the arm’s length principle and are described in the company’s annual report. Karoline Møgster indirectly owns shares in Lerøy Seafood Group ASA as a shareholder of Laco AS.

Board member Hans Petter Vestre (He/him) (1966) was elected employees’ representative to the board at the annual general meeting on 24 April 1995. Hans Petter Vestre is a graduate of the Norwegian College of Fishery, University of Tromsø. He started as a sales manager at Hallvard Lerøy AS in 1992, he is today a team manager at Lerøy Seafood AS.

Hans Petter Vestre has owns 1,200 shares in the company as of 31 December 2023. Hans Petter has received training within both ESG and IT security as an employee in Lerøy.

Board member Are Dragesund (He/him) (1975) is an investment professional and Co-head of Ferd Capital at Ferd AS, one of Norway’s largest family owned investment companies. Prior to joining Ferd in 2015, Are worked at The Norwegian Ministry of Finance, Cardo Partners and The Boston Consulting Group. He is a Norwegian national and graduated from the Norwegian School of Economics (NHH) in 2000. From his career as management consultant and investment professional, Are has extensive experience from the consumer goods and maritime industries. His core competencies are within strategy, finance, M&A and capital markets. As a former board member of IT security specialist firm Mnemonic AS, Are has a good command of IT security. In addition to Lerøy Seafood Group ASA, Are is currently a board member of Nilfisk A/S, Mestergruppen AS, Brav AS and. He has previously served on the board of Norkart AS. Are Dragesund is an independent director in the board. He owned no shares in the company as of 31 December 2023.

None of the board members represent an underrepresented social group (GRI definition: under-represented social group group of individuals who are less represented within a subset (e.g., a body or committee, employees of an organization) relative to their numbers in the general population, and who therefore have less opportunity to express their economic, social, or political needs and views).

Collective knowledge of the highest governance body

Board members are continuously acquiring new ESG-related knowledge in order to stay up-to-date with new and existing requirements, latest trends and best practices in the ESG-field. Continuous learning is essential to be able to identify new challenges and opportunities. All of the Board members are participating in various trainings, workshops, conferences and networking arrangements.

Role of the highest governance body in overseeing the management of impacts

Both the Board and Management Team are involved in developing, approving and updating the organization's strategy, policies ang goals related to sustainable development.

The Board has delegated carrying out the day-to-day process of identifying and assessing actual and potential impacts on the economy, environment and people as well as determination of material topics for reporting to ESG & Quality department.

ESG & Quality department created and overview of the Group’s stakeholders and identified a list of actual and potential sustainability impacts. The list was distributed to relevant stakeholders and thay were asked to assess the significance of the impacts. The most significant impacts for reporting were prioritized to determine which topics are material.

The Board and the Management Team are reviewing both the effectiveness and the outcome of the process annually.

From 2024 Lerøy has to report according to The Corporate Sustainability Reporting Directive (CSRD) which requires companies to report on the impact of corporate activities on the environment and society.

Double materiality assessment is a central part of CSRD (ESRS – European Sustainability Reporting Standards). The ESRS breaks double materiality into two categories: Impact materiality (the “inside-out” perspective) and Financial materiality (the “outside- in” perspective).

Lerøy is currently preparing its double materiality assessment.

For more detailed information on stakeholder engagement, please, visit the chapter on Stakeholders.

Delegation of responsibility for managing impacts

Each member of the Management team is responsible for an area/an operational segment. This includes responsibility for overseeing the organization’s impacts on the economy, environment, and people. All companies in the Group have defined sustainability (ESG) related KPI’s and these are managed on local level.

Day-to-day follow-up of sustainability related KPI's is performed locally. Monthly/ quarterly/ annual review of reported information is carried out by ESG & Quality department. Organization’s impacts on the economy, environment, and people are reviewed by the Management Team monthly. The Board is reviewing impacts related to economy, environment, and people at every meeting. The Audit Committee is reviewing impacts on the economy, environment, and people in detail four times a year.

Role of the highest governance body in sustainability reporting

Both the Board and the Management Team review and approve both the list of material topics as well as reported information. The material topics and reported information (on high-level) is presented to and approved by the Board. The information is presented and distributed to the Board by the Head of ESG & Quality. The presented information is being reviewed by the Board prior to it being approved. Corrections and amendments are made if necessary.

