Impact Report2023

Chapters

Skretting Impact Report – 2023

Health and welfare
Page 13

Climate and circularity
Page 18

Good citizenshipPage 41

Collaboration withstakeholders
Page 63

Our house in order
Page 91

About Skretting
Page 942

Ingredient deep dive
Page 47

CEO letter
Switching from a Sustainability
Report to an Impact Report is notjust a change of name, but an
acknowledgement that anything
we do has an impact both on theenvironment and society. And wewant to be accountable for that.

Skretting Impact Report – 2023

Welcome to our first Impact Report, whichshowcases the most relevant developmentson our sustainability journey during 2023!
Switching from a Sustainability Reportto an Impact Report is not just a changeof name, but an acknowledgement thatanything we do has an impact both on theenvironment and society. And we want tobe accountable for that.
It was another intense year for us in 2023,
particularly as we get closer to 2025,
a milestone year for our Sustainability
RoadMap and the targets we have set.
Although we present detailed descriptions
and progress on our most relevant targets
throughout this report, I want to reflect on
a concrete example that I think illustrates
what it takes to achieve these targets andwhy it’s so important that the industry
moves in the same direction to do theright thing.
Last year, 77% of the marine ingredients
we purchased in our global operations
were certified or came from a Fishery
Improvement Project (FIP), a decrease
from the 84% reported in 2022. While
this is not something to be proud of, thevolatility of the cost of fish oil, which hit
historic high records, inevitably impacted
the cost of feed. As a consequence, we
saw the willingness to stick to – and pay for– certified ingredients decreased in somemarkets, which opened space for moreingredients of uncertified origins. Let’s makesure 2023 was the exception.

Reaching our target to source 100% of ourmarine ingredients certified or from an FIP
comes at a cost. If we look at the volumeof uncertified ingredients in 2023 alone,
paying the premium to replace them forcertified ingredients would have cost our
global operations around €70 million more.
How could a business like ours absorb all
this on our own? We need the industry tocome together and share the responsibility
to create a positive environmental andsocial impact. And we are committed tocontinuing to do our part by innovating on
feed formulation to reduce our dependency
on specific ingredients and bringing
solutions that are cost-effective, while also
looking for alternatives to engage on new
FIPs that can expand the availability ofcertified marine ingredients in the future.
We encourage farmers to remain focusedon sustainability standards in feed andhelp us stick to the ambition. This will also
help us better mitigate risks such as Illegal,
Unreported and Unregulated (IUU) Fishing,child labour and modern slavery. To make itpossible, we need to work together, acrossthe value chain, so that costs are shared by
all players.
This is also a call to certification bodies.
We invite you to be much stricter during
your audits to identify the sources ofmarine ingredients and leave no room
for interpretations about what is and isn’t
certified. We are happy to work together
with you by sharing all our documentation
to help you understand the processes andwhere there could be traceability issues.

3
Introduction

This example illustrates just one of thedilemmas we face every day. Our approachis to be fully transparent – therefore, thisreport is not intended to tell the world how
perfect we are, but rather to show our full
impact: both what’s going well and whatneeds to be improved.
This is a special report for me as it’s the firstone since I took over as CEO of Skretting in
June 2024. While I’m proud of the work thatwe’ve done so far, I look forward to keep
embedding sustainability as a fundamental
part of our business strategy. I’m also
determined to strengthen our collaboration
with different stakeholders across theindustry because I’m convinced that the
only way to accelerate on the progressneeded is by working together rather thanin isolation.
I hope you enjoy our Impact Report, andI invite you to contact us here with any
comments you may have. The feedback
and questions we receive from all our
stakeholders are incredibly important for
helping to make sure we can do better
every year as we journey towards an evenmore sustainable aquaculture industry!
Bastiaan van Tilburg
CEO
SkrettingWhat is thisreport about?

In this Impact Report, for the firsttime ever, we have disclosed thenumber of cases reported through“Speak Up”, our whistleblower
and grievance mechanism open tointernal and external stakeholders.
While this number is small – only
ten cases – this doesn’t necessarilymean we have no issues to address.
It could also reflect a lack of internaland external awareness about
the tool – so I highly encourage
everyone with a concern about
our operations to use it and help
us do better!
To further enhance transparency,
and in light of the increasing
demand to further our life cycle
assessment work, we decided toelaborate more widely in this area,
disclosing absolute numbers on
the scope 1, 2 and 3 and carbon
footprint per ton of feed not only forour global operations, but also ourdifferent business units and, moreparticularly, within our BU Salmon,
where we see an especially strong
focus on our environmental impact.
We also provided examples of how
the carbon footprint varies per
region and species due to variables
such as purchasing, regulatory andmarket conditions and raw material

Skretting Impact Report – 2023

Last year, we published what
we believed was our mosttransparent report ever – and thisyear I believe we even went a
step further.

availability and origins. We believe
this will help readers to better
understand the differences that exist
per species and countries.
Since our sustainability story can
only be fully explored throughinteractions with different
stakeholders, we include their input
throughout the report, in particular,
what they find important for theindustry to focus on. This feedback
helps us to identify what direction
we should take.
Another key focus for us in 2023 wasto improve visibility and transparencyof the sustainability practices
within our supply chain. While we
acknowledge that we’re still far from
where we want to be, we’re happy
to see the progress of our Supplier
Sustainability programme through
EcoVadis, which helps us to identify
areas for improvement and drive
positive change throughout our
supply chains.
While Skretting Chile’s achievementof becoming the first certified salmon
feed plant in the world – according
to the Aquaculture StewardshipCouncil (ASC) Feed Standard –came in January 2024, we included

it in this report as another example
of our commitment to leading onsustainability. The learnings fromthis experience will inform other ofour operations as they perform theiraudits in 2024.
Lastly, we’re convinced thateverything we do is about people.
Throughout this document, you will
see the faces of team members
helping us to drive our ambitions –but this is only a small representationof the more than 4,600 Skrettingcolleagues working across theglobe to help us make a positiveenvironmental and social impact. I
would like to thank you all for yourgreat efforts and encourage you tokeep helping us and pushing us to
do better every year!
I understand it’s not always possible
to read our entire report, so I’ve
included some highlights below that
I believe are well worth your timeand attention.
Jorge Díaz
Sustainability Manager
Skretting4
Introduction

Some highlightsfrom 2023
Details of where we use
antibiotics and when.

During 2023, at least
17% of our scope 3
emissions were coveredby commitments madethrough the Science
Based Targets Initiative.

Skretting Impact Report – 2023

5
Introduction

Skretting’s absolutecarbon footprint roseby 4.1% in scope 1 and2 from 2018-2023 but
decreased by 11.1% in
scope 3 during the same
period. We explain why.

Skretting’s carbon
footprint per ton of
feed produced decreased
by 32% globally from2018-2023.

For the first time ever,
we published the total
number of Speak Up
cases reported –10 cases.
92% of our soy
was purchased
as Class A or B.

77% of our marine
ingredients were certified
or coming from an
Fishery Improvement
Project (FIP).

We continue to show
our dedication to
health, safety and theenvironment. For thesecond consecutive year,
we achieved a significant
reduction in the Total
Recordable Case
Frequency (TRCF),
which decreased by
16% to 1.61 per 200,000
hours worked by theend of 2023.

Skretting Chile became
the first certified
salmon feed plant in
the world, according
to the Aquaculture
Stewardship Council(ASC) Feed Standard.

And, finally, I encourage
you to read our“Collaboration withstakeholders” section,
where we hear directlyfrom them on a variety ofimportant subjects.

Our role in thevalue chain
What does Skretting do? We
innovate on aquaculture nutrition,
all over the world. The mostimportant species we make feed
for include salmon, trout, shrimp,
sea bass, sea bream and tilapia.
We are part of a complex value
chain, which we have briefly
summarised here:

Skretting Impact Report – 2023

6
Introduction

1
Primary producers

2
Feed ingredient manufacturers

3
Skretting

Agricultural crops, land farming andwild fisheries produce resourcesthat are directly and indirectly
used for food, feed and energy.
If not managed properly, primary
producers of feed ingredients cancontribute to a loss of biodiversity,
climate change and human rights
violations. We have been actively
working to eliminate deforestationin our supply chain and setting up
a reduction strategy for scope 3
greenhouse gas (GHG) emissions
caused, to a significant extent,
by the production of primary
raw materials.

Feed ingredients are selected fora variety of reasons, including thenutrients they provide, the absenceof anti-nutritional or undesirable
substances, economics andsustainability credentials. Despite thechallenge of finding the right balance
between price and quality, we havebeen working to increase our useof novel ingredients and innovative
feed additives.

Skretting converts ingredients into
innovative fish and shrimp feeds.
Our operations are built upon a solid
foundation of people provided withgood and safe working conditions.

4
Farmers

5
Food distributors and retailers

6
Consumers

Farmers feed their fish and shrimp
with high-quality, nutritious
food. Aquaculture performanceis determined by animal health,nutrition and farm management.
We actively launch initiatives tohelp farmers optimise fish andshrimp production and reduce theirenvironmental footprint.

Food distributors have an
important role to play in promoting
and advancing sustainableconsumption and seafood
production. We have been actively
working on collaborations withthese stakeholders to bring moresustainable seafood to the market.

People purchase and eat highquality, safe and nutritious
seafood products.

About this report

Our approach
Skretting has alongstanding commitment
to reporting on the
progress we make on oursustainability journey.
We have issued
sustainability reports since1999. Our first reports
were compiled by Skretting
Norway, and we have also
reported on our global
business activities since2013. Our sustainability
initiatives are closely linked
to our business operations
and priorities.

Reporting structureThis global Skretting Impact
Report focuses on who
we are and what our mainsustainability activities werein 2023. It is available toour stakeholders and the
public on our website. Our
focus is to make it easierfor readers to find theinformation that mattersmost to them. Local
Skretting companies canalso choose to publish
their own sustainability
reports to go more in
depth on local challenges
and achievements.

Skretting Impact Report – 2023

Scope of this report
The quantitative datareported here covers thecalendar year from January
1 to December 31, 2023,
unless otherwise stated.
The report covers allcompanies that are part of
Skretting, which represents
Nutreco’s aquaculture
nutrition and service
activities. Nutreco is owned
by private company SHV,
and all public financial
information is reported
through SHV. This reportprovides only limited
financial information.

Reporting framework
We prepared our report inaccordance with the GRI
Standards: core option.
This report also aligns
with the United Nations
Sustainable Development
Goals (SDGs).

Assuring our disclosures
Skretting does not haveexternal verification of
the disclosures made inthis report.

External links
Throughout this report,
we have included links
to a number of external
websites to make it easierfor the reader to learn
more about our projects,
partners and goals. These
links are for reference only.

7
Introduction

Collaboration withstakeholders
Skretting invited ourvarious stakeholders
to contribute their own
views on relevant topics
addressed in this report.

Business Units (BUs)
Nutreco is organised into a
number of business units.
These BUs are referred tothroughout the report as:
Salmon:Australia, Chile, North
America and Norway
Latin America (LatAm):
Ecuador and HondurasSouthern Europe:
France, Italy, Spain
and Turkey
Asia:
China, India, Indonesia,
Japan and Vietnam
Africa:Egypt, Nigeria, Middle East
& Africa Export and a joint
venture with Tunga Nutritionin KenyaOur impact

In 2023, through our feed,
we contributed to the
production of more than
26 million portions ofseafood meals per day
across the globe.

Skretting Impact Report – 2023

8
Introduction

RoadMap 2025

Skretting Impact Report – 2023

9
Introduction

Health and welfare
Focus: Antimicrobial resistance• Innovating new products
and services that will reduce
dependency on antibiotic usage
in animal husbandry• Adopting five-step targets that will
significantly reduce antibiotic usage
by creating business opportunities
for clients

NutrecoSustainability
roadmap
2025

Climate and circularity

Focus: Reducing GHG emissions• Setting science-based targets
for reducing emissions throughenergy efficiency programmes andsustainable ingredient sourcing,incorporating lifecycle assessment
methodologies and utilising new
ingredients• Addressing the responsible
handling of natural resources,
biodiversity and ecosystems

Good citizenship

Focus: Diversity and inclusion• Building a more diverse and inclusive
workforce• Empowering local communities
with best practices and technology
to help people raise themselves
out of extreme poverty throughfarming sustainabilitySkretting Impact Report – 2023

10
Introduction

Chapter 1
Health andwelfareHealth and welfareThis pillar of RoadMap 2025 isprimarily focused on addressing
antimicrobial resistance (AMR) by
reducing the need for antibiotics.
As mentioned in previous reports,
Skretting continues to believe thattaking a holistic approach to animal
health – preventing challenges
through feed, farm and healthmanagement – is preferable tofocusing on a cure for antibiotic use.
This holistic approach can include
sharing best practices – for example,
on how to improve feeding regimes,
install bird nets over ponds, improvebiosecurity or support with in-houseveterinarians – and is always tailoredto the local market.

Skretting Impact Report – 2023

12
1 - Health and welfare

Not on target

Our targets

Our 2023 progress

No preventive* usage ofantibiotics in our products
and services

No useNo use of antibiotics for
growth promotion in our
products and services.

No useNo use of antibiotics
categorised by WHO** as“Critically Important for
Human Health” (CIA) in our
products and services.

Skretting used 1,987 kg ofCIAs as an active ingredient,a decrease of 24% compared
to 2021 and an increase of 6%
compared to 2022.

* Any order of medicated premix/feedshould be accompanied with a validprescription from an authorised professional.

** As published in “Critically important
antimicrobials for human medicine: 6th revision”

In progress

On track

Our approach:
Nutrition and health diets

Nutrition and health go hand in
hand. With the correct nutrition
and a proactive health feed
to boost immune response,
strengthening the gut and skinbarriers in challenging periods
will prepare fish and shrimp for
difficult conditions.

Skretting Impact Report – 2023

Our approach has not changed over
the years, but we did experience
new challenges last year:• Environmental change: In 2023,
the summer period lasted longer.
Hot summers are leading toincreased ocean temperature,and situations in which fishin some areas are out of theiroptimal temperature range forlonger periods of time. Drought
conditions are also affecting the
fresh water supply at hatcheries
and land-based freshwater sites.
This requires farmers to adapt
feeding strategies and use newfeed solutions.
• Temperature-related variations
in bacterial load: With higher
temperatures, summer bacteria
are posing a threat over longer
time periods. As a result, we haveobserved the emergence of new
bacteria in some areas.
• Medicine availability: Theavailability of veterinary medicines,
including vaccines, is underpressure. Vaccine companies
withdrawing products from themarket makes the industry
more vulnerable.

We also saw some positive
developments in 2023:• Many countries have reduced
their dependence on antibiotics
over time.
• Cross-regional transparency has
improved with open discussions
and knowledge transfer to learn
from each other on best practices.
• Our parent company, Nutreco, hasinvested in Nutreco Exploration’s
Garden of the Future, our centre
for phytogenic solutions.
Together, we will develop futureoriented solutions we can bringto the market.
• In 2023, the Skretting Healthnetwork (a group comprisingveterinarians, health researchers,
and marketing and productmanagers) met again to share
updates on local challenges, bestpractices and the latest research.
We discussed recent initiatives
and success stories.

13
1 - Health and welfare

Skretting Impact Report – 2023

Skretting is a feed company,
but to reduce the need for
antibiotics, we are embracing
collaboration across the value
chain to help grow healthy
animals and bring nutritious
food to consumers’ tables.

Anna Hesby Nessa
Global Product Manager Health
Skretting14
1 - Health and welfare

AMR: Reflections
on our progress
Skretting is not the final user ofantibiotics. We provide medicatedfeed to farmers based onprescriptions.
Despite many efforts to reduce
antibiotic use, in 2023, veterinariansprescribed a slightly higher
number of kilograms (kg) of CIAs
compared to 2022 – yet the number
was still lower than in 2021 andpredominantly involving non-CIAs.
Most farmers have reduced theirantibiotic use, but last summer
was, in general, extremely warm,
particularly in Southern Europe,
leading to an increase in bacterial
issues, which, in turn, increased theuse of antibiotics in some areas.
Overall, in 2023, the same
health issues stood out as causesof antibiotic usage as in theprevious year:• Photobacteriosis, lactococcosis
and furunculosis in Europe• Bacterial kidney disease in
North America• Salmonid rickettsial septicemia(SRS) in Chile

These diseases are caused bybacteria that are difficult to preventand control. Some of these bacteria“hide” from the immune system andeasily spread throughout fish farms
through incoming waters, faecal
transmission, the persistent survivalof the bacteria in sediment, theintroduction of asymptomatic carrier
fish and infected dead or dying
fish. And when a fish is sick, it
has the animal welfare right toreceive treatment.
The industry is dependent on
effective vaccines to tackle the mostdifficult diseases. And we are happy
to see the progress made by theEuropean Medicine Agency after
defining the availability of veterinary
medicines as a priority area. The
development of new vaccines is
expensive, time consuming andrisky, so we are dependent oncollaboration with the industry andgovernments to secure accessibility.

Skretting Impact Report – 2023

15
1 - Health and welfare

Antibiotic feeds as apercentage of total feed:
Disclosure per country
NorwayFrance

Spain

Italy

North
America

Australia

Turkey

Chile

Total
Skretting

CIA feed

0.003

0.005

0

0.50

0.03

0.00

0.00

0.001

0.015

Non-CIA

0.05

0.06

0.65

0.40

2.64

0.02

0.36

11.44

1.6

All antibiotics
in total

0.05

0.07

0.65

0.90

2.67

0.02

0.36

11.44

1.58

Skretting has undertaken several
initiatives to reduce dependency
on antibiotics, even in parts of theworld where we don’t produce
medicated feed. You can readabout some highlights here:

Skretting Impact Report – 2023

16
1 - Health and welfarePartnering to help
trout farmers fightdisease in Italy
To help mitigate the major threatthat the highly infectious bacterial
disease Lactococcosis poses toaquaculture in terms of mortalities
and production loss, Skretting
Italy and biotech pharmaceuticalcompany HIPRA came together
in a new partnership to provide
trout farmers with a practicaland sustainable solution
package focused on limiting
the disease’s impact.
The new Skretting-HIPRA
collaboration followed a workshop
addressing Lactococcosis
management in trout production thatthe two companies jointly hosted
at the Aquafarm 2023 exhibition in
Pordenone, Italy.
To further help producers, theSkretting-HIPRA partnershipproduced a vaccination checklist
that includes best-practicerecommendations and sample
social media content.
The best-practice manual gave
advice for farmers on how to feed
fish during challenging conditions
and what to do before, during andafter the vaccination process.

Skretting Impact Report – 2023

“This disease is the industry’s
number one threat, and it is
becoming more and more
problematic. However, throughour commitment to responsible,
progressive aquaculture, Skrettingand HIPRA are working together
to establish a clear pathway that
benefits trout farmers – utilising
our knowledge, experience andinnovation to improve the healthand productivity of farms throughout
Italy and beyond,” said Umberto
Luzzana, Marketing Manager at
Skretting Italy.
“The workshop we conducted
together during Aquafarm 2023 on
how to control Lactococcosis introut farms was a very interesting
collaboration. Together, we wereable to present a comprehensive
approach to addressing theLactococcosis problem anddemonstrate how feeding andvaccination can be utilised ascomplementary strategies to reduce
its effects.The collaboration between
Skretting and HIPRA exemplifies
how two value chain companies inaquaculture can work together toenhance their customers’ results,”
adds Rosa Merino, Global TechnicalManager at HIPRA

Rosa Merino
Global Technical Manager
HIPRA

17
1 - Health and welfare

Empowering Africanaquaculture to navigate
a sustainable future
In Africa, aquaculture holds immense
promise for addressing food security
challenges and fostering economic
growth. However, its long-term
success relies on ensuring thatsustainable practices are used andemerging threats, such as AMR,
are well managed. Sustainableaquaculture involves responsible
resource management to ensure
environmental, social andeconomic sustainability.
Together with Blue Planet Academy
and other stakeholders, Skretting
has developed online trainings for
African fish farmers that cover all
aspects of tilapia and African catfish
farming, with a strong emphasis
on sustainable fish farming. To
maximise the results, the e-learnings
are freely accessible to anyone who
is interested. Close to 1,000 farmers
have completed the course and thevideos on the platform have received
more than 22,000 views. By training
farmers in efficient feed use, disease
prevention and habitat conservation,
we can enhance productivity while
minimising environmental impact
and production costs.

Skretting Impact Report – 2023

Since AMR poses a significant risk toboth human health and aquaculture,
the Blue Planet Academy module
on sustainability emphasises
responsible antimicrobial use, withadvice on proper hygiene, disease
prevention, and the prudent useof antibiotics under veterinary
guidance. This approach helps
mitigate the spread of AMR andprotects public health.
The e-learning modules allow fish
farmers to access training materials
at their convenience, so they canbalance learning with their daily
responsibilities. This flexibility is
especially beneficial for small-scale
farmers in remote areas who may
face logistical challenges attending
traditional training sessions.
The e-learnings allow us to reachand train African fish farmers
continent-wide.
Projects like this, that equip farmers
with the necessary skills to farmsustainably and productively,
will unlock the full potential of
Africa’s aquaculture sector whilesafeguarding public health andthe environment.