Conflict of interest

The company has developed a Board of Director's Guidance and Working procedure. The document is prepared in cooperation with both the Board and the Chair of the Board. The procedure contains, among other issues, guidance on how the Board and the Management team shall handle agreements with related parties.

The company has established a procedure to ensure that both the Board and the Management Team must notify the Board of Directors if Lerøy enters an agreement where a member of the Board or the Management Team might have any significant interest in. In cases where a company which has connections to a Board member performs work for the Board, the independence issue is assessed by the Board. If necessary, appropriate action is taken accordingly.

Should transactions with related parties occur, these shall be documented and executed according to the Arm’s Length Principle. An independent assessment shall be carried out for significant contracts. Exemptions may be made for agreements that represent part of the company’s regular operations, and are based on regular commercial conditions and principles.

Agreements with related parties shall be reviewed to ensure sufficient clarity regarding proper balance of the agreements. This is to make sure that the company is aware of potential conflicts of interest and performs due diligence checks prior to entering a contract. The purpose of this process is to prevent assets being transferred from the company to related parties.

Information on related parties is available in the Group’s Annual report – Financial  information – Note XXX- Related Parties.

(Potential) conflicts of interest are not disclosed to stakeholders.

Evaluation of the performance of the highest governance body

When recruiting board members, the company’s owners follow a longstanding strategy of assessing the company’s need for varied competency (including ESG-related competency), continuity, renewal and changes in ownership structure. It will always be in the company’s interest to ensure that the composition of the Board varies in line with the demands and expectations made on the Group.

The Board is performing self-evaluation at least annually. The Board’s evaluation of its own performance and of Group management must of course be seen in conjunction with the Group’s performance. To date, the Board has not issued reports on its evaluation of its own work; this is a conscious priority decision and must be viewed in connection with other announcements in the company’s communications to the public. Moreover, external evaluations of the Board’s work are probably the most influential and are likely to remain so in the future.

If relevant and necessary actions might be taken in response to these evaluations. The actions can include changes to the composition of the highest governance body and organizational practices.

Remuneration policies

Recommendations for remuneration of the members of the Board are developed by the company’s Nomination Committee and adopted by the annual general meeting  in accordance with section 6-10 of the Public limited Liability Companies Act.

Remuneration of the Board of Directors is not based on results. The Board members elected by the shareholders have no share options. If enterprises which board members are associated with perform work for the company’s Board, the question of independence is treated specifically by the Board.

Remuneration of the Chairperson of the Board and other board members is recommended by the Nomination Committee and adopted by the General meeting.

The annual General meeting on 2nd May 2023 adopted annual remuneration of the Board of Directors as follows:

Chairperson of the Board -  NOK 500,000 

Other Board members - NOK 300,000

(92,94 % of stakeholders voted for; 7,06% of stakeholders voted against);

The Audit Committee’s remuneration for additional work performed is NOK 120 000 for the Chairperson of the Committee and NOK 80 000 per year for other members of the Committee.

(100 % of stakeholders voted for; 0 % of stakeholders voted against);

The annual remuneration for the Nomination Committee is NOK 45 000 per member.

(100 % of stakeholders voted for; 0 % of stakeholders voted against);

The company does not involve remuneration consultants in determining remuneration.

Salary and other remuneration of persons in senior positions

A renumeration report for executives is published annually, highlighting the actual remuneration, remuneration principles and framework. The guidelines regarding salary and other remuneration shall be clear and understandable and contribute to the company’s business strategy, long-term interests, and financial capacity. The schemes for salary and other remuneration shall help to align the interests of shareholders and executive personnel, and they shall be simple.

The annual general meeting shall, at minimum every four years, review and approve the Board’s guidelines for stipulating salary and other remuneration of persons in senior positions according to the provisions in section 6-16 a of the Public Limited Liability Companies Act and related regulations. Furthermore, the annual General meeting shall hold an advisory vote each year on the board’s statement regarding paid and current remuneration covered by the guidelines prepared according to section 6-16 a of the Public Limited Liability Companies Act, cf. section 6-16 b of the Public Limited Liability Companies Act.

Regarding remuneration of executive personnel – the Company mainly uses fixed pay as a compensation option. Variable pay is used to a limited degree. Executive salary shall be competitive, so that the company is able to attract and retain the most skilled executive-level employees. The fixed remuneration of executive personnel shall include: Base salary – it is established on the basis of the responsibilities, complexity, competencies and length of service for the position.

Base salary is normally the main element of executive personnel salaries. Bonus schemes – in principle, bonuses are a form of profit sharing where members of management are remunerated for their contribution to the company’s long term earnings and development.

The purpose of Lerøy’s bonus scheme is to stimulate continuous development of Lerøy’s value creation, growth and results, as defined in the company’s strategy. Bonus payments are assessed and stipulated every year based on a comprehensive evaluation of five components: the executive’s value creation, efforts, results, values, attitudes and conduct – all in relation to defined goals, tasks and available resources, this also includes performance related to organizations impacts on the economy, environment and people.

At the end of the assessment period, a decision regarding the extent to which the criteria for a bonus payment have been met. The assessment is performed according to the criteria described above. Bonus payments to persons in senior positions may compromise up to one year’s salary. The company does not have a scheme for repaying of variable remuneration. The Board reserves the right to make amendments or terminate the bonus scheme on yearly basis.

The Board of Lerøy Seafood Group ASA emphasizes the importance of having good corporate governance, which clearly establishes the division of roles between shareholders, the Board and the Group's management. The Board has its own dedicated board member who has special responsibility for the environment and sustainability (ESG related matters).

The Board of Lerøy Seafood Group ASA has the overall responsibility for sustainability work within the Group.

In the Group, the CEO has main responsibility for this area. Matters related to sustainability are approved by the Group management before they are sent to the audit committee / board. The Head of ESG & Quality is responsible for coordinating work involving the environment/  sustainability for all the companies within the Group. Responsibility is delegated to the Managing Director of each subsidiary.

Managers and other employees, at the various levels in the organization, have different goals related to sustainability included in their job descriptions. The company also works with goal management where goals related to sustainability are included. Goals related to job descriptions and goal achievement are included in the basis for the payment of bonuses.

Entities included in the organization's sustainability reporting

The company has audited consolidated financial statements on public record. For information regarding the list of entities included in financial reporting, please, visit Lerøy Annual Report 2023.

All reporting entities report relevant ESG data in the reporting system Cemasys which consolidates the information on a Group level. There are no adjustments to information for minority interests as it is not relevant in the given context. If mergers and/or acquisitions occur it is taken account into reporting and the reporting is accordingly adjusted to ensure completeness. The approach does not differ across disclosures in this Standard and/ or across material topics.

An overview over entities included in the organizations's sustainability reporting can be found below. A change compared to previous reporting period is that a new reporting entity (Lerøy Ausevoll) is added to ESG reporting. Lerøy Austevoll is an acquisition acquired in 2023.

Approach to Stakeholder Engagement

A stakeholder is a group, organisation, member or system who affects or can be affected by an organization's actions (GRI definition).

Lerøy's values are open, honest, responsible and creative, and it is crucial for us to have a continuous and open dialogue with all our stakeholders.

The purpose of stakeholder engagement is to ensure that Lerøy amplifies the positive impacts, mitigates the negative impacts, shares knowledge, best practices as well as ensures meaningful engagement with the stakeholders.

Open and honest communication with our stakeholders is essential for best possible cooperation. Stakeholder identification is a part of Lerøy’s materiality assessment process where relevant stakeholders are identified.

Lerøy Seafood Group communicates with its stakeholders via meetings, various reports (such as the annual report, the stock exchange reports, CDP reports etc.), communication in the media, announcements, joint projects, partnerships, websites and social media.

In 2023, the aquaculture industry in Norway including Lerøy, has received attention regarding food safety and animal welfare. With an integrated value chain for salmon production, Lerøy has the best prerequisites to provide safe and healthy products for our consumers. Lerøy shares an interest with the Norwegian authorities in maintaining food safety and animal welfare in all our operations and therefore seeks an open and constructive dialogue with the Norwegian authorities, including the Norwegian Food Safety Authority.  

Our overview of stakeholders

Find the overview of stakeholder dialogue below.

Materiality assessment

Lerøy Seafood Group carried out its first materiality assessment in 2016, with updates in 2020. In the autumn of 2022, the Group made a completely new materiality assessment in accordance with the requirements in the GRI Standards 2021.