Scan the QR codeand elevate your fish
farming knowledge
and practices.

18
1 - Health and welfareReducing the use ofantibiotics through the
Pincoy Project in Chile
Led by Skretting Chile, thecollaborative Pincoy Project was born
approximately seven years ago. Its
objective was to find new formulas
to reduce the use of antibiotics insalmon farming, by generating baseinformation to help us make the best,
most productive decisions.
In 2023, the centres that adopted
the combination of factors studied
by Pincoy, such as genetic selection,
the use of vaccines and the adoptionof functional diets, exhibited 4650% less antibiotic use during the
production cycle than the Chilean
average reported by the regulatory
agency, SERNAPESCA.
For 2024, the Pincoy Project willcontinue its collaborative work andexpects to launch the second partof its Good Practices Manual, an
update on the one published in
2020, that includes issues related toenvironmental challenges.

Skretting Impact Report – 2023

19
1 - Health and welfare

Skretting Impact Report – 2023

20
1 - Health and welfareChapter 2
Climate andcircularity

Climate andcircularity
This pillar of RoadMap 2025 isprimarily focused on reducing
our GHG emissions. To do this,we use science-based targets to
set our ambitions for reducing
emissions through energy-efficiency
programmes and sustainable
ingredient sourcing, incorporating
lifecycle assessment methodologies
and using new ingredients. We
also address the responsible
management of natural resources,
biodiversity and ecosystems in
the production of compound feed
ingredients. In this section, we
will discuss the dilemmas, theopportunities and the partnerships
we have in place to ensure we canreach our ambitious targets.

Skretting Impact Report – 2023

22
2 – Climate and circularity

Not on target

Our targets

Our 2023 progress

Committed, through ScienceBased Targets initiative (SBTi),to reduce scope 1 and 2
emissions by 30% comparedwith 2018 baseline

4.1% increase

Committed, through SBTi,
to reduce scope 3 emissions
by 39% compared with 2018baseline

11.1% decrease

Increase renewable energy
use in our operations

55.6% of electricity isrenewable, up from the
54.7% reported in 2022.

In progress

On track

Considering all our
impacts
The carbon footprint of aquaculture
products is predominantly influenced
by the carbon footprint of the feed.
This holds true across species,
regions and other environmental
impacts beyond GHGs.1 Even
when considering the full life
cycle, including distribution andconsumption, feed remains asignificant hotspot in the footprintof aquaculture products.2
The net environmental performanceof a feed is determined by its
footprint and its impact on theeconomic feed factor (i.e., fish sold/edible product per unit of feed). While
the feed is just one of several factors
affecting the economic feed factor,
it is essential to consider nutritional
and welfare properties alongside thefeed’s environmental footprint.

end product – the farmed fish
or shrimp purchased and consumed
by the consumer.
Therefore, we should also consider
what happens when the feed isused, because, for example, a feedwith a higher footprint may lead toa lower feed conversion ratio (FCR)
and therefore an end product witha lower total footprint.

Skretting Impact Report – 2023

Life-cycle mindset
We need to focus on thelife cycle of the products
and not on a single stage.

1

Feed ingredients
production

2
Fish/shrimp
transport tomarketSkretting is dedicated to reducing
GHG emissions in the entire life
cycle, in collaboration with suppliersand customers. Only focusing on
reducing the footprint of the feed
may not help us to take the rightdecisions when it comes to reducing
the carbon footprint of theEnvironmental performance of blue foods. Gephart J, Henriksson P, […] Troell M. Nature (2021) 597(7876) 360-365
2Marine Fish PEFCR: Screening and recommendations, Hognes E, Stenwig H, Report from the Marine Fish PEFCR pilot, (2016)
123
2 – Climate and circularity

7

Feed use andend-of-life

Transportationof ingredients

3
6

4
5

Feed transportation

Feed production

Feed packaging

Skretting Impact Report – 2023

On the other hand, it is important to also havea multi-impact approach, which means that
we need to quantify all the relevant potential
environmental impacts.
Today, the conversation is mainly focusedon having products with the lowest carbon
footprints, but we also need to think aboutother impacts, such as water footprint,
eutrophication, biodiversity loss, and manyothers, including all the relevant social
impacts across our supply chain.

Aquaculture
Disease spread
Nitrogen and phosphorus emission
Freshwater use
Genetic pollution
Antibiotic resistanceLand use

24
2 – Climate and circularity

Energy consumption
Fish-derived resources
GHG release
Toxic emission
Seafloor impact
Plastic pollution
Infrastructure resources
Invasive species

Social Impact
Inequality
Profitability
Education
Affordable goods & services
Poverty

Adapted from Gephart, J.A., Henriksson, P.J.G., Parker, R.W.R. et al.
Environmental performance of blue foods. Nature 597, 360–365 (2021)

Capture fisheries
Stock/species depletion
Megafauna by-catch
By-catch trawling
Foodweb alterations
Ghost fishingSkretting’s total
carbon footprint
The following figures present the
carbon footprint numbers for our
scope 1, 2 and 3 GHG emissions
from 2018 to 2023. The figures
also show the carbon footprint
numbers per BU. Looking at our
total carbon footprint first, we seethat the absolute carbon footprintof scope 1 and 2 (energy, water andwaste emissions) has increased by
4.1% from 2018 to 2023. However,
our scope 3 emissions (feed raw
materials) have decreased by 11.1%.
This results in an overall reduction
over all three scopes by 10.4% overthat same timeframe.
The specific carbon footprint
per ton of feed produced has
decreased 32% from 2018 to 2023.
The long-term trend is positive,
due to continuous efficiency
improvements, changes in raw
material compositions and sourcing.
When we examine our business
units with the highest production,
which are the highest contributors
to our carbon footprint, we see avariety of developments, but, overall,a substantial reduction by all BUsover the past two years. The recent
reduction is largely explained byour success in improving the data
quality (see Improved soy and palmsourcing information.).

In addition to disclosing data on our
global operations, we present values
per BU and more specific data fromour Salmon BU, which includes
Australia, Chile, North America
and Norway.
In our salmon business, we have
reduced both the absolute (ktonCO2e) and relative carbon footprints(ton CO2e/ton feed produced)
significantly over all three scopes
between 2018 and 2023, despite anincrease in scope 1 and 2 emissions
from 2022 to 2023 in Norway. Thisis a very positive direction – andone that we will strive to continue
in the years to come. While partof this reduction is due to a slight
reduction in volume and changes informulation, it shows a significant
reduction effect, caused, forexample, by changes in raw material
sourcing (scope 3) and increased
energy efficiency (scope 1 and 2).
In our BU in Latin America (LatAm),
the numbers look different. Due
to significant business growth inEcuador, the feed volumes grew,
driving the increase to our absolutecarbon footprint numbers from2018 to 2023.

Skretting Impact Report – 2023

However, in the last year, weobserved a reduction in the absolutecarbon footprint of our BU LatAm
compared to 2022, due to asignificant 24% reduction in scope
3 emissions, despite increasing
production volumes. The specificcarbon footprint per tonof feed produced there decreased bya total of 29% from 2018 to 2023
thanks to a considerable reductionof 32% last year.

25
2 – Climate and circularity

Improved soy and palmsourcing information
In 2023, we made a big step
improving the data quality of ourfootprint calculations. Our Soy and
Oil Palm sourcing policy provided
the country of cultivation foreach soy and oil palm ingredientpurchased since 2020. Including
the sourcing information for soy andpalm ingredients to our footprint
calculation structure led to a 12%
reduction in our absolute scope 3
emissions, on average, over the past
two years. This is mainly due to theoverestimated contribution of land
use change emissions when thesourcing country is not specified.
Also, we obtained lower carbon
footprint numbers by using more
specific certifier and supplier data,compared to country averages.
We’re encouraging our suppliers
to commit to further reduce theiremissions. Scope 3 numberspresented in previous sustainability
reports will therefore deviate fromthis report.

We will achieve further
reductions by:
1. Reducing land usechange impacts
2. Identifying and increasing theshare of low-carbon- footprint
ingredients, with the following
options:a. More by-products,
b. More novel ingredients,c. More lower-footprint 								conventional ingredients
3. Supplier engagement

Global absolutegreenhouse gas
emissions(kton CO2eq)

Skretting Impact Report – 2023

26
2 – Climate and circularity

Skretting
total

Unit

2018

2019

2020

2021

2022

2023

Change2018 –
2023

Change2022 –
2023

Scope 1 and 2(Manufacturing
process)

kton
CO2e

220

217

196

210

216

229

4.1%

6%

Scope 3
(Raw materials)

kton
CO2e

4,806

4,848

4,849

5,194

4,950

4,274

-11.1%-13.7%

Total

kton
CO2e

5,026

5,065

5,045

5,404

5,166

4,503

-10.4%-12.8%

Skretting Impact Report – 2023

Skretting´s absolute carbon footprint
per BU at factory gate including
scope 1, 2 and 3 from 2018 to 2023
(kton CO2eq)

27
2 – Climate and circularity

Scope 1 & 2
Scope 3

2023

2022

2021

2020

2019

2018

BU MEABU Asia
BU Southern Europe
BU LATAMBU Salmon

12/233BU MEABU Asia
BU Southern Europe
BU LATAMBU Salmon

14/24816/35623/556
97/1260

30/514
18/370BU MEABU Asia
BU Southern Europe
BU LATAMBU Salmon

14/286BU MEABU Asia
BU Southern Europe
BU LATAMBU Salmon

12/274BU MEABU Asia
BU Southern Europe
BU LATAMBU Salmon

15/271BU MEABU Asia
BU Southern Europe
BU LATAMBU Salmon

16/26585/1654

29/605
21/431

33/54422/438081/1869

Scope

Change2018 –
2023 (%)

Change2022 –
2023 (%)

Global average

Scope
1 and 2

4.1%

6%

Scope
3

-11.1%-13.7%

Scope
1 and 2-31.8%

17.7%

Scope
3

-36.2%-13.7%

Scope
1 and 2

358%

13.6%

Scope
3

122%

-23.8%

Scope
1 and 2-38.9%

-7.7%

Scope
3

-24.3%

-3.8%

Scope
1 and 2-38.4%-23.3%

Scope
3

-0.5%

8.2%

Scope
1 and 2-24.1%-16.2%

Scope3-12.1%-6.0%

BU Salmon

69/2165

BU LatAm

72/1556

75/2314BU Southern
Europe41/90180/2688

39/62826/46033/758BU Asia
10/2728
BU Middle East
& Africa (MEA)

38/55927/47021/566500

Absolute
carbon footprint(kton CO2e)

119/2929
1000

1500

2000

2500

3000

3500

Skretting Impact Report – 2023

Absolute greenhouse gas emissionsof BU Salmon 2023 (kton CO2e)
7/176
OpCo Australia

10/177
OpCo North
America

16/549OpCo Chile

48/967
OpCo Norway

0200
Scope 1 & 2
Scope 3

400

600

800

1000

1200

28
2 – Climate and circularity

Skretting Impact Report – 2023

Global carbon footprint relative tofeed produced from 2018 to 2023
(ton CO2e/ton feed produced)
Carbon footprint per
feed produced

2018

2019

2020

2021

2022

2023

Change2018 –
2023 (%)

Change2022 –
2023 (%)

Global average

2.35

2.25

2.17

2.20

1.98

1.60

-32%

-19%

BU Salmon

2.52

2.33

2.25

2.05

1.90

1.64

-35%

-13%

BU LatAm

1.92

2.08

1.83

2.32

2.00

1.37

-29%

-32%

BU Southern Europe

1.66

1.57

1.54

1.45

1.39

1.45

-13%

4.1%

BU Asia

2.44

2.52

2.73

3.18

2.82

1.97

-19%

-30%

BU MEA

3.51

3.81

4.02

3.75

2.98

3.0

-15%

0.6%

29
2 – Climate and circularity

Skretting Impact Report – 2023

Carbon footprint relative to feed
produced BU Salmon 2023
(ton CO2e/ton feed)

1.55

OpCo
Australia

1.38

OpCo
North America

1.69

OpCo
Chile

1.69

OpCo
Norway

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

30
2 – Climate and circularity

Scope 1 and 2:
Improving our own
operations
We continue to improve energy
efficiency across Skretting globallyby implementing many local
initiatives. Over the last few years,
we have worked hard to document
and share energy best practicesolutions between our factories. This
is now paying off, with a 1.1% global
reduction of energy per ton (specificenergy). Our Skretting Egypt OpCo
made the largest improvementin specific energy in 2023, with areduction of close to 300 kWh/ton.
When it comes to specific energy
reduction, some of our factories
are already high performers; for thisreason, ongoing reduction will be insmall steps.
For example, our factories at
Skretting Norway, Chile, Spain and
Italy are already at world-classlevel for the types of products
they produce. For these advanced
factories. The solutions required
are more technical and often costly,
such as installing new boilers,
heat pump technology and heatrecovery systems. The large energy
reductions in the less maturefactories come from easy wins,
such as condensate return, steampressure reduction anddryer optimisation.

Taking the first steps in the energy
maturity journey is a big victory.
Those first steps set the wheels inmotion and, we have learned fromexperience, that we always see
continual improvement from thatpoint forward. We have found thatour people are very motivated towork on energy and CO2 reduction,
because it has a tangible,
real-world impact.
Having global networks in place tofacilitate best practice exchange
is another important driver for our
success. Representatives from all
our plants meet frequently online
to exchange ideas and share local
experiences. In addition, global
support experts visit the plants tolook for new opportunities. In 2023,
we also received a lot of support
from a fellow SHV company, EM3,
which specialises in energy andcarbon reduction solutions. Their
support has helped us to implement
many solutions across Nutreco.

Skretting Impact Report – 2023

31
2 – Climate and circularity

We have found that our people
are very motivated to workon energy and CO2 reduction,
because it has a tangible, realworld impact.

Stuart Fyfe
Global Process Excellence Leader
NutrecoMeasuring our
production KPIs

Skretting Impact Report – 2023

Specific energy consumption
kWh/ton per BU

GHG emissions
kg CO2e/ton per BU

2018

2019

2020

2021

2022

2023

% changefrom 2018% changefrom 2022

Global

315

322

352

358

365

361

14.7

-1.1

BU Salmon

285

279

274

259

268

261

-8.4

BU LatAm

351

436

466

477

463

463

BU Southern Europe

352

349

390

332

340

BU Asia

436

398

437

422

BU MEA3

800

800

565

607

2018 and 2019 MEA data are estimated values
42018 and 2019 MEA data are estimated values
332
2 – Climate and circularity

2018

2019

2020

2021

2022

2023

% changefrom 2018% changefrom 2022

Global

96

91

84

85

83

84

-12.9

1.1

-2.6

BU Salmon

90.5

85.5

64.9

64

58.5

68.2

-24.6

16.7

32

-0.1

BU LatAm

68.9

87

97.1

101.8

97.8

97.5

41.6

-0.4

2023

-3.4

-0.3

BU Southern Europe

90.1

85.3

79

67.8

64

63.9

-29.1

-0.2

407

377

-13.6

-7.4

BU Asia

153.8

145.9

154.4

143.5

156.9

103.4

-32.8

-34.1

582

634

-20.8

9

BU MEA4

200

200

165.3

175.5

165

174.3

-12.9

5.6

Measuring our
production KPIs

Skretting Impact Report – 2023

Waste
kg/ton per BU

Water use
litres/ton per BU

33
2 – Climate and circularity

2018

2019

2020

2021

2022

2023

% changefrom 2018% changefrom 2022

Global

631

637

678

658

626

680

7.7

8.6

25.9

BU Salmon

562

533

490

444

459

462

-17.8

0.7

-27

-32

BU LatAm

867

1,004

1,124

1,044

843

970

11.8

15

6.6

11

10.5

BU Southern Europe

526

508

595

479

532

597

13.5

6.3

9

12

64

28

BU Asia

840

766

797

850

864

696

-17.1

-19.4

2

5

-24

127.9

BU MEA4

469

609

614

614

443

508

8.4

14.7

2018

2019

2020

2021

2022

2023

% changefrom 2018% changefrom 2022

Global

7.9

7.6

9.6

6.4

6.6

16.4

107

148

BU Salmon

9

9

9

7

6.8

8.6

-5

BU LatAm

5.8

6.3

14

5.6

6.3

4.3

BU Southern Europe

6

5

6

6

6

BU Asia

7

6

8

9

BU MEA3

6

4

3

3

More efficient boilers

Boilers are the biggest consumersof energy in Skretting’s operations
and, therefore, the largest driversof CO2e production. The steamthat we produce in our boilers ismostly consumed in the cooking
process (during preconditioning andextruding) and, in many plants, isalso used to make hot air for use indryers. In 2023, we made a lot of
positive progress around boilers.
Skretting’s Global Operations
team made several onsite visits
to support the teams in Ecuador,
India and Vietnam with training andbest practices for improving boilers
and steam systems. These plants
have made many improvements intheir factories that were essential in
reducing Nutreco’s global average of
specific energy in 2024.

We also made some big changes
in boiler installations. In Skretting
Norway’s Averøy plant, the teaminstalled an electric boiler, enablingthem to go CO2 neutral, pending
the purchase of green electricity.
The Skretting Chile plant in Pargua
installed a new liquified petroleumgas (LPG) boiler to replace the oldcoal boiler. During the year, Skretting
Vietnam also completely replaced
their old Long An production sitewith a brand-new, state-of-theart facility, switching from coal tobiofuel at the same time. These
two achievements marked the final
removal of coal from Skretting’s
operations, and will enable us toachieve further reductions in CO2
in the coming years.

Skretting Impact Report – 2023

34
2 – Climate and circularity

In 2023 we removed coal in
all our operations, which will
enable us to achieve further
reductions in CO2 emissions
in the coming years.

v

Skretting Impact Report – 2023

Reducing energy
use in plants

Skretting China andsolar power

Challenges our
OpCos face in
reducing emissions

CO2e mapping
to zeroSkretting Egypt achieved thelargest reduction in energy per ton
in all of Nutreco during 2023. They
recorded a reduction of 293kWh/t– which is more than some plants
consume in total over the course ofa year. This equates to an annual
savings of 1,500 tons of CO2. The
improvements they made wererelated to boiler and generator
optimisations, and, to some extent,
were helped by an increase involume of feed produced – but themain driver was a motivated andpassionate team.

In 2023, Skretting China installed
solar panels on their facility’s roof by
sub-letting the space to an external
party willing to invest in strengthening
the roof and buying and installing
the panels. Then Skretting China
purchased the solar energy at anagreed price that is lower than theircurrent electricity price. The saving inenergy was 1.77 GWh per year andequates to an annual reduction of
1,035 tons of CO2.

Investing in new equipment does
not always translate to immediate
improvements in CO2 emissions.
Our OpCos face many different
challenges as they strive to operate
more sustainably.

All of Nutreco’s BUs participated inworkshops in 2023, to assess theirgaps to zero CO2e performanceand create action plans to getthere. The process of mapping theCO2e path to zero is an important
step, and essential for Nutreco
to meet our overall target of 30%
reduction of absolute CO2e by2030. SHV company EM3 was animportant partner in making theseassessments in a numberof factories.

Skretting Vietnam has also been
focussed on energy reduction in
2023. The team achieved theirlowest energy per ton performancein the last half of 2023, and newrecord lows are expected to continue
in 2024. The Vietnam success once
again comes from a team effort inworking to understand power andachieve savings on site.
Skretting Ecuador is the largest
energy consumer and biggest CO2
producer in the Skretting group.
The team started a project to convert
their heavy oil boilers to gas, which
will result in large CO2 reductions
expected to be realisedin 2024.

For example, Skretting Chile’s
Osorno facility experienced abreakdown in the boiler that forced
them to rely on a rented boiler
with high CO2 impact, causing
their normally exceptional CO2
performance to spike in thewrong direction.
Skretting Norway produces someparticularly challenging products thatcan require more water to be used intheir production. This means that the
products require more drying, which
is an energy-intensive process.
The business in Norway also had
to deal with a recent change froma location-based (local) to a market
based-emission factor. We haveapplied this new emission factor
to the OpCo’s results for each year
since 2018 to ensure consistency
with our SBTi targets
The largest challenge our businesses
faced was the growth in Ecuador,
which increased absolute CO2
values, despite improvements in CO2
per ton (efficiency). As mentioned,
the planned fuel change will be asignificant turning point inthis OpCo.

A typical BU action plan starts withthe easy wins, optimising processes
and improving boiler efficiency.
Later steps of the plan include
more complex and costly actions
like replacing the boiler, installingheat pumps and, of course, buying
greener electricity, if it is not alreadybeing done. While there is still a lotof implementation work to be done,
all the plans across Nutreco havebeen defined and evaluated.