• In order to verify the validity of the materiality assessment undertaken in 2022, a review of the assessment was carried out in November 2023. This is an important exercise since 2023 is the year the sector standard GRI 13 “Agriculture, Aquaculture and Fishing Sectors 2022” is fully implemented. Since there are no specific changes to the value chain in the Group in 2023, the review revealed only few changes in the Group`s assessment.
• The assessment for 2022 included 4 internal topics, Results and process, Compliance, Customers perspective and Learning and organisational development. These are no longer a part of the materiality assessment but included in the Groups KPI`s. In addition to this we have included “Climate adaption and resilience” as a new topic and changed the name of some of our previous topics. See list of material topics below.
• The organization has not tested the topics on other stakeholders than the Management Team, the Audit Committee and the Board of Directors after they have been concluded as it sees the assessment process to be sufficient in defining the material topics

In order to determine material topics, Lerøy completed the following steps:

• Identified the stakeholders which are the most important to the organization, customers, suppliers, business partners, employees’, regulators and community representatives
• Identified a range of potential material topics, based on own materiality assessment, GRI 13 Sector Standard, Coller Fairr Protein Producer Index, EU Taxonomy and other relevant frameworks, which the stakeholders had to assess with regard to their relevance to them and the Group
• Conducted the investigation via a survey and through in-depth interviews with stakeholders to get their opinion on significant topics
• Requested the stakeholders to prioritize and assess the importance and impact of significant topics that we addressed to them and asked to point out the most relevant ones for Lerøy Seafood Group seen from their perspective
• Assessed the following questions internally for the different topics: How grave is the impact? How widespread is the impact? How hard is it to counteract or remedy the resulting harm?
• Prioritized material issues based on their actual and potential, negative and positive, impacts on the economy, environment, and people, including impacts on human rights. The material topics that were defined as relevant are those which the organization has or can have the greatest positive or negative impact on.

Topics in the applicable GRI Sector Standards determined as not material 

When using the GRI Standards, the organization prioritizes reporting on those topics that represent its most significant impacts on the economy, environment, and people, including impacts on their human rights. In the GRI Standards, these are the organization’s material topics. The process of determining material topics is informed by the organization’s ongoing identification and assessment of impacts. The ongoing identification and assessment of impacts involves engaging with relevant stakeholders and experts and it is conducted independently of the sustainability reporting process. (GRI, 2021). On the basis of this work, the topics listed in the table below has been determined as not material. 

Double materiality assessment

For 2024 the Group will report according to EU `s sustainability directive, CSRD.  In CSRD it is a requirement to carry out a “double materiality” assessment. This means that companies must report not only on how the company’s own activities together with the company`s value chain impacts on people and the environment (impact materiality), but also on how sustainability issues might create financial risks or opportunities for the company (financial materiality).  The Group is currently carrying out its double materiality assessment.

Challenges

Customers drive economic growth by creating demand for goods and services, which in turn leads to job creation and increased economic activity. Customers can have positive environmental impacts by choosing to buy products that are produced sustainably and have a lower carbon footprint. This can lead to increased demand for environmentally friendly products and services, which can drive innovation and investment in low carbon footprint products. 

Customer drive has positive social impacts by choosing to buy products that are produced in ways that are fair and ethical, such as those that are produced using fair labor practices or that support local communities

Impact

The future development of Lerøy will be determined by our ability to achieve continuous improvements, increased efficiency, innovation and development of sustainable solutions throughout the value chain. To be able to do this we need cooperate with strategic customers who share the same perspective.

To be able to reach our target to reduce climate emissions with 46% and drive innovation and investment in green technologies, we need to make choises (i.e fish feed ingredients with lower emissions). These choices need to be rooted with our strategic customers, if not , we risk developing products and services which are not demanded in the market and risk to loose value creation for our self, our customer and the society.

If we understand and fulfil customer and market opportunities, Lerøy succeeds when our customers succeed. We shall meet our customers’ expectations in terms of delivery, sustainability, quality and costs, and we shall create growth in existing and new markets via forward-looking and innovative sustainable solutions.

Values are created in value chains, and in businesses in value chains, that form a network and competitive processes for their customers. 

Our ambitions in this area

Our vision “to be the world’s most effective and sustainable value chain for seafood”; requires us to continue to develop in order to achieve a position as a preferred supplier of seafood on a global scale. Our customers aim for growth and new market shares by offering competitive solutions with a view to cost and quality, innovation, security of supply and food safety.

We need to understand the wishes of our customers, and our value chain needs to be built upon competitive processes that ensure success for our customers. Feedback from customers is an opportunity for improvement.

Target: Increase the share of sales revenue from strategic customers

How we take action/what action has been taken

Lerøy has focused on achieving growth by means of securing access to raw materials that are fully traceable and governable. Lerøy's value chain comprises a large product range and allows for development of activities and products to increase customer satisfaction and willingness to pay, which in turn helps our customers gain new market shares.

The fundamental principles in the method utilised to achieve our goals are working continuously to achieve optimal flow of goods to the customer and optimal flow of information from the customer, by means of continuous improvement. This requires a decentralised organisation that is able to solve problems where and when they emerge, but also a Group that has the capacity to disseminate information from customers back to the value chain, so that all parties are aware of the challenges to be solved. Problem-solving shall be based on facts.

Lerøy has not been involved in any negative impacts through its activities or as a result of our business relationships related to customer perspective. 

How we measure our impact

The Group works actively to build long-term, strategic customer relationships in which values for both parties are created over time. Strategic customers are customers considered important to the long-term sucess of Lerøy, with the same values, goals and with mutual beneficial sustainable outcomes. Strategic customers may have an uniqe requirement or needs that are diffcult for other companies to fulfill.

The Group has and shall have a wide range of customers in order to minimise risk related to individual customers. The share of revenue from strategic customers, is used as an indicator of our performance in this area.

Target and result

In 2022, 50% of our revenue came from strategic customer, close to target. In 2022 we have been in dialogue with several strategic customers and defined strategic long term partnerships.

To define partnership models with long term beneficial outcomes takes time, our ambition is that 80% of our revenue share comes from strategic customers within 2030.

The Group has adopted some of the Sustainable  Development Goals established by the UN, including  environmental, economic and social development goals.

The group has selected specific sustainability goals, where we focus on the environment and climate, economy, and society.

All 198 member nations of the UN have participated in the preparation of the 17 sustainability goals. The group has selected the goals that are most relevant to our businesses, which we will work towards in our daily activities and focus on in the group's strategy work.

All the companies in the group have internal sub-goals related to the work with the selected sustainability goals. Find below an overview of the linkages between material topics and SDF's in Lerøy Seafood Group.

Lerøy is a member of numerous industry and trade groups, and partners with various nonprofit organizations and non-governmental organizations, both at a local, national and international level.

This include organizations that represent the seafood industry, food industry and the business community on issues that are important to our stakeholders. 

We provide information directly to stakeholders or through our memberships of trade or policy focused organizations. Such policy engagement and political activities must always comply with Lerøy’s Code of Conduct and all applicable laws.

With its catch of whitefish and the production of Atlantic salmon and trout, the Group is a globally competitive and sustainable food producer. The Group's performs its sustainability reporting in accordance with the GRI framework, and is part of the Group's annual report. Data from the Group's sustainability reporting is used by several organisations to assess Lerøy's performance on environmental, social, and governance (ESG) issues.  

One such organisation is Coller FAIRR, which annually publishes its Protein Producer Index. The index was established in 2018 to address the knowledge gap in the ESG risks associated with the food sector. It assesses 60 of the largest listed global meat, dairy, and aquaculture companies on ten ESG factors. 

Lerøy's focus and work on ESG is reflected in the index's result and was rated the 2nd best performing company in 2023.

In 2022 Lerøy and other Norwegian seafood producers are banned from Russia. This was initiated in August 2014 when Russia decided to ban the import of Norwegian seafood in response to sanctions imposed by the US, the EU and others for the annexation of Crimea and later war in Ukraine.

Sanctions adopted by the EU are implemented in Norwegian law on the basis of the Sanctions Act. Violation of the Sanctions Act is punishable and can result in a corporate penalty, Lerøy does not have any trade with Russia.

Since the Russian ban origin from 2014, the economical impact is low. Lerøy have no possibility to mitigate or avoid such bans.

In General Lerøy comply with all regulation of the importing countries to avoid marked bans.

The Group´s product development department cooperates with production and sales to create new products and improve the quality of the existing products through the entire value chain.