35
2 – Climate and circularity

Scope 3 emissions:
Overview per ingredients andfootprint drivers per region

Skretting Impact Report – 2023

Norway

Chile

North
America

Australia

BU Salmon

BU LatAm

BU Southern
EuropeBU Asia

BU MEA

Animal oil

0.0%

0.0%

0.0%

0.0%

0.4%

0.0%

0.7%

0.4%

0.0%

Animal protein

0.0%

9.8%

2.7%

7.1%

7.9%

0.0%

5.0%

4.3%

3.4%

Carbohydrates

2.8%

4.3%

7.6%

2.6%

4.0%

27.4%

2.9%

11.1%

8.0%

Fish meal trimmings

0.7%

0.0%

0.0%

1.3%

0.2%

0.0%

0.0%

0.0%

0.0%

Fish meal whole

6.4%

2.4%

2.5%

8.3%

3.2%

6.8%

7.4%

13.1%

0.7%

Fish oil trimmings

0.7%

0.6%

0.0%

0.6%

0.4%

0.0%

0.0%

0.0%

0.0%

Fish oil whole

4.3%

3.7%

2.5%

5.1%

3.8%

1.4%

4.1%

1.5%

0.1%

Micro ingredients

5.0%

23.8%

7.6%

10.3%

18.7%

5.5%

4.4%

27.0%

33.7%

Vegetable oils

46.1%

37.7%

26.1%

22.4%

36.3%

5.5%

27.9%

6.1%

2.9%

Vegetable proteins

34.0%

18.3%

26.1%

42.3%

25.2%

53.4%

47.7%

36.5%

51.2%

Not identified

0.0%

1.2%

1.7%

1.3%

1.2%

2.7%

0.0%

0.0%

0.0%

36
2 – Climate and circularity

Footprint drivers
per BU

Skretting Impact Report – 2023

Vegetable proteins

Fish meal whole

Vegetable oils

Fish meal trimmings

Micro ingredients

Carbohydrates

Fish oil whole

Animal protein

Fish oil trimmings

Animal oil

100%
90%
80%
70%

The main ingredients that drive
our BU Salmon’s footprint are
vegetable protein (mainly soyprotein concentrate, wheat
gluten vital, maize gluten mealand guar meal) and vegetableoils (mainly crude rapeseedoil). Micro ingredients, such asamino acids and premixes also
contribute substantially. Fishmeal
and animal protein (mainly poultrymeal) contribute in a more minor
way. Carbohydrates are even lessimportant contributors to
the footprint.
There are large differences
between the different OpCos thatare part of our BU Salmon. For
example, animal protein is not
used in Norway, but is an importantsource in North America and also
used in Chile and Australia. Thereis a larger share of vegetable oils
in Chile, while vegetable proteins
are more dominant in Australia,
and Norway has a large share of
both. The use of micro ingredientsis also highly varied, mainly due tovariations in the use of amino acids
and premixes.

60%
50%
40%
30%
20%
10%
0%

37
2 – Climate and circularity

NorwayChile

North America

Australia

BU Salmon

LATAM

Southern
EuropeAsia

MEA

The main footprint driver for our
BU LatAm, which produces shrimp
feed, is vegetable protein (mainly
soybean meal and maize distillery
dry grain soluble (DDGS)), followedby carbohydrates (wheat), vegetableoils (soybean oil and lecithin) andfish meal. Animal protein (porcine

blood haemoglobin) makes asmaller contribution to the BU
LatAm footprint. Amino acids andother micro ingredients, such as
magnesium oxides, also make asmall contribution.
The main footprint driver for our BUSouthern Europe is vegetable protein(mainly soy protein concentrate,
wheat gluten vital, maize gluten
meal and guar meal), followed byvegetable oils (mainly rapeseedoil) and fish meal. Animal protein(poultry meal) makes a smaller
contribution in the BU Southern
Europe. Carbohydrates are evenless important contributors to thefootprint. Micro ingredients also
make a small contribution.
The main footprint driver for the
BU Asia is vegetable protein(mainly soybean meal), followed by
micro ingredients. Fish meal andcarbohydrates both contribute about
10%. Fish oil and vegetable oil makea small contribution.
The main footprint drivers for the
BU MEA are vegetable protein(mainly soybean meal). Microingredients – mixes of organic acids– salts and/or preservatives, butalso amino acids make a relatively
large contribution compared toother BUs. Carbohydrates suchas maize grains make a smaller
contribution to the footprint.

Carbon footprint acrosscountries and species

Skretting Impact Report – 2023

38
2 – Climate and circularity

Outbound logistics
Packaging

The carbon footprint of our feed
can differ significantly, dependingon the species but also on theregions and markets where it isproduced and sold.
Differences based on species canbe due to the diverse nutritional
requirements within their specificenvironments, which influence
the types of ingredients that areneeded in the feed. The biophysicalcharacteristics of the feed itself also
have an impact, for example, in
reducing feed loss and optimising
feed uptake, which can further
reduce the footprints of the final
consumer products.
Purchasing and regulatory andmarket conditions can also be quite
different in the various regions
and countries of the world. This
impacts the feed composition, rawmaterial availability and origins, and,
subsequently, the feed footprint. To
provide further insights into thesedifferences and the main causes, see
Carbon footprint breakdown from
cradle to farm.

Mill operation

Carbon footprint breakdown
from cradle to farm
(In kg CO2eq/kg feed)
2.0
1.8

Inbound transport
Feed, land use change
Feed, excluding land use change

Total
1.83

Total
1.59

Total
1.60

Total
1.55

Total
1.11

Total
0.93

Express
Australia

Express
NorwayExpress
Chile

Express
CanadaMasterLine
Ecuador

Alterna Bream
Italy

Shrimps

Bream

1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0

SalmonOur ingredientscope 3 approach

Skretting Impact Report – 2023

By engaging with suppliers, requesting LCA
data and supporting SBTi commitments, weensure that sustainability is integrated into
our supply chain’s daily operations.

39
2 – Climate and circularity

Engaging our supply chain
for scope 3 reductions
Engaged
SalmonSkretting aims to foster acollaborative approach to reducing
the impact of the aquacultureindustry by actively involving ourpartners in the discussion. Ouringredient scope 3 approach was
set up together with our parent
company Nutreco and has enabled
us to take significant steps in 2023
to engage suppliers on our journey
to reduce our environmental impact.
We proactively reached out to our
supply chain partners, prioritisingthose with the highest contributions
to our Scope 3 emissions. Throughthese discussions, we sought togain an understanding of the
suppliers’ GHG-reduction
commitments and plans.
As part of the engagement process,
Skretting requested life cycle
assessment (LCA) data from its
suppliers. During this process,our aim is to not only understandthe emissions associated with the
products supplied but also

to assist suppliers in comprehending
the requirements and implicationsof the Product Environmental
Footprint Category Rules (PEFCR)
Feed standard. Adhering to theserequirements is important, as any
data that does not comply cannot
be used for product footprinting
and, therefore, does not support ourcustomers in making soundand sustainable choices.
In 2023, we were able to discuss the
LCA data and commitment requests
with suppliers contributing to 42%
of our total scope 3 emissions. We
have observed that at least 17% ofSkretting’s scope 3 emissions arecovered by commitments madethrough the SBTi, demonstrating our
supply chain’s dedication to setting
ambitious emissions reduction goals.
These achievements underscore
Skretting’s commitment tosustainability and its proactive
approach to addressing scope

3 emissions. By engaging with
suppliers, requesting LCA dataand supporting SBTi commitments,
we ensure that sustainability is
integrated into our supply chain’s
daily operations. As we continue
to collaborate with suppliers
and pursue ambitious reduction
targets, it remains at the forefront ofdriving positive change within theaquaculture industry and advancing
towards a more sustainable future.

LatAm

Southern Europe

Asia

MEA

Grand total

59%
33%
30%
11%
2%
42%

SBTI committed

12%
28%
11%
20%
4%
17%

Our LCA Journey:
Main progress in 2023
In the dynamic landscape of 2023,
we put a strong focus on automating
and digitising our LCA solutions toenable fast, reliable and auditablefootprint calculations.
We also updated our internal
LCA database, aligning it with thelatest industry data and relevant
standards. At the same time, we
streamlined processes for requestingand validating consistent supplierfootprint data.

Skretting Impact Report – 2023

40
2 – Climate and circularity

Key activities in 2023:

1
Digital transformation of ourinternal LCA database• We transitioned our internal LCA
database to a cloud-based,
API-ready solution, to enhanceaccessibility, scalability and realtime collaboration.
• We made significant steps inintegrating LCA data with internal
data systems to enable automatedbatch-level carbon footprint
calculations and reporting.
2
Data excellence: updates andquality assurance• We updated our LCA databasewith the newest versions ofsecondary LCA data.
• We defined stringent quality
criteria for supplier LCA data,
enabling approved supplier data
to now seamlessly integrate into
our assessment processes.
3
Enhancements to corporatecarbon footprint visibility• We introduced traceability data
for soy ingredients, enhancing
transparency and accountability.

4
Certification and verification
milestones• We achieved certification for our
Skretting Italy carbon footprint
solution against the PEFCR feed
standard. Simultaneously, we
initiated the verification process
for our global LCA system with an
external party.
5
Risk assessment and new metrics• We put in place new metrics,
including Forest, Land andAgriculture (FLAG) and nonFLAG indicators, peat oxidationassessments, and a semiquantitative error indicator, toenrich our analytical toolkit.
• We assessed water risks
associated with our operations.
6
Collaborative leadership• We actively participated in industry
forums, joining the Global FeedLCA Institute (GFLI) TechnicalManagement Committee and theIDH Aquaculture Working Groupand Biodiversity Committee, withthe goal to drive standardisationand pioneer impactful metrics.

Skretting Impact Report – 2023

We faced the challenge of scaling
up our LCA calculations to meetthe growing demands of our
stakeholders, such as customers,
who are increasingly demanding
footprint reporting on product level,
and regulators, who, through the
Corporate Sustainability Reporting
Directive (CSRD), are requiring
us to report on our environmental
impacts. Doing this manually with
Excel spreadsheets is becoming lessfeasible and reliable, so we needed
to automate and digitise our LCA
processes to ensure data quality andconsistency and enable us to react
to changes in leading standards andguidelines and developments in LCA
databases – and explain how these
affect our footprint calculations.
We started by migrating our LCA
database from Excel to a cloudbased platform, to enable us tomaintain control over the data andits mapping, while using a coded,
secure back end. In the near future,
this will also enable us to provide live
access to updated central footprint
information for raw materials toall our LCA applications. It also
reduces the potential for calculation41
2 – Climate and circularity

errors and assures the quality of theemissions data and the selection ofemissions factors.
Next, Sustainability, IT, Formulationand other teams across the businessworked together to integrate theback-end data with our otherreporting systems, so that we could
use the same level of detail for
footprint calculations as we do forother types of reporting. Working
on a common sustainability goal
helped us to break down silos, shareknowledge and improve efficiency.
People across Nutreco are motivatedby working on sustainability projects,
which can have positive spillover
effects on other aspects of ourbusiness, creating value beyond
core sustainability issues.
One technical benefit of smart digitalsolutions is that they can improve
the quality, speed and security offootprint calculation, ensuring thatthe calculations are accurate andaligned with standards. We haveasked Kiwa, an independent thirdparty certification body and part of
the SHV family, to verify our solution,
helping us identify our strengths
and weaknesses and set ourpriorities for 2024.

Marcel Görmer
Technical Lead Sustainability Metrics
NutrecoPwC names
Skretting a climate
leader in Norway
Among Norway’s 100 largest
companies, only nine aresuccessfully reducing house gas
emissions as mandated, and fourof them – Skretting and threesalmon producers – are from theaquaculture sector.

Skretting Impact Report – 2023

PwC’s Norwegian Climate Index,
an annual overview of the climate
impact of large companies, only
names entities that meet the Paris
Agreement’s baseline emission cut
requirements – averaging at least
7% annually over the past three
years – at the top of their ranking.
Aquaculture industry
ranks high in 2023
The report spotlighted Norway’s
aquaculture industry as having aparticularly strong performance. It
highlighted three salmon producers,
Lerøy, Mowi and SalMar, for
reducing emissions by at least 7%.
Hanne Løvstad, Partner and Head of
Sustainability and Climate Services
at PwC, gave Skretting credit for
helping the industry achieve its
climate objectives, given that feed
contributes significantly to salmon’s
carbon footprint.
“This underscores our recent
successes, and it’s impressive towitness the aquaculture sector
leading Norway’s climate efforts,”
says Leif Kjetil Skjæveland,
Sustainability and Public Relations
Manager at Skretting Norway.
Skretting Norway’s climate footprint
last year stood at 1.77 CO2e perkilogram of fish feed produced, aremarkable 46% decrease from the2018 baseline.

Science-based targets
and enhanced sustainabilityHåvard Walde, General Manager
of Skretting Norway, said this is
the result of a collective effort
from the entire organisation andwas helped significantly by the
dedicated sustainability officers
across most departments at
Skretting Norway and the impactof Nutreco committing early to the
SBTi. “We are immensely gratified
to receive this affirmation of theeffectiveness of our environmental
initiatives. Simultaneously, we feel aheightened responsibility to do evenmore, collaborating with customers
and suppliers to drive forward.
The recent heatwaves, forest fires,floods, and extreme weather events
remind us of the urgent need forclimate action. We are committed toensuring that Norway’s aquacultureindustry continues to lead in thedevelopment of resource-efficientand sustainable food production,”
said Walde.

42
2 – Climate and circularity

The abacus represents the nineclimate winners of Norway’s 100
largest companies. “The progress
is too slow! While 22 out of 100
companies exhibit emission cuts intheir operations and value chains,only nine of these align with theParis Agreement,” says Hanne
Løvstad, PwC Partner and Head of
Sustainability and Climate Services,
pictured here with Leif KjetilSkjæveland (to the right), Manager
for Sustainability and Public
Relations, who accepted the award
on behalf of Skretting Norway.

Skretting Italy is thefirst Nutreco OpCo tocertify MyFeedPrint
We saw great opportunities in certifying
the system used to calculate product CFP
instead of the values for a limited rangeof products. It enables us to provide ourcustomers with certified CFP values forany product, with the flexibility to keep thevalues updated following any change or
optimisation in formulation.

Skretting Impact Report – 2023

Skretting Italy has upgraded theCarbon Footprint of Products (CFP)
Systematic Approach they haveused for carbon footprinting since2020 to the MyFeedPrint system,
Nutreco’s solution to provide
customers with robust and accurate
values for product CFP.
The upgrade to MyFeedPrint is
the last step of a journey the teamstarted in 2020 with the adoptionof the CFP Systematic Approach.
They were able to get this approachcertified to ISO 14067, a leading ISO
standard for carbon footprinting,in 2021. Then, earlier this year,
they achieved full alignment with
MyFeedPrint.

Umberto Luzzana
Marketing Manager
Skretting Italy

43
2 – Climate and circularity

Skretting Impact Report – 2023

44
2 – Climate and circularity

Chapter 3
Good citizenshipGood citizenshipThis pillar of RoadMap 2025 isprimarily focused on diversity andinclusion (D&I), which we strive
towards by empowering local
communities with best practices
and technology to ensure thataquaculture offers a sustainable
path to healthy living. In addition,
we work to be a diverse andinclusive employer, aiming for ourteams to reflect the diverse andglobal society we live and work in,and to be the change we want tosee.
We want everyone to thrive in anenvironment where we feel valued
and respected, in a culture thatbrings out the best in all of us. To
help us succeed in Feeding the
Future, we welcome everyone asvalued members of our family, withequal opportunities to be the best
we can. We respect people for who
they are and embrace diversity,
listening to and learning from eachother’s unique perspectives.

Skretting Impact Report – 2023

46
3 – Good citizenshipOur targets

Our 2023 progress

One out of threehires are female

20% of our hires were female

30% women in seniorleadership by 2025

27% women in leadership

Implement the Taking theStage programme

23 Skretting women leaders
took part in Taking the StageNot on target

In progress

On track

Progress towards
our goals
During 2023, we continued to focus
on our three key D&I areas:
Balanced gender representation:
Our goal is to have 30%
representation of women in
leadership positions by 2025. We
are currently at 27%, which means
we will need to accelerate thisprogress to reach our ambition.
We have specific recruitment
targets aimed at improving female
representation and we review themas part of our internal reporting
and audit process. We also put
special focus on improving gender
representation in our talent pipeline.
During 2023, the number ofnationalities represented across ourSkretting business reached 77 andthe average age of our employees
was 39.3.

Skretting Impact Report – 2023

47
3 – Good citizenship

Skretting’s total number of employees
Number of
employees% Female hired% Female insenior leadership

Number ofnationalities

Salmon

979

37

42

LatAm

927

14

29

10

36.5

Southern Europe

407

31

21

17

43.5

Asia

1,633

20

25

23

38.5

MEA

517

27

17

30

38.5

Corporate

147

38

46

30

41.6

Global

4,610

20

27

77

39.3

Business unit

19

23

Average age

The NorwegianTransparency Act
mandates full disclosureof social risks in thevalue chain
Norwegian legislation has put a special
focus on human and workers’ rights
across Norwegian companies’ complete
value chain. This sparked a thorough due
diligence around key goods and services
sourced for Norwegian aquaculture andother industries.

Skretting Impact Report – 2023

The Norwegian Transparency Act
mandates that large Norwegiancompanies must carry out andreport on due diligence assessmentsof their complete supply chain andown operations in relation to humanrights and workers’ rights. In 2023,
Skretting Norway was required forthe first time to publicly file a reportcovering how the due diligence
was carried out, what the findings
were and how to mitigate theidentified risks.
A complex value chain that may be
exposed to violations
Skretting Norway, like the other
Nutreco businesses, has longdemanded that our suppliers must
follow the requirements set out in
our Code of Conduct for Business
Partners. But the new legislation
demands continuous monitoring
more deeply into our value chain.
Most of Skretting Norway’s raw
materials are imported from abroad;the value chain is complex andincludes raw materials that may
be exposed to violations of humanand workers’ rights, as well as therisks of negative impact on people,
animals and the environment.
“When our producers can beanything from large international
companies to small-scale farmers
and fishermen, it is difficult tocapture every deviation and breach.
This is something we must continue
to work on, to ensure we continue tomake real improvements for peoplein our own business and supply
chain,” says Leif Kjetil Skjæveland,
Sustainability and Public Relations
Manager at Skretting Norway.
A total of 16 suppliers flagged ashigh risk
During the 2023 risk assessment, wehave improved our risk assessmentand found that 16 of the assessed
suppliers were flagged as high risk,
mainly because they operate in48
3 – Good citizenshipcountries or industries – such as the
agricultural and fisheries sectors– that are typically designated ashigh risk. Since Skretting’s largest
purchases consist of vegetable
and marine raw materials, it was
expected that some of the suppliers
and their value chain would be
flagged as high risk.
“So far, we have evaluated four of
the 16 suppliers in the high risk
group, and they scored satisfactorily.
We are currently actively checking
three other suppliers and will follow
up with the remaining nine shortly.
We have seen good cooperationfrom our suppliers so far and expect
the same with our remaining
high-risk business partners
moving forward,” says Job van Mil,
Nutreco’s Supplier Sustainability
Manager, who leads thedue diligence.

Skretting Norway´sapproach to humanrights and working
conditions

Skretting Impact Report – 2023

Skretting’s work with human rights andworking conditions uses the OECD’smodel and its six recommended steps
for due diligence assessments for a
responsible business community.

5
Communicating outcomes
We communicate how
impacts are adressed in oursustainbility reporting and on
our website.

4
Monitoring
We track implementations
measures and results.

Spend risk per category

High

Norway73% 23% 3%Medium Low

49
3 – Good citizenship

Unknown

1%

1
Governance and policies– Skretting steering system– Code of conduct– Code of conduct for 		business partners– Skretting´s sustainableprocurement policy– Stakeholder engagement2
Impact identification
We assess adverse impacts
through human rights impact
assessments, integrity due
diligence (IDD) checks, andrisk assessment of suppliers,
manufactors and raw materials.

6
Remediation
Negative impacts are
remediated as far as
reasonably possible,
given our level of impact
and influence.
3
Mitigation of impacts
We mitigate potential andactual adverse impacts
through appropriate
measures.

Cleaning plastics fromthe oceans
It is estimated that eight million tonsof plastic pollution enters the oceans
every year, and that marine plastic
pollution costs up to $2.5 trillion peryear, globally. Plastic in the oceans
can take up to 450 years to degrade,it absorbs and transports chemical
pollutants and it can cause toxic
effects when digested by animals.
With the aim to promote actions
that reduce plastic pollution in theocean, and as part of SeaBOS’s
transformation efforts for a healthy
ocean, Skretting participated in acoastal clean-up for marine plastics.
This initiative helped remove someplastics while, at the same time,
highlighting the challenges that
ocean plastics present for the marine
environment, and showing that

individual actions can have impact.
Nearly 250 colleagues in Norway,
Australia, Chile, Canada, Vietnam,
Indonesia, Italy and Japan joined theinitiative and collected approximately
1,400 kilograms of waste – morethan two times the amount collected
in 2021!
In addition, our teams in Indonesia
have participated in community
projects, starting in 2022 andcontinuing through 2023, to clean up
local coastlines and plant mangrove
trees. Mangrove forests are highly
effective at sequestering and storingcarbon dioxide from the atmosphereand serve as incredibly biodiverse
ecosystems that support a wide
range of plant and animal species.

Skretting Impact Report – 2023

50
3 – Good citizenshipSkretting Impact Report – 2023

51
3 – Good citizenshipChapter 4
Ingredient deep diveFeed ingredients

Finding the most sustainable andcost-efficient raw materials
The production of fish and shrimp
feed is very complex, with strict
criteria regulating the physical qualityof the pellets, and sophisticatedequipment needed to process thefeed. One of the biggest cost drivers
in feed production is raw material
procurement. For this reason, wedevote a lot of our research toincreasing raw material flexibility
and functionality. We produce morethan three million tons of feed eachyear, which means that even small
improvements in product technology
can add up to big improvements inquality, efficiency and sustainability.

Skretting Impact Report – 2023

53
4 – Ingredient deep diveNot on target

In progress

On track

Our targets

Our 2023 progressObtain 100% of marine ingredientsfrom sources audited and certified by
MarinTrust or MSC, or engaged in an FIP

77% of our whole fish and trimmings are certified
MarinTrust or MSC or from an FIP, a decrease comparedto the 84% reported in 2022 (reflections and reasons forthis decline are shared later in this chapter).

Ensure all purchased soy is deforestationfree by 2025

92% of our purchased soy is in class A or B
according to our sourcing policy, with a significant
decrease in uncertified, high-risk products.

Ensure that by 2022, all agriculturalvegetable products are traced back to thecountry where they were cultivated, to use ina risk filter and for footprinting requirements

We have traceability for soy and palm ingredients to thecountry where they are cultivated. Unfortunately, we have notyet successfully implemented a traceability system for othervegetable ingredients, due to the complexity of supply chains
and the significant increase in administration that comes withit, both for us and our suppliers. This is a task that we will
explore further in 2024.

5-10% of feed ingredients come fromalternative novel sources

We reached 0.99% in Skretting, an increase
compared to the 0.79% in 2022, but still far
from our target.

Progress on thecomposition of feed
The blueprint we have developed
to screen raw materials andunderstand what every ingredientbrings to the table and how tohandle them helps us make theright choices going forward.

Skretting Impact Report – 2023

In our 2022 Sustainability Report,
we detailed how we have been
adapting to the most recent
challenges in raw material availability
and price caused by a combinationof global events, many of which
are still ongoing and beyond ourcontrol. This has only increased
our focus on finding alternative
ingredients to ensure a continued
supply of high-quality feeds as costeffectively as possible. While every
year comes with improvements anddevelopments, it is important to lookback and see just how far we havecome in terms of expanding our raw
material basket.
Three decades ago, fish feeds
commonly comprised just threeingredients: fish meal, fish oil andwheat. These were, and remain,
nutritionally valuable ingredients.
However, if this diet composition
was still the same today, we would
be totally exposed to the volatilityof the marine market, which can
see availability plummet and prices
spike when environmental conditions
change, for example, during the
El Niño climate pattern of 2023 and2024. More importantly, we have a
responsibility to protect wild marine
stocks for future generations. So, thejourney began to look
for alternatives.

Samuel Eggington
Global Formulation Manager
Skretting

The early 1990s saw major
breakthroughs in salmon feed, withthe successful introduction of corn,
wheat and soy-based proteins. Thiswas closely followed by the firstuse of land animal protein sourcesand vegetable-based oils, thelatter allowing us to start reducing
fish oil as well as protein. Equallyimportant was the introduction of
micro ingredients such as aminoacids, vitamins and minerals. Here,small inclusions of these much moreconcentrated sources can result insignificant reductions in the need formaterials such as fish meal.
Through decades of trials evaluating
new raw materials to understandaspects such as acceptability,
digestibility, maximum doses andfunctional properties, we have beenable to expand our raw material
basket. Today, individual feeds
regularly include 20-30 different
ingredients, many of which are
combinations of interchangeable
protein, starch and oil sources,
allowing for endless combinations
for the best balance in price,
availability and quality at any
given time.

54
4 – Ingredient deep diveWe have made huge leaps, suchas applying research to translate
the nutritional composition ofmarine proteins and oils into actual
nutrient requirements for fish andshrimp, allowing us to produce diets
today that contain zero fishmeal
and oil for some species. We havealso taken smaller steps, such as
testing the digestibility of over 60
protein sources, covering different
specifications, temperatures, target
species, suppliers and production
methods, to understand how toeffectively replace one proteinwith another when the price oravailability becomes less favourable.
There have also been some forced
learnings along the way, highlighting
the importance of combining ourknowledge of macro and micro
ingredients with our understandingof the nutrient requirements of fish.
A perfect example is when blood
meal products were removed fromdiets in the mid-1990s following
concerns around the BSE (“madcow disease”) outbreak, resulting
in a large increase in the incidencesof cataracts in Atlantic salmon.
From this, we learned the importantfunction of the amino acid histidine
and were able to add this directly
to feeds to mitigate the problem inthe future.

Beyond knowing how ingredients
work nutritionally, we have also had
to learn how they work in terms
of processing and handling. The
introduction of the extrusion process
for aquafeed has been industry
changing and is now standardpractice for some species andincreasingly important in others.
This allows us to handle a muchwider range of raw materials.
Additionally, the push for highenergy feeds has given us yearsof experience in dealing with how
to cope with high levels of a varietyof oil sources, right from production
to onsite storage.
Over time, a range of ingredients
have become well-establishedstaples in our feeds. However, atthe same time, new micro andmacro ingredients have appearedon the horizon and will continue
to do so. The blueprint we havedeveloped to screen raw materials
and understand what every
ingredient brings to the table andhow to handle them helps us makethe right choices going forward.

Inclusion of different
nutrients in Skretting feed

Skretting Impact Report – 2023

55
4 – Ingredient deep dive

The use of land animal by-products will depend upon market acceptance and legislation.
2
The level of starch raw materials will be different in extruded and pelleted feed.
1

Primary raw material

Ingredient group

Typical examples

SalmonSea bass and sea breem

Shrimp2

Tilapia

Average Skretting

average% inclusion in feed

Protein

Fat

Carbohydrates
Micronutrients

Wild capture and farmed
fish and crustaceans

Marine proteins

Fish meal
Crustacean meal

12.5

17.8

10.2

1.7

11.9

By-products from farmed
land animals

Land animal proteins1

Poultry meal

10.0

19.2

4.9

9.1

9.2

Agricultural crops

Vegetable proteins

Wheat gluten, Corn gluten
Soybean Meal, Soy protein
concentrate, Rapeseed meal
Sunflower meal, Lupin, Faba

36.2

30.5

45.4

38.4

37.9

Wild capture, algae,
farmed fish andcrustaceans

Fish oil
Algal oilFish oil
Algal oil

10.3

7.9

1.4

0.2

5.5

Agricultural crops

Vegetable oils

Rapeseed oil
Soybean oil
Camelina oil

19.7

5.7

2.5

0.2

9.1

By-products fromfarmed land animals

Land animal oils1

Poultry oil

0.9

Agricultural crops

Starch raw materials

Wheat

7.5

16.9

28.6

44.4

18.7

Vitamins
Minerals
Pigments

Vitamin Premixes
Mineral Premixes
Pigments

2.9

2.0

7.0

6.0

7.0

0.7

Reflections from Nutreco’s
new Sustainability Director
In 2023, we have made oursustainability actions moretransparent and more action
oriented and have been able toreally increase the number of people
in the organisation involved insustainability, through three main
focus areas:56
4 – Ingredient deep diveBeing open andtransparent:

ActingNOW:

Empowering our colleagues
and stakeholders• Delivering on the Corporate
Sustainability Reporting Directive(CSRD); defining our material topics,
the required reporting and thenecessary governance, policies
and KPIs.

• Especially when it comes to carbon
footprints, actual reduction hasn’t
been the key focus in the past,with measuring and reportingat the forefront of our attention– but this has changed in 2023.
We have developed clear actionplans for scope 1 and 2 and set
KPIs per business. This improved
measurement of energy use sets
Skretting up for structural footprint
reduction in the coming years.

• The community of people within
Nutreco actively involved in helping
us achieve our sustainability agenda
is growing. Clearly our purpose of
Feeding the Future has meaningfor people – and they also want togive it meaning themselves. As asustainability team, we help them dothis through webinars and trainings.

• Starting to think about the EU
Deforestation Regulation (EUDR), theimpact of the required administrationand the potential impact on our
procurement of raw materials.
Concrete action will need to takeplace on this in 2024.

Robert van den Breemer
Sustainability andProcurement Director
NutrecoSkretting Impact Report – 2023

• On scope 3, our understanding of
the origins of our carbon footprint
has improved. We have found thataround 40% is with Tier-1 suppliers,
approximately 50% is related to nonFLAG (e.g., fossil fuel) emissions in
our value chain and around 33%
relates to land use change (e.g.,
deforestation and conversion)
emissions. Yet we are still developing
a clear action plan that is financially
viable, and have not found many clear
short-term actions that would makereductions possible. We are engaged
in several value chain initiatives,
but we are not yet satisfied with thescope and speed of progress.

All in all, 2023 has been a year during
which we have really made a step up in
our actions. Although we don’t see thisback in all of our KPIs, we hope to see
it reflected in our results in 2024.

Supplier sustainability:
Progress in 2023

Skretting Impact Report – 2023

At Skretting, supplier sustainability
is a fundamental pillar of ourcommitment to driving positivechange within the aquacultureindustry. We recognise that our
suppliers play a crucial role infacilitating the production ofsustainable seafood, and we arededicated to using our positionin the supply chain to drive
continuous improvement.

Percentage of spend classified byrisk categories per BU.

* For “in progress” suppliers,
we are still working to alignthe risk assessment with thecorrect entities.

Risk assessment

Low riskMedium risk

High risk

In progress*

Asia

3%

43%

12%

41%

LatAm

1%

59%

15%

25%

To assess and monitor thesustainability performance of our
suppliers, we have partnered with
EcoVadis, a globally recognised
sustainability rating platform.
EcoVadis assesses suppliers basedon four key categories: environment,labour and human rights, ethics andsustainable procurement.

MEA

3%

50%

4%

42%

Salmon

3%

30%

59%

8%

Southern Europe

5%

61%

18%

16%

Total

3%

41%

39%

17%

By utilising EcoVadis, we gain
valuable insights into our suppliers’
sustainability practices and canbenchmark their performanceagainst industry standards.
This enables us to identify areas
for improvement and drive
positive change throughout
our supply chains.

57
4 – Ingredient deep dive

Skretting Impact Report – 2023

We prioritise engagement withhigh-risk suppliers, who areoperating in regions or industries
where sustainability risks are moreprevalent. We are requesting thatthese high-risk suppliers perform an
EcoVadis Ratings questionnaire, toshow which steps they are taking to
mitigate any risks found during therisk assessment.
Overall, EcoVadis Ratings enabled
us to prioritise high-risk suppliers,
to gain insights into theirsustainability performance anddrive continuous improvement
throughout their supply chains.
By utilising this platform, we canstrengthen our commitment tosustainability and make more
informed decisions onsustainable suppliers.
We are also excited to share thatour parent company, Nutreco, hasbeen honoured with the prestigious
Silver Medal for Sustainability
Performance by EcoVadis. Thisaccolade showcases Nutreco’s
dedication to making a positiveenvironmental and societal impact.
By receiving this award, we
demonstrate not only our demand
for transparency from suppliers
but also our own commitment tosustainable practices. Winning the
EcoVadis Silver award recognises
our ongoing efforts and solidifies
our position as a responsible andsustainable business.

58
4 – Ingredient deep diveDue diligence engagement
across our supply chain
Rating performed% of high risk

Asia

12%

1%

LatAm

32%

0%

MEA

17%

24%

Salmon13%

13%Southern Europe

4%

2%

Total

16%

11%

Job van Mil
Supplier Sustainability Manager
NutrecoSoy Ingredients

Skretting Impact Report – 2023

59
4 – Ingredient deep diveOur approach and progress

Soy production is a cornerstoneof many parts of our global foodproduction system, including
aquaculture feed. Unfortunately, soy
is also known to drive deforestation,
which leads to negative impacts
on climate and biodiversity.
Deforestation-free soy is crucial
for tackling climate change andprotecting our planet’s ecosystems.
By promoting sustainable practices
and choosing deforestation-freesoy, we can mitigate environmental
damage, preserve carbon sinks andsafeguard endangered species. At
Skretting, we feel it is our collective
responsibility to demand andsupport deforestation-free soy
to create a sustainable future forgenerations to come.
The Nutreco Soy and Oil Palm
Sourcing Policy is a set of
guidelines to ensure that all Nutreco
companies, including Skretting,source these ingredients responsibly,
without contributing to deforestation.
It categorises ingredients based on
the deforestation risk associatedwith the country where the soy iscultivated and promotes the use of
adequate certification in the case ofhigh deforestation risks.
To ensure transparency andaccountability, our policy categorises
soy and palm ingredients into four
distinct classes based on theirdeforestation risks. By identifying
these risks, we can better
understand the steps needed tomitigate them. It also provides clear
guidelines on which sustainability
certificates can be utilised tosafeguard our supply chains.
We are encouraged by theEuropean Union’s proactive stanceon deforestation. Their ruling, set
to take effect in 2025, mandates
due diligence on select imported
commodities, including soy.
This will undoubtedly push theindustry towards the creation of
100%-traceable, deforestationfree supply chains. Our hope is thatthese sustainable supply chains
will not only benefit our EU-based
companies but also extend to ourglobal operations.

We have taken proactive measures
to support farmers who prioritise
deforestation-free practices. In 2023,
8% of our total soy purchases wereuntraceable or originated from highrisk regions without any certification,
falling short of our sourcing policy’s
goals. Despite this shortfall, we areproud to report that 92% of our soypurchases in 2023 were compliant
with our intermediate goals,
showcasing a significant decrease inuncertified, high-risk products.
Creating a deforestation-free supply
chain isn’t easy, and cannot be done
without our supply chain partners,
but we’re determined to overcome
challenges. We’re fully committed
to making a lasting impact on ourenvironment and securing a better
future for generations to come.

Skretting’s purchases of soy
according to our Sourcing Policy
Class AClass BClass CClass D

Unknown origin

Asia

36%

38%

3%

23%

0%

LatAm

57%

39%

0%

4%

0%

MEA

55%

0%

0%

0%

0%

Salmon

74%

26%

0%

0%

0%

Southern Europe

57%

19%

0%

4%

1%

Total

58%

34%

0%

7%

1%

Sustainability claims per classClass A

Nutreco’s soy and oil palm ingredients are deforestation-free.

Class B

Nutreco supports the production of deforestation-free feed ingredients fromsoy and oil palm.

Class CThe soy ingredient meets the FEFAC soy sourcing guidelines, e.g., noillegal deforestation has occurred.
In this defined class, there are no acceptable programmes for oil palm
ingredients, therefore no claims can be made.

Class DThe soy and ingredient(s) can be traced back to their country-of-cultivation.

Reflections from soy
supplier Bunge
At Bunge, we believe that the futureof the agriculture industry is about
supporting decarbonisation byembracing low-carbon solutions.
That is why we strive to be thepreferred sustainable solutions
partner in oilseeds, relatedcommodities and ingredients forboth farmers and customers.
The urgent need for decarbonisation
is opening new market opportunities
for low-carbon-intensity solutions
and is placing agriculture at thecentre. We are working to empower
farmers to take advantage of thisgrowing market while helping
our customers to meet their own
sustainability commitments.
One of the ways we do this isthrough our regenerative agriculture
programme. Today, we are mapping
existing practices taking place on
farms, working collaboratively toidentify corrective or additional
measures, and providing support
for their implementation, including
financial incentives. We believe thetransformation that is needed for adecarbonised future is only possible
when we act together.

Skretting Impact Report – 2023

We also recognise the relevance ofcertifications to provide additional
assurances to our customers.
Indeed, we are one of the largest
providers of non-deforestation
certified soybeans in the world.
Our broad certification portfolio
includes Proterra, an important
standard for the aquaculture sector.
For this sector, we also coordinatedthe Taskforce on Nature-related
Financial Disclosures (TNFD)
guidance, together with the food andagriculture approach, supportingtransparency and accountability
when it comes to nature.
Our commitment to deforestationand conversion-free supply chainsis also a crucial driver of our own
science-based greenhouse gas
emissions goals. It is anchored bya leading origination footprint andstrong relationships with farmers. It
also leverages our reference scoreson traceability and monitoring
system of direct and indirect grainsources in areas facing a higher riskof deforestation in South America,
covering more than 16 thousand
farms across nearly 20 million
hectares. We are well positioned toconnect sustainable products to themarkets where the demand for themis increasing.

Michel Santos
Sr. Director, Global Sustainability
Bunge

60
4 – Ingredient deep dive

Marine ingredients

Skretting Impact Report – 2023

61
4 – Ingredient deep dive

= Percentage of Skretting's
total purchase of marine ingredients

Fishmeal and fish oil
originating from the different
FAO fishing areas

18

Arctic
Ocean

18

27
34%

21
The Food and Agriculture
Organization (FAO) has identified
several main fishing areas aroundthe world (listed in table), divided
into statistical areas and sub-areas
for the purpose of data collection
and management. These mainfishing areas cover a large portion of
the world’s oceans and are importantfor global fisheries’ management andconservation efforts.

67 <1%

77

31 3%

North
Pacific
Ocean

371%

34 5%

5%

71 4%

<1%
South
Pacific
Ocean

Indian
Ocean

87
41<1%

South
Atlantic
Ocean

47 1%

51

38%

81

48

88

Other important areas are:• Western Indian Ocean, which
includes countries such as India,
Oman and Mauritius• Pacific, Eastern Central, which
includes the Pacific coast of
Latin America and Atlantic,
Western Central, which representscountries in Northwest Africa,such as Mauritania and Morocco

North
Atlantic
Ocean

North
Pacific
Ocean

The most important fishing areas for
Skretting based on origin of marine
ingredients are:• Pacific Southeast (38%), which
includes countries such as
Ecuador, Peru and Chile• Atlantic Northeast (34%), which
includes countries such as
Iceland, Norway, UK and many
EU countries

61 2%

81<1%

57<1%

7%

58

88

FAO fishing area

Code

%

Pacific, Southeast

87

38%

Atlantic, Southeast

47

1%

Atlantic, Antarctic

48-

Atlantic, Northeast

27

34%

Mediterranean and Black Sea

37

1%

Indian Ocean, Antarctic

58-

Indian Ocean, Western

51

7%

Indian Ocean, Eastern

57

<1%

Pacific, Antarctic

88-

Pacific, Eastern Central

77

5%

Pacific, Northeast

67

<1%

Arctic Sea

18-

Atlantic, Western Central

31

3%Atlantic, Southwest

41

<1%

Atlantic, Northwest

21-

Pacific, Northwest

61

2%

Pacific, Southwest

81

<1%

Fisheries of origin
for whole fish

A total of 25 species made up 95%
of Skretting’s purchases of marine
ingredients in 2023 originating fromwhole fish. The most important
species are small pelagic fishes
from the Pacific Southeast, Atlantic
Northeast and Atlantic Eastern
Central fishing areas. Small pelagic
fisheries are the most importantsource for both fishmeal and fish oil.
The remaining 5% originates froman additional 49 species. There areseveral reasons for the relatively
large number of species registered.
In all fisheries, there will be a certain
amount of by-catch. When the bycatch is at low levels it will be part ofthe legal fishery. In some areas, themanufacturers of marine ingredientsare instructed by law to register all
by-catch. This means that when
Skretting receives a consignmentof marine ingredients, more than 10
species will be declared that might
only constitute a few percentagesof the delivery.

Another factor is that many fisheries
are multi-species fisheries, especiallyin more tropical areas where wefind large species diversity andwhere single-species fisheries are
not common.
It can also be a challenge to identify
all fisheries in a detailed and correct
way. Our suppliers often can declarethat the origin of a marine ingredientis anchovy or sardine. However,there are many different anchovyand sardine species, which canmake it challenging to identify the
specific fishery. This is something wewant to address through new pilot
initiatives, including our engagementwith the Global Dialogue on Seafood
Traceability (GDST).

Skretting Impact Report – 2023

62
4 – Ingredient deep dive

Overview of origin of marine ingredients from whole fish

Species

Latin nameFishmeal

Fish oil

FAO fishing area

Blue whiting

Micromesistius poutassou

15.9%

3.7%

27

SardineSardinella spp

12.9%

17.2%

87, 51, 61, 34, 77, 31, 34, 47, 57

Anchovy

Engraulidae ssp

10.5%

9.5%

87, 61, 34, 31,77, 47, 57, 37, 51

Peruvian anchoveta

Engraulis ringens

9.0%

5.9%

87

Chub mackerel

Scomber japonicus

7.4%

4.1%

87

Baltic sprat

Sprattus sprattus

3.6%

27

Sprat

Sprattus sprattus

6.3%

5.2%

27

Largehead hairtail

Trichiurus lepturus

4.5%

SandeelAmmodytes tobianus

4.0%

Shortfin scad

Decapterus macrosoma

2.6%

Atlantic salmon

Salmo salar

Krill

Euphausiacea spp

Gulf menhaden

Brevoortia patronus

MenhadenBrevoortia spp

2.4%

Herring

Clupea spp

2.2%

7.5%

27

Pacific anchoveta

Cetengraulis mysticetus

2.0%

3.3%

87

Pacific thread herring

Opisthonema libertate

1.7%

2.3%

87

Capelin

Mallotus villosus

1.6%

2.3%

27

Jackmackerel

Trachurus symmetricus

1.4%

2.4%

87

Araucanian herring

Strangomera bentincki

1.3%

6.0%

87

European pilchard

Sardina pilchardus

1.2%

North Sea herring

Clupea harengus

1.2%

Common searobin

Prionotus carolinus

1.1%

Other

87
2.4%

87
3.7%

2.5%

Farmed58, 88, 48

0.7%

1.0%

27

31
31

34
0.9%

27
87

12.2%

Frigate tuna

Auxis thazard

0.9%

Norway pout

Trisopterus esmarkii

0.9%

0.9%

27

Mackerel

Scombridae spp

0.8%

2.7%

27

BoarfishCapros aper

0.6%

Miscellaneous

4.2%

87, 3427
3.6%

Fisheries of origin
for by-products(trimmings)

A total of 38 species made up 95%
of Skretting’s purchases of marine
ingredients in 2023 originatingfrom by-products (trimmings). In
addition, 24 more species of fish areregistered as the origin of fishmeal
and fish oil from by-products(trimmings), but then in low volumes(< 5%). Marine ingredients fromdifferent tuna species are common,due to the tuna canning industry.
The species registered as origin ofmarine ingredients from trimmings
reflect fisheries important in humanconsumption. Hake, cod, pollock
and different mackerel species are
all important. We also see trimmings
from small pelagic fishes including
anchovy, sardines and sprat.
Marine ingredients from farmed
species such as Atlantic salmon
are also becoming important. In
2023, Atlantic salmon was themost important source of fish oil
originating from trimmings.
We cannot establish with 100%
certainty the FAO fishing area forthese species because the countryof processing (country of origin)might be different from where theoriginal catch was landed.

Skretting Impact Report – 2023

63
4 – Ingredient deep dive

Overview of marine ingredients from trimmings (by-products)
Species

Latin nameFishmeal

Blue whiting
SardineAnchovy
Peruvian anchoveta
Chub mackerel
Sprat
Largehead hairtail
SandeelShortfin scad
Krill
Menhaden
Herring
Pacific anchoveta
Pacific thread herring
CapelinJackmackerel
Araucanian herring
European pilchard
North Sea herring
Common searobin
Other
Frigate tuna
Albacore
Norway pout
MackerelBoarfishAtlantic salmon
Baltic sprat
CapelinCatfishCod
Coho salmon
European pilchard
Pollock
Rainbow trout
Yellowfin tuna
Tuna
Miscellaneous

Micromesistius poutassou
Sardinella spp
Engraulidae ssp
Engraulis ringens
Scomber japonicus
Sprattus sprattus
Trichiurus lepturus
Ammodytes tobianus
Decapterus macrosoma
Euphausiacea spp
Brevoortia spp
Clupea spp
Cetengraulis mysticetus
Opisthonema libertate
Mallotus villosus
Trachurus symmetricus
Strangomera bentincki
Sardina pilchardus
Clupea harengus
Prionotus carolinus

15.89%
12.9%
10.5%
9.0%
7.4%

Auxis thazard
Thunnus alalunga
Trisopterus esmarkii
Scombridae spp
Capros aper
Salmo salar
Sprattus sprattus
Mallotus villosus
Silurus spp
Cod Gadus morhua
Oncorhynchus kisutch
Sardina pilchardus
Pollachius virens
Oncorhynchus mykiss
Thunnus albacares
Thunnini spp

4.51%
3.99%
2.58%
2.48%
2.44%
2.15%
2.03%
1.71%
1.62%
1.45%
1.27%
1.25%
1.18%
1.07%
0.97%
0.87%
0.85%
0.77%
0.65%

4.19%

Fish oil
17.2%
9.5%
5.9%
4.1%
3.6%

0.65%

16.85%

1.82%
8.05%
0.59%
2.28%
5.56%
0.47%
13.66%
16.05%
0.65%
1.82%
0.73%
1.84%
2.73%
0.59%
2.65%
1.78%
4.00%
0.57%
5.23%

FAO fishing area
27
87, 51, 61, 34, 77, 31, 34, 47, 57
87, 61, 34, 31,77, 47, 57, 37, 51
87
87
27
87
27
87
58, 88, 48
31
27
87
87
27
87
87
34
27
87
87, 3427
27
27
Farmed2727
27

27
FarmedDisclosure of forage
fish dependency ratio(FFDR)
Fishmeal and fish oil from wild fish
are both finite resources that areshared across a range of users withincreasing demands, from direct
human consumption to aquaculture
to pig and poultry production. We
promote the efficient use of theseresources, producing increasing
amounts of farmed fish andcrustacean from a given input offishmeal and fish oil.
The use of wild fish in aquaculture iscommonly expressed as the FFDR.
It is calculated based on the useof fishmeal and fish oil originatingfrom wild fish. Marine ingredients
originating from trimmings are notconsidered. The FFDR is the amountof wild-caught fish used to produce
the amounts of fishmeal and fish oil
required to produce one kilogram of
farmed fish.
The exact FFDR will be dependent
on the amount of marine ingredientsin the feed, the amount of marine
ingredients originating from
trimmings and the economic feed
conversion factor (FCRe).
We have also included thecalculation of fish in fish out (FIFO)
as defined by Jackson (2009).
Jackson argues that the FIFO
calculation gives a more accurate
number when taking into accountthe total usage of fishmeal andfish oil.

Skretting Impact Report – 2023

64
4 – Ingredient deep dive

Estimated global FFDR averages
for Atlantic salmon, sea bass andsea bream, shrimp and tilapia
Skretting global averages

Salmon

Year

2021

2022

2023

2021

2022

2023

2021

2022

2023
Asia

2023
LatAm

2021

2022

2023

Forage fish dependency ratio:
Fishmeal (FFDRm)

0.37

0.40

0.38

0.46

0.54

0.46

0.23

0.24

0.4

0.23

0.04

0.01

0.03

Forage fish dependency ratio:
Fish oil (FFDRo)

1.46

0.40

1.59

0.54

0.19

0.71

0.03

0.00

0.0

0.25

0.05

0.00

0.01

Global FCRe

1.3

1.3

1.3

1.8

1.8

1.8

1.5

1.5

1.5

1.5

2.0

2.0

2.0

FFDRm fish

0.48

0.52

0.49

0.81

0.95

0.81

0.35

0.36

0.65

0.35

0.08

0.02

0.06

FFDRo fish

1.90

1.82

2.06

0.94

0.32

1.24

0.05

0.00

0.00

0.38

0.10

0.00

0.02

FIFO

0.56

0.58

0.58

0.47

0.48

0.50

0.04

0.04

0.03

0.21

0.20

0.23

0.36

Sea bass andsea bream

Shrimp

Tilapia

Skretting Impact Report – 2023

Estimated averages for FFDR
for Atlantic salmon farmed in
Norway and Chile
Country specific averages
Atlantic salmon

NorwayFeed

NorwaySalmonChile
Salmon

Chile
Feed

FFDR
Meal

FFDR
Oil

FCRe

FFDR
Meal

FFDR
Oil

FFDR
Meal

FFDR
Oil

FCRe

FFDR
Meal

FFDR
Oil

2023

0.51

1.03

1.30

0.66

1.34

0.25

1.56

1.30

0.33

2.03

2022

0.42

0.96

1.30

0.55

1.25

0.26

1.48

1.30

0.34

1.92

2021

0.43

1.09

1.30

0.56

1.42

0.25

1.46

1.30

0.33

1.90

2020

0.44

1.39

1.30

0.57

1.81

0.19

1.57

1.30

0.25

2.04

2019

0.35

1.52

1.30

0.46

1.98

0.27

1.46

1.30

0.35

1.90

2018

0.42

1.24

1.30

0.55

1.61

0.34

1.41

1.30

0.44

1.83

Calculation:
FFDRm = (forage fishmeal in feed % * eFCR) / 24%
FFDRo = (forage fish oil in feed % * eFCR) / 5%
FIFO Ratio = (forage fishmeal in feed % + forage fish oil in feed %)/ (Yield of fishmeal from wild fish + Yield of fish oil from wild fish) * eFCR

65
4 – Ingredient deep dive

Status of marine
ingredients: challenges
and opportunities

Our ambition is to ensure that,by 2025, all fishmeal and fish oil
we use originates from fisheries
that are managed according to
the FAO Code of Conduct for
Responsible Fisheries.

Skretting Impact Report – 2023

This means that our suppliersmust be able to demonstratethat the fishmeal and fish oil iscertified according to the Marine
Stewardship Council (MSC)or MarinTrust standards or beparticipating in an FIP with theaim of achieving certification.
In addition to the progress
we communicate about in oursustainability reports, and aiming tobring more transparency, Skretting
commits to publish the origin andenvironmental sustainability of wildcaught and farmed seafood sourced
by our global operations through the
Ocean Disclosure Project.
MSC-certified material has thehighest share in the salmonproducing countries, while
MarinTrust-certified material is themost important in all regions andconstitutes nearly half of all certified
material. Material from FIPs is mostimportant in the salmon segment
and in Asia and Africa. Please notethat the number for certification
details cannot be directly comparedwith Skretting’s previous year’s
reporting; the numbers used in thisImpact Report are the percentagesof total material of marine
ingredients, while in previous reports
we used percentages within eachcertification category.
Skretting’s salmon-producing
countries have the highest shareof certified marine ingredients andhave seen an increase in certified
materials compared to 2022, in linewith increasing customer demands.
This segment is also influenced byfeed certification standards, which
demand a high share of certified
marine ingredients.
Latin America showed a significant
decrease in the amount of certified
material because of great sourcing
challenges in Q1 20233, due tosupply and commercial conditions.
Southern Europe also showed aslight decrease.
Both Asia and Africa increased theamount of certified material theyuse. It should be noted that Africa
produces feed for tilapia, which
already has very low inclusion levelsof marine ingredients.

66
4 – Ingredient deep dive

For Skretting in total, we see adecrease in certified material
compared to 2022. This is mainly
due to the conditions in Latin
America, as this feed segment
represents relatively large feed
volumes and impact for Skretting
in total. In addition, we see several
challenges in increasing the amountof certified material:• Several fisheries have losttheir certification.
• Few fisheries are entering
FIPs with the ambition of
being certified.
• Existing FIPs could potentially notreach certification and be delisted
as improvement projects.
• The fishing quota in Peru
led to a lower amount ofcertified ingredients.
• Market conditions and thehistorically high cost of fish oilin 2023 had an impact on the
total cost of feed and, therefore,on farming operations. We see
this as a dilemma and recognisethat the only way to move further

on our sustainability ambition isthrough value chain collaborationand commitment, ensuring thatthe costs can be absorbed andshared across different players(suppliers, feed producers,
farmers and retailers) as no one
single player can absorb thesecosts on its own.

Skretting Impact Report – 2023

Overview of certification status (%)
of marine ingredients in Skretting
Certified or in an FIP

Skretting
total

BU
SalmonBU Southern
EuropeBU Asia

BU Latin
America

BU MEA

Total

77

91

73

67

63

78

Whole fish

52

70

39

24

41

20

Trimmings

25

21

34

43

22

58

Total

14

28

3

2

<1

6

Whole fish

9

18

3

2

<1

2

Trimmings

5

10

<1

<1

Total

44

44

65

43

35

73

Whole fish

25

33

33

11

14

18

Trimmings

19

11

32

32

21

55

Total

17

16

4

22

23

Whole fish

16

16

3

12

23

Trimmings

1

<1

2

10

<1

Total

3

2

<1

<1

5

Whole fish

2

2

<1

Trimmings

<1

<1

55

<1

<1

<1

Certification details (of total)

MSC certified

4

MarinTrust certified

MarinTrust FIP

Comprehensive FIP1
5
<1

<1

ITM (FIP)2
Total

Comprehensive FIPs aim to achieve a level of performance consistent with the MSC Fisheries Standard.
2
In Transition to Marine Stewardship Council (MSC), operated by MSC
1

<1

67
4 – Ingredient deep dive

Marine ingredients
originating from trimmings(by-products)

Skretting Impact Report – 2023

Percentage of marine ingredients in
Skretting originating from trimmings,
including from aquaculture
In addition to the use of wildcaught fish, the processing of fishfor human consumption gives
rise to a by-product that is not
used in the final seafood product.
These offcuts generated after
processing are valuable as a raw
material from which fishmeal andfish oil are often produced. It isestimated that roughly one third offishmeal produced is made fromseafood by-products from fishfor human consumption. The useof by-products is increasing as
more whole fish are used for direct
human consumption, and society
becomes more successful atcollecting the material and fuellingthe bioeconomy.
We have mapped the origin ofmarine ingredients in Skrettingthat come from by-products. In
2023, it was 31%, and the averageover the last six years was 34%.
Also, by-products originating fromaquaculture are becoming animportant source used for marine
ingredient production.

Year
2018

2019

2020

2021

2022

2023

Average

Whole fish

74
71
57
63
61
66
65

Trimmings

26
29
43
37
39
31
34

68
4 – Ingredient deep dive

Our progress on the Marine
Ingredients Responsible
Sourcing Policy

Skretting Impact Report – 2023

69
4 – Ingredient deep dive

Progress against our Marine
Ingredients Responsible Sourcing
Policy compared to target in 2025.
To protect the ocean and ensuringthat fish stocks caught for direct
or indirect human consumption
are fished within clearly defined,sustainable limits, Nutreco and
Skretting published in 2022 a
Marine Ingredients Responsible
Sourcing Policy.
In line with our Sustainability
RoadMap 2025, we strive to ensurethat our marine feed ingredientscome from sustainable sources inthe short- and long-term and that
all the fishmeal and fish oil that we
use originates from fisheries thatare managed according to the FAO
Code of Conduct for Responsible
Fisheries. In practical terms, wehave defined different sustainability
classes for the main groups ofmarine ingredients (whole fish, byproducts from wild fish and byproducts from aquaculture).
For details on the different
sustainability classes, please
consult our sourcing policy.
In 2023, 52% of whole fish
originated from MarinTrust
programme or Marine StewardshipCouncil certification. This is adecrease from last year, mainly
due to the full impact of several
important fisheries losing their MSC
certification (blue whiting, Atlantic
herring and Atlantic mackerel). The
share originating from FIPs has
increased to 24%. This is partly due
to the fact that such an importantfishery, Blue whiting, has changed
its status from a certified fishery toenter into an FIP. We are not seeing
other fisheries that are able tocomplete the improvement projectand enter certification. For trimmings
from wild fish, we see a reductionin the share of certified material forthe same reasons we’ve seen forwhole fish.

often multi-species fisheries where
it is resource-intensive to gather
scientific data and not always
possible to use the same principles
used to manage single species
fisheries. This makes certification
more difficult and demanding.

Marine ingredient type

We are well on track to meet ourtargets on by-products from wild fish
and by-products from aquacultures.
The main challenge in this area isthat information on origin can be
missing or of poor quality.

Target2023

2022

Sustainability class A+ and A

85%

52%

68%

Sustainability class A-

Maximum 15%

24%

16%

Sustainability class B¹

24%

24%

Sustainability class C¹

16%

16%

As a result of all thesedevelopments, we are experiencing
challenges in reaching our targets.
Certification of local fisheries islacking in the areas where Skretting
operate, especially in Latin America,
Asia and Africa. This can bebecause certification programmes
are not well known in these areas
and there is less pressure from themarkets to certify these fisheries.
Fisheries in more tropical areas are
more complex to manage; they are
1

Whole fish

Includes also where data on origin is missing.

Skretting Impact Report – 2023

Marine ingredient type

Target2023

2022

Sustainability class A+ and A

50%

72%

81%

Sustainability class A+ and A

Sustainability class A-

50%

5%

4%

Sustainability class A-

22%

15%

Information lacking

Sustainability class B¹

1

Marine ingredient type

By-products wild fish

Includes also where data on origin is missing.

70
4 – Ingredient deep dive

By-products aquaculture
Target

2023

2022

50%

89%

78%

11%

22%

Important raw materials
for salmon threatenedby failure to agree on
fishing quotas

Blue whiting is an important partof salmon’s diet in Europe, but
Skretting and other feed companies
are ready to walk away from thefishery if an allocation agreement
cannot be reached before thefishery’s current time-bound FIP
expires next year.
Coastal nations with claims to theNortheast Atlantic blue whiting
fishery seemingly cannot or will
not come to multilateral quota
agreements, after two decades offailed negotiations. This has resulted
in the overexploitation of the species
because the total catch is not inline with scientific advice. The MSC
certification was pulled in 2019
due to poor management, and theworld’s only known “political” FIP
was established shortly after.
Blue whiting might
be lost for salmon feedBlue whiting (Micromesistius
poutassou) is a pelagic species
primarily harvested as a raw material
for the fishmeal markets and is ingreat demand by Europe’s leading
salmon farmers.

Skretting Norway has clearly said forseveral years that we will only buy
marine raw materials from whole fishfrom certified fisheries, or fisheries
involved in a verified FIP. We didn’t
think we’d see this problem infisheries in our own backyard.
We’re frustrated that nations in the
North Atlantic cannot agree on the
distribution of the quota. While all
agree on the total quota, everyone
demands pieces of the cake that,when totalled, are bigger than the
cake itself.
NAPA fights for sustainablefisheries of mackerel, herringand blue whiting
The North Atlantic Pelagic Advocacy
Group (NAPA), is a market-led
approach to improve North Atlantic
pelagic fisheries management andcomprises all the major fish feed
companies plus large retailers, suchas Young’s, Tesco, Sainsbury’s, Aldi
and Waitrose, who all condemn
the collective failure to ensure thesustainability of these species.
Blue whiting is not the only problem.
Norway, Iceland, the Faroe Islands,
Greenland, the European Union andthe United Kingdom have all failed

Skretting Impact Report – 2023

repeatedly to ensure the total catchof mackerel, herring and blue whitingin the north-east Atlantic is in linewith scientific advice.
NAPA aims to drive sustainability
in these fisheries by securing
an agreement on total allowable
catches (TACs) in line with
scientific advice, as well as longterm, science-based fisheries
management strategies. These
stocks are data rich and wellunderstood, meaning that coastal
states simply need to collaborate
and agree on sustainable quota
shares to manage them sustainably.

herring ends in April 2024 and forblue whiting in October 2024.

Three years wasted, one lastchance to make a difference
The group is tackling these issues
through the establishment of
two FIPs – one for mackerel andherring, and one for blue whiting.
The FIPs serve to drive political will
for sustainable management while
holding key actors and decisionmakers to account. Given thecommercial importance of thesedecisions, NAPA believes that thevoice of the supply chain should bea key input into these discussions.
The three-year FIP for mackerel and

The clock is ticking, and it is aparadox that the best ocean
managers in the world can’t cometo an agreement. Blue whiting
is a fantastic ingredient — it’ssustainable if well managed, andit’s here now. It would be a tragedy
if we should fumble and lose
this ingredient just because ourgovernments can’t get their acts
together.

71
4 – Ingredient deep dive

The market will act if
governments do notWith a self-imposed deadline on thehorizon, and many retailers and all
the major feed companies saying
they will no longer purchase thesestocks from the region unless asustainable sharing agreement canbe reached, NAPA urges the coastal
states to act in accordance with theircommitment to follow the scienceand reach a sharing agreement assoon as possible.

Leif Kjetil Skjæveland
Sustainability and Public Affairs Manager
Skretting Norway

Novel ingredients

Against the backdrop of a growing
world population and a large
projected increase in aquaculture
production, the aquafeed domain
needs to embrace novel ingredients.
At Skretting, we have successfully
used a handful of them – such as
algal oils, insects and single cell
proteins – in our commercial feed.
But for every success story, thetruth is that there are many otheringredients that have been tried,tested and then ruled out for reasons
ranging from regulatory issues topoor economics. In fact, we haveevaluated over 200 ingredient
combinations to date, and many
have not made the grade.
In 2023, our usage of novel
ingredients grew to 0.991% from
0.79% in 2022. Clearly, we havenoticed several novel ingredients
becoming more mature and havewitnessed step-ups in volumes andprofessionalism. At the same time,
the overall available volumes are
small compared to that of traditional
ingredients. Scaling up novel
ingredients is a costly and timeconsuming affair, especially with1

interest rates having risen over thecourse of 2023. However, we aim togrow our usage of novel ingredients,
though we realise that the 5-10%
target we set across Nutreco will be
too ambitious, as volumes are notthere at the right prices to achieve
the inclusion levels needed for thetarget we have set.
In 2023, we put a clear focus onomega-3 replacement products.
Given high fish oil prices, 2023 wasa year in which three or four times
the current amount of omega-3
alternatives could have beenpurchased if those volumes wereavailable. With continued volatility
in the fish oil market, we clearlywant to reduce our dependency
on this product.
While no new product categories
have surfaced in 2023, we do notemore players entering the omega-3
replacement, insect meal andsingle cell protein (SCP) market.
This clearly indicates the potential
for these products, and Skretting
is ready to take more of these
ingredients on board in the
coming years.

This is a correction from the 1% published in our 2022 Sustainability Report

Skretting Impact Report – 2023

72
4 – Ingredient deep dive

Sustainableproduct
launches

Skretting Impact Report – 2023

73
4 – Ingredient deep dive

Nutra Terra

EleviaReducing phosphorus discharge
is a priority for the Norwegiansalmon industry as well as thecountry’s authorities. Research anddevelopment results have shownthat Nutra Terra, our latest salmon
fry feed, reduces the amount ofphosphorous and zinc in faeces
by 30%.

Thanks to the inclusion of
encapsulated omega-3 fatty acids,
this hatchery solution for shrimp
reduces the leaching of lipids into
the production system, ensuring
cleaner and uncompromised water
quality. Feed particles remain stablefor extended periods, minimising theneed for frequent water replacement.

CLEAN Labrus

Optiline Catfish

Cosmos

CLEAN Labrus was specificallydeveloped for Ballan wrasse, agrowing aquaculture species. The
easily digestible diet meets the
species’ nutritional requirementswith precision, supporting fishrobustness and welfare.

Catfish is a species of increasing
importance in the African market andrepresents a crucial source of protein
and livelihood security. Optiline
Catfish enables farmers to efficiently
meet the nutritional needs of catfish
in a cost-effective manner.

Cosmos is our new premium
feed specifically developedfor barramundi. Research anddevelopment and validation trial
results have shown reductionsof up to 9% in FCR and up to
10% faster growth.

During 2023, we launched fivefeed solutions for five different
species, that are supporting ourambition to drive sustainablegrowth in aquaculture. Here aresome highlights:

Skretting Impact Report – 2023

74
4 – Ingredient deep dive

Chapter 5
Collaboration withstakeholders

Creating a sustainable
future through dedication,
innovation andtransparency: Cermaq

Skretting Impact Report – 2023

76
5 – Collaboration with stakeholders

Sustainability is a journey that
requires dedication, innovationand transparency.

Cermaq Group AS is a leading global
producer of aquaculture salmonids
and is committed to promoting
responsible aquaculture practices
and technological innovations toenable the shift to more sustainable
food systems globally. Sustainability
is not just a buzzword for us; it’s anongoing commitment that guides
every aspect of our salmon farming
practices. While reducing our carbon
footprint is crucial, sustainability
encompasses a broader spectrumof responsibilities, driving us toensure responsible stewardshipof our resources.
Innovation serves as theengine for sustainable growthin the aquaculture industry. By
continuously exploring newtechnologies and alternative feed
ingredients, we can minimise ourenvironmental impact, improve
efficiency and enhance thenutritional quality of our salmon feed.

However, one of the significant
obstacles hindering progressin sustainability is the lack oftransparency in global animal feed
supply chains. The opacity of these
supply chains exposes the sector to
unforeseen risks and vulnerabilities,
making it imperative to prioritisetransparency and traceability
initiatives. Recognising theimportance of transparency, we arecommitted to improving the visibility
and traceability of our supply chains.
Not only does this provide us withvaluable insights into sourcing
practices, but it also allows us tooffer assurances to our stakeholders– including customers, regulators,
communities and investors – that
we prioritise responsible andsustainable sourcing.
Sustainability is paramount for the
future of salmon feed aquaculture.
By diversifying the raw material
basket and fostering stakeholder
partnerships, the industry canaddress its Achilles’ heel of raw
material dependency and pave theway for a more resilient, competitiveand environmentally sustainable
future. A consistent approach toengaging with our feed suppliers
is essential for driving meaningfulimprovements in sustainability.
By focusing on key areas suchas biodiversity, climate impact,
resource use and human rights, we
can ensure that our supply chain
partners share our commitment to
responsible practices.
Moreover, urgent action is neededto address significant gaps in animal
welfare and ethical considerations
within the aquafeed industry. As
stewards of the environment andguardians of animal welfare, wemust prioritise the well-being ofboth our salmon and the ecosystems
they inhabit.
In other words, sustainability is ajourney that requires dedication,

innovation and transparency. By
embracing these principles andfostering collaboration across theaquaculture value chain, we cancreate a more sustainable future forsalmon farming – one that prioritises
environmental responsibility, ethicalpractices and long-term viability.

Tibiábin Benítez-Santana
Global Feed and Nutrition Manager
Cermaq GroupFinding success inchanging times with afocus on sustainability:
CofimarSkretting Impact Report – 2023

COFIMAR S.A. was established in
Ecuador in 1995. It has a long family
legacy in the shrimp industry – its
founder, Alfonso Grunauer, hasbeen one of the pioneers of theshrimp farming industry in Ecuador
since 1967.
In the past, the shrimp farming
industry grew by increasing
production rates, supported by thedevelopment of China as its mainmarket. However, in recent years,
COFIMAR has seen the focus shifting
towards adopting more sustainability
practices and standards to participate
in the European market.
COFIMAR also started out with afocus on increasing production andexpanding, but when we wanted
to enter traditional markets, wefaced aggressive competition fromcompanies operating out of Ecuador
and abroad.

Peter Grunaer
Commercial Coordinator
Cofimar

We realized that we had to comply
with different approaches in themarket, and this is when we
understood that we had to takesteps first to prepare for such a big
challenge. So, our immediate action
point was to switch to value-added

products that would enable us toexpand our production lines andaccess different markets.
We wanted to move towards moresustainability practices, and knew
we had to set ourselves newchallenges, including taking a
different look at developing asustainable, world-class product.
And that is how our path began.
We started working towards
Aquaculture Stewardship Council(ASC) and Best Aquaculture Practices(BAP) certifications, to promote
best practices internally, and thenmoved on to develop a sustainability
programme. At first there weredoubts and concerns within the team.
However, because it was something
totally new and it aligned with our
vision, we managed to change thisway of thinking by communicating
about the challenges facing us – andalso the honour of being chosen as a
key part of a sustainability opportunity
by the best retailer in the Netherlands.
The story started when
COFIMAR met Klaas Puul one of
the leading producers of fresh fish
products in Europe, at a trade show in

77
5 – Collaboration with stakeholders

Guayaquil, Ecuador. We always try to
make our partners feel at home in ourfacilities. When the Klaas Puul teammet the Grunauer family, COFIMAR’sowners, everything just clicked. Theysaid, “we want to grow with you.”
They told us they supply one of thebiggest retailers in the Netherlands,
Albert Heijn, and wanted to know if wewould be willing to try a sustainablesoldier fly feed programme. From thatpoint on, the rest is history.
Thanks to Skretting’s management– who gave us all the guidelines weneeded at the beginning and said
if we wanted to be a part of thischallenge, they would join us – weagreed to embark on this journey.
COFIMAR has invested in technology,
special feed and specific productionlines with traceability throughout
the whole project – all the way fromhatcheries with non-ablated females
to packaging control. This means
that, in the end, we can provide clear
traceability, along with the freshest
shrimp, always!
As part of the sustainability
programme, we put in place a policy
stating that, starting in 2024, we willtransfer use non-ablated females
from the hatcheries at all our ASC andBAP-certified farms. Working stepby step, we expect to finalize thissustainability protocol in 2025.
Through the soldier fly programme,
we realised that it is possible toswitch from one feed protein source
to another and still perform well in
the field. Skretting was a key partof opening up this sustainability
programme for us.
Now, we want to start increasing
our line of value-added products –not only cooked, but also marinatedproducts – different lines that allow
us to offer diverse items and competewith other countries that have alreadyreached this step in their supply
chains. We know it costs money andeffort to obtain certifications, but it is
the only way Ecuador can expand invalue-added products.
We are always eager and curious tolearn what other steps we can take.
The key to our success is our staff– we have an excellent team withvast experience and the constantcommitment to always delivering the
freshest shrimp..”A responsible value
chain for fish feed

At FF Skagen, we steadfastly uphold ourcommitment to responsible practices,
underpinned by scientific research andadherence to national and international
legislation and standards.

Johannes Palsson
CEO
FF Skagen

Skretting Impact Report – 2023

At FF Skagen, a leading European
producer of fishmeal and fish oil,
we are committed to upholding
responsible production and sourcing
practices. Over the past decade,we have invested in advanced
traceability systems to ensuretransparency and accountability
across the supply chain. We have
implemented independently certified,
fully documented weighing andbycatch control systems and source
our fish from responsibly managed
fisheries in the Northeast Atlantic
region. Our subsidiary, Scandic
Pelagic, ensures a sustainablesupply of herring trimmings.
Our commitment to responsible
production is underscored bycertifications from standards suchas ISO 9000, ISO 14000, FEMAS,
MarinTrust, MSC Chain of Custody,
Naturland and Soil Association.
Recently, some certification
operators have revoked certifications
for fisheries based on political
disagreements rather than scientificevidence. While these decisions may
reflect differing interpretations ofresponsibility, they risk undermining
the integrity of the certification
process and the credibility of78
5 – Collaboration with stakeholders

the certification standards andsustainable fisheries management
efforts. For the value chain, this isconcerning.
The development of the blue whiting
stock highlights the effectivenessof a precautionary approach andresponsible management. Despite
the absence of a political agreement
between coastal states, therecommended total allowable catch
has increased significantly in recent
years, from 752,736 tons in 2022
to 1,529,754 tons in 2024: a 103%
increase in availability over three
years, underscoring the successof measures aimed at ensuring thesustainability of the stock.
At FF Skagen, we steadfastly upholdour commitment to responsible
practices, underpinned by scientificresearch and adherence to national
and international legislation andstandards. We fully endorse theefforts of organisations suchas the International Council
for the Exploration of the Sea(ICES) in providing evidencebased recommendations for the
management of fisheries in the
Northeast Atlantic region.

Despite the lack of certifications ofsome of our raw materials, justified
by the certification operators aspolitical disagreements, sustainable
management of the fish stocks is an
overarching goal.
As responsible stakeholders in thevalue chain, we must agree thatthe scientific documentation andwell-documented legal landings ofdifferent fish species are sufficient
to allow the North Atlantic fishstocks to be used as a feed
ingredient in fish feed. And wemust continue to advocate forresponsible fisheries management
and production practices.
Since we cannot dictate policy
decisions, we continue to operate
responsibly and educate consumers
about the realities of sustainableseafood sourcing as a vital partof securing healthy food for thegrowing population.

Partnering for sustainablegrowth with natural marine
algae from Veramaris

Veramaris is the producer of theworld’s first ASC- and MSC-certified
algal oil, a sustainable and reliable
alternative source of omega-3
EPA and DHA fatty acids that are
essential for fish health and welfare
and help to control the nutritional
quality of farm-raised seafood for
consumers too.
Meeting global demand
As aquaculture grows globally,
and with an increasing awarenessof the benefits of these essential
fatty acids for people and animals,
Veramaris is supporting thesustainable growth of the industry
by adding to the supply of omega-3
EPA and DHA. Recent fish oil
disruptions, particularly in Peru, haveshown the risks of relying solely
on traditional sources of omega-3.
Veramaris, with its documented
safety and performance and its
established commercial-scale
production, has been instrumental
in mitigating the impact of the
supply crisis.

Veramaris’ algal oil also helps toreduce the marine footprint of farmraised seafood, allowing aquaculture
to continue to grow without
increasing pressure on limited
supplies of certified forage fish oil asa source of omega-3 EPA and DHA.
Driving change throughpartnerships
Partnerships have been crucial to
Veramaris’ success. With allies like
Skretting, Veramaris has evolved
into a trusted omega-3 EPA andDHA provider. Skretting recognised
the need for alternative omega-3
sources early on and has been
integral in working with Veramaris todevelop this product, from assistingwith product trials to educating
customers about the advantagesof the company’s algal oil.

Skretting Impact Report – 2023

79
5 – Collaboration with stakeholders

source of omega-3 EPA and DHA inaquafeed is no longer just an option
but a necessity for the industry
to grow. We’re happy to see fish
farmers committing to algal oil asa reliable, sustainable alternative
source of omega-3 EPA and DHA, bychanging their feed specifications.

Veramaris’ partnership with Skretting
and other stakeholders is paving
the way for a sustainable future
for aquaculture, ensuring a steadysupply of healthy seafood. The
inclusion of algal oil as an alternative
Gertjan de Koning
CEO
Veramaris

Value chain collaboration
to supply sustainableshrimp from Ecuador toEuropean supermarkets

The commitment of each of theconsortium partners was crucial to
make this project successful andjointly deliver a sustainable productto Albert Heijn’s consumers.

Skretting Impact Report – 2023

Since 2022, I have had the pleasureof contributing to establishing apartnership between Albert Heijn,a major Dutch retailer, and Klaas
Puul, its most significant supplierof chilled tropical shrimp. Early
conversations with Albert Heijn
showed that tropical shrimp wasviewed as a high-risk product. The
team responsible for the category
had many issues on their radar thatwould have to be dealt with over the
next few years. One of the topics
was related to the sustainabilityof shrimp feed. The Albert Heijn
team had concerns about thesustainability of marine and plantbased ingredients and the overall
impact of feed formulation on the
carbon footprint of shrimp it sells
to customers.
At this time, Albert Heijn was also
actively approached by Skretting
and ingredient suppliers such as
Veramaris (algae oil) and Protix(insect protein), who encouraged
the retailer to take steps towards
a more sustainable shrimp product.

Willem van der Pijl
Owner
Shrimp Insights

80
5 – Collaboration with stakeholders

It was my role to bring all thesedifferent stakeholders together
and define a proposition that was
economically and technicallypossible and, at the same time,
impactful in terms of sustainability.
It took us multiple years to agree
on what such a proposition could
look like. Eventually, we decided ona feed formulation in which part of
the fishmeal is replaced with insect
meal, part of the fish oil with algaeoil, all remaining marine ingredientsare sourced from MarineTrustcertified fisheries, and all soy
comes from land conversion anddeforestation-free origins. Aftera long trajectory of negotiations,the contract with Albert Heijn was
signed, and all other stakeholders
could also sign their contracts. We
ended up with the best possible
outcome: Albert Heijn decided notjust to offer a few SKUs from our
project but also to include the wholechilled assortment and put in place
an expansion plan for ready meals
and frozen assortments.

This was not a straightforward
trajectory. Possibly the mostchallenging was finding a supplierin Ecuador who could produce
this product for Albert Heijn at acompetitive price. This producer had
to dedicate ponds to this project andchange its usual working method.
It had to take the risk of working
with the new feed and with new
post-larvae (because Albert Heijn
requires post-larvae to come from
non-ablated broodstock). This would
never have succeeded without theclose cooperation and continuous
conversations within the consortium.
The commitment of each of theconsortium partners was crucial to
make this project successful andjointly deliver a sustainable productto Albert Heijn’s consumers. Since
April 2024, the product has beenfor sale in Albert Heijn’s shops in
the Netherlands.

Global Salmon Initiative

Skretting Impact Report – 2023

The risks we face are too grave to
face alone and we need to work
together, to learn from one another,
if we are to build resiliency at the
speed and scale needed.

Sophie Ryan
CEOGlobal Salmon Initiative81
5 – Collaboration with stakeholders

Last September, we marked
the GSI’s 10th anniversary: adecade of companies working
together with the aim of driving
measurable improvements in thesustainability performance of the
global salmon farming sector, and,more importantly, demonstrating
progress as highlighted by the GSI’s
Sustainability Report in areas such
as ASC certification, fish welfare
and feed ingredients. And while
this milestone was an opportunity
to look back on the advancements
the group has made over the past
10 years, more importantly, ithighlighted the need for continued
collaboration and adaption for the
next 10 years.

academia and public policy to thevalue chain and customers – if weare to see real, long-term change.

The world faces many risks inthe coming decade – a changing
climate, for one, poses multiple risks
to our planet, supply chains andoperations, and we know change
is needed at a faster pace than it iscurrently progressing. The risks weface are too grave to face alone andwe need to work together, to learn
from one another, if we are to build
resiliency at the speed and scaleneeded. This collaboration will needto expand beyond industry, andincorporate all stakeholders – fromWe have some big projects
underway this year, from the launchof the ESG Feed Risk Assessment
Tool, our GHG Climate Action reportand our continued work in improving
fish welfare. We recognise that wecannot slow down, but, in fact, must
double down in our efforts to farmsalmon that’s raised to be better for
people and planet.

Which is why at our 10th
anniversary, we set out our evolved
GSI vision for the future. This
includes how we intend to use
the learnings of the last decade
to inform and motivate continued
improvements in the sustainability
performance of the sector and
how GSI members and our supply
chain partners will continue to pool
their knowledge and expertise toaccelerate advancements in three
key areas: climate action, nature andbiodiversity, and supporting moresustainable food systems globally.

GSI’s Three Pillars

SeaBOSIt is increasingly acknowledgedthat collaboration is the way
forward to reach the SDGs. Since
2016, SeaBOS has developed aunique, science-business model
to co-develop solutions for ocean
stewardship with the support of
Skretting, a founding member ofthe initiative.
In 2023, we marked several
important milestones for SeaBOS.
Throughout the year, SeaBOS
members reaffirmed theircommitment to drive transparency
and sustainable practices in theseafood industry by publishing
our first Impact Report. Key
achievements as of 2023 included:• IUU fishing and modern slavery:
We conducted risk assessments
to identify and mitigate risks
associated with forced labourand IUU fishing across member
companies’ operations andsupply chains.
• Biodiversity and ecosystems:
We launched initiatives to evaluate
and manage biodiversity risks andimpacts, including advancing theprotection of endangered species.
• Anti-microbial resistance:
We implemented a roadmap
to reduce antibiotic use inseafood operations and enhancetransparency in measurement
and reporting.

Skretting Impact Report – 2023

Climate resilience:
All SeaBOS companies set
ambitious emissions reduction
targets with public reporting on
scope 1, 2 and 3 emissions.
• Ocean plastic reduction:
We executed a global ocean
clean-up campaign that led
to the recovery of 25 tons ofoceanic plastic, complemented bymeasures to reduce plastic usage
and assess packaging footprints
in operations.
In 2023, SeaBOS CEOs also
approved an exciting new phasewith the initiation of two regional
Keystone Projects. These will beco-developed by the SeaBOS
science and industry memberswith the aim to apply the measuresand tools developed in theseprojects to other regions, if
successful. The projects will benefit
from Skretting´s experience andcontributions in the coming year,
including as co-lead of the West
Coast Africa Keystone Project.
West Coast Africa Keystone Project:structured to address IUU fishingand labour abuse in seafood
operations in Mauritania, Morocco
and Senegal, specifically in octopus,
small pelagics and tuna fisheries in
the region.

82
5 – Collaboration with stakeholders

Antimicrobial Resistance
Keystone Project: aimed
at developing protocols forunderstanding the presenceof antimicrobial resistant genes
in aquaculture production, withthe first phase involving sampling
and testing of farmed shrimp in
Thailand, connecting SeaBOS
science experts, company
members, aquaculture suppliers
and other partners.
Skretting has also been leading
the SeaBOS Task Force on
Biodiversity and Ecosystems,
which has been of great value
for the partnership. By sharing
best practices and experiences,
Skretting has effectively contributed
to developing the joint efforts of
SeaBOS to deliver on its mission tolead a global transformation towards
sustainable seafood production anda healthy ocean. While much has
been achieved by the nine SeaBOS
member companies, the work
will continue to strengthen ocean
stewardship in seafood operations
and supply chains throughcollaborative efforts to move
forward faster, with more impact.

Wenche Grønbrekk
Director of Strategy, Partnershipand External Relations
SeaBOSIFFO - The Marine
Ingredients Organisation
Marine ingredients are
uniquely positioned
to meet existing andupcoming requirements.

Skretting Impact Report – 2023

After a volatile 2023, with weather
conditions and geopolitics
impacting the availability and pricesof commodities, the aquafeed
industry is, rightly, looking at thefactors it knows will underpin
progress for 2024 and the years
ahead. Sustainability of feed
ingredients is set to remain high on
the agenda, based on socially andenvironmentally responsible sourcing
requirements and standards forresponsible production. Theirenvironmental impacts are bound to
decrease while feed palatability andhealth benefits stabilise at the mostadequate levels.
Marine ingredients are uniquely
positioned to meet existing andupcoming requirements: IFFO’s
members have been conducting
thorough LCA work for the
production of marine ingredients,
which will guide further action plans

83
5 – Collaboration with stakeholders

at factory and company levels, butalso provide updated data to the
public GFLI database. Furthermore,
IFFO has been involved in a due
diligence approach, looking at
the impacts of the value chain
through a human rights lens.
This approach complements thealready well-established third-party
certification process that MarinTrust
implemented on a voluntary basis
more than a decade ago. As forfish health, palatability and carbon
footprint, marine ingredients
production relies on decades ofscience. At key stages of a fish’s life,
marine ingredients are an absolute
requisite because of their unmatched
nutritional profile.

Petter Martin Johanessen
Director General
IFFO

Global Roundtable on
Marine Ingredients

Skretting Impact Report – 2023

The Global Roundtable on Marine
Ingredients was initiated in 2021.
Three years on, and we have
expanded our membership so it
forms a powerful coalition of marine
ingredients value chain stakeholders,among which Skretting has been
pro-active and supportive. Thismembership provides a robust
foundation for undertaking long-term
projects that contribute to increasing
the sustainability of key small
pelagics fisheries globally and theavailability of responsibly sourced
raw materials.

Árni M Mathiesen
Independent Chair
Global Roundtable on
Marine Ingredients

In October 2023, we decided to
publish the Track the Fish reportin its entirety: we commissioned
Partner Africa, a third-party NGO,
to prepare this study, that looked
into the industry’s impacts in
Mauritania and Senegal throughthe United Nations’ human rights
framework. We believe that thisbold action, combined with focus
groups and workshops, such as
the one we co-organised with the
FAO in Ghana in December 2023,
will drive positive change in thesecountries and position the industry
at the forefront of the sustainable
management of natural resourcesand dialogue with local communities.
This is just the start of the journey.
Only through collaboration andglobal market pressure can wechampion best practices.

84
5 – Collaboration with stakeholders

Only throughcollaboration andglobal market pressure
can we champion
best practices.

Making progress on
the FIP in Mauritania

Jo Gascoigne
FIP Coordinator

Skretting Impact Report – 2023

In 2023, the main activities of the FIP
in Mauritania focused on sampling
and monitoring, to improve the data
available for stock assessment andmanagement. During the year, 550
samples were taken from factories,
covering 65,000 tons of landings,
and meeting FAO minimum sampling
requirements. In addition, 32,821
individual fish were measured. The
backlog of data entry has beencleared and a preliminary data
analysis conducted. The first robust
stock assessment for the twosardinella stocks was peer reviewed
and published in January 2024,
thanks to these data. This has been
integrated into scientific advice on anational and regional level.

We have made progress on theecosystem element of the FIP
workplan this year with support
from MSC. This involved observer
deployments on board the fishingvessels and the analysis of discards
and interactions with protected
species. In 2023, there were nineobserver trips in total. Bycatch of
non-target species varied fromaround 2-10%, depending on theseason. The bycatch consistedof common fish, such as breams,
grunts and jacks. No vulnerable orprotected species were identified in
the bycatch. Nothing was discarded– the bycatch was either frozen forhuman consumption or incorporated
into the fishmeal.

2023 was year one for the
implementation of the small pelagic
management plan (PAP-PP). Since
our workplan is aligned with its
objectives, our work supports theplan’s implementation in generalterms, but we also supported it
through a student thesis considering
the appropriate number of vessels
and factories for sustainable
exploitation of the resource.

In 2023, outside experts Partner
Africa conducted a social audit of
the FIP, supported by the IFFO/SFP Global Roundtable for Marine
Ingredients. We have obtained
funding from the Sustainable
Fisheries Fund to convert thisaudit report into a social workplan
for the FIP.

85
5 – Collaboration with stakeholders

Launch of the Fisheries
Improvement Fund
The FIF is an innovative
financing model aiming toreverse the global trend offisheries decline throughthe implementation of FIPs.

Elizabeth BealManaging Director
Finance Earth

Skretting Impact Report – 2023

In April 2023, Finance Earth, incollaboration with World Wildlife
Fund (WWF) and leading industry
partners, launched the Fisheries
Improvement Fund (FIF): a new
funding mechanism to financethe transition to more sustainablefisheries worldwide, with theambition to catalyse $100 million in
investment in fisheries improvement
by 2030.
The FIF is an innovative financing
model aiming to reverse the global
trend of fisheries decline throughthe implementation of FIPs. FIPs
are multi-stakeholder initiatives
enacted worldwide to improvefishing practices and management tobenefit both marine ecosystems andthe people that live and work in andaround them.

86
5 – Collaboration with stakeholders

The FIF aims to accelerate therollout and completion of FIPs by
providing a stable flow of funding toenable full delivery of FIP activities
and objectives. The FIF achieves
this by combining an equitable andtransparent volume-based payment
mechanism for supply chain
engagement with an innovative useof investment to ensure that funding
for FIP delivery covers the full cost ofactivities needed. Key benefits of theapproach include:

The first FIP to be supported
through the FIF will be in the centralsouthern region of Chile. Skretting
is a key financial supporter of thefund and this project, and has
signed one of the first volume-based
fee agreements to provide funding
through the FIF mechanism. By
contributing to this project, Skretting
is helping to support the transition tomore sustainable marine ingredientsin one of the world’s mostecologically essential seascapes.

• FIPs fully funded to completion• A range of supply chain
participation options, including
an equitable volume-based
fee mechanism• Impact assurance for funders• Impact investment to cover upfront FIP costs• Sustainability built into
product cost
• Finance unlocked at scale forfisheries transition

The FIF’s approach is based on
the business case for companies
to invest in the long-term viabilityof their seafood supplies, reducing
supply chain volatility and risk,
while enhancing business value
and protecting reputations. It allows
capital to be channelled at scale
and at pace towards addressing
ecological and social issues in target
fisheries, ensuring that fish stocks
and fishing communities can reap
the benefits of sustainable fishinginto the future.

Aquaculture
Stewardship Council(ASC)
There is no responsible seafood
farming without responsible feed.
The ASC Feed Standard represents
a pivotal step towards greater
sustainability and responsibility
in aquaculture, and in 2023,
Skretting became one of the first
feed companies to enter
the certification process.
The ASC Feed Standard:• Requires feed mills to conduct
due diligence on key human rights
and environmental risks in feed
ingredient supply chains, including
at the source farm/fishery• Tackles both illegal and legal
deforestation and land conversion
risks of all crops used in feed, notjust soy and palm oil• Introduces a unique improvement
model to increase the use ofcertified marine ingredients• Champions transparency throughpublic reporting
Alongside Skretting, numerous
other feed companies have alreadyundertaken the rigorous audit
process. From their experiences,
we have seen some consistent
challenges, as well as opportunities
for further strengthening theStandard’s positive impact.

It’s clear that traceability ofingredients continues to be a major
challenge for companies undertaking
due diligence across their supply
chains. While technology can help
here, it requires collaboration acrossthe supply chain to share informationnecessary to assess risk.
Collaboration is also needed tosupport the transition to better
practices at the fishery and farmlevel. FIPs cannot adhere to theirtimelines – and deforestation/
conversion target dates will not
be met without feed companies
and other supply chain actors
working together to provide
funding, create market demand
and take accountability.
While navigating the ASC Feed
Standard presents challenges, it alsooffers invaluable opportunities for
Skretting and other feed companies
to drive positive environmental
and social change, enhancecompetitiveness and demonstrateleadership in more sustainableaquafeed production. Certification
serves as a powerful differentiatorin the market.

Skretting Impact Report – 2023

87
5 – Collaboration with stakeholders

Skretting is in the leading pack oftrailblazers who have embraced
this revolutionary approach, with
operations in Chile obtaining ASC
Feed Standard certification in
January 2024 – and more in
progress globally.
As worldwide demand for farmed
seafood continues to grow, it isvital that the entire aquaculture
supply chain transforms towards
more environmental and social
responsibility – the ASC Feed
Standard is a significant step inthe right direction.

Alexandra Warrington
Senior Coordinator
Feed StandardASCSkretting Chile became thefirst salmon feed mill in theworld to obtain ASC Feedcertification

Skretting Impact Report – 2023

88
5 – Collaboration with stakeholders

We are very proud of having
been the first to reachthis milestone. It was atremendous teamwork that
required the commitment
from all areas of the company,
and we are willing to share
our experience with the other
Skretting business units.

The milestone was reached
one year before the deadline
established by the ASC andreinforces our company’scommitment to supporting Chilean
salmon producers. This demanding
standard considers productive,
environmental and social factors
and guarantees the transparencyof all our processes, visualisingthrough public documents the
progress that the company ismaking towards the sustainability of
the aquaculture industry.
Much of the work was based on
the origin of the ingredients andon being able to determine which
ones are eligible. In addition,
this certification has a social
component that requires a policyof permanent linkage with ourneighbouring communities.

Juan Manuel Leiva
Quality Assurance Manager
Skretting Chile

MarinTrust

The year 2024 will be pivotal forthe aquafeed sector. Demand for
seafood keeps growing, and so do
the prices of feed ingredients. In afluctuating environment marked byextreme weather conditions andpolitical tensions, feed producers,
farmers, retailers and the end
consumer face the contradiction:
should inflation drive us all awayfrom responsible sourcing?
Continuous improvement isMarinTrust’s approach to thesourcing and production of marine
ingredients. Therefore, we set thestandard that serves as a benchmark
for certification bodies to grant acertificate of responsible supply at
the production factory level or as
an assurance of an unbroken chain
throughout the ingredients’ journey.
We also offer a pathway to thosefactories not meeting the standard’s
requirements, so they improve overtime and are encouraged to sustain
their efforts in the long term:
this is the aim of the MarinTrust
Improver Programme.

Skretting Impact Report – 2023

A short-term commitment is not
an option: our requirements keep
developing to reflect internationalguidelines and consumers’
expectations. The new version(Version 3) of the MarinTrust FactoryStandard becomes applicablein 2024. We are proud to keepincreasing the robustness ofour standard and be recognised
in Skretting’s sourcing policy.
Collaboration with other standards,
sitting at other stages of the supply
chain, is critical to us as it helps
streamline the efforts and make ourprogramme more accessible.
With feed producers having a seaton MarinTrust’s Governing Body
Committee, we ensure that ourprogramme remains fit for purpose
and that the credentials of theingredients used in feeds are wellunderstood and represented.

Libby Woodhatch
Executive Chair
MarinTrust89
5 – Collaboration with stakeholders

Marine StewardshipCouncil (MSC)

Marine ingredients are a crucialcomponent of aquaculture feed.
Notwithstanding possibilities tosubstitute fishmeal and oil withalternative ingredients in feed, it
is likely that the continued growthof the aquaculture industry in
decades ahead will further increasedependency on marine ingredients.
However, there is considerable
uncertainty about the long-term
supply of marine ingredients, andabout the attractiveness of these
ingredients for feed production.

Camiel Derichs
Program Development Director
Marine Stewardship Council

There are several reasonsfor this. Firstly, poor fisheries
management, which, combinedwith the accelerating impacts ofclimate change, results in overexploitation and degradationof renewable resources thatprovide the raw materials formarine ingredient production. Thisimplies supply insecurity, or lower
volumes of fishmeal and fish oil,and associated price pressure.
Secondly, reputational and legalrisks associated with marine
ingredient production are highfor feed producers. These risks
grow as the state of resources

Skretting Impact Report – 2023

90
5 – Collaboration with stakeholders

erodes, as environmental, socialand governance (ESG) regulation
increases, and as communities
depending on these resources
become more impacted. Third, therise of alternative ingredients at
scale makes those ingredients morecompetitive and less risky comparedto fishmeal and fish oil.

We look forward to
supporting Skretting inthis effort, to help deliver
performance outcomesaligned with targets under
the SDGs and towards
agenda 2030.

To control costs, reduce long-term
supply insecurity, credibly mitigate
reputational risks, and demonstratehigh ESG performance – e.g.,
to meet legal requirements or
expectations from (capital) markets –the aquaculture and feed industries
have a major need and responsibility
to help turn the tide.
Industry leaders like Skretting
know this. ESG policies andassociated sustainable sourcing
policies are in place, and aim todrive improvements in fisheries
management, credible independent
verification and documentation ofhigh ESG performance through(eventually) MSC certification of
all marine ingredients.

Global Seafood AllianceGet the recipe right and feed
companies can help catalyse theglobal transition to low-impact feeds
and food.
As we gradually transition tofoods with a smaller impact on
the environment, feed companies
can play a pivotal role because
the formula for a sustainable
feed encapsulates the formulafor a sustainable planet: feed
formulation can act as the clearing
house for balancing nutritional andenvironmental imperatives.
Consider that the world alreadyproduces enough food to feed
everyone, but people still sufferfrom malnutrition because of
inefficiencies: massive amounts ofagriculture are diverted to biofuels
and many animal production
systems are wasteful. This is where
the feed companies need to act,
helping to direct the world’s limited
feed resources to where they havethe greatest positive impact on
our nutrition, for example, by
helping to expand the availabilityof healthy products from fastevolving, new production systems
such as aquaculture.

Take salmon farming as an example.
At a global level, many of us needto transition to a more vegetarian
diet or at least to eat a greater
proportion of meat derived fromefficient systems. Feed companies
have already worked a kind of
magic by optimising diets for farmed
salmon, gradually increasing theinclusion of processed by-products
and plant-based ingredientsand simultaneously reducing theinclusion of fishmeal and fish oil,thereby converting a carnivorous fish
to an omnivore (while maintaining
health and welfare). At the sametime, this allows the world’s limited
supplies of fishmeal and fish oil torealise their full potential, as strategic
nutritional ingredients rather thanbulk components, and keep fuellinga steadily expanding aquaculture
sector. It’s amazing to consider
that fishmeal was once wasted
as fertiliser!

Skretting Impact Report – 2023

91
5 – Collaboration with stakeholders

Feed companies andstandard setters will needto cooperate closely to
get the recipe right fora sustainable planet.

All the same, much more work stillneeds to be done to enhance thesustainability and traceability ofaquafeed ingredients.

Dan LeeTechnical and Projects Advisor
Global Seafood AllianceProTerra

Efforts to address the continued
connection between irreplaceable
ecosystems and the global foodsystem have taken a significant
step forward in 2023. A part of that
was also the launch of a revised
sector-level independent verification
standard Skretting supported fromthe very beginning in 2019. The
revised monitoring system, named
ProTerra Monitoring and Verification
Standard, is the first sector-widesystem that has been collectively
developed, monitored and reportedwith producers, shippers, feed
manufacturers, livestock producers
and civil society to provide a credible
solution to addressing deforestationand land conversion.
Such systems are needed at atime when all supply chain actors
in Europe need to demonstratethat there is a negligible risk of
deforestation in their soy supply
chains as part of the recently
adopted EUDR. This legislation willenter into force on December 30,
2024, leaving less than one year

Skretting Impact Report – 2023

for companies to provide
evidence needed to satisfy thisnew market requirement.
Clear mechanisms are needed
for going beyond the legal
minimum requirements of theEuropean regulation by ensuringthat supply chains are not only
free from deforestation, but alsothat all ecosystems are protected,
as the participating companies
have committed to avoid sourcing
from any land connected todeforestation and conversion, andtheir performance is verified. Keyfeatures of a system that enable
these outcomes include companywide commitments, changes incompany procurement andindependent verification.
The current changes at a legal
level worldwide strengthen global
efforts to transparently deliver
deforestation- and conversion-free
supply chains.

92
5 – Collaboration with stakeholders

Certification schemes can be a tool
to support the implementation of
the legislation. These should include
robust assurance mechanisms thatprovide validation and oversight ofcompliance determinations.
However, with the EUDR, our work
is not done. It is crucial to not only
focus on compliance but keep aholistic approach to sustainability.
Robust certification and verification
schemes help companies reduce
the use of pesticides, improve
waste and water management,
reduce emissions, improve
agricultural practices, strengthen
workers, and ensure a transparent
and timely assessment of complaints
and grievances, just to mentiona few examples.

Emese van Maanen
Managing Director
Proterra Foundation

IDH

Sustainably produced aquaculture
is vital for healthy, high-quality foodwith limited environmental impact,
but farmers are rarely rewarded or
incentivised to produce in a way that
benefits the environment.
IDH brings companies together
to set sector-wide initiatives anddrive action towards reducing
the environmental footprint ofaquaculture products through the
Aquaculture Working Group on
Environmental Footprint.
The Working Group consists offrontrunners in the aquacultureindustry, from aquafeed companies
to retailers. One of its aims is tobetter understand the footprintof aquaculture products, such ascarbon emissions, freshwater use
and water quality, so that hotspots
where the negative environmental
impacts are highest can be
identified along the value chain,and better targeted.
If we are to meet global
environmental targets, action
must be taken now and requires
collaboration across the entire
value chain. The Working Group

Skretting Impact Report – 2023

93
5 – Collaboration with stakeholders

supports companies and theirvalue chains with this process: byworking together, companies canco-develop, test and scale solutions
and business models that they
could not achieve on their own.
The added benefit is that results
will be comparable between
aquaculture products.
If we take land use change as an
example of a hotspot, the Working
Group will look to see what can bedone across the entire value chain
to incentivise the producer to pay
a higher cost for environmentallyfriendly feeds. It will also consider
what we can learn from othersectors that are already further alongin this journey. It’s about finding
the balance too: installing solar
panels may make economic sense,
but if we want to really reduce thecarbon footprint, then perhaps our
focus should be directed towards
deforestation instead.
In short, closer collaboration bothwithin and beyond the value chain
will lead us to reaching our carbon
targets sooner. We are happy that
Skretting is joining us on this journey.

Lisa van Wageningen
Program Manager Aquaculture
IDH

Skretting Impact Report – 2023

94
5 – Collaboration with stakeholders

Chapter 6
Our house in orderDouble materiality as thebasis for sustainability
reporting progress

In anticipation of the sustainability
reporting requirements outlinedin the Corporate Sustainability
Reporting Directive (CSRD), which
will be in force for disclosures related
to 2025, Nutreco decided to alreadymove forward in 2022 to perform
a materiality assessment that took
into account the double materiality
principle. In 2023, we revised thisdouble materiality assessment on
the basis of the latest developmentsin the CSRD and the feedback of
our assurance provider. With that,
we are able to share a preliminary
double materiality assessment in thisImpact Report, which we are using
to prepare for the CSRD.
Double materiality in reporting
accounts not only for how acompany affects the environmentand society but also how theenvironment and society impact
the company’s financial value.
A sustainability topic meets thecriteria of double materiality if it
is material both from the impact
perspective (inside-out) and fromthe financial perspective (outside-in). We identified key internal andexternal stakeholders to engage
in the different phases of theassessment. We considered a broad
representation across geography,
business lines and relationships
with Nutreco in order to reflect
diverse internal and stakeholder
perspectives through the process.
We gathered input from theseinternal and external stakeholders
about their prioritisation ofsustainability topics throughin-depth interviews and workshops.
We also aligned the financial
materiality with our Enterprise Risk
Management assessment.

Skretting Impact Report – 2023

96
6 – Our house in order

Material topics
This process enabled us to identify
two topics that can clearly beconsidered double material for
Nutreco: climate change mitigationand occupational health and safety.

We identified 14 material topics
in total, including the two double
material topics (priority 1) and six
that are building blocks for Nutreco’s
sustainability strategy (priority 2).
The two identified double material
topics form the basis of Nutreco’s
integrated strategy and the topics
addressed in this Impact Report.

2 double material topics

Priority

Climate change
mitigation

Occupational
Health & Safety123

Material topics

Climate change mitigation
Occupational health and safety

Animal health and AMR
Extraction and use of marine resources
Biodiversity degradation through land-use change
Equal treatment and opportunities for all – Training and skills development
Equal treatment and opportunities for all – Diversity
Prevention and detection of corruption and bribery
Water consumption in the supply chain
Circular raw materials
Circular nutrient flows
Child labour in the value chain
Forced labour in the value chain
Animal welfare

Stakeholder engagement

We believe that engaging withinternal and external stakeholders
is key to ensuring we invest theright focus and effort in continuous
improvement and in dealing withthe complex issues that face thefuture of sustainable food. By having
active conversations with several
stakeholder groups, we benefit fromtheir diverse perspectives as we
explore our solutions. We identify
our stakeholders as any group orindividual that Nutreco and Skretting
affects through our activities,
products and services who, in turn,
may affect our ability to achieve
our goals.
Using this definition, we recognise
six main stakeholder groups:
Employees, government, external
platforms for specific sustainability
topics, food retail and services,academia and non-governmentalorganisations (NGOs).

Skretting Impact Report – 2023

97
6 – Our house in order

Stakeholder group

Concerns and expectations

How we engage and how often

Employees

What is the company strategy?
What is our financial performance?
What is the company going to do around cost cutting?
Do we need to close our factory?
How can I make a (international) career at Nutreco?

Regular (local) town hall meetings
Monthly broadcast interviews with leadership
Nutranet (intranet) announcements
Divisional strategy updates (annual or bi-annual)
Annual European Works Council
Regular local Works Council

Government

Protection of consumer and animal healthShowing leadership through continuous organisation of andparticipation in relevant stakeholder platforms, focusing on solutions
Launching nutritional solutions

Platforms for specificsustainability topics

Deforestation for commodity production

Developing Soy and Oil Palm Sourcing Policy in alignment with
RoadMap 2025

Food retail andfoodservice

GHGs and novel ingredients

Engaging with supply chain to increase novel ingredientsNon-governmentalorganisations (NGOs)

Overfishing ocean species for marine ingredients supply
Deforestation for soy commodity production

Engaging in FIPs
Collaborating on platforms that address specific concerns

Academia

R&D collaboration and validation of animal performance on
circularity, health (AMR reduction) and welfare, and emissions
reduction

Setting up or intensifying collaborative projects
Engaging with over 80 academic institutions around the worldGlobal stakeholder
platforms

MarinTrust
MarinTrust has become the leading
independent business-to-businesscertification programme for the
production of marine ingredients.
Skretting is a member of the
MarinTrust governance board. The
main purpose of the standard is:• To ensure that whole fish used
come from fisheries managed
according to the FAO Code of
Conduct for Responsible Fisheries• To ensure no IUU fishery raw
materials are used
• To ensure pure and safe products
are produced under a recognised
Quality Management System,
thereby demonstrating freedom
from potentially unsafe andillegal materials• To ensure full traceability
throughout production andthe supply chain

Sustainable Fisheries Partnership
Skretting is a sponsor of the
Sustainable Fisheries Partnership(SFP). This non-profit organisation
fills a specific gap between industry
and the marine conservation
community, utilising the powerof the private sector to help lesswell-managed fisheries meetthe environmental requirementsof major markets. Their work
is organised around two mainprinciples: making available up-todate information on fisheries forthe benefit of major buyers andother fisheries stakeholders, andusing that information to engage
all stakeholders along the supply
chain in fisheries improvements andmoving toward sustainability.

Skretting Impact Report – 2023

Global Salmon Initiative
An important way in which Skretting
is helping advance the salmon
sector is through its role as an
Associate Member of the Global
Salmon Initiative (GSI). GSI salmon
farmers and feed companies
have committed to working precompetitively together to accelerate
progress towards ever-increasing
standards of sustainability for the
farmed salmon industry, and todriving progressive innovation in
the feed sector. Skretting is a proud
Associate Member of GSI. Both
Skretting and GSI have a sharedinterest in the continued growthand prosperity of the farmed salmon
industry and a shared commitment
to improving the sustainability ofthe sector.
Associate Members work closelywith the GSI members on specificprojects where shared knowledge
and collaborative working will
support accelerated progress.

ProTerra Foundation
Skretting is member of the
ProTerra Foundation, a not-forprofit organisation that advancesand promotes sustainability at
all levels of the feed and foodproduction system. A commitment
to full transparency and traceability
throughout the supply chain andconcern for corporate social
responsibility and the potential
detrimental impact of herbicideresistant, genetically modified
crops on ecosystems andbiodiversity is at the heart ofeverything we do at Skretting.
Independent third-party certificationis central to the Proterra Foundation.
ProTerra certification ensures thathigh-quality supplies of crops,
food, and feed are independently
certified and produced withimproved sustainability.

98
6 – Our house in order

Seafood Business for
Ocean Stewardship (SeaBOS)
In 2023, Skretting continued
to be a key contributor to the
Seafood Business for Ocean
Stewardship (SeaBOS) initiative.
CEOs from the nine largest global
seafood companies have joined
forces through SeaBOS to createtransformative change. The work
is divided into five task forces: (1)IUU Fishing & Modern Slavery, (2)Transparency and Traceability, (3)Improving Regulations, (4) Internal
Governance and (5) Innovation.

Roundtable on Responsible Soy
Nutreco is a member of the Round
Table on Responsible Soy (RTRS),
a civil organisation that promotes
responsible production, processing
and trading of soy on a global level.
RTRS encourages the current andfuture production of soybeans totake place in a responsible manner
to reduce social and environmental
impacts while maintaining or
improving producers’ economic
status through the development,
implementation and verification ofa global standard.

Skretting Impact Report – 2023

Roundtable on Sustainable
Palm Oil
Nutreco has been a member ingood standing of the Roundtable on
Sustainable Palm Oil (RSPO) nearly
since its inception. Committed tothis multistakeholder platform, wepurchase green palm certificates forall our palm oil products, excluding
kernel oil.

Global Aquaculture Alliance
Skretting is a member of the
Global Aquaculture Alliance(GAA), an international nonprofit organisation that promotes
responsible aquaculture practices
through education, advocacy
and demonstration. For over 20
years, the GAA has demonstrated
a commitment to feeding theworld through responsible andsustainable aquaculture.
It does this by providing resources
to individuals and businesses
associated with aquaculture
and seafood worldwide. They
improve production practices
through partnerships with countries,
communities and companies,
as well as through online learningand journalism that has an active
readership in every country of
the world.

Aquaculture Stewardship Council
Established in 2010, the ASC is arobust and credible environmental/social standard in the farmed
seafood sector. Over 1.6 million
tons of farmed seafood are currently
independently certified according
to and compliant with the standard.
Nutreco’s Sustainability Director
sits on the Supervisory Board of
the ASC. Skretting is currently amember of the steering committee,
overseeing the work related todeveloping an ASC Feed Standard.

Sustainable Shrimp Partnership
Skretting is a founding member of
the Sustainable Shrimp Partnership(SSP), a group of leading companies
that share one mission: to makeshrimp aquaculture a clean, stable
and successful practice for theworld. In order to reach that goal,
the leaders have set a clear andambitious plan to elevate the whole
sector to the next level.

99
6 – Our house in orderGlobalGAP
Skretting is member of GlobalGAP,
an organisation that has developed
criteria for food safety, sustainableproduction methods, worker andanimal welfare, and responsible useof water, compound feed and plant
propagation materials. Skretting
is also a member of the technicalcommittee that oversees the
GlobalGAP aquaculture standard.

Skretting Impact Report – 2023

European Feed
Manufacturers’ Federation
Nutreco is a member of theEuropean Feed Manufacturers’
Federation (FEFAC) Sustainability
Committee, which meets two or
three times each year in Brussels,
Belgium, to address sustainability
initiatives associated with theEuropean feed industry. A positive
outcome of this committee was therollout of the FEFAC Soy Sourcing
Guidelines, which outline theminimum criteria that purchasing
feed mills could incorporate when
making their soybean, soybean mealand soy concentrate purchases.

The North Atlantic
Pelagic Advocacy GroupThe North Atlantic Pelagic Advocacy
Group (NAPA) was created as asector-wide, multi-stakeholder
initiative of partners to build ashared, global and non-competitive
solution to complex sustainability
issues in the Northeast Atlantic
Pelagic fisheries.
NAPA represents retailers,
foodservice companies andsuppliers from EU and non-EU
countries with the shared aimof sourcing sustainable andcertified seafood in order tosupply a growing demand for
eco-labelled fish products.
To achieve this, NAPA is seeking
an agreement on total allowable
catches for Northeast Atlantic
Pelagic fisheries in line with scientificadvice, and for a long-term sciencebased management agreement.

The Global Roundtable on
Marine Ingredients
Skretting is a member of the Global
Roundtable on Marine Ingredients,
founded in 2021. The initiative aims
at taking action based around theframework of the UN Sustainable
Development Goals. In addition,
it works to provide a single value
chain contact point to contributeto existing platforms aimed atensuring sustainable managementof fisheries providing marine
ingredients. The Roundtable will
foster and support precompetitiveefforts by members to:• Identify and agree on ways
to further improve theavailability of sustainablemarine ingredient materials• Investigate the potential of new
raw material sources, such as
mesopelagic species and others• Catalyse and support existing and
new FIPs• Understand and addressurgent social issues and enhancesocial responsibility in key
fisheries and regions• Maintain a global overview of thestate of the resources and industry

The first priority for the Roundtable
is West Africa, where the productionof marine ingredients (both direct
and through by-products) has
grown dramatically over the last
decade, and a number of economic
and social challenges have been
identified. Southeast Asia is
another geographic priority, wheremultispecies fisheries pose uniquemanagement challenges, and somefisheries are tainted by human rights
and labour abuse. The Roundtable
will also address other important
topics, such as LCAs and potential
new raw material sources.

100
6 – Our house in order

IDH – the Sustainable Trade
Initiative
IDH catalyses positive change
by bringing together committed
stakeholders from across global
markets to create better jobs, better
incomes, a better environment andgender equality for all. Through its
approach of convening, co-creating
and co-financing, IDH addresses
critical challenges in value chains,such as deforestation, working
conditions and wages, value
distribution and climate change.
IDH facilitates a pre-competitive
Aquaculture Working Group,
consisting of companies that canprioritise issues, start projects,
create a methodology, start
reduction projects and learn
together. The aim of the groupis to better measure and reduce
the environmental footprint ofaquaculture. By working together,companies can co-develop, test
and scale solutions that they could
not achieve on their own, with theadded benefit that results
will be comparable with othersupply chains, aquaculture products
and proteins.

Health, safety andenvironment (HSE)
At Skretting and our parent
company Nutreco, our unwaveringcommitment to the well-being of ouremployees, contractors, visitors andthe communities we serve stands
at the heart of everything we do.
This dedication not only reflects ourcore values but also our relentless
pursuit of a culture where safety andsecurity are paramount. In the past
year, we have not only maintained
but intensified our focus on creatinga safe working environment
characterised by continuous
improvement, trust and collaborative
effort. Placing health and safety at
the core of our business operations
and decision-making processes has
yielded significant advancements,
notably in the reduction of
workplace accidents and theenhancement of our workforce’s
safety competencies.
Skretting’s key HSE achievements
in 2023:
Building on the solid foundation
laid in 2022, our initiatives in 2023
have included:

1
Structural enhancement of HSE
organisation: We have successfully
finalised the HSE organisational
structure, ensuring direct reportinglines to the heads of each entity
for 100% of our HSE personnel.
This change underscores ourcommitment to integrating
health, safety and environmental
considerations at the highest levelsof decision-making.
2
Lifesaving rules awareness: We ran
a comprehensive campaign to raiseawareness among all employees
about the critical importanceof adhering to life saving rules,
reinforcing our commitment tosafeguarding lives.
3
Hazard reduction focus: Acrossall our operations, we havechampioned a hazard reduction
initiative, aiming to proactively
identify and mitigate potential safety
risks, ensuring a safer working
environment for everyone.
4
Operational and HSE alignment: Ourefforts to synchronise operational
practices with HSE initiatives havefostered a more integrated andcohesive approach to safety andenvironmental management.

Skretting Impact Report – 2023

5
Dust explosion risk reduction:
Recognising the significant risk
posed by dust explosions, we haveformulated and begun implementing
a comprehensive three-year plan tomitigate this hazard and ensure fullcompliance with safety standards.
6
Lifesaving rules programme rollout:
Preparation is underway for thelaunch of a two-year programme
to roll out our lifesaving rules,
marking a major step forward inour journey towards achieving
exemplary safety standards.
Skretting HSE in numbers:• Accident reduction:
For the second consecutive
year, we have achieved asignificant reduction in the Total
Recordable Case Frequency(TRCF), which decreased by 16%
to 1.61 per 200,000 hours workedby the end of 2023. This milestonereflects our collective efforts toprotect our workforce and createa safer work environment.

101
6 – Our house in order• Skill enhancement:
45 HSE specialists were
empowered through training toobtain the National Examination
Board in Occupational Safety and
Health International Certificate and107 plant managers, maintenancemanagers and operational
managers passed the Institutionof Occupational Safety and
Health Certification, elevating ourcollective expertise in health andsafety management.
• Training success:Our ambitious plan
encompassed 8,025 HSEtraining sessions, achieving an
impressive 99.5% completionrate, which speaks volumes about
our commitment to continuous
learning and development.
• Audit compliance:
We successfully closed 70% of
HSE audit compliance gaps ontime by year-end, with only 14
overdue out of 51 identified gaps,
demonstrating our dedication tomaintaining high standards ofsafety and compliance.

Alexandre BolayHSE Director
NutrecoBuilding a safer warehouseat Skretting Spain
Skretting Spain has built an efficientand secure warehouse, allowing
people to carry out their work in
an environment where risks are
eliminated or minimised as much as
possible, using the most innovativetechnologies available.
A semi-automatic storage racksystem that uses motorised shuttles
to transport the load autonomously
inside the racking improves operator
safety, greatly optimises storage,
and improves productivity.
The forklift fleet is equipped withsome innovative improvements,
such as the pedestrian alert system,
which warns pedestrians and forklift
drivers when it detects pedestrians
at a two-meter distance, and thelow-speed area system, which
automatically limits the speed atwhich forklifts circulate in different
areas, such as loading docks.

Skretting Impact Report – 2023

102
6 – Our house in order

Warehouse safety also
includes advanced automatic
fire extinguishing systems,
such as an aspirating smoke
detection system, automatic fire
doors, and an automatic smokeand heat extraction systemthat allows extractions to beopened automatically whensmoke is detected.
Beyond technical measures,
we are working on the team’s
safety behaviours and culture
through training, regular inspections
and gemba walks, to ensure
we’re successful in this very
important focus area.

Alberto Martínez de Pedro
HSE Responsible
Skretting Spain

Ethics and Compliance

While business results are crucial tous, the means by which we achieve
those results are equally significant.
We have a zero-tolerance policy
for behaviour that contradicts ourvalues, legal requirements, andcompany policies.
In 2023, trade sanctions further
increased in response to theRussian war against Ukraine. As
early as 2022, we had ceased
selling products to Russia, andin 2023, Skretting continued to
uphold this policy.
Skretting continued to prioritisecreating awareness of ethics andcompliance (E&C) topics. This
ensured that employees possessed
the necessary knowledge to performtheir roles ethically and in alignment
with regulations. By year-end,
approximately 98% of the Skretting
target audience had received training
on our Code of Conduct. We also
conducted risk assessments andtraining activities, focusing on areas
covered by our Competition Law
Compliance and Anti-Bribery andCorruption policies.

Skretting Impact Report – 2023

103
6 – Our house in order

We have a zero-tolerance
policy for behaviour that
contradicts our values,
legal requirements, andcompany policies.

Collaborating with Shift, a leading
centre of expertise on the UN
Guiding Principles on Business andHuman Rights, we assessed thesalient human rights issues related
to our company. The results of thisassessment inform our ongoing
efforts to enhance human rights
risk management. Furthermore, ourE&C and Sustainability departments
jointly supported Skretting Chilein achieving certification under thedemanding ASC Feed standard foraquaculture. This standard considers
productivity, environmental impact
and social factors. Our support
included updating the Code of
Conduct for Business Partners andexpanding the Skretting website
to include a detailed explanationof Speak Up, our company’s
whistleblower and grievancemechanism, which is open tointernal and external stakeholders.
Throughout our various business
units and at our head office, we
remained committed to enforcing
the right behaviour. In 2023, thiscommitment involved investigatingten Speak Up cases at Skretting andtaking appropriate action.

Johan Gerrits
Ethics & Compliance Director
NutrecoSkretting Impact Report – 2023

104
6 – Our house in orderChapter 7
About SkrettingAbout Skretting

Skretting Impact Report – 2023

The vision thatinspires us

Our purpose

The values
we live by

Our people

Together with our customers,
suppliers and partners, we leadinnovation to ensure access tomore sustainable, healthier andsafer seafood for the world’s
growing population.

Feeding the Future continues tobe a meaningful purpose for us
at Skretting. We hope that you
see why after reading this report!

We updated our company-wide
values in 2022. The new values oftrust, inclusivity, curiosity, integrityand passion reflect our purpose of
Feeding the Future and underpin our
fundamental beliefs and the guiding
principles of how we do business.

The collective experience,
knowledge and talents of our people
have helped us achieve considerable
success while also progressing theaquaculture industry on a global
scale. We strive to be the company
where the best people in the industry
want to work. We are an equal
opportunity employer; people areconsidered for all roles without
regard to race, colour, religious
creed, gender identity, nationality,
citizenship status, age, physical ormental disability, sexual orientation,
marital, parental or military status,or any other status protected byapplicable local law.

106
7 - About SkrettingGovernanceNutreco’s Sustainability function isled by the company’s CEO. In 2023,
Nutreco appointed a new Corporate
Sustainability Director reportingto the Chief Supply Chain Officer,
who represents sustainability on theManagement Board.
Nutreco’s Sustainability Director
chairs the Nutreco Sustainability
Platform (NSP), which is where
the sustainability aspects of ourstrategy are developed, and where
sustainability issues are addressed.
It is made up of five individuals, threeof whom represent the businesses.
The functional directors within
the Trouw Nutrition and Skretting
business lines are responsible forthe implementation of sustainability
activities aimed at achieving
the targets set out in RoadMap
2025, working with teams in ourbusinesses throughout the world.

Skretting Impact Report – 2023

107
7 - About SkrettingNutreco Corporate
Sustainability Governance

Skretting Impact Report – 2023

108
7 - About Skretting

NutrecoManagement
Board

Nutreco Sustainability
Platform (NSP)
Corporate Sustainability Director
NutrecoTrouw Nutrition

Operations
Procurement
Innovation
Human Resources
Ethics & Compliance

Sustainability Manager
Trouw Nutrition

Sustainability Manager
Skretting

Sustainability Manager
Trouw Nutrition Iberia

Sustainability Manager
NutrecoSkrettingOperations
Procurement
Innovation
Human Resources
Ethics & ComplianceOur certifications

ISO 9001

ISO 17025

Skretting Impact Report – 2023

ISO 14001

ISO 22000

ISO 45001

GlobalGAPASC
Compliant

ASC Feed

BAP

HACCP

109
7 - About Skretting

Organic

GMP+

OthersAquaculture Innovation
Australia

FeedSafe

CanadaChile
China
Ecuador
Egypt
FranceHonduras

OHSAS 180001
Naturland (100%)
Local HACCP Certificate
Punto verde (local enviroment cetification)
Eco Eficiente (Galápagos plant)
RCNA (french GMP)(100%)
FQC (Carrefour)(50%)
Label Rouge

India
Indonesia
Italy
Japan
Kenya(JV)
Nigeria
NorwayGlobal GAP non-GM

Spain

Halal
CIPA (French market)

TurkeyUSA
VietnamHalalOur global operations

Skretting Impact Report – 2023

110
7 - About Skretting

01

02

03

04

P.O. Box 234,
5830 AE Boxmeer,
The Netherlands

26 Maxwells Road,
Cambridge
Tasmania, 7170

St. Andrews 48
Moore Clark Dr,
St. Andrews, NB,
CanadaVancouver 1370
East Kent Ave S,
Vancouver,V5X 2Y2

05

06

07

08

Camino a Pargua
1001 Puerto Montt,
Casilla 201,
Chile

No. 2016
Huangyang
Avenue, Longshan
Industrial Park,
Doumen District,Zhuhai Guangdong
China

Km. 6.5 vía DuránTambo, Durán
EcuadorPlot 170, 10th of
Ramadan Rd.,
Belbis, Sharkia
Egypt

09

10

11

12

24, Le Pont dePierre 02140
Fontaine lesVervins, France

Tan Tao Industrial
park, Lot 22A,
Road # 1 Binh
Chanh District
Ho Chi Minh City,
Vietnam

Unit No: L4 04, SLN
Terminus, Survey No.
133, Beside Botanical
Gardens, Gachibowli,
Hyderabad – 500032
India

PT Trouw Nutrition
Trading Indonesia
MM2100 Industrial
Estate, Jl. Selayar Blok
A3-2, Cikarang Barat,
Bekasi 17530,
Indonesia

13

14

15

16

Frazione San Zeno
37060 Mozzecane(Verona), Italy

3-12-1-701,
Hakataeki-Higashi
Chome Fukuoka,
812-0013, JapanKM6 Old Lagos Road,New Garage, Ibadan
Nigeria

Sjøhagen 6,4016 Stavanger
Norway

17

18

19

20

Cojobar, Burgos,
09620 Spain

Ekinanbarı Mah.
Kocakısla Sokak No:5
Güllük-Milas, 48670
Mugla, Turkey

Salt Lake City 720
East 2400 North,Tooele, Utah
84074-3476, USA

San Francisco de Yojoa,
CortésNetherlands

Chile

16
04
03
19

09
17

01

France

13
18

14

08
06
11

20
15

10

Italy

07
12

05

Spain
02

Australia

China

VietnamJapan

TurkeyCanada,St. Andrews

Ecuador

India

Nigeria

USA

Canada,Vancouver

Egypt

Indonesia

NorwayHondurasOur global
validation stations

Skretting Impact Report – 2023

111
7 - About Skretting

NorwayItaly
China

EcuadorMain in-houseresearch facilities
around the world
Skretting AI
Head Office

Chile

Skretting AI
Research Stations (5)Skretting AI Feed
Technology Plant
Skretting AI Laboratory
and Skretting Bubble (Biotech Lab)

Skretting AI
Home baseStavanger, Norwayskretting.com

Photo credits
Front cover
Vidar Nordli Mathisen
Page 10
Ivan Bandura
Page 20
Scott Webb
Page 104
Anita Denunzio
Page 8, 74, 94
Adobe Stock