At Lerøy, we believe in the power of collaboration to drive innovation and sustainability. Our Product Development Department works in conjunction with a broader team of product developers across our downstream operations, all working together in a “One Lerøy” manner.

The “One Lerøy Product Development Team” works through the entire value chain, from raw materials to finished products in stores, constantly developing new products and improving the quality of existing ones, with a strong focus on utilizing the whole fish for human consumption to reduce food waste. 

By utilizing local expertise and pooling our knowledge in our “One Lerøy Product Development Team” we can create a more diverse and inclusive product development process that prioritizes sustainability and meets the evolving needs of our customers. Our shared commitment to Lerøy's values of openness, honesty, responsibility, and innovation helps us to build an inclusive and engaging work environment that fosters creativity and continuous development. 

The department follows an "Outside – In" development model that emphasizes sustainability and user-led innovation. This approach involves understanding the insights of the external environment, such as climate, politics, income, population, competitors, and other industries. We use these insights to put together models like the 'Gear Model' and the 'Business Model Canvas,' and then use simulations with tools like drawings, Lego blocks and pretotyping.

Pretotyping involves creating simple product samples and testing them to validate our ideas. This allows us to get quick responses to quick solutions and identify potential challenges or opportunities early in the process. This can be done both in our test kitchen in our main office in Bergen or in one of our many factories. Then we invite users to provide feedback on the product samples we create. 

Packaging

Our commitment to sustainability extends to our packaging as well. We aim to avoid over-packaging*, and to use sustainable materials whenever possible. We believe that sustainability is key to our success, and we strive to ensure that every aspect of our operations is as sustainable as possible.

Our packaging strategy is aligned with our goal to reduce food waste, prolong shelf life and product quality while having the lowest possible eco footprint. We are working towards a sustainable packaging material portfolio by 2030, using materials that can either be recycled, reused or are biodegradable.

To achieve our sustainability goals, we have established a category team for packaging, comprising people from different departments with diverse knowledge and experience. The team works closely with our own companies, suppliers, and producers, as well as other aquaculture companies and NGOs to ensure that the best packaging solutions are used.

*Over-Packaging describes a product that is wrapped in multiple layers of materials, that is either unnecessary or unwanted by the consumer.

Safe and sustainable products

In addition to our focus on waste reduction we are also exploring the use of complementary products like algae that will help to increase the sustainability of our core products such as shellfish and white fish. Our goal is to create a range of complementary products that will add value to our core products and enhance their sustainability.

Food safety is another top priority for us. We work closely with our suppliers to ensure that our products meet or exceed industry standards for safety and quality. We are constantly reviewing our processes to ensure that we are using the most effective and sustainable methods available.

The Product Development Department in Lerøy believe that sustainability is not just an obligation, it's an opportunity. By prioritizing sustainability in our product development process, we can create products that are not only better for the environment but also more appealing to consumers.

We are proud to be at the forefront of sustainable seafood development, and we look forward to continuing to develop innovative, sustainable products that meet the needs of our customers and the world around us.

Strategic framework – where are we going?

In the last few years, we have performed a larger review of the Group’s strategic framework, which is now continuously in development through our yearly plan for strategic activities. For these strategic processes, we conduct internal and external analysis of key trends that impact our operations and opportunities.

These analysis cover areas such as value drivers in our operations, our competitors, the markets we operate in, potential new markets, and potential macro risks that could influence our operations.

Furthermore we have made an assessment to identify conditions where Lerøy has an actual or potential significant impact on financial results, people, or the environment. This includes both an impact directly caused by Lerøy and the impact that we have, or may have, throughout our entire value chain.

Our materiality assessment is further described in the ESG section of the Group’s annual report. These analyses are used to improve our strategic decisionmaking, which enables us to define our strategy, as shown below, to define our shortand long-term goals, and to define our strategic initiatives.

The following table outlines the Group’s strategy on one page. Cascaded and similar exists for each of our business segments.

One Lerøy - Strategy on a page

Prioritised tasks

The Group’s values – open, honest, responsible, and creative – underlie all of our activities. They lay the foundation for our efforts to create the world’s most efficient and sustainable value chain for seafood and our vision to be the leading and most profitable global supplier of high-quality, sustainable seafood.

These are our KPI`s: