Skretting

Sustainability
Report2022

What is in this report?
A lot! But we’re trying to make it easy to find your way around it all.
For easy navigation, just click on the chapter title to the right. Toplevel chapter headings can also be found at the right side of the pages
throughout the report.
Please note, this report is designed to be digital first, and viewed on ascreen. Please consider the environment before you print.

01
02

Introductions
RoadMap 2025
Health & Welfare
Climate & Circularity

03

Information specific to Skretting Australia can be found from page 95
onwards.

Good Citizenship

Ingredient deep dive
What is in our feed
Responsible sourcing
Marine ingredients
Soy ingredients

Read the web version

Novel ingredients

04
05
06
2

Skretting Sustainability Report 2022

Progress through collaboration
Transparency & trust
About SkrettingAbbreviations, tables and figures
within this report
This page is a quick reference so you can find all the nitty gritty
details in the report, including our sustainability targets and progress.
We’ve also included some of the most common abbreviations usedthroughout the report. Jump back here if you’re uncertain what one ofthe (many!) acronyms mean.

AMR				Antimicrobial resistance

GSI				Global Salmon Initiative

ASC				Aquaculture Stewardship Council

HSE				

BAP				Best Aquaculture Practices

KPI				Key Performance Indicator

BU					Business Unit

LCA				Life Cycle Assessment

CIA				Critically important antibiotic

LUC				Land Use Change

CO2e				Carbon dioxide equivalent

MSC				Marine Stewardship Council

FAO				

Food and Agriculture Organization of the United Nations

NAPA				FCRe				Forage Fish Dependency Ratio economic

OpCo				Operating Company

FFDR				Forage Fish Dependency Ratio

SeaBOS			

Seafood Business for Ocean Stewardship

FFDRm			Forage Fish Dependency Ratio: fish meal

SOFIA				The State of World Fisheries and Aquaculture report

FFDRo			Forage Fish Dependency Ratio: fish oil

Skretting AI		

Skretting Aquaculture Innovation

UN SDG			

United Nations Sustainable Development Goals

FIP				Fishery Improvement Project

Health, Safety and Environment

North Atlantic Pelagic Advocacy Group

RoadMap 2025 targets and progress related to Health & Welfare

14

Average ingredients in Skretting grower feed per species

44

Percentage of total feed with prescribed antibiotics in 2021 and 2022

16

Progress towards meeting sourcing objectives in our marine sourcing policy in 2022 as a percentage of purchases

50

The application of prescribed antibiotics per country as a percentage of total feed produced in 2022

16

Soy classification (%) purchased per business unit in 2022

51

RoadMap 2025 targets and progress related to Climate & Circularity

21

Classification of soy purchased per business unit in 2022

51

Skretting’s global carbon footprint relative to feed produced from 2018 to 2022

22

Global soy sourcing region in 2022

51

Skretting’s total absolute carbon footprint at factory gate including scope 1, 2 and 3 from 2018 to 2022 (ktonne CO2e)23

Certification status (%) of Skretting marine ingredient purchases on a global and BU level

53

Skretting’s BU salmon and BU Latin America absolute carbon footprint at factory gate 											

23Certification status (%) of Skretting purchases of whole fish and trimmings in 2022

53

Skretting’s scope 1 and 2 CO2 emissions in ktonnes 

24

Progress on our marine ingredient sourcing policy in 2022 compared with targets

54

Water use - litres / tonne per BU

25

Estimated Skretting global average FFDR for Atlantic salmon, sea bass and sea bream, shrimp and tilapia

57

Specific energy consumption - kWh / tonne per BU

25

Estimated averages for Forage Fish Dependency Ratio (FFDR) for Atlantic Salmon farmed in Norway and Chile

58

Waste - kg / tonne per BU

25

Skretting’s total number of employees, shown in total, by gender and by region

83

GHG emissions - kg CO2e / tonne per BU

25

Incidents in Skretting in 2022

85

Skretting’s 2022 scope 3 carbon footprint per ingredient category26

NuSAFE principles overview

85

Skretting’s 2022 scope 3 carbon footprint per business unit

26

Global overview of Skretting operations & research facilities

86

The carbon footprint of specific Skretting feed products produced in different countries (kg CO2e / kg feed)

28

Global overview of Skretting certifications

87

The LCA maturity curve

31

Skretting’s global stakeholder groups and how we interact with them

88

Specific energy, CO2e, water and waste per tonne of feed at Skretting Italy in 2022 compared to 2021

33

Nutreco Corporate Sustainability Governance

92

RoadMap 2025 targets and progress related to Good Citizenship

36

Visual description of the outcomes of Nutreco’s double materiality assessment

93

Skretting targets and progress related to raw materials

43

3

Skretting Sustainability Report 2022

Introductions

Why does Skretting even have a sustainability report? What
are the ‘can’t miss’ parts from this year? What are ‘blue foods’
anyway, and why do they matter? In this section we answer
these questions and more. Read on...

Introductions
RoadMap 2025
Ingredient deep dive
Progress through collaboration
Transparency & Trust
About Skretting
Home

4

Skretting Sustainability Report 2022

Our role in the value chain
What does Skretting do? We make feed for aquaculture, all over theworld. The most important species we make feed for include Atlantic
salmon, shrimp, sea bass, sea bream and tilapia. We are part of acomplex value chain, which we have briefly summarised here.

2

4

Feed ingredient
manufacturers

6

Farmers

Consumers

Raw materials are processed into

Farmers feed their fish and shrimp

People purchase and eat high quality,

ingredients that can be made into fishwith high quality, nutritious food.

safe and nutritious seafood products.

and shrimp feed. Feed ingredients are

Aquaculture performance is determined

selected for the nutrients they provide,by animal health, nutrition and farm

the absence of anti-nutritional ormanagement.

undesirable substances, economics,

We actively launch initiatives toand sustainability credentials.

help farmers optimise fish andDespite the challenge of finding theshrimp production and reduce theirright balance between price andenvironmental footprint.

Agricultural crops, land farming and wild

quality, we have been working on

fisheries are directly and indirectly used

increasing our novel ingredient use andfor food, feed and energy. If not managed

innovative feed additives.

Introductions

properly, primary producers of feed
ingredients can contribute to a loss of
biodiversity, climate change and human

Food distributors have an importantrights violations. We have been activelyrole to play in promoting and advancing

RoadMap 2025

working on eliminating deforestation in our

Skretting converts ingredients into

sustainable consumption andsupply chain and setting up a reduction

innovative fish and shrimp feeds.

production of seafood. We have been

strategy for scope 3 GHG emissions caused

Our operations are built upon a solid

actively working on collaborations

to a significant extent by the production offoundation of people provided with

with these stakeholders to bring moreprimary raw materials.

good and safe working conditions.

sustainable seafood to the market.

Progress through collaboration

SkrettingFood distributors andretailers

Transparency & Trust

1

Primary producers

3

5

Ingredient deep dive

About SkrettingHome

5

Skretting Sustainability Report 2022

About this report

Our approach

Reporting framework

Collaboration with stakeholders

Skretting has a longstanding commitment to reporting progress on
our sustainability journey. We have been issuing sustainability reports
since 1999. Our first reports were compiled by Skretting Norway,
and since 2013, we have also been reporting on our global businessactivities. Our sustainability initiatives are closely linked to our business
operations and priorities.

We prepared our report in accordance with the GRI Standards: core
option. This report also aligns with the United Nations Sustainable
Development Goals (SDGs), and throughout we have highlighted how
our own goals are aligned and support SDGs.

Skretting invited different stakeholders to contribute with their own
views to relevant topics addressed on this report.

Assuring our disclosures

Nutreco is organised in different business units. These are referred tothroughout the report as the following BUs:

Reporting structureThis global Skretting sustainability report focuses on who we are andour main sustainability achievements in 2022. It is available to ourstakeholders and the public on our website. Our focus is to make iteasier for readers to find information that matters most to them. Local
Skretting companies can also choose to publish their own sustainability
reports to go more in depth on local challenges and achievements.

Scope of this report
The quantitative data reported here covers the calendar year fromJanuary 1 to December 31, 2022 unless otherwise stated. The reportcovers all companies that are part of Skretting, which represents theaquaculture nutrition and service activities of Nutreco. Nutreco isowned by private company SHV, and all public financial informationis reported through SHV. This report provides only limited financial
information.

Skretting does not have external verification of the disclosures madein the report. However, Nutreco has worked with an external company
to verify specific information disclosed in the Nutreco Sustainability
Report. If information disclosed in the current report has been verified
during this process, it will be mentioned.

Business Units (BU)•

Salmon: Australia, Canada, Chile, Norway•

Latin America: Ecuador, Honduras•Southern Europe: France, Italy, Spain, Turkey•

Asia: China, India, Japan, Vietnam•

Africa: Egypt, Middle East & Africa Export, Nigeria

Links with Nutreco Sustainability Report
As part of Nutreco, some of the content disclosed on this report andmore details can also be found on Nutreco’s Sustainability Report 2022.
Throughout this document we have shared links that allow the reader todeepen on how we address specific areas at a corporate level that also
apply to Skretting.

Introductions
RoadMap 2025

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

Ingredient deep dive
Progress through collaboration
Transparency & Trust
About SkrettingHome

6

Skretting Sustainability Report 2022

From our CEO

A year of action. That’s how I’d describe 2022 when it comes to oursustainability activity. Over the past few years, I’ve talked a lot about
how we are not doing enough, and we need to do better. While it may
take some time for me to stop saying that, I’m happy to report that
although we are still finding ways to meet our ambitious objectives, wehave made significant progress in 2022. We are reporting that progresswith a level of transparency that has not been seen before.

To other feed companies and stakeholder initiatives that can help us tocollaborate:

Why do we do this? What do we gain from being open? For one, webuild trust and ensure we can collaborate effectively with partners
to provide real, tangible solutions, together. As difficult as it can be,
I’d much rather receive criticism that we can use constructively thangreenwash mediocre efforts. Transparency is a non negotiable for us.
So here are our calls to action.

And finally, to our customers:

Firstly, for ourselves:•

Continue our commitment to Science Based Targets, reduce absoluteemissions and source certified ingredients according to our RoadMap•

Increase the participation of women in senior leadership•

Strengthen work on identifying and mitigating potential social risks in our
supply chain and hold ourselves accountable•

Maintain high engagement in stakeholder platforms where we can address
industry challenges, together

Second, to our suppliers:•

Reduce the carbon footprint of your own operations and value chain•

Sign up for Science Based Targets and take action to stay within the Paris
Agreement emission targets•

Provide better (primary) data on the ingredients you sell•

Improve and increase traceability back to the country of primary
production••

Align on standard key data elements for traceability requested fromsuppliers•

Align on the request for primary data from suppliers•

Collaborate on digital solutions that can help us to simplify data requests
and data recording

At Skretting, wedon’t believe incompetition when it
comes to sustainability.
What are we competing over?
The future of the planet?
No thanks. I’d rather wecollaborate.

•

Fully commit to your sustainability objectives and work with us to findsolutions to the challenges that you have•

Support the use of marine ingredients that are certified or from a Fishery
Improvement Project (FIP), and soy that is deforestation-free•

Promote long-term partnerships that help us to commit to longer term
goals

Sustainability is not something that I believe we should compete on in
our industry. It should not be a competition for who has more or bettertargets, or who has a lower or higher carbon footprint. Instead, thisshould be a collaboration to accelerate the progress that we all needto ensure that we can contribute with healthy, safe and accessible
seafood for the people of the world.*
After all, what are we competing over? The future of the planet? No
thanks. I’d much rather we work together and collaborate to findsolutions to challenges that are much bigger than one company can
possibly tackle alone. We have everything to gain when we collaborate,and everything to lose when we don’t.
The time is now - we need to act.

Introductions
RoadMap 2025
Ingredient deep dive
Progress through collaboration
Transparency & Trust
About Skretting

Further identify and mitigate the environmental and social risks across the
supply chainHome* within competition rules of course!

7

Skretting Sustainability Report 2022

Therese Log Bergjord
CEO, Skretting

Disclosure of our

Our sustainability ambitions going forward

Collaboration and transparency. Two words that are easy to say but
can be much more difficult to put into practice. At the same time, every
year they become more meaningful, particularly when it comes to theprogress across our sustainability journey.
This report is our most transparent yet. There are a number ofparameters that we are reporting for the first time ever, either because
we now have the ability to report on those numbers, or because we
simply believe that it is the right thing to do to share our journey - eventhe markers that we are not so proud of.

We have also included more views from just a sample of Skretting’s
colleagues in our report this year. Through them, we’re sharing the workand commitment of our close to 4,000 colleagues spread across theworld. It’s through each one of us that we can make progress on oursustainability efforts.
I’m very proud of this report, and the people who have contributed, but
I understand that not everyone will read the entire report. For those of
you who won’t, to the right are some links to parts that I encourage you
to read over everything else!

We have again invited customers, suppliers, certification bodies andother partners to share with us their vision on what sustainability
means to them, including reflections on different realities per regionand species. Why do we do this? Because reaching our targets is not
something that we can do alone, and we need collaboration across theentire value chain.
In this report, we not only elaborate the progress that we’ve made, butalso on the challenges that we face, areas where we’re not doing sowell, and also the opportunities that we can embrace. Environmental
impact and reducing the carbon footprint is a prominent focus,
but decisions shouldn’t be taken just based on a footprint value.
Sustainability is so much more than that.

applying antibiotics andwhen
Skretting Norway’s 46%
reduction in emissions,

Jorge’s unmissable
parts of the report!

and the resulting
recognition from PwC

inputs from a number ofour stakeholders

We still need to look at
the different trade-offs andtake decisions based on amulti-impact approach rather
than only a number

Introductions
Our increased transparency on
the use of ingredients for our

RoadMap 2025

global operations through the
Ocean Disclosure Project

Ingredient deep dive
Progress through collaboration

The appointment of our Supplier

Transparency & Trust

Sustainability Manager to build
a closer relationship and better

Reducing our environmental footprint also needs to be done with astrong focus on creating a positive social impact in our supply chain.

About Skretting

overview of the environmental andsocial impact on our supply chain
Jorge Diaz
Sustainability Manager, Skretting

Skretting Sustainability Report 2022

Details on where we are

The different views and

For example, what happens if an ingredient comes with a higher
footprint (because it hasn’t scaled up yet), but helps us to find solutions
to other impacts that are not measured by the carbon footprint, such as
biodiversity loss? We need to look at the different trade-offs and takedecisions based on a multi impact approach rather than only a footprint
number.

8

scope 3 footprintHomeLink to SOFIA 2022

The context that we operate in, and the importance of blue foods

Not only do fish, shrimp and other wild-caught and farmed aquatic
foods provide more than 3 billion people with at least 20% of theiranimal protein - the high nutritional profile, considerable species
diversity and abundance of these so-called “blue foods” mean they arealso ideally-positioned to help establish resilient and sustainable global
food systems.
The production and harvesting of these foods often have a much
lower carbon footprint and fewer biodiversity impacts when comparedto the production systems of most livestock categories. Many
supply chains also stand up to close consumer scrutiny in terms of
their environmental responsibility, ethical sourcing and production
processes, as well as offering heightened levels of transparency andtrust. As such, fish and shellfish are increasingly being recognised fortheir role in food security, while most health organisations have longadvocated including fish or seafood in the human diet a minimum of
two to three times a week.
In the State of World Fisheries and Aquaculture 2022 (SOFIA), FAO
states that prioritising and better integrating fisheries and aquaculture
products in global, regional and national food system strategies andpolicies should be a vital part of the necessary transformation ofagrifood systems. The UN body also reports the global per capita
consumption has doubled since the 1960s – from a level of 9.9 kg to
20.2 kg in 2020, with the average annual rise consistently outpacing
both the world population increase and the growth in consumption of
all other animal protein foods and all terrestrially-produced meats.

Looking ahead, FAO expects that rising incomes and urbanisation,
improvements in post-harvest practices and changes in dietary trends
will lead to a 15% increase in aquatic food consumption – to supply on
average 21.4 kg per capita in 2030.
According to SOFIA, global aquaculture production reached a record
122.6 million tonnes in 2020. This was despite the worldwide spread of
the COVID-19 pandemic, with the total including 87.5 million tonnes ofaquatic animals. It also confirms aquaculture accounted for 56% of theaquatic animal food production made available for human consumption.
The report estimates this supply will rise to 106 million tonnes in 2030
and should break the 100-million-tonne-threshold for the first time in
2027. To achieve this, the report projects aquaculture expansions willcontinue on all continents, with wide variations in the range of species
and products. But at the same time, it insists that over the course of thenext 10 years, aquaculture must expand sustainably to satisfy the gap
in global demand for aquatic foods, especially in food-deficit regions,while also generating new or securing existing sources of income andemployment.
The report also highlights that priority areas for innovative aquaculture
practices should include aquafeeds and feeding, digitalisation andthe promotion of efficient and pro-environment practices. It adds that
implementing these solutions requires adequate capacity and skills,
training, research and partnerships, and that these can benefit fromdevelopments in information and communications technology andwider access to mobile applications and platforms.

Introductions
RoadMap 2025
Ingredient deep dive
Progress through collaboration
Transparency & Trust
About SkrettingHome

9Skretting Sustainability Report 2022

Aligning with the SDGs

Our purpose is ‘Feeding the Future’, which inspires us to help solve
one of humanity’s biggest challenges. The Sustainable Development
Goals (SDGs) launched by the United Nations in 2015 are reaching its
halfway point. As stated on The Sustainable Development Goals Report
2022, and when we are at the halfway point of their implementation, the2030 Agenda for Sustainable Development is in grave jeopardy due tomultiple, cascading and intersecting crises. COVID-19, climate change
and conflict predominate. Each of them, and their complex interactions,
impact all of the Goals, creating spin-off crises in food and nutrition,
health, education, the environment, and peace and security. To put theworld on track to sustainability will require concerted action on a global
scale.

••••To the right, you can find the UN SDGs that Skretting and Nutreco
have identified as relevant for the business, and the actions that we aretaking to address them directly.

Develop a local supplyof raw materials for
production in areas
where it does not yet
exist (Africa and Asia)
Expand community
development
and community
engagement initiatives
to touch the lives of
12,000 people in thecommunities where we
operate•Ensure no use
of prophylactic
antibiotics employedin feed, forage orwater
Ensure absolutely nouse of any antibiotics
that are listed on
the World HealthOrganization’s listof those “Critically
Important for Human
Health”
Ensure the use ofantibiotic medication
can only be applied tofeed and water with avalid clinical diagnostic
result demonstrating
bacterial infection
and under direct andapproved medical
supervision by aqualified veterinarian

•

•

•

One out of three hires
is female (starting in
2020)
We target having
30% women in seniorleadership by 2025
We implement the“Taking the Stage”
program, beginning in
2020, to help facilitate
this transition

•
•

•
•

Commitment to
Science Based Targets
Reduce our carbon
footprint linked with
fuel and coal to zero
Increase our share of
renewable energy
Explore possibilities
to enter Virtual Powerpurchasing agreement

Introductions
Click here to learn how weincorporate the UN SDGs
into our business

RoadMap 2025••

10

Skretting Sustainability Report 2022

Commitment to
Science Based Targets
The innovation stagegate process includes
a sustainability filter(qualitative andquantitative) to ensure
no environmental
impact trade-offs
and encourage themost significant
environmental impact••

Source 100% of
marine ingredientsfrom sources audited
and certified by
MarinTrust or MSC
Ensure that where
MarinTrust or MSC
certified marine
ingredients are notavailable, all noncertified ingredients
will be engaged in a
Fishery Improvement
Project (FIP). That FIP
will publicly reportdevelopments annually•

Conduct an analysis
to understand therisks of deforestationand conversion in our
supply chain, focusing
on our highest volume
plant ingredients andingredients known tohave global risks (i.e.,
soy and palm oil)•Engage with local,
regional and national
governments toencourage andpromote regulatory
reform for the
responsible useof antibiotics.
This includes
public speaking,blogs, articles,
letters to politicalrepresentatives andindustry workshops
to transfer technologythat should be
adopted to ensure
responsible usage

Ingredient deep dive
Progress through collaboration
Transparency & Trust
About SkrettingHomeSome highlights from 2022

5%

84%

reduction to global
carbon footprint per
feed compared with2018 baseline97%
of soy purchased in 2022
is categorised as class
A or B according to oursourcing policyof marine
ingredientspurchased werecertified or froma FIP

Skretting
Norwaynamed PwC’s 2022
Climate Winner

Introductions

54.7%
of electricity usedin our operations isrenewable

Implemented the
EcoVadis IQ and
Ratings programs

Skretting AI

opened its
new Guayas
Research Stationin Guayaquil,
Ecuador

RoadMap 2025
Ingredient deep dive
Progress through collaboration
Transparency & Trust
About Skretting
Home

11

Skretting Sustainability Report 2022

Read more about Nutreco’s
RoadMap 2025

RoadMap
2025

Our sustainability RoadMap 2025 outlines our sustainability
ambitions under three pillars – health and welfare, climate andcircularity, and good citizenship – and includes clear, measurable
targets for 2025. It was approved by Nutreco’s Management
Board (formerly Nutreco’s Executive Leadership Team) in June
2020. On the following pages we present our progress towards
meeting the goals outlined in the RoadMap.

Introductions

RoadMap 2025
Health & Welfare

Climate & Circularity

Good Citizenship

Ingredient deep dive
Progress through collaboration
Transparency & Trust
About Skretting
Home

12

Skretting Sustainability Report 2022

RoadMap 2025

Health & Welfare

Antimicrobial resistance•Innovating new products and services that will
reduce dependency on antibiotic usage in animalhusbandry and adopting five-step targets that will
significantly reduce antibiotic usage by creating
business opportunities for clients

Climate & Circularity

Reducing greenhouse gas (GHG) emissions••

Setting science-based targets for reducing
emissions through energy efficiency programs andsustainable ingredient sourcing, incorporating lifecycle assessment methodologies and utilising new
ingredients
Addressing responsible use of natural resources,
biodiversity and ecosystems

Introductions

RoadMap 2025
Ingredient deep diveGood Citizenship

Diversity & inclusion

13

Skretting Sustainability Report 2022•

Building a more diverse and inclusive workforce•

Empowering local communities with best practices
and technology to raise themselves out of extreme
poverty through farming sustainability

Progress through collaboration
Transparency & Trust
About SkrettingHomeRoadMap 2025
Health & WelfareThis pillar of RoadMap 2025 is primarily focused on
antimicrobial resistance (AMR). We address this byinnovating new products and services that directly reduce thedependence on antibiotic use.
In this section, we provide numbers on the use of antibiotics
throughout our business, and discuss dilemmas andopportunities in the area of health and welfare. We also
highlight some initiatives happening around the world.

Our targets

Our progress

No preventive* usage of antibiotics in
our products and services.

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

No useIntroductions

RoadMap 2025
No use of antibiotics categorised by
WHO** as “Critically Important for
Human Health” (CIA) in our products andservices.

In 2022 Skretting used lessthan 2,000 kg of CIA active
ingredient, equal to 0.01%
of total feed sales. All of thefeeds sold were prescription
based.

Ingredient deep dive
Progress through collaboration
Transparency & Trust* Ensure no preventive usage of antibiotics in our products and services. Any order of medicated premix/feedshould be accompanied with a valid prescription from an authorised professional.
** as published in “Critically important antimicrobials for human
medicine:
6th revision”
https://www.who.int/
RoadMap2025
targets
andprogressrelatedto
Health&Welfarepublications/i/item/9789241515528

About Skretting
Home

14

Skretting Sustainability Report 2022

RoadMap 2025 - Health & Welfare

Antimicrobial resistance
A long-held part of Skretting’s global sustainability strategy
is the ambition to address the risks associated with
antimicrobial resistance (AMR). This includes supporting a
reduction to the use of antibiotics within the aquaculture
value chain, and the elimination of specific groups ofantibiotics, specifically those listed as ‘critically important
antibiotics’ (CIAs) by WHO.

Our aim is to focus
on the major industry
issues and collaborate on
new products and services
that will directly reduce
dependence on antibioticuse

We believe that a holistic approach to animal health, whereby
the prevention of challenges is promoted through farming bestpractices, is far better than providing a cure. Our aim is to establish
industry-wide progress with regards to tackling AMR through thedevelopment of innovative products and services that directly reduce
the farmers’ dependence on antibiotic use. We do this by partneringwith our customers and focusing on the major issues that are driving
antibiotic use.
Additionally, we focus efforts on providing robust solutions foralleviating disease challenges that have been historically difficult tocontrol through vaccination, and are responsible for high antibiotic use
in the industry, such as Salmonid rickettsial septicaemia (SRS) in Chileand Photobacteriosis and Lactococcosis in Southern Europe.

Because feed is an important component ofsustainable, preventative health management,
Skretting provides optimal nutrition for all farming
cycles of aquatic species, including innovative
nutritional solutions that contribute to disease
management.

Integrated and holistic approaches should also
comprise best management and husbandry practices,
continuous surveillance and early and accurate diagnosis,
the implementation of biosecurity and disinfection procedures in the
production sites, systematic vaccination and the responsible use of
medicines when treatment is needed.
Our approach to addressing the risk of antimicrobial resistance (AMR)
has not changed during the last years. The aim is to focus on the
major industry issues and innovate, together with customers and otherpartners, with the development of new products and services that will
directly reduce dependence on antibiotic usage in animal husbandry.

Introductions

Anna Hesby Nessa Global ProductManager Health, and Carlos Zarza
Principal Researcher at Skretting
Aquaculture Innovation

RoadMap 2025
Ingredient deep dive
Progress through collaboration
Transparency & Trust
About Skretting
Home

15

Skretting Sustainability Report 2022

RoadMap 2025 - Health & Welfare

Disclosure of antibiotic use per country

As in previous years, different antibiotics are incorporated in feed
depending on local regulations. The largest volume comes fromflorfenicol, oxytetracyline and trimethoprim/sulfadiazine, which are
not classified as CIAs. In lower volumes, antibiotics classified as CIA erythromycin, flumequine or oxolinic acid have been administered.

16

Skretting Sustainability Report 2022••

Development of technical customer support in bacteriology including
antibiotic sensitivity assessment (antibiograms) in countries where that has
not been standard procedure
Awareness campaigns to support farmers to use antibiotics in a
responsible way, including an app to calculate the dose fast andaccurately
Continuous health education with farmers including vaccination

1.6 %0.02 %

Feed with non-CIA
Feed with CIA

1.3 %0.01 %

The application of prescribed antibiotics per country asa percentage of total feed produced in 2022

%

Italy

North
America

Australia

Chile

Total

Introductions

Spain

In 2022 we started building a real-time overview of antibiotic-containing
products we sell across our business. With this in place, we can react
faster, identify geographical area differences and connect colleagues
across the world to learn from each other.
In general, the aquaculture industry has been reducing antibiotics
over many decades, and naturally there are yearly differences inantibiotic usage depending on disease outbreaks. Even in challenging
circumstances with high summer temperatures and scarcity of water,
farmers managed their production with less antibiotics with better farm
practices.

Feed without antibiotics

2021

•

Testing diseases prevention programs to reduce antibiotic treatments inareas where we identify challenges

Total feed produced

FranceIn 2022 we recorded a decrease to the amount of medicated feedwith antibiotics and medicated feed containing CIA as percentage ofour total feed sales compared to 2021. Across our global business,less than 2 000 kilograms of CIA were prescribed and added to feed,
representing a 28% reduction. For other antibiotics, the inclusion ofactive ingredients was reduced by 35%.

•

Percentage of total feed with prescribed antibiotics
in 2021 and 2022

NorwayIn some cases, a CIA is the only antibiotic that works and/or is available
to treat specific diseases. This poses a further dilemma - we could stop
producing feed containing antibiotics, but by doing so we risk pushingantibiotic application further down the production chain, for example
farmers applying medication to the feed on-farm. These methods canpose a much greater challenge in combatting antimicrobial resistance.
In contrast, when we apply antibiotics in our facilities, we do it in a safe
and controlled environment where our workers are protected, and thefinal dose is measured, and the production is done with high quality
standards.

In close collaboration with our customers, several initiatives have been
started in our OpCos to ensure best-practice and reduce antibiotic
dependence:

2022

Animals have a right to receive treatment when they are sick, andmedicated feed remains the preferred method to administer antibiotics
to farmed fish and shrimp. Skretting provides medicated feed only onprescription from a veterinarian. There are relatively few antibiotics
registered for aquatic animals, and we do not choose which will be
used. However, we do have a network of health experts, and throughour technical team we work closely with our customers to shareknowledge and discuss alternative treatments or vaccines.

Feed with CIA

0.003

0.009

0.013

0.36

0.03

0

0

0.01

RoadMap 2025
Ingredient deep diveFeed with
non-CIA

0.04

0.20

0.53

0.45

2.21

0.07

8.68*

1.31

Progress through collaboration
Total

0.04

0.21

0.55

0.81

2.24

0.07

8.68

1.32

Transparency & Trust*The main reason for the high usage of antibiotics in Chile is to address Salmonid rickettsial
septicaemia (SRS) challenges, as traditional vaccines and therapies have proved inefficient indealing with this particular bacterial disease. The latest figures provided by the Chilean authority(Sernapesca) before the publication of the report, revealed that SRS was responsible for 95% of
the antimicrobials used in sea water during the first half of 2022. The main reason for the usage inNorth America is to treat critically endangered strains of Pacific salmon which became infected withbacterial kidney disease (BKD). Apart from antibiotics, no other solutions have succeed.

About SkrettingHomeRoadMap 2025 - Health & Welfare

Armor - tailored for skin health
Skretting Norway has reported results of its
functional feed, Armor, together with our customer
Nordlaks in the north of Norway. Fish fed Armor
showed significantly less damage to skin and 50%
lower mortality.
Over several winter seasons in Norway, farmers
have experienced significant challenges withwounds and reduced skin health. Skretting Norway
worked to address these challenges based on
new and established knowledge of skin and feed
ingredients.
“Nordlaks, like most other players in the industry,
experiences that classic and atypical winter sores
that are important causes of reduced welfare andmortality in salmon in the sea phase. We therefore
wanted to try Armor. This gave good results,”
said Camilla Robertsen, Fish Health Biologist at
Nordlaks.

Bafador - old technology in amodern industry
Bacteria that may cause issues during stressful
situations are naturally present in fish and shrimp
farm environments. Stressors can include a change
in temperature, season and handling. These events
can allow for opportunistic bacteria to develop andcause issues.
In 2022 Skretting and Proteon worked to develop
a new feed additive in India. The feed additive
contains naturally occurring organisms - calledphages, to target specific bacteria.
Used ahead of challenges, the product can support
fish to cope with challenges from aeromonas andpseudomonas. When natural health solutions canbe applied it reduces dependence on antibiotics
and ensures that they will function as desired
against future challenges.

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RoadMap 2025 - Health & Welfare

Cermaq and Skretting work to reduce Chile’s antibiotic use
Chile is the second-largest producer of farmed
salmon in the world, and the sector has historicallyused relatively high amounts of antimicrobials
during the marine stage of production, mainly
florfenicol (FFC), to control SRS.
Through a new collaborative project, Skretting has
been working with Cermaq to establish viable ways
in which Chilean salmon farming can reduce its
antibiotic use. Together, the industry partnershipis looking at ways to optimise the FFC treatment
regime against SRS in terms of the medicine
dose and duration of treatments. The aim of theseendeavours is to avoid the use of high doses of FFC
when it’s not necessary.
This project is seeking to capitalise on bothcompanies’ knowledge on FFC pharmacology andtheir unique SRS field experience.

The hope is that together – and with theintroduction of other management best-practices –this will become part of Cermaq’s holistic strategy
to manage SRS.

Berta Contreras
Technical Manager, Cermaq Chile

The project is currently evaluating test feed
treatments in Atlantic salmon, including different
FFC doses and special medicine carrier feeds.
Furthermore, discussions have begun about thepossibility of using this close working collaboration
to tackle other disease challenges, including
tenacibaculum.
“Antibiotic reduction is a key element in our fish
health strategy in Cermaq Chile to secure thesustainability of Chilean salmon industry,” said
Berta Contreras, Technical Manager at Cermaq
Chile. “We really appreciate initiatives from our feed
suppliers supporting this goal.”

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Skretting Sustainability Report 2022

RoadMap 2025 - Health & Welfare

Meeting the precise phosphorous requirements of farmed shrimp

Phytase improves the uptake ofphosphorus and zinc in salmon

Phosphorus is one of the most important minerals
in food crop production, as a core component of
fertilisers and also in animal nutrition. All vertebrates
have a basic requirement for it – for the formationof bones and teeth, and to make protein for thegrowth, maintenance and repair of cells. Therefore,
for farmed fish and shrimp, inorganic phosphorus
must be supplied in sufficient quantities to meettheir growth and health requirements.

Salmon need phosphorus to grow, and Skretting has not only
optimised the phosphorus requirements for shrimp, but also
revealed a new way to maximise the available phosphorus
from other sources in salmon feed, and thereby increase
efficiency.

At the same time, it is important that these
phosphorous requirements are not exceeded tominimise the risk of excess phosphorus causing
damage to environments and ecosystems. In
aquaculture, for example, the oversupply ofphosphorus can lead to eutrophication of water andharmful algal blooms, particularly in shrimp ponds
where the water exchange is limited.
Furthermore, with an estimated 90% of inorganic
phosphorous being used in the global food chain to
fertilise crops, the amount available for other uses,
such as aquaculture, is limited.

Thus, to sustainably produce enough nutritious
food to feed the planet, this valuable resource must
be used as efficiently and responsibly as possible.
To ensure the shrimp farming and shrimp feed
sectors contribute to this aim, Skretting has
conducted R&D work to precisely determine shrimp
species’ phosphorus requirements at different
life stages – to safeguard fast growth rates andmaintain health, and also how to best use the raw
materials available to meet those requirements.
Through this programme, which was conducted
over four years and involved many documented
trials, Skretting determined that it could uphold theindustry-leading performance of its extruded shrimp
feeds while using 37% less inorganic phosphorus.
Consequently, it is also able to reduce theenvironmental phosphorus inputs of its customers’
farms.

Phytase is an enzyme that can unlock phosphorus bound up
in phytic acid, which is indigestible to animals with a singlecompartmented stomach. If added to feed, a significant
portion of plant-bound phosphorus becomes available.
“By adding phytase to feed, we are mimicking what bacteria
does in the rumen of cows,” says Marcus Søyland, ProductManager for closed aquaculture systems in Skretting Norway.
“When salmon can obtain more of the phosphorus they needfrom plant materials, we can reduce the amount of added
phosphorus and ease the demand for this already limited
resource.”
Less added phosphorus in the feed also means a reduced
release of phosphorus to the environment. As an extra bonus,
zinc also becomes more available for absorption when phyticacid is broken down. Zinc plays a crucial role in woundhealing, and skin health is an increasing challenge. Phytase
is already in use in feed for freshwater trout, and will now beapplied in feed for salmon, both in freshwater and seawater.

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Skretting AI Guayas Research Station - taking shrimp farmers to the forefront of sustainable food production
In 2022, aiming to fast-track the shrimp farming industry’s introductionof more sustainable and innovative feeds, Skretting Aquaculture
Innovation (AI) opened its Guayas Research Station in Guayaquil,
Ecuador.
The new EUR 6.1 million facility – a world-class R&D station that isfully dedicated to shrimp farming – establishes the ideal platform
for Skretting to further expand its knowledge of shrimp nutrition andhealth, and to apply this intelligence on-the-ground in one of the global
seafood economy’s most important shrimp producing regions.
Incorporating the latest technologies, the station comprises fullyequipped laboratories and state-of-the-art experimental units thatwill perform critical trials on whiteleg shrimp (Litopenaeus vannamei).
Additionally, it houses a number of tanks that will allow multiple studies
to be conducted in conditions that mimic commercial production
environments.
Skretting AI Guayas Research Station will study all stages of shrimp
production – from larvae through to harvest size animals. Simulations
and evaluations will include health and welfare parameters, as well as
growth and feed efficiency. Another key focus area is the digestibilityof new and existing feed ingredients and balanced diets. For thispurpose, sophisticated biotechnologies will be implemented and further
developed.

The new station’s team will have the on-hand support of Skretting’s
global network of scientific experts and its overarching global research
units. Together, they will help Skretting Al Guayas Research Station
better understand how shrimp can be helped to grow faster and larger
and be more resilient to disease and environmental challenges sothat innovations can be developed that turn these crucial findings into
practical industry solutions.
Opening the new facility, Skretting’s Innovation Director, Alex Obach,said, “I am delighted that Skretting Al Guayas Research Station
is now open for business. This world-class facility underlines ourcommitment to Ecuador and the wider global shrimp market. Not only
will it allow us to work much closer with the local producers, but by
establishing a pipeline for the delivery of new solutions that improve
farming performance and efficiency, it will ensure that shrimp producers
everywhere can increasingly contribute to global food and nutritional
security.”

Introductions

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Skretting Sustainability Report 2022

RoadMap 2025
Climate & Circularity

This pillar of RoadMap 2025 is primarily focused on
reducing our greenhouse gas (GHG) emissions. To do this,
we utilise science-based targets to set our ambitions for
reducing emissions through energy efficiency programs
and sustainable ingredient sourcing, incorporating lifecycle assessment methodologies as well as utilising new
ingredients.
We also address the responsible use of natural resources,
biodiversity and ecosystems in compound feed ingredients.
In this section, we will discuss the dilemmas, theopportunities and the partnerships we have in place to ensure
we can reach our ambitious targets.

Our targets

Our progress

Committed through Science-Based Targets
initiative (SBTi) to a reduction of 30% of
scope 1 and 2 emissions compared with2018 baseline

23% increase

Committed through Science-Based Targets
initiative (SBTi) to a reduction of 39% of
scope 3 emissions compared with 2018baseline

Increase renewable energy use in ouroperations

Introductions(explanation and disclosurein following pages)

16% increase(explanation and disclosure infollowing pages)

54.7% of electricity isrenewable, increasing from
more than 40% in 2021

As early adpoters of
Science Based Targets,in 2020 we committed toreduce our emissions
on scopes 1, 2 and 3.

RoadMap 2025
Ingredient deep dive
Progress through collaboration
Transparency & Trust

Read more in our previous
sustainability reports here

About Skretting
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21

Skretting Sustainability Report 2022

RoadMap 2025 - Climate & Circularity

Skretting’s total carbon footprint

Looking at our total carbon footprint first, we see thatthe absolute carbon footprint over all three scopes
has increased over the past years. However, thespecific carbon footprint per tonne of feed produced
has decreased by approximately 5%. This means that
efficiency has increased while, mainly due to increasein production, these gains are being outcompeted bybusiness growth in absolute terms. This is a dilemma,
because a reduction to our product footprint numbers
needs to be achieved but in addition, a decoupling ofgrowth from impact needs to be realised to bring theabsolute footprint down.
When we examine our business units with highest
production and as highest contributors to our carbon
footprint, we see different developments. In oursalmon business, both the absolute (ktonne CO2e)
and relative carbon footprints (tonne CO2e/tonne feed
produced) have reduced significantly over all three
scopes between 2018 and 2022. This is a very positive
direction that we need to continue in the years tocome. While part of this reduction is due to a slight
reduction in volumes, it shows a significant reduction
effect, for example caused by different raw material
sourcing (scope 3) and increased energy efficiency(scope 1 and 2).

22

Skretting Sustainability Report 2022

In Latin America, the numbers look different. Due tosignificant business growth in Ecuador, the feed volumes
grew, driving the increase to our carbon footprint numbers.
The increase is mainly caused by this volume growth, given
the specific carbon footprint per tonne of feed produced
increased by only 4% over the same time period. This
growth also causes the overall increase of the absolutecarbon footprint for Skretting as a whole.
Despite the numbers heading in the wrong direction
compared to the baseline year 2018, we see that evenwith significant growth between 2021 and 2022, the scope
3 carbon footprint stagnated or even slightly decreased
over this past year for our business in Latin America. Thisshows that footprint reductions can be achieved despite
increasing the production volumes.
We need to actively address the dilemma outlined andfind solutions to decouple growth and impact. Analysing
and learning from the improvements made in the salmon
business, for example, and creating synergies within theother business units will help us doing this. We believethat improving the data, analysing it, and drawing the rightconclusions based on it are crucial to reducing Skretting’s
overall carbon footprint.
At the same time, awareness must continue to be raised
within the company and across all business functions,which will be a clear focus in 2023. The data andtransparency improvements already made in 2022 will
support us on this journey.

BU salmon

BU LatAm

Footprint per
tonne of feed
produced

Footprint per
tonne of feed
produced

Footprint per
tonne of feed
produced

-5%

-7%

+4%

2018-2022

2018-2022

2018-2022

2.2

Global average
BU salmon

2.6

2.47

BU Latin America

2.4

tonnes CO2e/tonnes feed produced

The following figures present, for the first time, thecarbon footprint numbers for our scope 1 & 2 and 3
emissions from 2018 to 2022. The figures also show
the carbon footprint numbers for our two largest
business units (BUs) - salmon and Latin America.

Global average

2.2

2.18

2.17
2.11

2.1

2.08

2.03

2.02

2.03

Introductions

2.05

2.0

2.01
1.9

1.97

1.92

1.9

RoadMap 2025

1.92

Ingredient deep dive
1.8

Progress through collaboration

1.78
1.7

Transparency & Trust

1.6

2018

2019

2020

2021

Skretting’s global carbon footprint relative to feed produced from 2018 to 2022

2022

About SkrettingHomeRoadMap 2025 - Climate & Circularity
Skretting’s absolute carbon footprint

Global absolute carbon footprint(ktonne CO2e)

BU salmon absolute carbon
footprint (ktonne CO2e)

BU LatAm absolute carbon
footprint (ktonne CO2e)

Scope 1 & 2

Scope 3

Scope 1 & 2+23% +16%

-26%

-9%

+305% +190%

2018-2022

2018-2022

2018-2022

Scope 1 & 2

Scope 32018-2022

Scope 1&2 (manufacturing process)Scope 32018-2022

2018-2022

Scope 3 (raw materials)
Scope 1&2 (manufacturing process)

2022

4 801

209

5 009

2022

2 328

63
85

2 391

1 626

Scope 3 (raw materials)

BU salmon

1 711
Scope 1&2 (manufacturing process)

BU LatAm

Scope 3 (raw materials)

2021

2020

4 946

186

5 132

4 311

173

4 484

2021

51

2020

67

2 342

72

51

2 393
1 735

1 663

2 523

2 590

928

877

Introductions

RoadMap 2025
2019

4 341

181

2019

4 522

33

2018

4 152

170

2018

4 322

1000

2000

3000

4000

Skretting’s total absolute carbon footprint at factory gate including scope 1, 2 and 3 from 2018 to 2022 (ktonne CO2e)

5000

0

2 641

770

737

Ingredient deep dive
2 641

2 556

85
21

0

2 560

81

560
500

Progress through collaboration

581
1000

1500

2000

2500

Skretting’s BU salmon and BU Latin America absolute carbon footprint atfactory gate including scope 1, 2 and 3 from 2018 to 2022 (ktonne CO2e)

Transparency & Trust
About Skretting
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23

Skretting Sustainability Report 2022

RoadMap 2025 - Climate & Circularity

209

Scope 1 & 2 - Improving our own operations
Despite numerous hurdles over the past year, Skretting managed tokeep a focus on energy efficiency activities and CO2e reduction. Since
2018 our mature OpCos, like BU Salmon (Australia, Canada, Chile andNorway) and BU Southern Europe (France, Italy, Spain and Turkey),
made significant reduction in CO2 emissions and energy (both specificand absolute terms).
These OpCos are operating in consolidated markets and have a historyof continuous improvement with a focus on efficiency. They are setting
the path for our other OpCos to follow.
As shown, scope 1 and 2 emissions increased in 2022 when compared
to 2021. The scope 1 increase is directly correlated with the increasein shrimp feed volume. The specifics of shrimp feed production makeit more energy demanding than the fish feed production process. On
the other hand, Scope 2 footprint is not highly affected because we areusing electricity from renewable sources in our factories in Ecuador.
Increase in scope 2 emissions is related to change in the electricity
emission factor in Skretting Norway, from location based to market
based (from 0.016 kg CO2e /kWh to 0.402 kg CO2e/kWh). Skretting
Norway consumes 20% of the total electricity in Skretting. Therefore,
the effect of the conversion factor change had a significant impact on
the overall Skretting scope 2 result. Our Norwegian factories are theleaders of energy efficiency in Skretting, and the local team has alreadybegun exploring options to decarbonise the electricity utilised in our
Norwegian factories. Currently, our factory in Stokmarknes is the mostenergy efficient fish feed plant in Skretting. Read more in the Nutreco
sustainability report.

186

Skretting will keep growing in the future. At the same time, we arecommitted to reducing our emissions in line with the Science Based
Targets Initiative. We are aware that there is no simple and single solution
for this problem, so we have started several initiatives across thecompany to tackle Scope 1 and 2 emissions.
Our approach for Scope 1 reduction includes upgrading our boilers tooperate with the less polluting fuel sources, optimisation of dryers andreducing steam usage. For Scope 2 reduction we are developing a costbeneficial plan for de-carbonisation of electricity considering different
alternatives like on-site power purchase agreements (PPAs), off-site PPAs
and buying energy attribute certificates (EACs) where other alternatives
are not feasible.
For us, it is most important that every factory has an energy target,
measurement of energy consumption of the main users, to use data
to better understand energy flows and make decisions about energy
use. Previously we identified gaps in energy monitoring
systems in some of our factories. 2022 was ayear of closing these gaps. We improved
energy monitoring and increased
energy reporting frequency of all
factories. Improvements in energy
management systems and gooddata quality are foundation for
any future progress in energy
efficiency.

148

Scope 1160

Introductions
38

Scope 2

49

RoadMap 2025

2021

2022

Ingredient deep dive

Skretting’s scope 1 and 2 CO2 emissions in ktonnes
Progress through collaboration
Transparency & Trust
About Skretting
Nevena Mišljenović
Global Operations Engineer
Skretting24

Skretting Sustainability Report 2022

Home

Specific energy consumption - kWh / tonne per BU

GHG emissions - kg CO2e / tonne per BU

700

200

*

*

Global average

*

600

*

BU salmon
BU Southern Europe

160

BU Latin America
BU Asia
500

120

400

80

300

40

200

0

2018

2019

2020

2021

2022

BU Africa

2018

Water use - litres / tonne per BU

2019

2020

2021

2022

Waste - kg / tonne per BU

1200

16

Introductions

RoadMap 2025

1000
12

Ingredient deep dive800
8Progress through collaboration

600

Transparency & Trust

4

400

About Skretting
200

0

2018
25

Skretting Sustainability Report 2022

2019

2020

2021

* BU Africa missing due to reporting errors

2022

2018

2019

2020

2021

2022

Home

RoadMap 2025 - Climate & Circularity

Scope 3 emissions on a global and regional level

Vegetable

1%
1%
1%
1%
9%

Land animal

In 2022, our scope 3 carbon footprint wasapproximately 4 810 ktonnes of CO2e. This isapproximately 1.3 times the greenhouse gas
emissions of a city like Amsterdam.
Looking at the scope 3 split by region and business
unit we see that the highest contributors to ourscope 3 are our salmon business (approximately44%) and our business in Latin America(approximately 35%). This correlates with thevolumes of feed produced in these regions andbusiness lines, but is also influenced by different
diets and ingredient sourcing.
Compared to our baseline in 2018, our scope 3
footprint increased by approximately 16%. This isdue to our strong growth in Latin America, whichcounteracts the reduction success achieved forexample in BU salmon, where scope 3 emissions
were reduced by approximately 9% within the sametime period.
This is a dilemma that we are facing today as
business growth almost always increases the scope
3 carbon footprint, so that reduction efforts need tobe even stronger in order to achieve any reduction
success at the company level in absolute terms.
Looking at our scope 3 footprint from an ingredientperspective, we see that most of it (approximately
three quarters) is linked to vegetable ingredients.

26

Skretting Sustainability Report 2022

This is mainly due to land management practices
for growing the crops on the fields but also due toland use change that happened up to 20 years ago.
Nevertheless, other factors play a role too, forexample energy use for processing the crops
into feed ingredients (for example soybeans into
soybean meal and oil). Ingredients are unique, anddepending on which raw material we are looking
at, the carbon footprint drivers behind can be quite
different.
Land animal proteins (such as animal meal) andmarine ingredients (such as fish meal or fish oil)each contribute approximately 9% to our scope 3
footprint. Microingredients play only a minor role,
mainly due to low volumes used in feed.
When we dive deeper into our ingredient footprint,
we see that soy-based ingredients make the highest
footprint share, followed by rapeseed oil andwheat-based ingredients. The top 10 ingredients
comprise almost two thirds of Skretting’s scope
3 footprint. This is where we will focus in order tomake progress in our scope 3 reduction.

MarineMinerals and trace elements

9%

Skretting’s 2022
scope 3 carbon
footprint per
ingredient
category

Amino acids
Novel ingredients
Other
Feed additives
Vitamins and pigments
Functional ingredients
Premix77%

Skretting’s 2022 scope 3 carbon footprint per
ingredient category

8%

Introductions

4%

RoadMap 2025
9%
SalmonSkretting’s 2022
scope 3 carbon
footprint per
Business Unit

Latin America
Asia

Ingredient deep dive44%
Progress through collaboration

Southern Europe
Africa35%

Transparency & Trust
About Skretting

Skretting’s 2022 scope 3 carbon footprint perbusiness unit

HomeRoadMap 2025 - Climate & Circularity
Finalisation ofscope 3 carbon
footprint dashboard,giving more insights

Focusing our efforts on our supply chain
In 2021, Nutreco defined its internal footprint database, which maps all
our purchased ingredients with quality assured LCA metrics, alignedwith leading LCA standards. The database covers seven different
environmental impact categories that are the most relevant for feed
products, including the carbon footprint, but also other metrics likewater footprint or land use indicators.
In 2022 the focus was on connecting this database to different internal
data systems. This is important, because integrations enable us toautomate calculations and report the footprint of our products andcompany. In addition, we can then share this information between
business functions and OpCos where the reduction efforts ultimately
need to take place.
A significant milestone reached in 2022 was the finalisation of ourscope 3 carbon footprint dashboard. This enables us to calculate
and track our footprint, while also providing valuable insights into theregions in which we are operating, and which of our local operations,ingredients, and suppliers contribute the most to our corporate carbon
footprint.
A second milestone was to better integrate these footprint metrics into
our feed formulation software. We completed this in 2022, which gives
us a powerful tool to ecodesign our products in future by considering
footprint metrics next to price and nutritional quality in productformulation.

In addition, we have put further focus on gathering supplier LCA dataand streamlined this data collection approach based on our scope 3
dashboard insights. In 2022, we requested LCA data from 32 global
suppliers via a dedicated LCA data collection and quality assessment
template.
When it comes to carbon footprint reporting, in 2022 we have further
improved our reporting templates. These are actively used to reportcarbon footprint values of our products, both on demand and on aregular basis. The reporting templates have been well received byour customers as they give transparent insights into the main
drivers behind the footprint, not only per product, but also
per life cycle stage or raw material contributions. In addition,
the calculation methodology and used data sources are
documented.

Integrated internal

share and supplierfootprint database

contribution

This integrated solution also helps us to calculate product footprints ina more automated way, and to understand how different formulation
choices will impact our footprint on product level. The integration is
now available for all our OpCos and already actively used in our key
markets in Europe, North and South America and Australia.
We have also developed an internal tool with which we can calculate
the full cradle-to-gate footprints of our products by simply selecting
the product packaging, location of the plant and outbound transport
information and adding it to the raw material footprint of a specificformulation.

per BU, OpCo, LUC

Integrated LCA metrics
related to raw materials
into feed formulation
softwareDeveloped internal tool

Significant climate &to calculate full cradle-to-

circularity milestones

gate footprint per productin 2022Developed dedicated LCA
data collection template andrequested LCA data from 32
global suppliers

Progress through collaboration

reporting templates

27

Skretting Sustainability Report 2022

RoadMap 2025
Ingredient deep dive

Improved customer
Marcel Görmer
Technical Lead Sustainability Metrics
NutrecoIntroductions

Transparency & Trust
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The carbon footprint of our products
The carbon footprint of our feed can differ significantly dependingon the species, but also on the regions and markets where feed is
produced and sold.
The difference based on species can be due to the different nutritional
requirements within their specific environments, which has asubsequent influence on the type of ingredients that are required in
the feed. In addition to nutrition, we have to consider the biophysicalcharacteristics of the feed itself, in order to reduce feed loss andoptimise feed uptake, for example.
Moreover, purchasing and regulatory conditions can be quite different in
the different regions and countries of the world, which impacts the feed
composition, raw material availability and origins, and subsequently thefeed footprint.
To provide further insights into these differences and the main causes,
the carbon footprint for a range of Skretting feeds is shown on thispage. Further on, we take a closer look at the drivers of the differences
in carbon footprint per region (for example a salmon feed produced in
Canada, Chile and Norway) and also a comparison between species(salmon feed, shrimp feed, trout feed).

1.6

Canada

1.8

2.2

Italy

Norway2.4

Chile

Introductions

1.2
Ecuador

RoadMap 2025
Ingredient deep dive

2.9

Vietnam

Progress through collaboration
Transparency & TrustThe carbon footprint of specific Skretting feed products produced for (L-R) salmon,
shrimp and trout in different countries (kg CO2e / kg feed)

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Skretting Sustainability Report 2022

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The impact of location on the carbon footprint
Salmon diets
When we examine one specific global salmon dietproduced in different countries (Canada, Chile,
Norway) as a reference, the carbon footprint from
cradle-to-gate [including ingredient production(including land use change), transportation to
feed facility, feed manufacturing, packaging
and packaging end-of-life] fluctuates between
approximately 1.6 kg CO2e/kg feed (Canada) andapproximately 2.4 kg CO2e/kg feed (Chile). This ismainly due to different raw material sourcing, but also
because of different ingredients used in the diets. In
Canada, the protein source is to a significant extent
derived from animal by-products, that come with acomparatively low specific raw material footprint.
Further, the vegetable-based proteins and the oilbased ingredients are predominantly locally sourced.
This also results in the fact that the land use changeshare in the Canadian diet is lowest (approximately
16% of the overall footprint) compared to the othertwo salmon diets.
In Chile, significant amounts of animal by-products
are used in the salmon diet. However, largely due
to vegetable oil and vegetable protein sourced fromSouth America, with a potential high land use change
footprint linked to them, the overall feed footprint ishigher than the Canadian or Norwegian value. The
land use change share contributes to almost half ofthe overall diet’s carbon footprint in this case.

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Skretting Sustainability Report 2022

Shrimp diets
In Norway, no animal by-products are used in thediet, primarily due to market acceptance, which
results in a generally higher footprint compared to
the Canadian diet. Some of the vegetable ingredientsthat are used instead are also carrying some land usechange share that contributes to the overall carbon
footprint. However, despite using more vegetable
ingredients, due to sourcing them from specificsuppliers with a lower land use change footprint
linked to their products, or from Europe, the land usechange footprint is lower than, for example, in the
Chilean diet, and this results in a lower overall carbon
footprint.
Looking at the footprint related to inbound logistics,
despite the difference not being so large, we canidentify a lower footprint for the Canadian diet. Thisis due to that in Canada, ingredients with highest
inclusion are sourced locally.

Looking at the examples for shrimp diets, thedifferences in the carbon footprint between thegrower diet produced in Ecuador and the dietproduced in Vietnam are larger than the ones
between the salmon diets. The vegetable protein
component and the manufacturing is significantly
higher for the diet produced in Vietnam. The key
influencing parameter in this case is a high inclusionof soy-based ingredients from South America, whichcomes with a high land use change related carbon
footprint that contributes a significant component of
the footprint.
Vegetable-based ingredients also contributethe biggest share in the carbon footprint of theEcuadorian diet, but due to sourcing from otherregions, the land use change share is much lower
which results in a much lower carbon footprint of theoverall diet. The differences in the footprint related tofeed manufacturing are largely due to more energy
efficient processes in the Ecuadorian facilities,
resulting in a lower specific energy consumption(lower kWh/tonne feed produced) but also due todifferences in the energy sources, as the share of
renewable energy sources in Ecuador is significantly
higher than in Vietnam.

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Footprint drivers between different species

Packaging

Footprint drivers between the species are primarily due to different feed
compositions and the origin of ingredients.

Operations

For example, there is a relatively high inclusion of animal by-productsin the trout diet that contribute to the carbon footprint. In addition,
more poultry-derived animal protein is used, which comes with ahigher specific carbon footprint compared to other animal by-products.
Minimal vegetable protein ingredients are used in the trout diet andthus this ingredient group contributes the least to the carbon footprintcompared to the salmon or shrimp diets.

Vegetables, by-product

The shrimp and trout diets also contain more carbohydrates,
which explains a slightly higher carbon footprint due to this type ofingredients, despite carbohydrates generally contributing a lower
specific footprint compared to for example most vegetable proteins oroils.

Fish oil

Vegetable oils play a similar significant role in salmon diets as in thetrout diet, both in terms of volume but also carbon footprint. Despite
similar inclusion of vegetable oil used for example in the Canadiansalmon diet and in the Italian trout diet, the oil in Italy is sourced fromthe European market while in Canada most is sourced locally and linked
to a lower carbon footprint (in total, but also land use change related).
For the Italian diet, the carbon footprint linked to ingredient transport tothe plant is lowest across all diets presented, as most ingredients are
sourced within Europe.

Ingredient transport to Skretting

Vegetable proteins
Vegetable oils
Other
Novel ingredients
Microingredients

Fish meal
Distiller’s dried grains with solubles
Carbohydrates
Animal protein
Animal oil

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SalmonCanadaSalmonChile

SalmonNorwayShrimpEcuador

ShrimpVietnam

Trout
Italy

Skretting’s carbon footprint: percentage contribution per sample diet.
Each bar represents the entire footprint per diet.

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Tools implemented

Work in progress

Incorporating the LCA methodology into our business is a long-term
process rather than a one-time task that we can simply tick off. For
long term success, integrating a new mindset around life cycle thinking
and management demands a stepwise approach and needs to involve
almost all functions of the business. Data improvements over time will
help to make calculations and decisions more robust and meaningful.
Looking at the LCA maturity curve, we have left the orientation phase.
With the tools in place, we know about the general footprint drivers
of Skretting, our main products and feed ingredients. Furthermore, byconnecting LCA data to internal data systems, we are already able toincrease the automation in calculating carbon footprint data for different
products.
Despite this progress, we are still far from being at the top of thecurve. The current focus lies on further optimisation/ automation andcertification of processes to more efficiently calculate the footprint ofour products in order to meet the increasing customer/stakeholder
requests. At the same time, the collection of primary data has begun
with a structured approach to reduce data uncertainties and to makebetter sourcing decisions. The external verification of our calculation
setup has also been initiated, and we plan to get this process finishedin 2023.

Business value

The LCA learning curve
Value chain optimisation
Long-term company successSustainable product portfolio
management

Product communication and verification

Process and resource efficiency
Continuous operational optimisation
Eco-design and sustainable product innovation

Rapid prototyping (generic LCA)

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Overview / orientation

Material comparison

Ingredient deep dive

Screening

Progress through collaboration

Maturity of LCA usage

Adapted from Baitz (2015): From Projects to Processes to
Implement Life Cycle Management in Business

The LCA maturity curve

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LCA Challenges
We are facing five core challenges when it comes to LCA - here is what they are and how we are going to address them.

1

2

3

4

5

LCA is still relatively new in the broad businessenvironment, and standardisation is an ongoingprocess.

LCA is a data-intensive process, and the results
can only be as good as the quality of data thatis going into it.

Robust and comparable data is urgently
needed in order to make reliable decisions. Thisis true for all stakeholders of the value chain.

Having good supply chain transparency is key
to reduce the uncertainty behind LCA results.
For vegetable ingredients in particular, it is notenough to know where our tier 1 suppliers are
sitting. We need to trace back to the placesof crop production, where a big share of the
footprint is created.

An important aspect that is often not welladdressed when footprint metrics arecalculated and communicated, is data
quality. Our current scope 3 baseline and theingredient-related footprint of our products,
is mainly based on averages or secondary
data. While this is aligned with LCA standards
and we take out information only from quality
assured LCA databases, averaged data comeswith uncertainties.

Following the life cycle mindset, knowing
the footprint of our products is great, but
not enough. There is a risk of shifting
environmental burdens downstream, forexample if we optimise the footprint of ourfeed it may become less digestible. In somecases, increasing the footprint of feed might beeven beneficial when this leads to a footprint
reduction downstream.

The current market is challenging as pricesof raw materials are fluctuating. This not
only has direct influence on purchasing
but also on the sustainability choices, andultimately on the cost of the feed.

Comparing apples to apples

To deliver reliable numbers to our customers
we are following the leading LCA standards, inparticular the Product Environmental Footprint
standard (PEF), specifically the PEF Category
Rules for Feed (PEFCR Feed), based on ISO
14040/44 standards.
We plan to get our LCA approach 3rd party
verified in 2023.

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Skretting Sustainability Report 2022

Knowing ingredient origins

We have this information available for the
majority of our soy and palm oil ingredients,
and want to extend this to other vegetable
ingredients (for example wheat, rapeseed,barley) in 2023. At the same time we areplanning to integrate this information into ourcentral data systems in order to use it for more
automated and accurate footprint calculations.

Obtaining more primary data

To generate more accurate calculations andto differentiate better performing suppliers,
we need more primary data. We havealready begun to request primary data fromkey suppliers in 2022 but will increase thiscollection effort significantly in 2023. To create
a level playing field and collect data that iscomparable, we have developed a specific datacollection template including a data quality
questionnaire. We also have an internal data
quality check procedure to guarantee alignmentof supplier LCA data with the leading LCA
standards before we take any primary data
into our footprint database. We also want tointroduce a data quality KPI into our systems
that shall allow us to track, validate andconsistently reduce data uncertainty.

Considering all impacts and thefull life cycle

To quantify and capture this, we need to set
up models that enable us to calculate theenvironmental impacts from feed digestion andend-of-life on-farm. In 2023 we are planning tobuild such a model and connect it to our feedfootprint calculation system.

Dealing with highly volatile raw
material prices

Sustainable procurement often needs
longer term commitments which can bechallenging in such a volatile market. We
believe that incorporating external costs byenvironmental damage can be a lever andprovide a fairer level playing field between
low footprint ingredients compared to somehigh footprint (but low cost) conventional
alternatives.
In 2023, we are looking into introducing acarbon price for raising this awareness andalso consider it in business cases together
with customers and suppliers.

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Skretting Italy – a sustainability frontrunner-12.1%-18.8%-3.1%

Introductions

RoadMap 2025

Waste

The most important was to ensure that thesource of the PI material is traceable and notcontaminated. Skretting Italy ensured compliancewith the regulations and carried out a risk
assessment that has been approved by theveterinary control authorities. We are proud to sharethat around 50% of a bag is made from recycled
PE without increasing the thickness of the bag.
Skretting Italy also uses buckets made from 75%
polypropylene post consumption recycled content.

Members of the team from Skretting
Italy. Left to right: Giorgio Ronca, Geremia
Schiavino, Luca Battistoli, Severino Bauce

2.5%

Water

Skretting Italy observed a 2.5% increase in waste
per tonne. At the same time, the team introduced
post-industrial (PI) recycled material in theirpolyethylene (PE) bags. The bags are made fromthree layers of PE with the recycled content in the
middle between the two layers of virgin PE. This
was a challenging project because many aspects
had to be considered to guarantee feed safety.

“With around 105 tonnes of bags and over 3 000
buckets purchased in 2022, Skretting Italy recycled
over 50 tonnes of plastic,” says Adamo Caldori,
Purchasing Responsible at Skretting Italy. “We
are fully committed to the Nutreco Sustainability
RoadMap 2025, and improving the circularity ofplastic material is an important step in this journey.”

CO2“Maintaining a focus on energy efficiency is the way
we work, and not an isolated event,” says Giorgio
Ronca, Industrial Manager. “One of the important
activities last year was an upgrade of our energy
management system. Now we have enough data
resolution to identify even a small improvement
opportunity in our plant and make decisions about
energy projects based on a detailed analysis ofenergy data. In addition, there are two other ‘magic
words’ that have allowed us to obtain these results,
involvement and synergy.

Involvement of all production operators, andsynergy with the other departments that are partof the value chain. This will be fundamental for
future continuous improvement of our energy
performance.”

EnergyOver the years Skretting Italy has been recognised
as a sustainability frontrunner in Skretting. Last
year was particularly successful for the teamin Mozzecane regarding their KPIs. The team
implemented many improvement projects in theplant that resulted in reduction of energy, CO2e,
and water per tonne of feed. A continuous focus
on dryer optimisation, regular housekeeping andsuccessful implementation of our operational
excellence project were key components ofthe success. In addition, CO2e reduction wasenhanced by on-site solar electricity generation andreplacement of a small service diesel boiler with anelectric boiler.

Specific energy, CO2e, water and waste per tonne of feed at
Skretting Italy in 2022 compared to 2021

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RoadMap 2025 - Climate & Circularity
Skretting Norway’s CO2 emission
reduction compared to 2018 baseline

Skretting Norway named PwC’s 2022 Climate Winner
Every year, PwC in Norway prepares a climate
index, which is an overview of the climate activities
and reporting of the largest companies in Norway.
Of the 100 largest companies, only 11 companies
ended up in category 1 — and Skretting Norway is
one of them.
To be awarded the top position, companies mustshow that they are cutting their emissions in linewith the requirements of the Paris Agreement, in
addition to excellent and publicly available climate
reporting.
“Skretting has made it easy to understand theclimate impact the company has had throughout
its value chain over the past three years, while atthe same time they can show impressive results by
cutting their emissions in line with the requirementsof the Paris Agreement” says John Wikström, headof strategy and sustainability at PwC Bergen.
Skretting has a long tradition in sustainability
reporting, particularly in Norway, and Skretting
Norway has set clear and long-term goals for
reducing greenhouse gas emissions.

“We have built a lot of expertise in sustainability
in recent years. It’s nice to get recognition for thework we’ve done. PwC’s climate index showsthat Skretting Norway reports climate impact in a
way that people can understand. We believe that
it is about measuring and working purposefully
to reduce greenhouse gas emissions from our
production and within our supply chain. In
addition, we must be open about the work we
do — including the difficult parts,” says Skretting
Norway’s sustainability and public relations
manager Leif Kjetil Skjæveland.
2018 is the baseline year for Nutreco’s commitment
to the Science Based Target Initiative. For 2021,
the year that PwC evaluated, Skretting Norway’s
fish feed had a reduction of 27% from 2018 in CO2emissions per kg of feed. For 2022 the reduction is
46% compared to our baseline year 2018.
“Fortunately, we see that we can do a lot when we
work together with others instead of going alone.
So we are looking forward to PwC’s coming climate
index for this year too”, says Skjæveland.

2021

27%

2022

46%

In PwC’s Climate Index, the companies
in category 1 are distinguished by thefollowing:•

Open and good reporting of thecompany’s greenhouse gas emissions atleast three years back in time•

Clear specification of which sources ofemissions are included in the calculations•

Climate accounting that includes all
significant emissions in scope 1, 2 and 3•

Reporting showing cuts in carbon
intensity and/or absolute emissions•

Average emissions cuts over the past
three years, which are in line with therequirements and expectations of theParis Agreement•

Emission cuts appear to be permanentand not temporary

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Click here to read more about the
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ACT! Actions to help improve the world
What do a Swedish environmental activist, a 70s rock star and a new
Norwegian law have in common? The answer is the word ACT! and it
has become Skretting Norway’s practical way of kicking off their new
sustainability actions.
Greta Thunberg has asked us to stop the “blah, blah, blah” and instead
act as if the house is on fire. Sir Bob Geldof said that “if you act insteadof just thinking about doing something, then it will happen”. And finally,
The Norwegian Transparency Act of 2022 says that all large Norwegiancompanies should carry out human rights due diligence in its own
business and value chain.
That is why Skretting Norway has chosen to call their sustainability
work ACT! There are currently 12 actions customers can select to startworking on — together with Skretting. In short it has actions to reduce
the green house gas emissions in the supply chain and to select raw
materials that are more footprint friendly, plus ways to move more
towards a circular economy. And finally it is about social responsibility
and governance.
“When we started our work to find out concrete actions that we in
Skretting could implement for sustainability a few years ago, we firstthought that we could launch a special green feed to the market. We
have abandoned this mindset, because we believe that sustainability
work requires collaboration, and that different companies willemphasise different focus areas and have different capacity for action.
In addition, it will probably turn out that some of the measures wethink are good today may not be that effective, while there will be otherexcellent initiatives that we have not seen the contours of yet,” says
Leif Kjetil Skjæveland, Sustainability and Public Relations Manager in
Skretting Norway.

It's about beginning

The current 12 actions“Our customers have ambitious sustainability targets, and to help meetthem, we need to get started. We think it's about beginning. It's about
us being able to make a difference together with our suppliers and ourcustomers. And it is about having as concrete activities as possible.
Nature is practical and concrete, and so must our sustainability
work be,” says Mads Martinsen, director sustainability and productdevelopment in Skretting Norway.

The following are the initial suggestions for ESG activities that Skretting
Norway and their customers will carry out together:

A success factor is also the ability to quickly take on new initiatives,
which can inspire ourselves, our customers, and our suppliers to drive
the businesses in a more environmentally-friendly direction and improve
working conditions in our supply chain.

5. Social programs to improve the situation where we source our ingredients

1. Reduce Land Use Change (LUC) for the raw materials we source
2. CO2 reduction by working close with selected suppliers in our value chain
3. Help develop more novel ingredients so we can have a larger and moreversatile ingredient basket
4. Include raw materials with a lower footprint or from a circular economy
6. Lower emissions and less use of phosphorus and zinc by including
phytase in the feed
7. Sludge handling to utilise this valuable resource
8. Health monitoring as a tool to prevent that a fish dies unnecessarily as
nothing is as wasted as a dead fish
9. Sustainability reporting to ensure that our and the customer’s governanceis transparent and to measure that we move in the right direction

Introductions

10. Certificate of origin for renewable electricity
11. Transport with lower CO2 with hydrogen powered trucks for feed transport(land-based)
12. Carbon offsets with local tree planting as an additional solution to lowering
scope 1, 2 and 3

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Leif Kjetil Skjæveland
Sustainability & Public Relations Manager
Skretting Norway

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Skretting Chile enters Clean Production
Agreement with SalmonChile
In Chile, the promotion of cleaner production is promoted andcoordinated by the National Council for Clean Production (NCCP),
an institution under the Ministry of Economy. One of the goals of
NCCP is to contribute to reducing greenhouse gases through its main
management instrument, the Clean Production Agreement (APL).
The purpose of the Clean Production Agreement coordinated by
SalmonChile is to move ahead with real and tangible solutions to
reduce the environmental gaps in salmon farming in Chile, specificallyregarding carbon footprint and the generation of solid waste.
The agreement is in line with RoadMap 2025, as an important part ofthe value chain of the national aquaculture industry, responsible forfeeding a growing population.
Skretting Chile adheres to four of the seven goals set forth in the APL,
with an 87,54% progress in terms of achievable actions as of the dateof this report:••••

Goal 1: Skretting Chile implements a corporate management with a focus onsustainability.
Goal 2: Skretting Chile sets a mitigation goal for its GHG emissions to beachieved at the end of its implementation.
Goal 3: Skretting Chile has a waste implementation system and guidelines foradding circular economy into its operations.
Goal 5: Skretting Chile designs new circular business models as a supplier tothe salmon producing companies.

The APL certification ends in the second half of 2023, and Skretting
Chile has verified and delivered evidence that ensures compliance ofthe goals with committed actions, designating the right employees towork on the concrete development of strategic plans for the future.

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RoadMap 2025
Good CitizenshipThis pillar of RoadMap 2025 is primarily focused on diversity andinclusion. We will address this by ensuring we empower local
communities with best practices and technology to ensure thataquaculture offers a sustainable path to healthy living.
In addition, we address good citizenship internally, ensuring that we
continue to be a diverse and inclusive employer.

Introductions

Our targets

Our progress

Ingredient deep dive
30% women in senior leadership by 2025

22% women in leadership

We aim for our teams to reflect the diverse and global society we live
and work in, and to be the change we want to see. We want everyone
to thrive in an environment where we feel valued and respected, in a
culture that brings out the best in all of us.
To help us succeed in Feeding the Future, we welcome everyone asvalued members of our family, with equal opportunities to be the best
we can. We respect people for who they are and embrace diversity,
listening to and learning from each other’s unique perspectives.

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Implement the Taking the Stage program

Over 200 women leaders took
part in Taking the Stage in
2022 on a Nutreco level

Skretting Sustainability Report 2022

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RoadMap 2025 targets and progress related to Good Citizenship
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RoadMap 2025 - Good Citizenship

Progress towards our goals
During 2022, we continued to focus on our three key D&I areas:•

Balanced gender representation. By 2025, our goal is to have 30%
representation of women in leadership positions. We are currently at
22%, which means we will need to accelerate this progress to reachour ambition. We have specific recruitment targets aimed at improving
female representation and we review them as part of our internal reporting
and audit process. We also put special focus on improving gender
representation in our talent pipeline.

•

Increased nationality representation. We continued to perform
strongly in this area. During 2022, the number of nationalities represented
across our business in Skretting grew to 73.

•

A culture that promotes inclusion. In 2022, our pulse survey included
one D&I question, but not the full set required for an inclusion index.
We also launched a new set of company values to align better with our
Nutreco strategy and our parent company SHV's core values and tosupport our purpose of Feeding the Future. Our new value of “inclusion”
provides a stronger platform to promote inclusive behaviours and culture.
One example of how we visibly promoted inclusion in 2022 was bycreating female dressing rooms in our Operations facilities. This smallchange is foundational for hiring more women in Operations.

Partnership between Skretting Chile and theInspiring Girls Chile Organisation
For the second year running, Skretting Chile has collaborated with
Inspiring Girls to hold talks between women industry leaders andteenage girls from several educational establishments of the Los Lagos
region.
In 2022, women leaders of the aquaculture industry were included,
representing a number of Skretting Chile’s customers. The leaders
provided professional “speed dating” sessions with girls of school age
from educational institutions in the south of Chile - the first partnershipof Inspiring Girls Chile outside the Chilean capital.
The project, which is in line with our pillar of Good Citizenship, aims
to promote professional ambition among the students, reinforce selfconfidence and foster connections with women who are leaders ofdifferent areas, in this case, with salmon farming industry. In addition,
the organisation provides training to the speakers on “impact
communication techniques”, helping in the development of soft skills toachieve effective communication with the students.

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RoadMap 2025 - Good CitizenshipCommitting to remove plastics form the oceans
It is estimated that eight million tonnes of plastic pollution enter the oceans every
year. It is also estimated that marine plastic pollution generates a cost of up to 2.5
trillion dollars each year. With the aim to promote actions to reduce ocean plastics
pollution and as part of SeaBOS’s transformation efforts for a healthy ocean, in
2022 Skretting and Nutreco again participated in a coastal clean-up for marine
plastics. In addition to removing pollution from beaches, we used the opportunity tocommunicate the challenge that ocean plastics present for the marine environment,
as well as show that individual actions can have an impact.
Colleagues from the Skretting global and local offices in Norway, in addition toAustralia, Canada, Chile, Ecuador, France and Vietnam joined the initiative. In total,
more than 260 colleagues contributed to remove approximately 3,670 kilograms ofpollution from the beach and waterways during the activity, which represented anincrease of 56% and 465% respectively compared to 2021.

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RoadMap 2025

clean-up by the Skretting Vietnam
team

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Clean up activities around the world (top tobottom: Vietnam, Chile and Canada)

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RoadMap 2025 - Good CitizenshipA new era for Rwandan aquaculture
Gishanda Fish Farm is a new socio-economic
aquaculture development initiative introducing
the innovation and skills capable of accelerating
sustainable food production in the Akagera
National Park region of Eastern Rwanda. Openedin October 2022, the initiative is also aiming tocreate employment opportunities for surrounding
communities, and an accessible source of locallyproduced protein.
Supported and co-funded by the Netherlands
Enterprise Agency (RVO) and Skretting andNutreco’s parent company SHV, the catalytic
partnership project is the brainchild of conservation
organisation Akagera National Park and publicprivate initiative FoodTechAfrica.
“It may seem an unusual move for a conservation
organisation to be building and running a fish farm.
However, our goal at African Parks is to leave alegacy of sustainability, for both communities andprotected areas. This project addresses sustainable
land use, biodiversity conservation and improving
community lives,” said Ladis Ndahiriwe, Park
Manager of Akagera National Park.
Located six miles from the main gate of Akagera
National Park, Gishanda will utilise the latest
recirculating aquaculture system (RAS) and solar
technology to sustainably farm and harvest fish.

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Skretting Sustainability Report 2022

The facility will demonstrate that catfish production
is an accessible protein option for communities,
and that besides producing essential nutritious
food, tilapia farming can serve as a model ofcircular agriculture with the farm effluent fertilising
an on-site organic vegetable farm.
It’s estimated that 1 million tilapia fingerlings will
be made available annually for commercial saleto bolster the Rwandan aquaculture sector, andthat a further 300 000 to 400 000 will be used forrestocking lakes in the region, thereby generating
locally-viable sources of protein and economic
growth on a national scale.
In the long-term, and alongside producing a highquality strain of tilapia fingerlings, Gishanda willproduce up to 30 tonnes of 350-500 gram marketready tilapia annually. At least 10% of this will be
supplied locally at affordable prices to combat local
nutritional deficits.
Training and upskilling are at the heart of the
project, with the aspiration for Gishanda to becomea national learning hub for the aquaculture sector.
As such, it will partner with educational andgovernment institutions as well as the private sector
to address skills gaps as the national aquacultureindustry grows.

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Three catfish demonstration ponds have been built
onsite to teach household level catfish farming tocommunity members. Additionally, pond supplies(lining) and assistance will be provided to the
local population – to develop catfish farming fornutritional and enterprise purposes.
Partnering with organic farming experts in Rwanda,
Gishanda will also develop a demonstration farmto teach local farmers methods in sustainableagriculture.

The garden will also be offered as a business to aselected community cooperative who will benefit
from hands-on technical, sales and financial training
to develop a viable and sustainable business.
Nutreco Middle East and Africa is acting as a
key sponsor and feed partner for all aquaculture
activities at Gishanda.
Gishanda is the second fish farm of its kind in
Rwanda. In 2019, FoodTechAfrica developed andopened Lakeside Fish Farm in Bugesera.

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About SkrettingHomeCollaborating with a local NGO to provide food for
those in need

RoadMap 2025 - Good Citizenship

In a world where access to food is not a given for everyone, initiatives tohelp people facing financial hardship are essential. One such initiative is thefood bank, which provides food and other necessities to those who cannot
afford them. In 2022, Skretting Japan collaborated with a local NGO toprovide food for those in need.

Collaborative effort towards ASC
certification of red seabream
In recent years, there has been a growing concern about thesustainability of seafood and the impact of farming on theenvironment. One way to address this issue is by obtaining
certifications for sustainable seafood products. Our
customer successfully obtained Aquaculture StewardshipCouncil (ASC) certification for red seabream, becoming thefirst in the world to do so. Skretting Japan played a key rolein encouraging and supporting our customer in this process.
As part of our commitment to sustainability, we have been
advocating for eco-certifications for sustainable seafood
products. We believe that this is essential for preserving
marine ecosystems and ensuring the long-term viability ofthe seafood industry.
When we learned that our customer was interested in
obtaining eco-certification for red seabream, we provided
them with the necessary guidance and support. We helped
them prepare the necessary documentation, and we were
present during the audit to provide assistance and answer
any questions.
Our efforts paid off, and our customer successfully
obtained the eco-label certification for red seabream.
This was a significant achievement, not only for ourcustomer but for the seafood industry as a whole. It
demonstrated that it is possible to fish sustainably
and still be profitable. With this experience, weoffered the eco-label solution to other customers,
and we now have a second red seabream farmer
ASC certified.

Following the certification, our customers have beensuccessfully selling the certified fish to nation-wide
supermarkets or restaurants. This shows that there is a
growing demand for sustainably sourced seafood, andthat eco-certifications can be an effective way to meet thatdemand.
Overall, the successful eco-label certification was acollaborative effort between Skretting Japan and ourcustomers. We were committed to supporting our customer
in their efforts to obtain eco-certification, and we were proud
to be a part of this groundbreaking achievement.
Moving forward, we will continue to advocate for
eco-certifications for sustainable seafood
products and support our customers intheir efforts to obtain them.
“This is just the beginning. We willcontinue our efforts to contribute tosociety and the development of theaquaculture industry, and aim to
make the aquaculture industry moresustainable,” said Masaki Urata,
President of Urata Suisan.

Our colleagues brought various types of food to contribute to the foodbank. These included canned food, packaged food, vegetables they had
grown themselves, baby food and much more. We were able to distribute
food to many people who were struggling to make ends meet. The foodbank not only helped to address hunger, but it also provided much-needed
relief to families who were facing financial hardship.
We also asked our customers to donate fish, which we used to make lunchboxes that we distributed to people facing financial hardship. By donating
fish, our customers could make a contribution to the community, and thishelped to build a sense of unity and purpose among everyone involved.
The food bank initiative also had other benefits. It helped to reduce foodwaste by encouraging people to donate unused food that would otherwise
have been thrown away.
This activity showed that small initiatives can have a significant impact on
people’s lives and that community involvement is essential to the successof such initiatives. We hope to continue collaborating with our local NGO
and our customers to address issues related to poverty and hunger in ourcommunity.

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Skretting Sustainability Report 2022

Masaki Urata
President, Urata Suisan

RoadMap 2025 - Good Citizenship

Collaboration with the University of Stavanger
The collaboration between the InGenious programat the University of Stavanger and Skretting wasestablished in 2022. InGenious is a challengebased program, where students work on different
cases provided by industry or public sector whichmust be linked with at least one UN Sustainable
Development Goal.
In 2022, the masters students taking the coursein “Green Transition – IND 570” worked on a casepresented by Skretting. The challenge was how
to reduce CO2 emissions by 30% across our three
Norwegian factories, while keeping production
volume and profitability.
The students were supervised by Professor Ruth
Beatriz Pincinato and Skretting Global Operations
Engineer Nevena Mišljenovic.
“It was valuable for students to deal with a real-life
challenge and work on a case that needs to satisfy
environmental, economic, technical and ethicalcriteria at the same time,” said Beatriz. “We also gota chance to visit the Skretting factory in Stavanger
and get an insight into feed production process, themain emission sources and aquaculture challenges
in general.”

The University of Stavanger aims to be an open
and inclusive university committed to delivering
exceptional education, conducting ground-breaking
research, and promoting innovation. Our sharedvision is driven by our responsibility to facilitatea sustainable transition. The InGenious program
serves as a platform to engage the industry in
our study programs and bridge the gap between
the academic world and the corporate sector,
complementing our strategy and mission. “Wewere extremely grateful for the opportunity tocollaborate with Skretting, which proved to be avaluable learning experience for our students,” said
Nelly Narges Karimi, Program Leader University ofStavanger.
Having a chance to get in touch with fresh ideas
and new methods for assessing GHG emission
problem was useful for Skretting. “It was great
to get an insight into new technologies available,
many still on small scale or in development, butvery promising,” said Nevena. “Seeing how different
groups of students approached the same challenge
from different angle was very interesting.”

Introductions
From left to right: Can Özkan, Nora Rahimi,
Edem Kojo Bessie Blay, Ruth Beatriz
Pincinato, Nevena Mišljenovic, Mandana
Pourmomen Jorshari

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Skretting Sustainability Report 2022

Ingredientdeep dive

The ingredients that we use in our feeds are a fundamental
component of our sustainability objectives, with 96% of our total
emissions coming from scope 3 ingredients. In this chapter, wetake a deep dive into our ingredients, with a focus on soy andmarine, and we also describe measures and collaborations inplace to minimise our impact.

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Skretting Sustainability Report 2022

From sustainable raw materials
to high-performance nutritional
solutions
The production of fish and shrimp feed is an intricate matter.
Strict criteria regulate the physical quality of the pellets, andsophisticated process equipment is needed. Raw material
procurement is a big cost driver, so a significant part of thefeed production research aims to increase both raw material
flexibility and functionality.
Every improvement in product technology can lead to better
quality, increased efficiency and a more sustainable process.
We produce more than 3 million tonnes of feed each year,
which means that even small improvements can add up to big
numbers.

Our targets

Our progress

Source 100% of marine ingredients fromsources audited and certified by MarinTrustor MSC

84% of our whole fish andtrimmings are MarinTrust,
MSC or MarinTrust-FIP
certified

All purchased soy will be deforestation-freeby 2025

97% of our purchased soy isin class A or B according toour sourcing policy

Ensure that by 2022, all agriculturalvegetable products are traced back to
the country where they were cultivated,
to use in a risk filter and for footprinting
requirements

We have traceability for soy and palm
ingredients to the country where they
are cultivated. Unfortunately, we have
not yet successfully implemented a
traceability system for other vegetable
ingredients due to the complexityof supply chains and the significant
increase in administration that comeswith it, both for us and our suppliers.
In 2023 a team will be set up to takethis further.

Introductions
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Ingredient deep dive
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5-10% of feed ingredients come fromalternative novel sources

Important increase on the useof novel ingredients used in
2022, bringing the total to 1%
in Skretting

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Skretting Sustainability Report 2022

What ingredients are in Skretting feed?

Average
SkrettingTilapia

Shrimp2

Sea bass &Sea bream

SalmonTypicalexamplesIngredientgroup

Primary raw
material

Average ingredients in Skretting grower feed per species

Proteinaverage % inclusion in feed

Wild capture and farmed fish andmarine proteins
crustaceans

ProteinBy-products from farmed land
animals

Agricultural crops

Wild capture, algae, farmed fish
and crustaceans

Fat

Agricultural crops

Carbohydrates
Micronutrientsfish meal, crustacean meal

13.2

19.8

11.3

1.2

poultry meal

vegetable
proteins

wheat gluten, corn gluten, soybean
meal, soy protein concentrate,
rapeseed meal, sunflower meal,
lupin, faba

33.3

29.5

43.1

41.6

35.4

fish oil, algal oil

fish oil, algal oil

9.7

3.2

1.5

0.3

5.7

vegetable oils

rapeseed oil, soybean oil,camelina oil

18.1

3.8

2.6

0.2

9.0

21.8

4.5

9.6

10.2

Land animal protein
Vegetable protein

12.6

land animal
proteins1

13.3

Marine protein

Fish oil
Fat

Vegetable oil
Land animal oils

By-products from farmed land
animals

land animal oils1 poultry oil

Agricultural crops

starch raw
materials

Variousvitamins minerals vitamin premixes, mineral premixes,
pigments
pigments

wheat

1 Use of land animal by-products will depend upon market acceptance and legislation

Carbohydrates
Micronutrients

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Ingredient deep dive
1.5

1.4

0.0

0.0

0.9

9.0

19.2

29.5

42.2

19.5

1.9

1.3

7.5

4.9

6.7

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2 Level of starch raw materials will be different in extruded and pelleted feed

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Skretting Sustainability Report 2022

Procurement milestones in 2022

The last three years have been extremely challenging forthe procurement and supply chain teams. At the beginningof 2022, with the end of COVID-19 in most of the world, wethought we would be in calmer waters. Then the war started
in Ukraine.
In times of stress, the priority for procurement is availability,
ensuring we have the right nutrients available at the rightlocation, to ensure supply to our customers can continue
uninterrupted. With prices staying at high levels comparedto the 'normal' levels of 2019, alternative ingredients andsuppliers are our focus, to spread the risk and keep costs
down. This has created opportunities for several novel
ingredients to become more competitive. With new suppliers
and ingredients, we are careful to ensure our quality levels,
sustainability requirements and ambitions are met andcontinuously improved.
We have made a number of specific improvements in 2022:•••

We have created a specialist team to strengthen our LCA
Platform and tackle the Scope 3 Science Based Targets that
we have set
We launched our marine sourcing policy, describing in an
open and transparent way (as we did for soy and oil palm)
what ‘good’ looks like for sourcing marine products, andproviding a step plan for our purchasing team
We launched our sustainable packaging handbook, helping
us improve our packaging material while maintaining the feed
quality and often reducing the overall packaging cost

A call to strengthen collaboration with our suppliers
The procurement team in Skretting has long term partnerships withmany suppliers. We develop new markets and ingredients together andaim to grow our joint business every year. The large number of suppliers
choosing to join us at AquaVision 2022 demonstrates that Skretting is atrusted and valued partner.
The impact of these strong relationships has been clearly demonstrated
in challenging times. Even over the last three years, we have never had
to stop operations because of a raw material shortage. Relationships
like this are built over years and depend on open communication andtrust.
While the past years have been difficult, unfortunately the years aheadalready appear just as challenging. A recession, climate change andthe pressure on biodiversity are looming and we need to act. Therefore,
this is a call to action to our suppliers, to join us in tackling thesechallenges. We are seeking five key commitments from our suppliers:•

Reduce the carbon footprint of your own operations and value chain•

Sign-up for Science Based Targets and take action to stay within the Paris
Agreement emission targets•

Provide better (primary) data on the ingredients sold•

Improve and increase traceability back to country of primary production•

Further identify and mitigate the environmental and social risks across the
supply chain

For us to realise our targets, we need our suppliers to take bold steps
to curb their carbon emissions and work with Skretting and the industry,
to tackle these challenges together. We are eager to engage, applaud
those in our value chain who step up, and will ensure that those whotake significant steps in the right direction will see their business with
Skretting increasing.

Robert van den Breemer
Procurement Director
Macro Ingredients
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Introducing our new Supplier Sustainability
ManagerWith 96% of our feed’s total emissions coming from scope 3
ingredients and factors beyond our control, reducing them will require
close collaboration with our suppliers. In 2022 we welcomed Job
van Mil to the procurement team in his role as Supplier Sustainability
Manager to facilitate this collaboration. We would like to use thisopportunity to introduce Job and his view on supplier engagement.

As Supplier Sustainability Manager, I support
the procurement department to ensure that
we reach our ambitious sustainability targets.
There are two focus areas for the coming
years that require close collaboration with
our supply chain partners: due diligence andscope 3 reductions.

In conversations with our suppliers, we will
request product specific footprint data, also
called primary data which reflects the specificproductive reality of our suppliers. By collecting
primary data in a standardised way, we will beable to identify areas where there is a potential
to reduce the ingredient’s footprint.

It is no longer enough to rely on a signed
Supplier Code of Conduct to cover ourdue diligence, so more sophisticated risk
assessments and mitigation methods need
to be applied. We strive to accelerate the risk
recognition and mitigation process throughthe roll-out of EcoVadis, which will be a key
step in improving our due diligence.

However, primary data collection is only part ofthe supplier engagement journey. Skretting, as
part of Nutreco, has set Science-Based Targets
and we will request the suppliers that contributemost to our scope 3 to do the same. This way
we align emission reduction goals for our supply
chain with our own and those of our customers.

Over 2022, the procurement and sustainability
departments collaborated to create a scope
3 program, in which we outline the strategies
to reduce our scope 3 emissions. I would liketo elaborate on one specific strategy: supplierengagement.
During supplier engagement, the aim is toact as the liaison between procurement,
suppliers and our LCA experts to gain abetter understanding of the footprint of ouringredients.

Building strong connections with thesustainability departments of our suppliers,
relevant stakeholders and customers will be an
important factor for success for both our scope
3 program and our due diligence. Not solely
for gathering data, but also to inspire proactive
communication on sustainability issues
occurring in the supply chain.
Only by strengthening the collaboration with our
suppliers, not by excluding them, will we truly
improve our supply chain sustainability.

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Supplier Sustainability Manager
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Skretting Sustainability Report 2022

Flexibility in the use of raw materials – progressand challenges
Following the publication of our 2021 Sustainability Report, we had
hoped the raw material situation would ease as the impacts of the
COVID-19 pandemic softened. Unfortunately, this has not been thecase. The challenges imposed by the pandemic have been replacedwith those associated with the ongoing war in Ukraine. Together,
Ukraine and Russia are estimated to account for 25% of global wheat
exports in 2021, as well as being major producers of sunflower, maizeand phosphates. Additionally, the current fishing season in Peru is
impacting the marine ingredient market, and the predicted 2023 El Niño
will likely worsen the situation.
During raw material scarcity situations, Skretting’s deep understandingof the value of each raw material and the nutritional requirements offish and shrimp, coupled with our relationships with suppliers becomes
invaluable. Since last year, we have successfully introduced nine protein
and starch sources, entirely new to Skretting, with more undergoing
R&D evaluation. The use of alternative omega-3 oils has also increased
significantly from 2021 to 2022 to mitigate the impact of continued fish
oil availability and price challenges. Beyond this, we have focused onlong term supply security through innovative solutions, such as theuse of enzymes to extract as much nutritional value as possible from
ingredients, whilst also reducing discharge into the environment.

However, aquaculture feed production is not only about understanding
the needs from a nutritional perspective, but also from quality
perspective. Often feed is transported long distances, meaning
maintaining pellet integrity is key. Traditionally, wheat has been used as
the primary starch source to support physical quality of feeds, but by
applying cross functional knowledge we have been able to successfully
replace a relevant part of wheat demand in some geographies withalternative starch sources without impacting on quality.
Moving forward, price will continue to the one of the main challenges.
Ingredient prices often follow one and other and so, whilst we may beable to increase flexibility, this is not necessarily reflected as a decreasein overall feed price. This constant focus does, however, ensure securityof supply and reduce exposure to price vulnerability of individual
ingredients.
Introductions
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Samuel Eggington

Ingredient deep dive

Global Formulation Manager
Skretting AI

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Skretting Sustainability Report 2022

Understanding sourcing in different markets
Reflections from our team and suppliersWorking together for sustainability goals
In severe market circumstances, it is
not always easy for suppliers to alignwith our relatively high sustainablesourcing policy in the region. However
despite the challenges, we continue tohope for earlier development, like theinclusion of alternative ingredients.
Our region is traditionally heavily
dependent on fish meal and fish
oil for warm water fish species.
Although we face challenges indaily operations, we are aware
it is important to rememberthat we are one Skretting, one
Nutreco, and one planet. As
such, we are in the same boat.

Yosuke Sakurai
Procurement Manager
Skretting Japan

Even though the competition is severe
and there may be raw materials
which do not meet the Nutreco
criteria, we keep a dialogue with
suppliers regarding aligning with ourrequirements. Through informationand collaboration, we believe we can
influence external stakeholders andprovide our voice that there is clear
demand.

We have found that when we help
each other and work together toward
our goal, we can find a solution that
we did not expect.
In the past, we have been successful
in increasing the inclusion of certified
fishmeal / LAPs / vegetable ingredients
while maintaining performance andquality, with significant support frominternal and external stakeholders.
We learn from best practice in
OpCos all around the world and takeadvantage of the global expertiseand innovative minds. Recently
sustainability has received more
attention in Japan and through global
and local experience, we will be able
to support customers who have aninterest in sustainable aquaculture.
However, we are not able to do italone, we are all connected in the
supply chain. For that, it is crucial
and appreciated to have the supportand understanding of our customers,
suppliers, consumers, colleagues, andcommunities around us.

Building sustainability
awareness in Japan
In most Asian countries, including
Japan, the attention to sustainableaction in fishery and farming is
gradually increasing, but it’s still
not satisfactory, especially in the
aspect of the visible ways such as
the acquisition of certificates.
It may take a much longer time to cement
these actions, as that will never be achieved bya single part of the value chain, and the recognition by theend-consumer would be one of the most important factors toaccelerate such efforts despite the slow-paced spread.
Against this background, however, we’re pleased to kick off
more advanced action with the Skretting team and some of ourloyal partners here step-by-step. For one, we have launcheda Fishery Improvement Project (FIP) for Japanese sardine,
which is one of the most important species in the domestic
aquaculture industry, with a fishmeal manufacturer, a purseseine fisherman in Japan toward MSC. We strongly expect thisproject could contribute to a stable supply of marine resourcesin the future.
Now, our challenge is how do we expand that circle toother stakeholders. Also, we would like to mention that thedevelopment of the consultation system to address a higher
level of sustainability, which is not enough in Asia, would also
be very important.

Yoshiaki Tatsumi
Assistant Manager Protein Meal
and NGFI Section Grain andFeedstuff Department
Kanematsu Corporation

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A culture of sustainability
At Berlin Packaging, we do our part to fight climate change by
minimising our environmental impact and offering sustainabilityfocused products and services to our clients across all end-use
markets and geographies.

Working with customers to drive sustainability in Italy
The sustainability and circularity themes are certainly thehottest topics in recent years. Addressing these started out
as a significant challenge for Skretting Italy, as it was noteasy to explain our mission to our suppliers and how we
wanted to reach our goals.
Bringing them on board was not easy at all in the
beginning, as nobody had a ready solution to offer.
Thankfully, our enthusiasm inspired our collaborators to
the point that they themselves, in some cases, provided
innovative proposals. The maturity and the sensitivity ofsuppliers were crucial for this journey.
We know now that sustainability and circularity doesn’tnecessarily mean cost saving. In fact, buying packaging
with a minimum 50% of recycled plastic, forexample, costs even more than 100% virginmaterial.
COVID-19, followed by the
Ukraine-Russia conflict and thesubsequent severe disruptions
to the supply chain, has seen
raw materials prices and logistic
rates increase to never-beforeseen levels. This has made thesustainability path even morechallenging and forced somewithdrawal.

This was true in the case of marine ingredients,
where the price difference between certified andnon-certified sources was sometimes so high that
we needed to force a temporary stop to remaincompetitive. On the positive side, the need for
greater competitiveness has provided further
acceleration to the “re-use” culture by pushing thedemand for by-product ingredients (for example fromthe poultry and pork, fish, and baking industries)
higher and higher.
Big efforts have been placed on keeping the supply
chain as short as possible to reduce the carbon
emission of logistics; and high emphasis has been
dedicated to new ingredients (for example insect andalgae).
These days, we speak the same language
as our suppliers, and together we areaware that challenges and dilemmas
are not finished. At the same time,
we are tuned in to the fact that insustainability and circularity there are
future opportunities.

Skretting Sustainability Report 2022

Fabrizio Mondolfo
General Manager
Berlin Packaging Industrial Italy

Working with Skretting Italy was acknowledgementthat we were going in the right direction, and provided
further motivation to stay focused on the matter totake advantage of any other innovation which canbring improvement to the sustainability and circularity
targets.
We pledge to promote a culture of sustainability throughout
the packaging value chain, from our customers to our suppliers,
within our teams, and in the local communities in which we
operate.
Berlin Packaging’s success as a global packaging leader depends
on our ability to serve a wide range of markets and geographies.
Diversity, equity, and inclusion are critical enablers of our businessmodel and our commitment to these values is unwavering – acrossall our work around the world.
We strive to create sustainable growth by promoting the values ofintegrity and respect, and by earning trust with all our internal andexternal stakeholders alike.

Introductions
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Adamo Caldori
Purchasing Responsible
Skretting Italy

50

That’s not easy, because the response from the market,
especially in Italy, is not ready to pay more for asustainable packaging as it is now. Huge investments
to produce lighter containers with high performancemust be incorporated in prices and this is not in linewith customers’ expectations.

About SkrettingHomeSoy ingredients

Soy & Oil Palm Sourcing Policy – reflecting on progress so far

2020

However, 97% of the purchases were compliant with the intermediategoal and we do see a continued decrease in uncertified, high risk, soy
products - from 14% in 2020 to 3% in 2022. We will work together withour business and suppliers to decrease this number to 0% in 2023 so
we are fully compliant with our sourcing policy.

Progress towards meeting sourcing objectives in our marine sourcing policy in 2022
as a percentage of purchases

2021

Through close collaboration with our suppliers we are gaining an
increased understanding of the origins of our soy. Despite these gains,
we still see large complexities within our supply chains. We are pleased
to see the EU acting on deforestation, with a 2022 ruling mandating due
diligence on select imported commodities, including soy, to ensure theirdeforestation-free origins. We believe that this will force the industry
to create 100% traceable deforestation-free supply chains. Hopefully,
these supply chains will not only be available to our EU-based
companies, but also our other businesses across the globe.

We have set intermediate goals towards a deforestation-free supply
chain by the end of 2025. In 2022, we committed to only source
Class A, B or C. This means that we will not source from high risk
countries without relevant certifications. In many cases we covered
this intermediate goal by purchasing Round Table on Responsible
Soy Association (RTRS) credits for our high deforestation risk soyvolumes. Through the purchase of RTRS credits, we support farmers
that are deforestation free. Unfortunately, 3% of our total soy purchases
originated from high risk regions without any certification making thesevolumes non-compliant with our sourcing policy’s 2022 goals.

2022

Our 2020 Soy and Oil Palm Sourcing Policy shows our commitment toachieving a deforestation-free supply of soy and oil palm ingredientsby 2025. The policy categorises soy and palm ingredients into four
different classes based on deforestation risks and shows whichsustainability certificates can be used to mitigate these risks. This
classification system guides our purchase team as we aim to source
deforestation-free soy and oil palm ingredients by the end of 2025.

Class AThe soy or palm oil ingredient is traceableback to a country or region with a low risk of
deforestation or is from a region with a highrisk of deforestation but purchased througha certification scheme which verifies nodeforestation occurred (segregated supplychain).

62

60

68

Class B  The soy or palm oil ingredient is traceableback to a country or region with a high riskof deforestation. For Class B, it must bepurchased through a certification schemewith a defined cut-off date, using either
mass-balance or credits.

35

32

18

The soy or palm oil ingredient is traceableback to a country or region with a high risk of
deforestation and must be purchased througha certification scheme that verifies no illegal
deforestation occurred.

0Class D  

The soy or palm oil ingredient is traceableback to a country or region with a high riskof deforestation but purchased without any
certification related to deforestation.

3

8

13

Unknown

It was not possible to trace the soy or palm
oil ingredient to the country it was cultivated
in.

0

0

1

Classification   Description

Class C  Read our Soy & Oil Palm
Ingredients Sourcing Policy

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Skretting Sustainability Report 2022

BU LatAm
BU Asia
BU Africa
BU Southern Europe
BU Salmon

Breakdown of soy purchases in 2022
Class AA large proportion of the soy purchased by business units salmon,
southern Europe, Africa and LatAm classified as class A and B in 2022.
This is partly achieved by sourcing segregated deforestation-free soyfrom high-risk countries and partly by sourcing from countries witha low risk for deforestation. In particular, the Skretting businesses inAfrica achieved an impressively high share of class A soy by sourcing
from such low-risk countries. We also observe a relatively large shareof class D soy for the business unit Asia. We are actively engaging with
our supply chains in Asia to make sure we improve next year on ourroad to deforestation-free soy.
Segregated deforestation-free soy supply chains are primarily available
for non-GMO soy and we struggle to find segregated deforestation free
GMO soy products. Therefore, class B seems to be the best achievableclass for the GMO soy products, which explains the high shares ofclass B soy for many of our businesses.

Class BClass DClassification of soy purchased per business unit in 2022

7%

3%1%
Introductions
RoadMap 2025

Soy classification (%) purchased per business unit in 2022
46%

Classification
Business Unit

Salmon

A
76

B
23

Southern Europe

76

19

Africa

91

Asia

31

43

LatAm

59

41

C

D

South America

1

North America

6

Europe43%

9Skretting Sustainability Report 2022

Progress through collaboration

AfricaAsia

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About Skretting

Global soy sourcing region in 2022

52

Ingredient deep diveHome

CJ Selecta takes new steps towards sustainable soy
Four years ago, the newly formed sustainability department of
CJ Selecta set ambitious goals, with seven steps to strengthen
sustainability. These steps included a greenhouse gas report, thepromotion of research in non-GMO seed programs, becoming Amazon
biome free, measuring carbon footprint and conducting farm audits.
The steps were published in the first GRI report in 2020.
Today, CJ Selecta can look back at four years of tremendous progress,
which has inspired new and far more ambitious goals for the next eraof Brazilian soy. Possibly the biggest and most transformative leap
forward has been on traceability.
“We belong to a large and complicated ecosystem of value chains, so
in order to make real progress towards sustainability it is vital that we,our partners and clients have access to tools for tracing our products,”
says Guilherme Tancredi, CJ Selecta’s CEO.
To facilitate better traceability, CJ Selecta is in the middle of launchingits brand-new app Soy Trace™, which gives valuable insight toeveryone who purchases their products in the value chain.

SoyTrace’s primary functions are to:•Ensure that products are truly deforestation free•Enable clients to make informed choices: know about carbon
footprint, logistics and quality traits•

Inform users about the products, their origins and the importance ofprotecting precious nature, including sensitive Brazilian biomes“We have many sustainability ambitions, but there is no doubt thatzero-deforestation is at the very core of our business. In a world of
conflicting and confusing information, true traceability is key.
Additionally, to get full traceability of soy suppliers, we strive toaccurately measure the carbon footprint of soy protein concentrate,
and also reduce it.” Tancredi emphasises that there are an untold
number of challenges that come with making real progress towards
sustainability, and there is nothing better to illustrate than thecomplex value chain to trace, monitor and engage in this elaborate
market.
“Partners like Skretting are crucial for at least two reasons. Firstly,
they are the ones that give our efforts value, by making measurable
progress part of their purchasing policies. Secondly, we help
keep each other accountable – and push each other towards new
sustainable frontiers.”

Guilherme Tancredi
CEO
CJ Selecta

Introductions
RoadMap 2025

Ingredient deep dive
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Skretting Sustainability Report 2022

Check Skretting’s status on
the Ocean Disclosure Project

Marine ingredients

Meeting our marine ingredient sourcing ambitions
It is our ambition that by 2025 all fish meal and fish oil we use originatesfrom fisheries that are managed according to the FAO Code of Conduct
for Responsible Fisheries. This means that our suppliers must be able
to demonstrate that the fish meal and fish oil is certified according to
the MarinTrust standard (which includes Marine Stewardship Council
certification) or be participating in a fishery improvement project (FIP)
with the aim of becoming MarinTrust certified.
In addition to the progress specified in our sustainability reports, andsupporting our commitment to provide more transparency, we commit
to publish the origin and environmental sustainability of wild-caught andfarmed seafood sourced by our global operations through the Ocean
Disclosure Project, a clear step forward from our previous disclosure
which was only for our Norwegian operations.
In 2022, 84% of fish meal and fish oil originating from whole fish thatwas purchased by Skretting came from fisheries certified according to
the MarinTrust or MSC programmes, or from fisheries that were partof a MarinTrust FIP. This is a slight increase compared to 2021 (82%).
The increase comes from more fisheries entering fishery improvement
projects.
The salmon producing countries in Skretting (Norway, Canada, Chileand Australia) use the highest share of certified marine ingredients.
Both Asia and Africa have a significantly lower share of certified marine
ingredients. In Asia and Africa there are fewer local fisheries certified,and less market pressure regarding certification status of marine
ingredients. In Latin America and Asia the share of marine ingredientscoming from fishery improvement projects are higher than in otherareas in Skretting.

16
14

GlobalSkretting

58

12

16

27

BU Southern
Europe55

568

BU Asia

465

BU Latin
America1

43

7

No certification1
Whole fish

52

11

24

23
26

15

12
30

12

5

Introductions
Trimmings

BU Africa

53

MarinTrust certified
MarinTrust FIP

16

BU Salmon2

15

MSC certified

47

1. Includes registrations where data are lacking on certification status

68

RoadMap 2025

Ingredient deep dive

2. Salmon represents Norway, Canada, Chile and Australia

Progress through collaboration

Certification status (%) of Skretting marine ingredientpurchases on a global and BU level

Certification status (%) of Skrettingpurchases of whole fish and trimmings
in 2022

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Skretting Sustainability Report 2022

Progress on our marine sourcing policy
In 2022, Nutreco and Skretting published a responsible sourcing policy
for marine ingredients. We did this to solidify our commitment to protect
the ocean and ensure that fish stocks caught for direct or indirect
human consumption are fished within clearly defined, sustainable limits.
To achieve our ambitions, we strive to ensure that our marine feed
ingredients come from sustainable sources in the short- and long-term.
In practical terms, we have defined different sustainability classes forthe main groups of marine ingredients (whole fish, by-products fromwild fish and by-products from aquaculture). For details on the different
sustainability classes, please consult our sourcing policy.

Progress on our marine ingredient sourcing policy in 2022 compared with targets
Whole fish
Marine ingredient type

Target2022

Sustainability class A+ and A

85%

68%

Maximum 15%

16%

Sustainability class ASustainability class B1

16%

Sustainability class C1
By-products wild

Last year was the first in which we have been able to make a complete
progress report on our marine sourcing ambitions. For whole fish, 68%
originates from MarinTrust programme or MSC. The share originatingfrom fishery improvement projects is slightly above the maximum target(16% compared to maximum of 15%). There are challenges in reaching
our targets. Several important fisheries have lost their MSC certification(blue whiting, Atlantic herring and Atlantic mackerel). In certain areas
where we operate (in particular Asia and Africa) certification of local
fisheries is often lacking. This can be due to that the certification
programs are not so well known in these areas, combined with lesspressure from markets to certify these fisheries.

Marine ingredient type

Target2022

Sustainability class A+ and A

50%

81%

Sustainability class A-

50%

4%

When it comes to by-products from wild fish and by-products fromaquaculture we are well on track to meet our targets. The main
challenge here is that information related to the origin can be missing orof poor quality.

1 Include also where data on origin is missing

Sustainability class B1

15%
By-products aquaculture

Marine ingredient type

Target2022

Sustainability class A+ and A

50%

78%

Sustainability class AInformation lacking

22%

Introductions
RoadMap 2025

Ingredient deep dive
Read our Marine Ingredients
Sourcing Policy

Progress through collaboration

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Skretting Sustainability Report 2022

Quantifying whole fish and by-products

The remaining 5% originate from an additional 46 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 of the legal fishery.
In some areas the manufacturer of marine ingredients are instructed
to register all by-catch by law. This means that when we receive a
consignment of marine ingredients, easily more than 10 species will bedeclared that might only constitute a low percentage of the delivery.

Twenty-seven species make up 95% of Skretting purchases of marine
ingredients in 2022 originating from trimmings. In addition, 46 more
species of fish are registered as the origin of fish meal and fish oil from
trimmings, but in low volumes (< 5%).
Marine ingredients from different tuna species are common. This is dueto the tuna canning industry. The industrial processing of tuna makes it
possible with efficient use of the trimmings. The species registered asorigin of marine ingredients from trimmings reflect fisheries important in
human consumption. Hake, cod, pollock and different mackerel species
are all important.
We also see trimmings from small pelagic fishes like anchovy, sardines
and sprat. Marine ingredients from farmed species like Atlantic salmon
are also becoming important. In 2022 Atlantic salmon was the mostimportant source of fish oil originating from trimmings.
We cannot establish with certainty the FAO fishing area for these
species because the country of processing might be different from
where the original catch was landed.

Trimmings

Twenty-nine species make up 95% of our marine ingredients in 2022
originating from whole fish. The most important species are small
pelagic fishes from fishing areas Pacific Southeast, Atlantic Northeast
and Atlantic Eastern Central. Small pelagic fisheries are the mostimportant source for both fishmeal and fish oil.

It can also be a challenge to identify all fisheries in a detailed andcorrect way. Our suppliers can often declare that the origin is anchovyor sardine. However there are many different anchovy and sardine
species. This can make it a challenge to identify the specific fishery.

Percentage of marine ingredients in
Skretting originating from whole fish
and trimmings

Whole fish

We have mapped the origin of marine ingredients in Skretting comingfrom both whole fish and by-products. Over the last five years, theaverage use of by-products was 35%. In 2022, 39% of our ingredientscame from by-products for human consumption.

Another factor is that many fisheries are multi-species fisheries,
especially in more tropical areas. In this case, there can be a large
species diversity and single species fisheries are not common.

Year

The processing of fish for human consumption gives rise to a byproduct that is not used in the final seafood product. Offcuts generated
after processing are valuable as a raw material from which fish meal
and fish oil is often produced. It is estimated that roughly a third of fishmeal produced is made from seafood by-products from fish for humanconsumption. The use of by-products, or trimmings, is increasing as
more whole fish are used for direct human consumption, and society
becomes more successful at collecting the material and fuelling thebioeconomy.

2018

74

26

2019

71

29

2020

57

43

2021

63

37

2022

61

39

Average

65

35

Introductions
RoadMap 2025
In 2022,
by-products made up
39% of Skretting’s
marine ingredientpurchases

Ingredient deep dive
Progress through collaboration

Transparency & Trust
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56

Skretting Sustainability Report 2022

87South American Pilchard

Sardinops sagax

8.9

17.5

Chile, Peru, Ecuador

87

Chub Mackerel

Scomber japonicus

7.5

1.9

Mexico, Ecuador, Peru, Chile

87

Blue whiting
European sardine
Chilean anchoveta

Micromesistius poutassou
Sardina pilchardus
Engraulis ringens

Anchovy

7.0
6.7
6.3
5.1

Atlantic Herring
European Sprat
Capelin

Clupea harengus
Sprattus sprattus
Mallotus villosus

SandeelAmmodytes tobianus

Frigate tuna
Common Searobin
BoarfishAuxis thazard
Prionotus carolinus
Capros aper

SardineSardinella spp

MenhadenBrevoortia patronus

Norway pout
Pacific jack mackerel
Shortfin scad

Trisopterus esmarkii
Trachurus symmetricus
Decapterus macrosoma

Other

4.1
3.7
3.2
2.5

Trachurus trachurus

Shrimp

5.5
3.9
5.8
8.8
7.0
3.9

3.3
0.8

1.0

Pacific Anchoveta
SardineSardinella spp

2.7

Pacific jack mackerel
Indian oil sardine

Sardinella longiceps

1.7
3.5

0.4

USA, Mexico
Denmark, Norway

2.7

Chile, Norway
Mexico, USA
Vietnam, Philippines
Chile, Ecuador, Mexico
India, Oman

Pollachius virens

1.1

USA

Yellowfin tuna

Thunnus albacares

1.0

Mexico, Oman, Philipines, Ecuador

Skretting Sustainability Report 2022

27
27
27
27
87
87
27

31
27
87
87

SeveralPollock

57

87

27

Several1.8

Trachurus symmetricus

Denmark, Norway

Denmark, Norway

3.9

1.1

IcelandEcuador

0.5

Cetengraulis mysticetus

Denmark, Norway

Chile, Peru

0.6

Salmo salar

34

Several0.5

Atlantic Salmon

Norway, Denmark, Faroe Islands, Iceland

Denmark, Ireland, Norway

1.1

27

SeveralEcuador

1.6

1.2

Chile

Ecuador

1.7

1.2

Norway, Denmark, Faroe Islands, Iceland
Mauretania, Morocco, Turkey

2.1

0.6

Atlantic horse mackerel

3.7

farmed87. 7771
87. 7757
67
71.77.57.87

Country ofprocessing

Chile, Peru, Ecuador

Fish oil (%)

15.0

Fishmeal (%)

Country oforigin25.2

Latin nameFish oil (%)

Engraulis ringens

Species

Fishmeal (%)

Peruvian anchoveta

FAO fishingarea

Latin nameSpecies and fisheries that make up 95% of purchases of fishmeal and fish oil in Skretting in 2022 and which
originated from by-products

SpeciesSpecies and fisheries that make up 95% of purchases of fishmeal and fish oil in Skretting in 2022 and which
originated from whole fish

Skipjack tuna

Katsuwonus pelamis

23.0

3.0

Ecuador, Spain

Yellowfin tuna

Thunnus albacares

20.7

2.4

American Samoa, Philippines, Papa New Guinea,
Thailand, Ecuador, Mauritius, Spain

Atlantic herring

Clupea harengus

11.9

22.0

Canada, Denmark, France, Iceland Italy, Norway, UK

Atlantic mackerel

Scomber scombrus

7.8

8.2

Denmark, Iceland, Norway, Spain, UK

Capelin

Mallotus villosus

5.9

3.8

Iceland, Norway

SardineSardinella spp

4.7

2.1

Several

3.1

5.7

Several

Other
Tuna

Thunnini spp

2.3

0.8

Ecuador, Portugal, Spain

Jackmackerel

Trachurus symmetricus

2.1

1.1

Chile

Blue whiting

Micromesistius poutassou

1.5

France, Norway

Splendid Ponyfish

Eubleekeria splendens

1.4

Vietnam

Cod

Gadus morhua

1.3

Denmark, France

Shortfin Scad

Decapterus macrosoma

1.3

EcuadorOrange-spotted Spinefoot Siganus guttatus

1.2

VietnamAlbacoreThunnus alalunga

1.2

0.6

Spain

Chub Mackerel

Scomber japonicus

1.1

0.8

EcuadorYellowstripe Scad

Selaroides leptolepis

1.1

Hake

Merluccius spp

1.0

Sprat

Sprattus sprattus

1.0

Pacific thread herring

Opisthonema libertate

0.7

Peruvian anchoveta

Engraulis ringens

0.6

Pacific Anchoveta

Cetengraulis mysticetus

0.6

Atlantic salmon

Salmo salar

0.5

Coho Salmon

Ecuador, France
0.6

RoadMap 2025

Denmark, Norway
Ecuador, Mexico

1.8

Introductions

Ingredient deep dive

Peru
Peru, Ecuador

37.2

Chile, Italy, Latvia, Norway, UK

Oncorhynchus kisutch

2.2

Chile

Rainbow Trout

Oncorhynchus mykiss

1.4

NorwaySandeelAmmodytes spp

1.3

Denmark, Norway

Pollock

Pollachius pollachius

1.3

USA

Progress through collaboration

Transparency & Trust
About SkrettingHomeDependence on marine feed ingredients
Fish meal and fish oil from wild fish are both finite resources that areshared across a range of users with increasing demands, from direct
human consumption to aquaculture to pig and poultry production. We
promote the efficient use of these resources, producing increasing
amounts of farmed fish and shrimp from a given input of fish meal andfish oil.
The use of wild fish in aquaculture is commonly expressed as theforage fish dependency ratio (FFDR). It is calculated based on the useof fish meal and fish oil originating from wild fish. Marine ingredients
originating from trimmings are not considered. The FFDR is the amountof wild-caught fish used to produce the amounts of fish meal 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).

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

Atlantic
salmonSea bass &Sea bream

Shrimp

Tilapia

2021

2022

2021

2022

2021

2022

2021

2022

FFDR: fish meal
(FFDRm)

0.37

0.40

0.46

0.54

0.23

0.24

0.04

0.01

FFDR: fish oil(FFDRo)

1.46

1.40

0.11

0.04

0.03

0.00

0.05

0.00

Globaleconomic feed
conversion:
FCRe

1.30

1.30

2.00

2.00

1.50

1.50

2.00

2.00

FFDRm fish

0.48

FFDRo fish

Introductions
RoadMap 2025

1.90

0.52

1.82

0.92

0.22

1.08

0.08

0.35

0.05

0.36

0.00

0.08

0.10

0.02

0.00

Ingredient deep dive
Progress through collaboration

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Skretting Sustainability Report 2022

Estimated averages for Forage Fish Dependency Ratio (FFDR) for Atlantic Salmon farmed in Norway and Chile

Norway

Chile

Feed

SalmonFeed

SalmonFFDR meal

FFDR oil

FCRe

FFDR meal

FFDR oil

FFDR meal

FFDR oil

FCRe

FFDR meal

FFDR oil

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

Introductions
RoadMap 2025

Ingredient deep diveCalculation:
FFDRm = (forage fishmeal in feed % * eFCR) / 24%

Progress through collaboration

FFDRo = (forage fish oil in feed % * eFCR) / 5%

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Skretting Sustainability Report 2022

Opportunities in the marine ingredient sector

Marine ingredients, mostly fishmeal and fishoil, have been key to animal feed for several
decades, although their use has shifted frompig and poultry as the main users in the 1980s,
to aquaculture now using over 70%. This isdue to the vast growth in aquaculture overthe last decades and aquaculture being able
to utilise the nutritional properties of marine
ingredients better than other farming sectors.
The consumption of marine ingredients, andin particular fish oil in pharmaceutical andpetfood manufacturing sectors, has also been
growing. The use of marine ingredients bythese sectors is due to marine ingredients’nutritional properties and availability at scale:with 5 million metric tons of fishmeal and 1.1
million metric tons of fish oil produced every
year, marine ingredients offer predictability
in terms of volume and benchmark status interms of nutrition.
There are several opportunities in the marine
ingredients sector. One of those is circularity:
although most of the fish caught from thewild and farmed is for human consumption,
generally less than 50% of that biomass iseaten.

There is therefore a considerable amount ofbiomass available for repurposing. Already one
third of fishmeal and fish oil comes from fishby-products. With projected industry growthin aquaculture, there is a clear opportunity for
future growth in the raw material base for marine
ingredients. Whole fish thinking is the way forwardand marine ingredients is one of the sectors that
can help make this ambition a reality.
Another opportunity is for the marine ingredientsindustry to demonstrate its positive impacts andcontribution to global food security. This is an
exciting challenge which IFFO has embraced bystarting a life cycle assessment project basedon a publicly available third-party comparable
metrics system: the Global Feed Life cycle
assessment Institute (GFLI) database.
Rather than being focused on a single metric, likecarbon footprint, it considers 19 different impact
categories. Addressing regional challenges isanother priority: this cannot be done alone andrequires a collective approach based on fisheries
management and pre-competitive principles.

Introductions
RoadMap 2025

Ingredient deep dive
Petter Martin Johannessen
Director General, IFFO

Progress through collaboration

Transparency & Trust
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Skretting Sustainability Report 2022

Mauritanian small pelagics FIP progress
Mainly comprising sardines, as well as sardinella, pilchards, horsemackerel, chub mackerel and bonga shad, Mauritania’s small pelagic
fishery improvement project (FIP) was initiated in 2017 through apartnership formed between the country’s fisheries authority, theMauritanian oceanographic and fisheries research institute (IMROP),
local businesses and international fishmeal and fish oil producers.
With the fishery consisting of artisanal and coastal purse-seine
and pelagic trawl vessels that target the aforementioned species
in Mauritanian waters, the FIP mainly aims to support the country’s
government in working towards robust management and the long-termsustainability of the resource. It has been working with scientists toimprove data collection on the fishery, landings and stocks, in order toimprove the knowledge of stock status and hence enable management
to make informed, sustainable decisions.

•Moving forward, key objectives for the fishery are:
Better align removals from the stocks with sustainable yield levels tofacilitate the recovery of depleted stocks, with both a regional and anational focus•

Reduce capacity in the system, specifically fishing effort, fleet size andtype, as well as the number of fish meal factories, to match the moresustainable level of landings•

Introductions

Dockside and factory sampling, with the FIP providing support to IMROP
enumerators to collect catch data and samples for species and size
composition analysis

Enhance management responsiveness to the stocks by increasing andimproving research and monitoring•

RoadMap 2025

Data entry for previous paper logbooks, with the FIP continuing to provide
support for the data entry of large quantities of paper logsheets fromvessels, dating back several years. This is a valuable endeavour, as itprovides time series data on catch and effort

Gradually orient landings towards more Mauritanian and socioeconomically beneficial supply chains, with fish meal production graduallyshifting towards using by-products•

Improve regulation, monitoring, and surveillance to ensure compliancewith quotas and other regulations, reduction or elimination of bycatch and
ETP impacts, reduction of fishing pressure on juveniles and spawningareas, among others

Ingredient deep dive

Initial analysis of 2022’s sampling rate indicate Mauritania will have met
or exceeded the minimum sampling rate set by CECAF (FAO) for thethird consecutive year. Furthermore, in November 2022, it supported
the Small Pelagic Management Plan (PAP-PP or Plan d'Aménagementde Pêcherie-Petits Pélagiques) and its validation by the Ministry ofFisheries, effectively making it the official planning and policy document
for the fishery.

61

The upgrade to “A” Grade by FisheryProgressproves that the FIP is going on the right
direction, but at the same time we want tocontribute to accelerate improvements on socialand environmental indicators to support thesustainable production of marine ingredientsfrom Mauritania.

•

To enhance the information available, the FIP is supporting two key
work areas:•

The PAP-PP covers a wide range of topics related to fishery
management, including but not limited to, assessment andmanagement of resources, ecosystem and bycatch, monitoring
and research, control of landings and fishing/processing capacity,
surveillance and enforcement system, different fleets and supply
chains, socio-economic issues and employment, food security,contribution to trade and GDP, regional coordination and comanagement, as well as the necessary means, finance, capacity andtimeframe for implementation.

At the beginning of 2022, Skretting committed
to the small pelagics FIP in Mauritania as partof our commitment to be part of the solutions tothe challenges faced by our industry.

Skretting Sustainability Report 2022

The FIP received an external peer review of the project from MarinTrustin December, which recommended continuation of the FIP in the
Improver Programme and provided suggestions for the workplan.
It also continues to receive a grade A (advanced progress) from
FisheryProgress, which evaluates and measures projects’ progress tounderstand the rate at which they are improving.

Progress through collaboration

Transparency & Trust
Jo Gascoigne
Coordinator Morocco &Mauritania FIP

About Skretting
HomeNAPA: Using market forces to press for sustainably-managed pelagic fisheries
Skretting’s position

The consistent inability of Northeast Atlantic coastal states to find an
agreed solution that delivers long-term, sustainable management of
their shared pelagic fish stocks is of increasing concern to seafood
supply chains.

According to Pickerell, the close involvement of commercial businesses
and the broader industry has been recognised as a vital component in
the delivery of FIPs since they were established, with the market pullincentivising better policy decisions.

Established in 2020, in response to the continuing dispute over
the region’s mackerel quota allocations, the North Atlantic Pelagic
Advocacy Group (NAPA) now comprises more than 60 leading
retailers and supply-chain businesses from across the world, including
Skretting, all of which are publicly committed to the responsible
sourcing of sustainable seafood. NAPA also has a number of affiliate
member associations. This collective is using its voice to advocate forlong-term, science-based management of Northeast Atlantic pelagic
stocks.

This has been crucial because, as has been seen in the Northeast
Atlantic, it’s often very difficult to establish consensus among thecoastal states. Without agreement on sustainable allocations, eachstate has been allocating its own share of the total recommended
catch. Unfortunately, the collective sum of these allocations has beenmuch higher than the scientific advice – meaning fishing fleets arecatching at unsustainable levels.

Over time, the quota dispute has resulted in annual catches well above
the advised level for the three commercially important species ofmackerel, Atlanto-Scandian (Norwegian spring-spawning) herring andblue whiting. NAPA’s aim is to establish sustainability in these fisheries
by securing an agreement on total allowable catches (TACs) in linewith scientific advice, as well as long-term science-based fisheries
management strategies.
The coalition is united in wanting to be able to source pelagics from thisregion providing that long-term, science-based management practices
are in place that are supported by coastal states’ decision-makers.
It intends to help deliver these aims through a fishery improvement
project (FIP) for mackerel and herring (launched in April 2021), andalso a MarinTrust Improver Programme (IP) for blue whiting (launchedin October 2021). Both with three-year timelines, the FIP and IP serve
to drive political will while holding key actors and decision-makers toaccount.
“Our FIP aims are very simple. They are to get the fisheries in a position
where they can get Marine Stewardship Council certification if theywish, and to do that we need to agree an allocation mechanism, follow
the scientific advice and commit to long-term management,” said NAPA
Project Lead Dr Tom Pickerell.
62

Skretting Sustainability Report 2022

Despite the setback in 2022, the level of commitment andattention that the project is gaining reaffirm the confidence that it
is possible to set total fishing effort in line with scientific advice by2024. It will be important that we continue adding market pressure
to drive decisions based on scientific advice for sustainablefisheries.
For now, we will continue purchasing blue whiting as long as the
FIP is in place. We do this because by maintaining involvement we
can drive change. But should progress falter, or the FIP fail, there
is a risk that the blue whiting fishery will not qualify according toour marine ingredient sourcing policy.

The Northeast Atlantic mackerel and herring FIP comprises three coreaction points:•

Sustainable harvest strategies•

Effective means for dispute resolution between coastal states•

Science-based decision-making by all management parties

To ensure full transparency of its work, the FIP is independently-audited
and follows MSC certification criteria as benchmarks for sustainable
practices. But Pickerell highlighted that what’s key – or the “teeth”– behind this FIP is the sourcing statements that NAPA members
have issued, some of which include the warning that they will stop
purchasing from these fisheries.
“These sourcing statements are quite novel as often these decisions
are private to the businesses involved. But by having the individualcompanies' positions published, we are setting a very clear set ofconsequences,” Pickerell said.
Indeed, if the FIP were to fail in this regard, NAPA would expect thesecompanies to honour their sourcing statements. Moreover, it fears therisk of these stocks actually becoming overfished would dramaticallyincrease and require rebuilding on top of everything else.

Introductions
RoadMap 2025

Ingredient deep dive
Dr Tom Pickerell
NAPA Project Lead

Progress through collaboration

Transparency & Trust
About SkrettingHomeNovel ingredients

In tumultuous times in particular, the priority for our procurement teamis availability - ensuring we have the right nutrients available at the rightlocation to ensure uninterrupted supply to our customers.
With commodity prices remaining high, we are focused on alternative
ingredients and suppliers to spread the risk and keep costs down. Thishas created opportunities for several novel ingredients to become morecompetitive.
In 2022 we made important progress in novel ingredients, increasing
our overall inclusion rate from 0.064% to 1% of total raw materials
purchased.
The volume increase was partially due to our increased usage ofomega-3 alternatives, such as algae and omega-3 canola oil. Severalof these oils are now commercially available and implemented inmost of our aquafeed businesses. We saw good tailwind behind theintroduction of novel vegetable raw materials, such as horse bean
starch and concentrated maize distillers' grains, and we are pleased
that these products, developed specifically for the feed industry, arefinding their way into aquafeed diets.
Skretting was only able to achieve this progress through a constantfocus on novel market opportunities. We fully utilise our global
procurement, quality assurance and R&D resources to identify, develop
and implement ingredients that fit into our novel strategy, which is tofocus first and foremost on low-footprint and right-cost ingredients.

In 2022, our overall
inclusion of novel
ingredients grewfrom 0.064% to
1% of total raw
materials purchased

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Mette Lütcherath
Category Manager Novel Ingredients
Nutreco

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Bringing novel ingredients to commercial scale
Collaboration between start-ups and large corporates is key for
fostering innovation in sustainable aquafeed. The corporate brings
decades of experience in scale up and fish nutrition, and start-ups help
corporates to develop new sustainable products.
This is exactly what happened with our collaboration with Skretting.
EniferBio got off to a flying start in validating PEKILO® single cell
protein in salmon feed after winning the 2020 Nutreco Feed & Food
Tech Challenge. The prize was a digestibility trial in salmon. The trial
proved that the protein digestibility of PEKILO® was comparable to thedigestibility of fishmeal.
Now the collaboration has reached a new level and Skretting is
finalising a large-scale salmon growth trial which will validate the feed
formulation at the right inclusion rate of PEKILO® protein for salmon.
The goal is to proceed to an offtake agreement, a key milestone forthe investment decision of the full industrial scale (10 kT/a) PEKILO®
protein plant that is currently planned to be built in France in the
coming years.
Currently, European salmon farming is dependent on imported protein
ingredients. A dramatic increase in European protein crop farming is not
likely because of the temperate climate.

However, scaling PEKILO® protein production is quite straightforward
due to its previous 15-year operational history at industrial scale.
The biggest challenge for a start-up like eniferBio is get conservative
partners in the commodities industries convinced to team up with us.
A major focus for eniferBio has been the bioethanol industry having thelargest suitable raw material base for the PEKILO® production.
The offtake agreement would significantly speed up the investment
decision for the first PEKILO® production plant, which in turn would
be an important reference for the following production plants. For
example, Europe’s largest bioethanol plants have an annual production
capacity of 500 million litres of ethanol or more. The distillation residue
from one such plant alone could support the production of ~50 kTof PEKILO® protein and make a sizeable impact even at the scale of
Norwegian aquaculture and Skretting. This would be a prime example
of sustainable circular economy within Europe with a positive impact onland use.
EniferBio has been very satisfied with the collaboration with Skretting todate. The interaction with the team at Skretting has been just excellent
and we look forward to more future highlights.

Heikki Keskitalo
Co-founder
EniferBio

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Seeding innovation for the future of aquaculture
Nuseed is a global leader in seed development. Established in Australia
in 2006, Nuseed expanded to Europe and the Americas to cultivate thepower of plants for sustainable seeds, energy, and nutrition.
Aquaterra® Advanced Omega-3 demonstrates this commitment to
revolutionary innovation. Nuseed developed the world’s first canolabased source of DHA and EPA. There is gap between how muchomega-3 oil the ocean can supply and how much more aquacultureneeds to support fish health. Feed inclusion rates for these essential
nutrients have declined as production has increased over the past
twenty years, yet study after study indicates the benefits of highomega-3 content for fish health and fillet nutrition.
The United Nations Sustainable Ocean Coalition is calling on
aquaculture to increase seafood production six-fold by 2050, as wildcaught fish cannot reproduce fast enough to meet the protein demandsof a growing population. Novel sources of long-chain fatty acids arevital to expanding our business without adding pressure to marine
resources.

As leaders in sustainable food production Aquaterra® is well alignedwith Skretting’s goals and values. Just one to two hectares of Nuseed
Omega-3 Canola produces as much DHA as 10,000 kg of wild caught
fish oil. This crop can double the current supply of long-chain fatty
acids on less than 5% of existing canola producing land.
A significant challenge for novel ingredients is proving efficacy andgaining market entry. Skretting has been an instrumental partner inintroducing Aquaterra® to salmon feeds by testing and validating thequality of this oil before launching into commercial scale production
and advising on best formulations to increase total omega-3 while
improving key sustainability indicators, including FFDRo and GHG.
Since the commercial launch in 2020, Aquaterra has become an
important tool for reducing dependence on foraged fish oil in Skretting’s
Chilean and Canadian operations. The partnership will continue toexpand as Nuseed gains regulatory approval in additional salmon
production markets.

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Progress
throughcollaboration

Engaging with internal and external stakeholders is key toensuring we invest the right focus and effort in continuous
improvement and dealing with the complex issues that face thefuture of sustainable food.
We asked some of our customers and other stakeholders
to share their sustainability journey. Sharing knowledge andexperience guides our sustainability efforts to ensure we canmake the maximum impact in the areas in which we operate.

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AquaVision: With united action, aquaculture can overcome its biggest challenges
Once again in 2022, AquaVision was held in Stavanger. AquaVision is
the global aquaculture business conference that is organised bienniallyby Skretting and Nutreco. Attended by industry leaders and changemakers from across the world, AquaVision 2022 represented the 14th
edition of the event – held 26 years after the first.
With the focus firmly fixed on navigating the future and expanding thepossibilities of the aquaculture value chain, AquaVision 2022 sought toinspire actors to work towards a food system that can sustainably feeda world population that will reach 10 billion by 2050.
Setting the scene, Keynote Speaker Professor Joseph Stiglitz, theNobel Prize-winning economist, insisted that some of the main
sources of the global food supply have not lived up to the fundamental
requirement of providing sufficient products for the world population
to consume in a stable and resilient way. In this regard, AquaVisionattendees heard first-hand how aquaculture faces the triple-headline
challenge of huge population growth, climate change and social
impacts. They also learned why it is imperative that all production
systems are enabled to collectively produce vast quantities ofadditional food that is both climate-friendly and that makes morepositive contributions to human well-being.

Nutreco CEO Fulco van Lede told AquaVision 2022 that sustainably
feeding the ever-growing world population is a challenge that no single
organisation could, or should, face alone. Instead, he said the required“blue food” supply growth rates can only come from committed
collaborations that span the entire value chain. Van Lede advocatedthat transparency, trust and accountability are essential requirementsfrom all stakeholders and also that the value chain is far stronger when
it is united in its actions.
“Our story has to be about collaboration, and about showing that, if
we want to drive transformational changes for our industry, we must
work closer together as suppliers, feed producers, farming companies,
NGOs, certification bodies and other relevant stakeholders across thevalue chain. We know that we have not done enough and that we must
do more – better and faster,” he said.
The AquaVision 2022 programme also included guest speakers from
the Monetary Authority of Singapore, IKEA, Mintel Group, AKVA Group,
SalMar Aker Ocean, Glunashrimp, Mayank Aquaculture and LatticeConsulting.

Speakers at AquaVision 2022, top to bottom:
Skretting CEO Therese Log Bergjord; Nutreco
CEO Fulco van Lede; Fisheries Scientist andScience Communicator Emily de Sousa; Farmer
and Aquaculture Expert Dr Manoj Sharma;audience members during AquaVision 2022

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Passing the mic
On the following pages we share insights from many of our different
stakeholders and collaborators. Here’s a preview (click on the photos to
go directly to their articles).

Wolfgang Harten
General Manager
Grupo Almar

Tore Eliassen
Head of Sustainable Development
Cermaq GroupÁrni M. Mathiesen
Independent Chair
Global Roundtable on Marine Ingredients

Sophie RyanCEOGSI

Dan LeeStandards Coordinator
Global Seafood Alliance

Alexandra Warrington
Senior Coordinator Feed Standard
Aquaculture Stewardship Council

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Eduardo Solar
Licenses and Sustainability
AVRAMAR68

Skretting Sustainability Report 2022

Egil Magne
CEO
Pelagia AS

Martin ExelManaging Director, SeaBOS

Libby Woodhatch
Executive Chair
MarinTrust Governing Body Committee

Emese van Maanen
Managing Director
ProTerra Foundation

Carlos Montero Castaño
Senior Fisheries Program Manager
Pathways & Small Pelagics
Program Development Team
Marine Stewardship Council

HomeChampioning ‘purposeful’ production in Ecuador

Sustainability is a priority

Ecuador’s sizeable, fast-growing, and strategically located shrimp industry has a key role toplay in meeting the world’s rising requirement for protein. Grupo Almar wants to be part ofthe solution, and as one of Ecuador’s largest producers, it’s a responsibility that we intend tolive up to through our commitment to what we call “purposeful aquaculture”, which involves
implementing positive, far-reaching actions across our operations so that future generations
may benefit.

Aquaculture must drive the blue transformation inalignment with the United Nations Sustainable
Development Goals and the European Green
Deal, and as an essential part of the European
blue economy.
Being aware of this challenge, sustainability
has become a priority for AVRAMAR, and thisis reflected in all our functional areas and ourentire value chain.

In this regard, and one area in which we’ve already led the way, is in making sure that thepeople who work at Almar have good working conditions. Unfortunately, this still isn’t agiven in this part of the world, but for us, it’s mandatory. The accommodations and facilities
we provide are of very high standards. This results in more committed employees; andemployees are an integral part of what we are building. It’s the Almar way.

This priority is a direct result of an increasingsocial awareness reflected in:

Another aspect of our approach is working closely with the communities where we arepresent; we recognise that local stakeholder involvement on various programmes is crucial to
our long-term success.

•••

Underpinning all our sustainability efforts are our four pillars: Environment, Employees,
Community and Certifications. To support endeavours in these areas, we have madeseveral important commitments. A main commitment is neutral impact in the water. This isparticularly significant as we operate one of the largest recirculating systems in the world forshrimp aquaculture grow-out. Other significant pledges include protecting
Ecuador’s mangroves and replacing the group’s use of fossil fuels withrenewable energy.

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Increasing demands from our customers
The inclusion of sustainability criteria in the risk
evaluation of financial operations
An increasingly demanding European regulatory framework

In this setting, we are facing five challenges that extend to the wholeaquaculture sector:

Specifically related to feed, Grupo Almar is looking at ways in which
we can verify the full traceability of all ingredients used in our feeds.
These actions are all central to our purposeful aquaculture
philosophy, and through collaborative initiatives with other industry
stakeholders, including Skretting Ecuador, we’re now seeking
pathways to accelerate these sustainability efforts in 2023 andbeyond.

Eduardo Solar
Licenses and Sustainability, AVRAMAR

Wolfgang Harten
General Manager
Grupo Almar•

Ensuring the use of sustainable raw materials in the feed, and reducing the dependency
of protein from extractive origins•

Improving animal welfare, especially during harvest•

Applying preventive measures and vaccines in order to reduce the use of antibiotics•

Reducing the use of plastics•

Replacing fossil fuelTaking all these factors into consideration, feed is a key element in ourcommitment towards sustainability. Therefore, we make strict demands toour providers, such as the sourcing of raw materials with certificate of origin
and the development of formulations that include novel ingredients. This
is why our close collaboration with Skretting is crucial, as their strong R&D
expertise allows them to adapt their feed to our sustainability needs.

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The need for transparency
Cermaq Group AS is a leading global producer of aquaculture
salmonids. With headquarters in Oslo, Norway, Cermaq has operationsin Chile, Canada and Norway, and sales around the world.
As we are growing aquaculture to meet the need for low carbon
footprint proteins, we focus on growing together with stakeholders
where we operate. Our feed partners are essential to the positive
development of salmon farming, and we will engage with them toensure that we create strong solutions throughout our value chain.
The emissions from feed ingredients and production are the highest
source of greenhouse gas (GHG) emissions in our value chain.
Therefore, understanding of the emissions from our feed is crucial
both to setting a climate emissions target and to achieving that climate
target. In particular, tracking and reporting the emissions from feedon an annual basis is a key part of understanding how to reduce ouremissions. In close partnerships with our feed suppliers and withshared ambitions we can ensure that we work on the hot spots in ourvalue chain.

The aquaculture industry also has a great opportunity in moving
towards more circular business practices. We need to utilise resources
better and work with partners to create sustainable business models.
A circular mindset is important and regulations and business models
that support this is something that we support wholeheartedly. Our feed
partners are essential to this work through optimising the raw materials
used and exploring new ingredients and by-products that can reduce
the overall resource use.
To achieve the key goals of both Cermaq and Skretting we needtransparency and data. In parallel we must work with governments andother stakeholders to build and develop strong governance systems.
Cermaq therefore welcome the stricter reporting regimes that will
drive the topics of data and transparency forward. We look forward
to continuing to engage with our feed suppliers to ensure that thesalmon we put on the table has had the lowest impact journey possible.
Skretting has been a strong partner in this work, and we have great
expectations to their contributions going forward.

Tore Eliassen
Head of Sustainable Development
Cermaq Group

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The sustainability vision, challenges and possibilities from a supplier perspective
Pelagia processed 1,300,000 tonnes of fish in 2022. The goal is tocreate value from the entire fish. Divided into our four divisions, Food,
Feed, Hordafor and Health, the Pelagia group generated NOK 11.2
billion of revenue in 2022. As one of the largest fish producers in theworld, Pelagia has the possibility to influence both human resources
and the environment. We will use our responsibility to manage thisposition in the most sustainable way.
Our Vision
Pelagia’s raw materials are the world's most sustainable marine
protein and oil sources. Our landing and handling of these materials
must utilise the entire fish to the lowest footprint as possible until the
products are handed over to the customer.
Our conduct determines how we create value together. To make an
impact, Pelagia systematically accentuates our partner’s conduct
towards their employees.
Challenges and opportunities
Pelagia's production processes are energy intensive. The same goes for
our logistics operations who distribute large volumes both at land andat sea. Today, Pelagia uses fossil fuels and renewable energy. We are in
the process of switching our energy sources from fossil to renewable.
Several of the alternatives to fossil fuels, especially at sea, are still
immature but we also see great opportunities. New energy sources
such as burning self-produced bio-oil, electric boilers, high-temperature
heat pump technology and zero emissions are examples of measuresthat Pelagia is now introducing.

High volumes of fish for human consumption are exported
unprocessed. Exporting processed fish (fillets) will reduce shipping
volume while keeping valuable by-products in Norway, which is asource to produce desired raw materials domestically. To increase
processing, resources like new technology, development, testing,and trials are required in parallel with full production. In recent years,
Pelagia has invested considerable sums in developing and solving
these challenges. This will continue in the coming years. Cooperation
between private corporations and public sector is important to succeed
with increased domestic processing. The opportunities that lie inincreased processing are significant, both for added value per fish,
reduced shipping, and higher employment.
As a significant corporation in the fish industry, Pelagia has a desire
to gain access to the best expertise and we must be able torecruit employees from 100% of the population. Men and womenmust have equal access to all positions in Pelagia. In cases
where there is a proportional difference between women andmen, we will analyse the reasons and assess if Pelagia can takemeasures to ensure access to the best expertise.

Egil Magne
CEO
Pelagia AS

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United Nations Global Compact
Skretting, through Nutreco, is member of the United Nations
Global Compact programme, which supports companies
seeking to conduct their business responsibly through thealignment of their strategies and operations with its Ten
Principles on human rights, labour, environment and anticorruption. The UN Global Compact also encourages
companies to take strategic actions to advance broader societal
goals, such as the UN Sustainable Development Goals, with anemphasis on collaboration and innovation.
The UN Global Compact has a Sustainable Ocean Business
Action Platform that convenes leading actors from business,academia and government institutions to determine how oceanindustries can advance progress towards the Sustainable
Development Goals (SDGs). The Action Platform has, inconsultation with more than 300 stakeholders worldwide,
developed the Sustainable Ocean Principles to emphasise theresponsibility of businesses to take necessary actions to securea healthy and productive ocean.
As signatory of these principles, Skretting recognises theurgency and global importance of healthy oceans and asustainable aquaculture industry and will take action to promote
the wellbeing of the ocean for current and future generations.

Global Roundtable on Marine Ingredients
The Sustainable Ocean Principles provide a framework for
responsible business practices across ocean sectors andgeographies, serving as a common reference point on ocean
sustainability. They build upon and supplement the Ten
Principles of the UN Global Compact, covering ocean healthand productivity, governance and engagement, and data andtransparency.
The ocean is vital to the well-being and prosperity ofhumankind. To achieve the world community’s ambitions aslaid out in the Sustainable Development Goals, there is a needto expand our use of the ocean to produce food, energy, rawmaterials and transportation. Carrying out these activities in asustainable manner will contribute to reducing global warming
and environmental degradation, while also ensuring a healthy
ocean that can provide significant opportunities for businessand global economic growth.
As described in Sustainable Development Goal 14: Life Below
Water, there is an urgent need to protect and restore the healthof the ocean, which is rapidly deteriorating due to increasing
temperatures, acidification, the depletion of natural resources,
and pollution from land and sea. Businesses have a shared
responsibility, alongside government and civil society, to takenecessary actions to secure a healthy ocean.

The Global Roundtable on Marine Ingredients was launched by
the Sustainable Fisheries Partnership (SFP) and IFFO – the Marine
Ingredients Organisation in 2021. It now gathers 13 value chain
representatives and aims at increasing the availability of responsibly
sourced marine ingredients and driving environmental and social
improvements in fisheries.
Based on a strong coalition of organisations which have embraced
collaboration as a powerful means to drive change at a pre-competitive
stage, the Global Roundtable has agreed that the focus, to start with,should be on three tangible projects: West Africa, South and Southeast
Asia and a global project focusing on analysing the marine ingredientsindustry’s environmental impacts through a life cycle assessment.
Addressing regional challenges is a long-term ambition which relies not
only on the industry’s willingness to benchmark local practices against
those assessed against international guidelines, but also on local
regulations and regional cooperation on shared fish stocks. Developinga better understanding of regional and local market forces is central
to those projects as they will determine which
infrastructure could be put in place to ensure
food security locally. Entering into dialogue
with local stakeholders is another key
factor of success. In this respect, Global
Roundtable Members believe in the
Fisheries Improvement Project model,
which, first and foremost, gives priority
to a multi-stakeholder approach anddemands accountability.
Árni M. Mathiesen
Independent Chair
Global Roundtable on Marine Ingredients

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SeaBOS
Seafood Business for Ocean Stewardship (SeaBOS) is a scienceindustry initiative founded in 2016. It consists of ten of the world’s
largest seafood companies collaborating with science to implementa joint vision to support more sustainable seafood production andimproved ocean health. The initiative connects capture fisheries withfeed producers and aquaculture businesses across Asia, Europe, andNorth America.
Pre-competitive collaboration is at the heart of SeaBOS. Spanningcultural and geographical boundaries, the aim of SeaBOS is to developscience-based solutions to address key challenges and provide
leadership, guidance, stewardship, and best practice for others to use.
Working with Nutreco/Skretting and our members to lead a global
transformation of the seafood sector is an ambitious task. That is why it
is of critical importance that we have committed and engaged members
who take action in their own operations and value chains – and who are
not afraid to share their lessons learned.

As a founding member of SeaBOS, Nutreco has been leading the
SeaBOS task force on Illegal, Unreported and Unregulated (IUU) fishingand modern slavery from the outset.
Over the past five years, SeaBOS has contributed to a number ofactivities, from accelerating traceability in seafood value chains
together with the Global Dialogue on Seafood Traceability, to piloting
a project on electronic monitoring on fishing vessels, a project led by
Nutreco.
We will continue to work with partners to create transformationalchange. The importance and value of working together to make thefeed industry and seafood value chains more sustainable cannot be
overstated. We have come a long way, but there is still important work
to be done. Having Nutreco onboard as a committed and pro-active
member on this journey is a strength to our collaboration and helps us
move forward on our mission for ocean stewardship.

To address IUU fishing and modern slavery risks specifically,
SeaBOS has created:• A toolkit which companies can tailor to meet their specificneeds, outlining policies and guidance procedures to establish aframework to deal with the issues• Voluntary procurement actions, which addresses issues ranging
from responsible raw materials sourcing and mechanisms to help
eliminate forced, bonded and child labor, to protocols for auditing
and compliance and advancing traceability.
• Risk analyses created by SeaBOS scientists mapping key risks
for labor abuse and IUU fishing at port, at sea, and associatedwith transshipment, and with identified key risk drivers.
The objective of this work is to help identify and mitigate risks
and strengthen the overall sustainability and labor performance of
seafood operations.

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Martin ExelManaging Director, SeaBOS

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Global Salmon Initiative
Aquaculture is the fastest growing food system in the world, andfor good reason. Coupling many health benefits associated with
consuming seafood, a smaller environmental footprint, and lower
greenhouse gas emissions compared with land animals - blue
foods – both wild and farmed fish- can be a crucial component
in tackling sustainability, health and development challenges
across the global food system.
What’s more, demand is likely to continue increasing. The HighLevel Panel for a Sustainable Ocean Economy found that theocean has the potential to deliver six times more nutritious andresponsible food by 2050 if managed responsibly.

Sophie Ryan
CEO, GSI

It’s this point of being managed responsibly which is crucial.
Like all food systems, growing demand poses both opportunities
and challenges for production. For aquaculture to deliver on
its potential of providing nutritious and sustainable food, it
will require greater transparency, greater ongoing innovation
along with thoughtful investments and effective policies. To be
successful this requires collaboration on all levels.
The aquaculture sector has proven experience in mobilising
responsible production, and many producers thrive in an
ecosystem of continuous improvement. So how can we
maximise this potential? By working together to improve
environmental performance we can make progress faster, andimprove how we share our story and build trust in our operations
with our stakeholders.

This is how we work in GSI. We use the critical mass of industry
to set ambitious goals to motivate accelerated progress,
create dedicated expert task forces to share best practices
and problem solve on environmental challenges, and provide
a framework for members to report transparently against
consistent and aligned metrics to show progress being made.
Working collectively across focus areas like improving feed
efficiencies, improving fish health and welfare, and lowering
carbon emissions, GSI members are adopting best-practices,
investing in R&D and technology advancements, and above
all enacting sustainability commitments that can make realdifferences in how we produce healthy, sustainable food.
This year, GSI is reaching our 10-year milestone, and while wehave made measurable progress there is still a lot more to be
done. The challenges are complex and continually evolving,
but if we focus on the data – being transparent, and combining
expertise – we have the knowledge to overcome them. Yes, thereis the option to work individually, but to see change at the speed
and scale the food system requires, working collaboratively isgoing to give us a better chance of succeeding.

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MarinTrust continuing to expandStandards must continually develop to remain both credible andrelevant, and 2022 has been no exception for MarinTrust as wemove closer to the 2023 launch of version 3 of the MarinTrust factory
standard.
During 2022, this development process saw workshops focusing on
by-products and social criteria, two key areas for enhancement in v3,
followed by extensive trials and pilots in the field. Having the MarinTrust
programme, with its three key components (the factory standard, thechain of custody standard, and the Improver Proagramme) embedded
in Skretting’s sourcing policy is central to MarinTrust’s recognition
throughout the value chain and, as a stakeholder, Skretting has
contributed to this development process to help balance market needs
with accessibility.
During 2022 the MarinTrust Programme continued to expand, with
21 new sites achieving the factory standard, taking the total to 165
globally, 17 new Chain of Custody certificate holders, taking thetotal to 86, and 10 new accepted Improver programme sites. All
these contribute to our strategic objective to have 75% of all marine
ingredients produced globally either fully certified, in assessment,
in application, or accepted on to our Improver Programme by 2025,
increasing the provision of responsibly sourced marine ingredients foraqua feed.

One of the main contributors to this has been our Improver Programme
and in 2022, for the first time ever, a fishery and its associated fishmeal and fish oil production sites gained certification following theirjourney on the MarinTrust Improver Programme with the Panamanianfish meal and fish oil production plants. The sourcing from the Panama
small pelagics fishery demonstrated full compliance, and just gained
MarinTrust certification after significant assessed and peer reviewed
improvements.
These successes can only be achieved through collaborative efforts
involving industry and government and the aquafeed value chain ispivotal in helping support and drive these improvements.

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Best Aquaculture Practices (BAP) - Human development, seafood and aquafeed
When it comes to investing in human development andwellbeing, three areas have been identified as giving themost bang for your buck: vaccination, contraception,and nutrition – areas that are of fundamental importancebecause they underpin healthy, productive lives and female
empowerment. Thus, when it comes to considering positive
impact, it’s clearly through nutrition that the seafood andaquafeed industries have their biggest roles to play. Indeed,
the vision of my own organization, Global Seafood Alliance(GSA), is ‘a world that embraces the role of responsible
seafood in meeting global nutrition needs.’ And if seafood
production is to expand, it can only do so on the back ofan expanding and sustainable aquafeed industry. To ensure
progress towards this end, I urge the aquafeed industry toprioritise:
Dan LeeStandards Coordinator
Global Seafood Alliance

1. Supporting efforts to control negative impacts of aquafeed
ingredient production. This may involve staying engaged
with, rather than retreating from, some controversial
industries so that they can be steadily improved.
2. Maintaining support for the responsible managementof marine resources for example, through certification
programs like MarinTrust and through engagement in fisheryimprovement projects (FIPs) especially in areas such asWest Africa where weak management is reducing fisheryyields and impacting local communities.

3. Taking the lead in supporting responsible, certified, DCF(deforestation and conversion-free) sourcing of terrestrial
crop ingredients and, on the basis that ‘what gets measured
gets managed’, support efforts to identify and measurecarbon footprints and other impacts in general so that
progress towards low impact feeds can be made. Aquafeed
can lead the way here and show other animal feed sectors
how to align supply chain forces to deliver positive change.
4. Supporting 3rd party certification of feed mills and new
initiatives such as GSA’s Vanguard Standard for Ingredient
Sourcing and Climate Action.
5. Challenging popular misconceptions. Few people
understand that the main negative impacts of aquaculture,
as shown by life cycle analysis, occur on the land not thewater and are often due to crop production for aquafeed
ingredients. Aquaculture should be defended against critics
whose objections amount to victimising fish farms simply
because they are the highly visible ‘new kids on the block’
among well-established food systems.

It is encouraging to observe a consumer trend towards
diets with lower impacts. The aquafeed industry can
support this trend and ensure that seafood production
expands responsibly, to the benefit of world nutrition,
sustainable food systems and climate action.

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Robust sustainability frameworks to generate resilient ocean environments and businesses
The Marine Stewardship Council welcomes Skretting’s sustainability
targets and commitments, and applauds the integration of sustainability
goals as core elements of your business.
The feed industry plays a crucial role connecting ocean health,fishing and processing activities with the development of importantseafood sectors such as aquaculture, among others. It is therefore afundamental tenet of this sector to operate within robust sustainability
frameworks to generate resilient ocean environments and businesses.
The targeting of small pelagic low trophic species, which often play key
ecological roles in their ecosystems, and which are heavily impacted
by climate change, makes the feed industry highly dependent on best
available science. Thus, collaboration and investment on research andhighly efficient fisheries management is fundamental for the successful
performance of companies in this sector.
This cannot be achieved without strong partnerships within supply
chains and in the pre-competitive space with other companies andorganisations. Our challenges are global and solutions need a global
approach too. For that purpose, MSC seeks to contribute to all possible
solutions that enhance ocean health for this and future generations.
Based on the FAO Code of Conduct for Responsible Fisheries andrecognised as an indicator in the United Nations’ Global Biodiversity
Framework, with scientific evidence and independent third-party
assessments at our core, the MSC certification program provides thehighest level of assurance to support progress towards environmental
sustainability in an operational, efficient, and transparent manner.

MSC is a tool and works with engaged partners to achieve ends weall share. Leading companies like Skretting are crucial to generatereal impacts and to achieve common sustainability goals. To that end,
MSC encourages Skretting, and all other actors of the feed industry, toenhance the application of measurable targets, to proactively pursue
their compliance, to engage in improvement projects to facilitate thetransition to sustainable fisheries and management everywhere, and tostrengthen the partnerships with credible science-based assurance
systems, such as MSC, to help deliver impacts on the water,transparent accountability and resilient businesses.

Introductions
RoadMap 2025
Ingredient deep diveCarlos Montero Castaño
Senior Fisheries Program Manager
Pathways & Small Pelagics
Program Development Team
Marine Stewardship Council

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Skretting Sustainability Report 2022

ProTerra - sectorial challenges
The links between raw material production
and deforestation, use of agrochemicals andinfringements of indigenous peoples’ rights
have been well publicised. The legal frameworks
within producing countries vary, with some land
and indigenous communities being protected bynational legislation, while other legislation allows
expansion into primary forest and grassland.
Many commodities are also being targeted by new
legislations, particularly in Europe, the UK and
the USA, where the plan for new due diligencelegislation has received intense discussions. These
kinds of due diligence frameworks put the onus on
downstream users of regulated raw materials toprove their supply chains are free of exploitation,
and are not contributing to deforestation and land
conversion (whether illegal or legal in the producing
country).
No single mechanism in isolation can solve
problems as complex as those posed within the raw
material supply chains. Instead, a combination of
direct supply chain approaches and whole system
initiatives are needed. Certification forms a key partof this suite of mechanisms, addressing different
challenges, and being an enabler to some of theother mechanisms. For example, certification goesbeyond the minimum requirements for the actors
within the system, as defined by national legislation.

Also, the transparency it can grant within the supply
chain enables companies to identify the origins of
their raw materials, and therefore where they may
wish to invest in landscape-based initiatives.
The need for greater transparency
Transparency within the supply chains remains
a significant blocker to organisations being able
to gain a full understanding of their own potential
impact.
For many companies, not even continent leveltraceability is currently available. The flow of thisinformation often stops at the points in the supply
chain where mixing of different batches tends totake place. Without this view of risk exposure
within their supply chains, companies lack certainty
as to how responsible their supply chain is, and are
unable to make informed decisions on how they
can best apply pressure or funnel incentives toinfluence the system.
The role that certification plays
Every business has a role to play in ensuring
environmentally and socially responsible supply
chains develop sustainably. Whilst other pathways
towards a more sustainable system focus on wider
industry transformation, certification is the main
direct approach for a company to address the
responsibility of the raw materials currently within
their supply chain.

Sustainability certification standards/management
programmes contribute to minimising nature loss
and maintaining/improving the quality of the land
used. As such, chain of custody sustainability
standards also enable companies to makeexternally auditable claims on the origin of their raw
materials, and how responsible their supply chainis.
By providing a mechanism for information andevidence to flow down the value chain, chain ofcustody certification fills an essential gap in current
due diligence processes within the sector. By
defining terms that can vary hugely across theindustry and creating a reference point for what
good looks like, certification schemes also givethe industry something to align behind, even if thecertification itself is not adopted. This is particularly
true for the definition of deforestation and land
conversion, which varies considerablyacross the industry, and can have a
profound effect on reporting andbaselining.
For an end user company,
sustainably certified raw
materials within the supply
chain brings:

Skretting Sustainability Report 2022

A standard of environmentally and ethically
responsible raw materials within the supply chain
which goes above the minimum requirements laidout by national legislation•

Greater certainty for the business when making
public claims, with traceability of materials backthrough the value chain which has been verified byexternal auditors•

Contributory evidence to demonstrate due diligencehas been undertaken within their own supply chain
to meet emerging due diligence requirements•

Increased knowledge of the origins of the material
within their direct supply chain•

A clear reference for what is expected fromsuppliers, defining what they see as sustainable

The ProTerra standard only certifies producers
who meet requirements to address a spectrumof environmental and social issues, including
deforestation and land conversion, biodiversity,
farming practices (including bans on use ofharmful pesticides and GMO crops), labour
practices, and FPIC. In addition, ProTerra
only operates physical chain of custodyschemes.

Introductions
RoadMap 2025
Ingredient deep dive

Progress through collaboration
Transparency & Trust
About Skretting

Emese van Maanen
Managing Director
ProTerra Foundation

78

•

Home

Tackling difficult feed challenges through ASC certification
Seafood can only be farmed responsibly if the‘upstream’ potential negative environmental andsocial impacts associated with the manufacturingof aquafeed and its raw materials are monitored,
reduced or prevented. This is a challenge for
all feed companies and, through its responsible
sourcing policy, Skretting has committed to
improving its own practices, whilst acknowledging
in this report that there is still much to be done.
Transparent certification offers a credible andaccountable way of recognising and rewarding
responsible practices. The ASC Feed Standard
takes the ASC’s approach to responsible
aquaculture at farm level and extends it to the feedmills that manufacture aquafeed. It covers legal,social, and environmental requirements for both thefeed mill’s own operations and for the suppliers ofingredients used in their feed production.

Feed companies must work with their suppliers to
conduct due diligence into the production of theirraw materials.
When considering deforestation risks forsoy and palm, 30% of tropical deforestation
due to agricultural conversion is consideredlegal, according to the laws of the country of
production. For crops grown in non-tropical areas
such as wheat and corn, the main problem isusually ecosystem/land conversion rather thandeforestation – for instance, grasslands rather thanforests being converted into agriculture fields.
ASC requires feed mills to ensure their nodeforestation commitments are applied acrossall major plant ingredients and that theirimplementation is part of a more comprehensive
no-land conversion approach.

Forced and child labour are critical issues toaddress in supply chains, but are particularly
difficult to mitigate, address and monitor within
fisheries.
Among the many and comprehensive social
requirements of the ASC Feed Standard, feedmills must ask probing questions of their marine
ingredient suppliers to convey the need for better
policies and checks regarding human rights abuses
on board fishing vessels.
The ASC Feed Standard offers a standardised
approach to supply chain risk assessment, as
well as requiring greater transparency andaccountability through public reporting.
By working towards ASC certification,
Skretting is demonstrating its commitment
to holistically addressing its morechallenging environmental and social
impacts.

Introductions
RoadMap 2025
Ingredient deep dive

Progress through collaboration
Alexandra Warrington
Senior Coordinator Feed Standard
Aquaculture Stewardship Council

Transparency & Trust
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Skretting Sustainability Report 2022

Transparency& trustTransparent supply chains can drive more responsible practices andconcerted efforts for the sustainable development of aquaculture. They
also enable consumers to access the information they need to trust theirseafood.
As aquaculture assumes an expanding role in meeting consumer
demand for seafood products, it is only natural that the quality andsafety of products come under the scrutiny of national and internationalorganisations responsible for food safety, and that consumers aredemanding more food quality and safety information. We have madetransparency and trust core pillars of our work at Skretting.
Read on to find out more.

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Skretting Sustainability Report 2022

Traceability, a key component for building transparency and trust

A traceability system allows us to identify the origin of our products all
the way from the field to the consumer. Changes to the product, forexample if it has been transformed or processed are included in thesystem. Traceability in the feed sector is directly related to food safety,
sustainability, ethics, and commercial responsibility. The existenceof an adequate and integrated traceability system, covering all feed
ingredients, is essential for us to carry out an effective risk assessment
throughout the production chain.
Traceability must be done both up and down. This means we must beable to trace products from the agricultural field to the final product andthe other way around. By law, companies must be able to trace one
step back and one step forward in the value chain.
Skretting demands that suppliers who manufacture, process, packor hold feed ingredients destined for our facilities maintain and sharespecific information (key data elements or KDEs) for certain criticaltracking events (CTEs) in the feed supply chain. This frameworkforms the foundation for effective and efficient tracing and clearlycommunicates the information that Skretting needs to perform suchtracing.
Key numbers for the system includes the lot number for eachconsignment of each ingredient, and the batch number of finishedproduct. From these numbers we can trace from a specific delivery of
an ingredient, to the product it was used to produce, which batch wasdelivered to a customer, and vice versa.
We can also gain information about the supplier, ingredient type,analytical results, certifications and more. Sometimes this information
is electronically available, and sometimes manually available in oursystems.

Some of the most important key data elements provided by thetraceability keys include:•

Supplier data (name, address, country). In the case that the manufacturerof the feed ingredient is different from the supplier, it is variable how easily
available this information is•Information linked to the origin of the feed ingredients where available,
including country of origin of primary production (agricultural products).
Registration of this information is dependent upon how we evaluate therisk of the primary feed ingredient

The data can be verified in several ways. In the case of supplieraudits, verification of traceability data is an important part of theaudit. Verification can also be obtaind through analyses from external
laboratories, verified by certification schemes and independent
surveyors. The type of verification used will be partially dependent upon
how critical the information is.

Specifically for marine ingredients we also receive:•

Manufacturer information (name, location and validity and certification
schemes)•

Country of origin (country where the batch was processed)•

Species that make up the batch, including the common name in English
and the Latin name. When a complete list of by-catch is declared, species
that in total constitute less than 5% of the batch can be recorded as“other”•

Certification status such as Marine Stewardship Council (MSC), MSC
Fishery Improvement Project (Comprehensive), MarinTrust, MarinTrust
Fishery Improvement Project, no certification•

Type of product (whole fish or by-product)•

FAO fishing area

Information requested from our suppliers is stored in Skretting’s
enterprise resource planning (ERP) system. The data are usuallytransferred via documentation that corresponds with the batch to bedelivered. Traceability data as of today are not electronically transferred
to us from our suppliers, althought this is something that we want toprioritise in the short term.

The value of the traceability system will bedependent upon how it is integrated with thequality management system. Skretting works tosecure that the integration is completed, and thetraceability system is linked with areas like:•

Risk analyses and product recall procedures•

Feed ingredient approval, feed ingredient supplierand manufacturer approval•

HACCP analyses•

Responsible souring policies•

Analytical results of feed ingredients and finishedproducts

Introductions
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Ingredient deep dive
Progress through collaboration

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Skretting Sustainability Report 2022

Transparency & Trust

Supply chain corporate social responsibility assessment
In 2022, Skretting implemented the EcoVadis IQ
and Ratings programs, which helps us understandand mitigate sustainability risks among our
suppliers, so we can continuously improve on
environmental and social topics across the value
chain. EcoVadis is one of the tools used to embedsustainability into our procurement processes,
including category management, sourcing, supplierrisk assessment, and supplier performance. The
EcoVadis IQ software enables us to conduct four
different supplier risk assessments:•

Environmental risk•

Labor and human rights risk•

Ethics risk•

Sustainable procurement risk

The risk level for each of these topics is based on
the geographic location of the supplier, and theindustry the supplier operates in. When combining
these four risks with the relative spend level of the
supplier, we can prioritise further actions to highrisk suppliers. Suppliers cumulatively contributing
to 66% of Skretting’s 2022 spend have beenassessed, highlighting 33 high-risk suppliers.

In 2023 we will engage with these suppliers tofurther evaluate the risk through the EcoVadis
Ratings platform. Within EcoVadis Ratings,
suppliers will be required to return a sustainability
questionnaire and provide proof for their answers.
The information provided is then evaluated by
EcoVadis and the supplier is scored accordingly.
This allows us to analyse the robustness of our
supplier’s sustainability policies in a standardised
way. The assessment also highlights which areas
each supplier covers, and which areas require
improvement.
In 2022, 183 of Nutreco’s suppliers had an
EcoVadis rating available, many of which supply
to the Skretting business as well, and we aim toincrease this number over 2023.

Norwegian Transparency Act
On July 1 2022, the Norwegian Transparency Act entered into force
with the aim of enhancing the accountability of larger Norwegian
corporations in addressing potential human rights violations in theiroperations and those within their supply chains. In response to this newlaw we began a pilot of EcoVadis at our Skretting Norway business.
We performed the risk assessment as described above, and thisrevealed 12 high-risk suppliers that require further attention in 2023.
We will request an EcoVadis Ratings assessment from these suppliers,
so we are able to identify any material gaps. We are happy to see thattwo of Skretting Norway’s high-risk suppliers have recently performed
an EcoVadis Ratings assessment, both scoring above the average
EcoVadis score with one even being in the top 1% best scoring
companies on the platform. Regardless of the scores, we will pursue
corrective actions on any material shortcomings identified during theprocess.
We recognise that the Norwegian Transparency Act is only one of themany due diligence laws to come in many of the countries where we
operate, therefore we are designing policies and processes to be able
to comply with all these laws.

Introductions
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Skretting Sustainability Report 2022

AboutSkretting

Skretting is the global leader in providing innovative and sustainable
nutritional solutions for the aquaculture industry. Skretting has
production facilities in 17 countries, and its 3,798 employees
manufacture and deliver high-quality feeds from hatching to harvestfor more than 60 species. In 2022, Skretting produced 3 million
tonnes of aquaculture feed.
The head office is in Stavanger, Norway. Skretting is the aquaculturebusiness line of Nutreco, which is headquartered in Amersfoort, theNetherlands. Nutreco is owned by SHV Holdings, a privately-owned
Dutch trading company, regarded as one of the world’s largest private
trading groups. SHV is a highly diversified company, with interests intransport, retail, oil, food and financial services. It currently employsaround 60,000 people and operates in 58 countries.

Introductions
RoadMap 2025
Progress through collaboration

Transparency & Trust
Ingredient deep dive

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83

Skretting Sustainability Report 2022

About Skretting

The vision that inspires us

The values we live by

Our people

Together with our customers, suppliers
and partners, we lead innovation to ensure
access to more sustainable, healthierand safer seafood for the world’s growing
population.

We updated our company-wide values in2022. The new values of trust, inclusivity,
curiosity, integrity and passion reflect
our purpose of Feeding the Future andunderpin our fundamental beliefs andthe guiding principles of how we dobusiness.

The collective experience, knowledge and talents of our people hashelped 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.

3 798
Total number ofpermanent employees

Skretting Sustainability Report 2022

2021
56

Introductions

Gender balance in senior
management

3 238

Men

Women

Men

Women

3 117

682

2 582

656

Number of employees by region (permanent and temporary)

84

2022
73

Skretting’s total number of employees, shown in total, by gender and by region

2021

Feeding the Future continues to be ameaningful purpose for us at Skretting. We
hope that you see why after reading thisreport!

2022

Our purpose

We are an equal opportunity employer; people are considered for all
roles without regard to race, colour, religious creed, gender identity,
nationality, citizenship status, age, physical or mental disability,
sexual orientation, marital, parental, military status or any other status
protected by applicable local law.

Number of nationalities
working at Skretting

Africa436

156

Asia Pacific

1 683

935

Europe696

830

North America
South and Central
America

199

176

1 264

1 141

2022
22%

2021
28%

RoadMap 2025
Progress through collaboration

Transparency & Trust
Ingredient deep dive

About SkrettingHomeEthics & Compliance

When the Russian army invaded Ukraine in February 2022, we wereconfronted with several ethical issues regarding Skretting’s business
related to Russia.
Our primary concern was to ensure the safety and well-being of ourNutreco colleagues in both Ukraine and Russia. Second, the Skretting
and Nutreco organisation strives to be a “good corporate citizen” inresponse to the war taking place in Ukraine. Having consulted some ofour key stakeholders, we made the choice to stop selling our products
to Russia and Russian-controlled territories.
During the year we made further efforts to embed Nutreco’s Ethics &Compliance (E&C) program in the Skretting business. We improved themethod of E&C reporting from Operating Companies to the Managing
Director (MD) of each Business Unit. The MDs are now provided withdata and insight into risks as well as the effectiveness and embeddingof our E&C program in their BU every six months. This ensures theirfull accountability and support for an effective E&C culture within theirorganisations.

The Code of Conduct and its accompanying e-learning course wererevamped in the new branding with a new introduction of our CEO anda new part on HSE. We relaunched the Code of Conduct e-learning to
all employees who had not completed it in the last 2 years. We also
conducted further risk assessments and training activities, particularly
on topics covered by our Competition Law Compliance and AntiBribery and Corruption policies.
Furthermore, E&C has worked with the communications, procurement
and sustainability departments to respond to the requirements of
the Norwegian Transparency Act as well as various certification andprequalification initiatives focusing on responsible business conduct.
For more detailed information on our E&C efforts, please see the 2022
Nutreco Sustainability Report.

Introductions
RoadMap 2025
Olav Kjeldstad
Ethics & Compliance Director

Progress through collaboration

Transparency & Trust
Ingredient deep dive

About Skretting
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Skretting Sustainability Report 2022

Occupational health and safe work
The loss of a colleague atwork in 2022

The efforts to enhance our reporting culture and transparency haveresulted in an increase of our total recordable frequency rate (TRCF)
and potential serious injury/fatality (PSIF) rates. Reliability on data has
also improved with IT integration. In 2022, we have recorded 2.02 TRCF
in the last twelve months. We expect to see an improvement in 2023.

A colleague lost his life at work in Ecuador
in 2022. This has significantly impacted theway Nutreco operates. More than ever, safety
has become a topic without compromise.
Huge investments in training and equipment
improvement have been made and driven by top
management globally and locally.

The increase in PSIF and TRCF is mainly driven by a more transparent
reporting culture and a more convenient way of reporting.

On a global level, the accident has accelerated
the creation and review of our standards forsafety and machine safety design. We haveenhanced the skills of our operations in Hazard
Identification and Risk Assessment. We havealso strengthened the reporting of unsafe
conditions and behaviours, to enhance ourawareness to the risk.

For more detailed information on our E&C efforts, please see the 2022
Nutreco Sustainability Report.

Serious Injuries andFatality Injuries (SIF)
Potential Serious Injury/
Fatality (PSIF)
Total Recordable
Frequency rate (TRCF)
Proactive reportingof Hazards (Hi) and
Recognition (T1)  

3(1 fatality*)

168

2021

2022

Incidents in Skretting in 2022

Introductions

1
Knowledgeable
and competentworkforce

RoadMap 2025

50

Progress through collaboration
2.02

3 259

1.23

74

Visible felt
leadership

Alexandre Bolay
Nutreco Global HSE Director

Transparency & Trust(0.82 per FTE) (0.02 per FTE**)
Well-designed
and maintained
workplace

Ingredient deep dive
Behaviour

NuSAFE principles overview

86

Skretting Sustainability Report 2022

About SkrettingHomeOur operations and research facilities

1

1

2

3

4

5

SKRETTING CENTRAL OPERATIONSHead office: Skretting
Head office: Skretting Aquaculture Innovation (AI)SKRETTING NORWAY
Location/s: Stokmarknes, Averøy and Stavanger
Feed for: Atlantic salmon, seawater trout, cod, halibut,
catfish and wrasse

6
5

3
11

7

Skretting OpCo + Skretting AI Research Station

9
13

17

16

SKRETTING ITALY
Location/s: Mozzecane
Feed for: Freshwater trout, sea bass, sea bream,
sturgeon, eel, catfish and carp

Skretting OpCo + Skretting Validation Station

12

14

15

SKRETTING CHILE
Location/s: Osorno and Pargua
Feed for: Atlantic salmon, pacific salmon, freshwaterand ocean trout, tilapia, shrimp and yellowtail
amberjackIntroductions

SKRETTING SPAIN
Location/s: Cojóbar
Feed for: Freshwater trout, sea bass, sea bream,turbot, sole, meagre, eel, carp, catfish, amberjackand sturgeon

SKRETTING CANADA
Location/s: Vancouver and St Andrews
Feed for: Atlantic salmon, arctic char, pacific salmon,
sable fish, sturgeon, trout, halibut and tilapia

SKRETTING JAPAN
Location/s: Imari
Feed for: Yellowtail, red sea bream, bluefin tuna,
amberjack, striped jack, sea bass, freshwater andseawater trout, coho salmon

87

Skretting Sustainability Report 2022

Global overview of Skretting operations & research facilities

4

97

Skretting OpCo

2

10

SKRETTING FRANCE
Location/s: Vervins and St Hervé
Feed for: Freshwater trout, sea bass, sea bream,turbot, salmon, catfish, tilapia, sturgeon, eel, carp
and shrimp

8

6

1

10

SKRETTING AUSTRALIA
Location/s: Hobart
Feed for: Atlantic salmon, chinook salmon,
barramundi, yellowtail kingfish, abalone, prawn,
freshwater and seawater trout

SKRETTING EGYPT
Location/s: Belbies
Feed for: Tilapia, catfish, mullet, carp and sea bass

SKRETTING USA
Location/s: Salt Lake City
Feed for: Barramundi, char, catfish, hybrid striped
bass, koi, largemouth bass, pacific salmon, sturgeon,
steelhead, tilapia and trout

11

12

13

SKRETTING TURKEY
Location/s: Güllük
Feed for: Freshwater trout, carp, sea bass and sea
bream

SKRETTING VIETNAM
Location/s: Ho Chi Minh City and Long An Province
Feed for: Black tiger shrimp, whiteleg shrimp, giant
freshwater prawn, red tilapia, snakehead, climbing
perch, pangasius, sturgeon, Asian sea bass, grouper,
cobia, clown featherback, snakeskin gourami andpompanoSKRETTING CHINA
Location/s: Zhuhai
Feed for: Whiteleg shrimp, black tiger shrimp,
trout, sea bass, snakehead, golden pompano,catfish and sturgeon

14

15

16

17

8

SKRETTING NIGERIA
Location/s: Ibadan
Feed for: African catfish and tilapia
SKRETTING ECUADOR
Location/s: Guyaquil x 3
Feed for: Shrimp, tilapia and trout

SKRETTING HONDURAS
Location/s: San Francisco de Yojoa
Feed for: Shrimp and tilapia

SKRETTING INDIA
Location/s: under construction
Feed for: Whiteleg shrimp, sea bass, tilapia

RoadMap 2025
Progress through collaboration

Transparency & Trust
Ingredient deep dive

About SkrettingHomeCertifications

Skretting OpCos are certified to a number of ISO standards which help
us ensure that we have consistent quality systems and continuous
improvement. We are also certified according to private standards thatare important for our customers to gain market access. In 2023 we will
work to prepare for compliance with the new ASC Feed Standard.
To the right is an overview of certifications and compliance held by
our OpCos. Nutrace® is Skretting’s company-wide management
programme that ensures feed-to-food quality and safety. All internal
operations are audited, and all suppliers undergo a comprehensive
evaluation and approval process to ensure premium-quality, renewable
and responsibly managed resources. We conduct robust analyses of
all approved raw materials - at delivery, throughout the formulation
process, and up to the point of feed delivery.

HACCP

BAP

ASC (compliant)Global GAP

ISO 45001

ISO 22000

ISO 14001

Operating Company

ISO 17025

In 2022, our OpCos continued to work closely with third party
independent bodies, customers and local authorities to ensurecompliance with standards, regulations and certifications to guarantee
the consistent formulation and production of high-quality nutritional
solutions for fish and shrimp.

ISO 9001

Global overview of Skretting certifications

Local certifications

Aquaculture Innovation
Australia

FeedSafe

CanadaOrganic

Chile
China
Naturland (100%)

Ecuador

Local HACCP Certificate
Punto verde (local environmental certification)

Honduras
Egypt
RCNA (french GMP) (100%)

FranceFQC (Carrefour) (50%)

Introductions

Label Rouge

RoadMap 2025

Italy
Japan

Progress through collaboration

Nigeria
NorwaySpain
TurkeyDebio Økologisk (organic certified)
Halal

Transparency & Trust

CIPA (French market)
Halal

Ingredient deep diveUSA
Vietnam

About Skretting
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88

Skretting Sustainability Report 2022

Stakeholder engagement

We believe that engaging with internal and external stakeholders is
key to ensuring we invest the right focus and effort in continuous
improvement and dealing with the complex issues that face thefuture of sustainable food. Through active conversations with several
stakeholder groups, we benefit from their 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 or who, in turn, may affect Nutreco’s ability toachieve its goals.

Skretting’s global stakeholder groups and how we interact with them

Stakeholder

Concerns and

How we engage andgroup

expectations

how often

Employees

Using this definition, we recognise six main stakeholder groups:
Employees, government, external platforms for specific sustainability
topics, food retail and services, academia and NGOs.

•

What is the company strategy?

•

Regular (local) town hall meetings•

What is our financial
performance?

•

Monthly broadcasted interviews withleadership•

What is the company going to doaround cost cutting?

•Nutranet (intranet) announcements•

Divisional strategy updates (annual orbi-annual)•

Annual European Works Council•

Regular local Works Council•

Showing leadership throughcontinuous organisation of andparticipation in relevant stakeholder
platforms, focusing on solutions•

Launching nutritional solutions•

Developing soy and palm sourcing
policy in alignment with RoadMap
2025•

Do we need to close our factory?

•

How can I make a (international)
career at Nutreco?

•

Government

Platforms
for specificsustainability topics•

Protection of consumer andanimal healthDeforestation for commodity
production

Introductions
RoadMap 2025

Food retail andfoodservice

Non-governmentalorganisations(NGOs)

Academia

89

Skretting Sustainability Report 2022•

GHGs and novel ingredients•

Overfishing ocean species formarine ingredients supply•

Deforestation for soy commodity
production•

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

Engaging with supply chain to
increase novel ingredients

Progress through collaboration•

Engaging in FIPs

Transparency & Trust•

Collaborating on platforms that
address specific concerns

Ingredient deep dive•

Setting up or intensifying collaborative
projects•

Engaging with over 80 academic
institutions around the world

About SkrettingHomeGlobal stakeholder platforms

MarinTrust

Sustainable Fisheries Partnership

Global Salmon Initiative

ProTerra Foundation

MarinTrust, formerly known as the Global Standard
for Responsible Supply (IFFO RS) has become
the leading independent business-to-businesscertification programme for the production ofmarine ingredients. Skretting is a member of the
MarinTrust governance board. The main purpose of
the standard is:

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 power of theprivate sector to help less well-managed fisheries
meet the environmental requirements of major
markets. Their work is organised around two mainprinciples: making available up-to-date information
on fisheries for the benefit of major buyers andother fisheries stakeholders; and using that
information to engage all stakeholders along the
supply chain in fisheries improvements and moving
toward sustainability. SFP operates through two
main principles: information and improvement.

An important way in which Skretting is helping
advance the salmon sector is through its
membership of the Global Salmon Initiative(GSI). In partnership, GSI salmon farmers andfeed companies have committed to working
precompetitively together to accelerate progress
towards ever increasing standards of sustainability
for the farmed salmon industry, and to driving
progressive innovation in the feed sector.

Skretting is member of the ProTerra Foundation
which is a not-for-profit organisation that advancesand promotes sustainability at all levels of thefeed and food production system. A commitment
to full transparency and traceability throughout
the supply chain and concern for corporate social
responsibility and the potential detrimental impactof herbicide-resistant, genetically modified crops
on ecosystems and biodiversity is at the heart ofeverything we do.

To ensure that whole fish used come from fisheries
managed according to the FAO Code of Conduct
for Responsible Fisheries.
To ensure no Illegal, Unreported and Unregulated(IUU) fishery raw materials are used.
To ensure pure and safe products are produced
under a recognised Quality Management System,
thereby demonstrating freedom from potentiallyunsafe and illegal materials.
To ensure full traceability throughout production
and the supply chain.

Skretting is a proud Associate Member of GSI.
These are organisations that have a sharedinterest in the continued growth and prosperity of
the farmed salmon industry as well as a sharedcommitment to improving the sustainability of thesector.
Associate Members work closely with the GSI
members on specific projects where sharedknowledge and collaborative working will support
accelerated progress.

Independent third-party certification is central to theProterra Foundation. ProTerra certification ensuresthat high quality supplies of crops, food, and feed
are independently certified and produced withimproved sustainability.

Introductions
RoadMap 2025
Progress through collaboration

Transparency & Trust
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UN Global Compact

Round Table on Responsible Soy

New York Declaration on Forests

Global Aquaculture Alliance

Nutreco is a member of The United Nations Global
Compact programme. This is a non-binding United
Nations pact to encourage businesses worldwide
to adopt sustainable and socially responsible
policies, and to report on their implementation.
The UN Global Compact is a principle-based
framework for businesses, stating ten principles in
the areas of human rights, labour, the environment
and anti-corruption. Under the Global Compact,
companies are brought together with UN agencies,
labour groups and civil society. Nutreco has been amember since 2015.

Nutreco is member of the Round Table on
Responsible Soy (RTRS), which is a civilorganisation that promotes responsible production,
processing and trading of soy on a global level.
RTRS encourages current and future soybean to
be produced in a responsible manner to reducesocial and environmental impacts while maintaining
or improving the economic status for the producer
through the development, implementation andverification of a global standard.

Skretting is a signatory of the New York Declaration
on Forests (NYDF), which is a voluntary and nonbinding international declaration to take action tohalt global deforestation. It was first endorsed at theUnited Nations Climate Summit in September 2014,
and by October 2017 the NYDF supporters grew
to include over 191 endorsers: 40 governments,
20 sub-national governments, 57 multi-national
companies, 16 groups representing indigenous
communities, and 58 NGOs. These endorsers havecommitted to doing their part to achieve the NYDF’s
10 goals and follow its accompanying action
agenda.

Skretting is a member of the Global Aquaculture
Alliance (GAA), an international non-profit
organisation that promotes responsible aquaculture
practices through education, advocacy anddemonstration. For over 20 years, GAA has
demonstrated a commitment to feeding the world
through responsible and sustainable aquaculture.

SeaBOSIn 2022, Skretting continued to be a key contributor
to the Seafood Business for Ocean Stewardship(SeaBOS) initiative. CEOs from the 10 largest global
seafood companies have joined forces through
SeaBOS to create transformative change. The
work is divided into five task forces: (1) Illegal,
Unreported and Unregulated (IUU) Fishing &Modern Slavery, (2) Transparency and Traceability,(3) Improving Regulations, (4) Internal Governanceand (5) Innovation.

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It does this by providing resources to individuals
and businesses worldwide who are associatedwith aquaculture and seafood. They improve
production practices through partnerships withcountries, communities and companies, as well as
online learning and journalism that has an active
readership in every country of the world.
Introductions

Roundtable on Sustainable Palm Oil
Nutreco has been a member in good standing of
the Roundtable on Sustainable Palm Oil (RSPO)
since near its inception. Committed to this multistakeholder platform, we purchase green palm
certificates for all our palm oil products excluding
kernel oil.

RoadMap 2025

Aquaculture Stewardship Council
Established in 2010, the Aquaculture
Stewardship Council (ASC) is a robust andcredible environmental/social standard in the
farmed seafood sector. It currently has over 1.6
million tonnes of farmed seafood independently
certified and compliant to the standard. Nutreco’s
Sustainability Director sits on the Supervisory Boardof the ASC. Currently Skretting is a member of thesteering committee overseeing the work related todevelop an ASC Feed Standard.

Sustainable Shrimp Partnership
Skretting is a founding member of the Sustainable
Shrimp Partnership (SSP), a group of leading
companies who share one mission: to make shrimp
aquaculture a clean, stable, and successful practicefor the world. In order to reach that goal, the leaders
have set a clear and ambitious plan to elevate thewhole sector to the next level.

Progress through collaboration

Transparency & Trust
Ingredient deep dive

About SkrettingHomeGlobalGAPThe North Atlantic Pelagic Advocacy GroupThe Global Roundtable on Marine Ingredients

Skretting is member of GlobalGAP, an organisation that has developed
criteria for food safety, sustainable production methods, worker andanimal welfare, and responsible use of water, compound feed andplant propagation materials. Skretting is also a member of the technicalcommittee that oversees the GlobalGAP aquaculture standard.

The North Atlantic Pelagic Advocacy Group (NAPA) was created as asector wide, multi-stakeholder initiative of partners to build a shared,
global and non-competitive solution to complex sustainability issues in
the Northeast Atlantic Pelagic fisheries.

Founded in 2021, Skretting is a member of the Global Roundtable on
Marine Ingredients. The initiative aims at taking action based aroundthe framework of the UN Sustainable Development Goals. Additionally,
it works to provide a single value chain contact point to contributeto existing platforms aimed at ensuring sustainable management offisheries providing marine ingredients.

NAPA represents retailers, foodservice companies and suppliers fromEU and non-EU countries with the shared aim of sourcing sustainable
and certified seafood in order to supply a growing demand for ecolabelled 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 science-based management agreement.

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

Cerrado Manifesto Statement of Support Group
Established in 2017, Nutreco was one of 23 founding member
signatories to the Cerrado Manifesto Statement of Support Group(SoS). The SoS has become the world’s largest business-driven groupcalling for immediate action in defence of the Cerrado by supporting
local and international stakeholders.
Today, there are 132 company signatories to the SoS across agroindustrial, farming and food processing, finance, packaged consumer
goods, retail and foodservice and other supporter groups. Its key
focus in 2019-2020 is to support the activity of the Brazilian Grupode Trabalho do Cerrado (GTC) by accelerating the transition to
deforestation and conversion-free soy production and to shareknowledge and action plans with key Chinese companies andstakeholders.

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The Roundtable will foster and support precompetitive efforts bymembers to:•

Identify and agree on ways to further improve the availability of sustainablemarine ingredient materials.

•

Investigate the potential of new raw material sources, such as
mesopelagic species and others.

•

Catalyse and support existing and new fisheries improvement projects.

•

Understand and address urgent social issues and enhance social
responsibility in key fisheries and regions.

•

Maintain a global overview of the state of the resources and industry.

The first priority for the Roundtable is West Africa, where productionof marine ingredients (both direct and through by-products) has grown
dramatically over the last decade, and a number of economic andsocial challenges have been identified. Southeast Asia is anothergeographic priority, where multispecies fisheries pose uniquemanagement challenges, and some fisheries are tainted by humanrights and labour abuses. The Roundtable will also address otherimportant topics such as life cycle assessments and potential new raw
material sources.

Introductions
RoadMap 2025
Progress through collaboration

Transparency & Trust
Ingredient deep dive

About SkrettingHomeGovernanceNutreco Corporate Sustainability GovernanceNutreco’s Sustainability function is led by the company’s CEO. The
Corporate Sustainability Director reports to the CEO and chairs
the Nutreco Sustainability Platform (NSP). The NSP is where thesustainability aspects of our strategy are developed, and where
sustainability issues are addressed. It is made up of five individuals,
three of whom represent the businesses.
The functional directors in the Trouw Nutrition and Skretting businesslines are responsible for the implementation of sustainability activities
aimed at achieving the targets set out in RoadMap 2025, working withteams in our businesses throughout the world.

Nutreco Management Board

Nutreco Sustainability Platform (NSP)
Nutreco Corporate Sustainability Director
Trouw Nutrition
Operations
Procurement

Skretting
Sustainability Manager Trouw
Nutrition

Sustainability Manager
SkrettingInnovation
Human Resources
Ethics & Compliance

Sustainability Manager Trouw
Nutrition Iberia

Operations
Procurement
Innovation

Nutreco Sustainability
Manager

Human Resources
Ethics & Compliance
Introductions
RoadMap 2025
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Double materiality

Through the double materiality assessment
in 2022, we identified key internal andexternal stakeholders to engage in the
different phases of the assessment. We
considered a broad representation acrossgeography, business line and relationship with
Nutreco in order to reflect diverse internaland stakeholder perspectives through theprocess. We gathered input from theseinternal and external stakeholders about theirprioritisation of sustainability topics throughin-depth interviews and workshops.

In line with the double materiality principles,our discussion with stakeholders focused on
both the impact and financial perspective ofeach topic.

Efficient use of resources in animal nutrition•

Animal health and AMR•

Climate change•

Product quality and safety•

Circular novel and responsible raw materials•

Biodiversity and ecosystems•

Business ethics and transparency•

Resilience to economic and political volatility

The results of our materiality assessment
further confirm the areas of focus in our
RoadMap 2025. In 2023, we will further
implement the insights of our double
materiality assessment into our 2025
RoadMap and sustainability strategy.

Transformative priorities

Medium importance for stakeholders
High importance for stakeholders

Sustainability enablers

Low importance for stakeholders

Animal health & AMR

Climate change

We identified the following highly material
topics for Nutreco:•

Efficient use of resources inanimal nutrition

Topics that are essential to build
long-term value and maintaina competitive edge in line withsocietal megatrends

Product quality & safety
Resilience to economic& political volatility

Outside-in impact

In anticipation of the sustainability reporting
requirements outlined in the EU Directivein the CSRD, which will be in force fordisclosures related to 2024, Nutreco decided
in 2022 to move forward and perform amateriality assessment taking into accountthe double materiality principle. Double
materiality in reporting accounts not only
for how a company affects the environmentand society, but also how the environmentand society impact the company’s financial
value. A sustainability topic meets the criteriaof double materiality if it is material from theimpact perspective (inside-out) and from thefinancial perspective (outside-in).

Continuous improvement areas
for ESG excellence
Topics that should be actively
monitored to meet compliancestandards and mitigate risk

Consumer behaviour& relations
Nutrient loss & waste

Circular, novel &responsible raw materials

Topics that put the company in theright position to address the corefocus areas

Biodiversity & Ecosystems
Talent attraction,
development &retention

Digital transformation
Occupational health, safety & well-being

Animal welfare
Pollution
Business ethics, integrity& transparency
Water management

Waste
management

Diversity & inclusion

Working conditions, forcedlabor & modern slavery
Local community
development & food security

Inside-out impact
Visual description of the outcomes of Nutreco’s double materiality assessment

Introductions
RoadMap 2025
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Transparency & Trust
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Skretting Australia

Sustainability
Report2022

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From our general manager
In early 2022, the entire SHV family launched our new
purpose statement “courage to care, for generations
to come,” a statement perfectly paired with Skretting’s
long-standing purpose of “feeding the future.” The last
several years have been riddled with uncertainty driven
by climate change, conflict, and a public health crisis.
2022 was a year for Skretting Australia to show we have
not only the courage to adapt, but also the courage toact for our people and our planet.

What does it mean to have the courage to care?
It means developing trusting relationships with ourcustomers, our suppliers, and our local community toensure that we can all collaborate to create meaningful
solutions to shared challenges.
There is an essential humility required when looking
forward as we are going through one of the largest
economic transitions in history, no one person orcompany can be expected to have all the answers. We
need to focus on the fact that we all share a vision for asustainable industry of tomorrow, but acknowledge thatnone of us can achieve this vision alone; collaboration is
the only way forward.
Having the courage to care means putting our people
and our planet at the heart of our business. We
successfully became certified to ISO 45001 and ISO
14001 across all our production sites and administration
facilities, externally validating our health and safety
and environmental management systems to global
standards.

What is sustainability today?

What does change look like?

What needs to change?

Sustainability is the act of fulfilling the demand now,
without compromising the needs of the future. To dothis we must seek solutions to shared challenges.

As our industry grows and innovates, it is essential thatthe way our business operates changes too. In recent
years we have opened additional administration offices
in Invercargill and Proserpine to better support ourclients across all regions of the market.

I would love to put my hand on my heart and say that
we, Skretting Australia, have all the answers. However
our most hard-hitting sustainability ambitions cannot
be achieved without the support from the rest of thevalue chain. If we want a thriving industry today andtomorrow, then we must work together; positive change
will not occur overnight or without hard work.

Key issues relating to raw material supply, climatechange and mitigation and global food security can bepartially mitigated through the development of novel
raw materials.
In 2022 we commenced our first commercial trials ofalgae oil as a partial substitution for fish oil in Atlantic
salmon diets. These trials represent a significant step infurther reducing our reliance on finite marine resources.
We also announced our commitment to locally validatea single cell protein source in Atlantic salmon. In time, I
believe that these ingredients have a strong potential tocontribute to the long-term sustainability of our feeds.
Through Nutreco we are committed to Science Based
Targets, solidifying our ambition to reduce the carbon
emissions of our operations and supply chain. Tracking
and reducing supply chain emissions is complex.
Following an extensive period of collaboration, ourproduct performance team launched an innovative
digital solution to this challenge, MyFeedPrint, which
can calculate the carbon footprint of feed. This will bea vital step in our greenhouse gas emissions reduction
strategy, enabling data to be at the forefront of all ourconversations.

The supply chains into New Zealand and Queensland
are frequently challenged by climate events andlogistical issues. In response, we brought in a vessel todeliver aqua-feed directly from port in Tasmania to ports
in New Zealand and Queensland. This has allowed us totake ownership of a turbulent part of our supply chain,stabilising our supply of exported feed.
Running our own vessel is one recent example of how
we create partnerships for the future. I encourage our
stakeholders to join our bold conversations, helping us
to accelerate change.

If we want a thriving
industry today andtomorrow, then we must
work together; positivechange will not occur
overnight or without hard
work.

Management Disclosure
Health & welfare
Climate & circularity
Melissa Abbott
General Manager,
Skretting Australia

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Contents
Skretting Australia: focus areas
Health & Welfare

Nutritional Solutions•

Innovating new products and services to drive
positive health outcomes for fish and prawns, andto support our client’s strategic ambitions.

Climate & Circularity

Ingredient Deep Dive•

Reducing greenhouse gas (GHG) emissions••

Setting science-based targets for reducing
emissions through energy efficiency programs andsustainable ingredient sourcing, incorporating lifecycle assessment methodologies and utilising new
ingredients.
Addressing responsible use of natural resources,
biodiversity and ecosystems.

Raw materials are a key focus in our sustainability
strategy. This section of the report transparently
covers the key ingredients of feed, and our progressagainst ingredient related Roadmap targets.

About

•

More about Skretting Australia, including our clients,
locations, and annual statistics.

Management Disclosure

Good Citizenship
Health & welfare

Diversity & inclusion•

Building a more diverse and inclusive workforce•

Empowering local communities throughengagement and lasting collaborations.

Climate & circularity
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Health & WelfareThis pillar of RoadMap 2025 is primarily focused on
antimicrobial resistance (AMR). We address this byinnovating new products and services that directly reduce thedependence on antibiotic use.
Compared to other regions of the world, antibiotic use acrossAustralia and New Zealand is very low.
Skretting Australia’s health & welfare strategy is more focusedon further enhancing the overall health of fish and prawn
through innovative nutritional solutions.

Our targets

Our progress

No preventive* usage of antibiotics in
our products and services.

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

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

Management disclosure
No useHealth & welfare
Climate & circularity* Ensure no preventive usage of antibiotics in our products and services. Any order of medicated premix/feedshould be accompanied with a valid prescription from an authorised professional.
** as published in “Critically important antimicrobials for human medicine: 6th revision” https://www.who.int/
publications/i/item/9789241515528

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Health & Welfare
Nutritional solutions for fish and prawns
Understanding the nutritional requirements of fish and prawns goes beyond
what makes them grow, but what also make them healthier and more
resilient to environmental challenges.
Our two R&D facilities are a key part of our local validation process for new
nutritional solutions, but we must validate these solutions on farm with ourclients in a commercial environment. In 2022 we conducted more than 15
feed trials, to validate new nutritional solutions to support the issues mostmaterial to our clients.
HT
Higher temperatures can have significant influence on growth performanceand feed uptake of cold water fish– two commercially important parametersthat we look to solve through innovation. We conducted trials in bothAtlantic and Chinook salmon to support fish welfare in suboptimal
conditions. These trials will inform the next generation of HT diets that
Skretting Australia brings to the market in 2023.

In 2022 we conducted morethan 15 benchmarking trials,
all with the intention of validating
new nutritional solutions to support
the issues most material to ourclients.

Raw Material Flexibility
One of the biggest milestones in Skretting’s history was the launch of
our MicroBalance technology, which allowed us to replace one feed raw
material with another without impacting performance, welfare or endproduct quality. MicroBalance provided us with unprecedented raw
material flexibility, paving the way for our FLX product range; removing
fishmeal from Atlantic salmon grower diets, with no negative impact
on fish growth or health. This breakthrough was significant for the
Tasmanian industry as it decreased our dependence on fishmeal, a finite
resource.
In 2017, Skretting launched N3, a continuation of our MicroBalancetechnology, allowing novel sources of EPA & DHA to replace fish oil in
Atlantic salmon diets. However, commercial quantities of non-marine
EPA & DHA have been limited.
In 2022 we received our first algae oil shipments in commercial
quantities. We conducted trials with Tasmanian clients to validate theuse of this material in our feeds. This is a significant milestone in ourjourney towards full raw material flexibility, and reduced exposure to fish
oil market fluctuations.
In other species our raw material flexibility has been limited by a slower
transfer of technology. Following the success of successfully R&D
trials, in 2022 we launched our next generation of King salmon andprawn feeds, delivering our lowest commercial inclusion of fishmeal
to date across both species. Significant progress was made in our
understanding of barramundi nutrition, paving the way for Skretting
Australia to deliver similar lower fishmeal diets in the coming years.

Management disclosure
Wesley van den Herik
Nutrition Manager
Skretting Australia

Health & welfare
Climate & circularity
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Our targets

Our progress

Committed through Science-Based Targets
initiative (SBTi) to a reduction of 30% of
scope 1 and 2 emissions compared with2018 baseline

4% increase

Climate & Circularity

This pillar of RoadMap 2025 is primarily focused on
reducing our greenhouse gas (GHG) emissions. To do this,
we utilise science-based targets to set our ambitions for
reducing emissions through energy efficiency programs
and sustainable ingredient sourcing, incorporating lifecycle assessment methodologies as well as utilising new
ingredients.
We also address the responsible use of natural resources,
biodiversity and ecosystems in compound feed ingredients.

(explanation and disclosurein following pages)

Committed through Science-Based Targets
initiative (SBTi) to a reduction of 39% of
scope 3 emissions compared with 2018baseline

4% average intensity
decrease. (explanation anddisclosure in following pages)

Increase renewable energy use in ouroperations

38% of energy used in ouroperations originates fromrenewable sources.

Management disclosure

100% recyclable, compostable, or
reusable packaging.

Our packaging cannot berecycled into high quality
quality second-life products.

Health & welfare

Climate & circularity
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Climate & Circularity
Life cycle analysis
Skretting Australia, through Nutreco, is committed to the
Science Based Targets initiative, with a 30% and 39%
reduction targets for our scope 1 & 2, and scope 3 emissions
respectively.
One of the biggest challenges in our pathway towards
significantly reducing greenhouse gas emissions from ouroperations, comes from our comparatively low baseline
footprint. This is largely due to our high utilisation ofrendered animal products (which have a low footprint),
which decreases our inclusion of higher impact vegetableconcentrates (which have a higher footprint). Operationally,
our scope 2 emissions are low due to Tasmanian energy
primarily originating from hydro-electric production.
During the course of 2022 Skretting Australia managed toreduce our carbon footprint by approximately 5% (per tonneof feed). Monitoring our carbon footprint throughout 2022,
this intensity reduction was due to an increased productionof lower footprint prawn feed, which decreased the overall
average carbon footprint of feed.

In 2023, our focus will be two fold, ensuring our own internal
scope 1 & 2 emissions reduction strategy is in hand, andbeginning the long process of gathering more primary data
through supplier engagement. Primary data refers to firsthand data provided by the supplier, and is usually consideredmore reliable than secondary (literature based) data.
Current scope 3 calculations are conducted using almost
entirely secondary data values, and we have seen other
Skretting companies achieve significant reductions throughthe process of getting supplier specific CO2 values for
ingredients. We have identified a set of high opportunity
suppliers which we aim to build strong, collaborative
relationships with in the coming year, in order to develop a
database of quality primary data.
Despite the fact that our scope 1 & 2 emissions only accountof 4% of our total emissions, we still aim to reduce theemissions which we have the most control over.

Carbon footprint of Skretting Australia feeds.
56

54

2022

1249

1305
Scope 1 & 2

2021

Scope 3

1313
500

1367
1000

1050

*Expressed as kg CO2-e per tonne of feed.

Management disclosure

Scope 1 Emissions
Emissions from owned sources
DirectIndirect

Scope 2 Emissions
Emissions from purchased electricity

Scope 3 Emissions
Emissions from the supply chain

Health & welfare

Read more
decarbonisation
Readaboutour Marine
Ingredientschallenges
and calculation
Sourcing
Policymethodology.

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Climate & Circularity
GHG emissions - kg CO2e / tonne finished feed

Scope 1 & 2 - In house emissions
2022 was the first full year of operation for Skretting
Australia’s second manufacturing facility, located inWestbury, Tasmania. Despite producing a comparable
volume of feed across 2021 and 2022, differences in
the process between the Cambridge and Westbury
sites resulted in an absolute increase in combined
scope 1 & 2 emissions.
For both sites, the majority of the emissions are scope
1 emissions, primarily being associated with gas
usage for industrial heating and drying. To decarbonise
our process we will need to adopt renewable energy
alternatives and electrify more of our process.
We are focused on refining our operational processes
to minimise our use of industrial heating. We achieved
a significant reduction in the amount of steam (howheat is transported in the process) required to produce
a portion of our product range. This was achieved
entirely through an alternation to the operational
process, showing that significant emissions
reductions can be achieved without significant capital
expenditure projects.
Our scope 2 emissions decreased by a small
percentage, due to slightly lower electricity usage at
the Westbury facility.

200

160

120

4443
80

56.95
kg CO2e/ tonne feed

40

4,178

4,604
0

3,341

2018

2019

2020

2021

2022

Specific energy consumption - kWh / tonne finished feed
400

350

300

288.6
KWh/ tonne feed

250

1,102

2,020

Management disclosure
Health & welfare

1,827
200

2021

2022

Climate & circularity
150

2018

2019

2020

2021

Skretting Australia’s absolute scope 1 and 2 CO2 emissions in tonnes

2022
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Climate & Circularity
Scope 3 - Supply chain emissions
Scope 3 emissions (non-direct emissions) represent
a particularly complex and significant part of ourgreenhouse gas emissions reduction stategy. As
previously highlighted, approximately 96% of Skretting
Australia’s greenhouse gas emissions originate from our
supply chain.
In 2022 Skretting Australia finalised a life-cycle analysis(LCA) for our feeds. Although Skretting Australia
completed our first LCA in 2015, the 2022 assessment
was our first to be completed using an economic
allocation method - aligning us with the ProductEnvironment Footprint Category Rules (PEFCR), theleading global standard for calculating the emissions forcompound feed production.
The transfer from mass allocation to economic allocationin the 2022 LCA saw the greenhouse gas emissions
associated with certain raw materials significantly
change. Most notably rendered poultry ingredients,
such as poultry meal, returned significantly lower carbon
footprints when calculated using economic allocation.
This outcome further incentivises the future use of
rendered poultry ingredients, supporting one of theearliest examples of an Australian circular bio-economy.
Our deeper understanding of the footprint of our raw
materials has allowed to look further into the future,
to strategise how we can achieve our 2030 scoep 3
emissions reduction target.

MyFeedPrint

2%
Alongside the completion of the 2022 LCA,
Skretting Australia’s Product Performance
Team successfully coupled the raw material
emissions factors with our formulation
software. This allows for the footprint of feed,
or feedprint, to be calculated at the time of dietformulation.
The innovation allows the sustainability of
feed to be embedded in the product design
process. Although we have long had thecompetencies required to reduce the inclusionof specific raw materials to meet the needs ofour clients, MyFeedPrint allows us to consider
footprint metrics next to price and nutritonal
qualities at the time of formulation.
As greenhouse gas emissions become morematerial for end consumers, we expectthat there will be more market demand for
products with lower carbon footprints. The
implementation of MyFeedPrint will allow
us to accurately forecast what costs will
be associated with reducing the lifecycle
footprint of fish and prawns to meet market
requirements.

1%

15%

Skretting Australia’s 2022
scope 3 carbon footprint per
ingredient category

Vegetable

1.25

Land animal

MT CO2 per MT feed
MarineMicro & functional

28%

54%
Management disclosure
Health & welfare

Climate & circularity

Packaging

Good citizenship
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Skretting Sustainability Report 2022

Climate & Circularity
Supply Chain Engagement
With 96% of our feed’s total emissions comingfrom scope 3 ingredients and factors well beyond
our control, the need for value chain collaboration
has never been more pertinent. Amber Zheng has
recently relocated from Nutreco’s global officewhere she worked as the Category Manager ofLand Animal Products. She joins the Skretting
Australia Team as our new Procurement Manager.
Amber hopes to use her expertise in managing
supplier relationships, to bring sustainability
into more direct conversations, focusing on
collaborating, and striving for continuous
improvement.

Scope 3 emissions
As Procurement Manager, I am one of themost fundamental contributors to Skretting
Australia’s sustainability strategy. Key
sustainability targets, such as our 39% scope
3 emissions reduction target, are directly
supported, if not driven by the procurement
department.
It’s critical to recognise that just as our internalgoals cannot be achieved in isolation, the same
goals cannot be achieved independently of our
suppliers. Our key partners of tomorrow will bethose who share our values and vision.

Amber hopes to use
her expertise in managing
supplier relationships, tobring sustainability into more
direct conversations, focusing on
collaborating, and striving forcontinuous improvement.

Novel Ingredients

Skretting Australia’s short-term priority inConversations regarding emerging protein

achieving our scope 3 emissions reduction

sources such as single cell proteins (SCP) andtarget, is to gather more primary data. Although

insect meals have gained a lot of momentum

we currently have a strong understanding of thein the past 12 months. These materials which

footprint of our raw materials, there is global

were once highlighted for their net-positive

precedence to show that secondary, or literatureenvironmental benefits when compared tobased, values can vary greatly from primarytraditional raw materials, are now clearlydata. If we are to make meaningful and long-

becoming a key part of our current raw material

lasting changes to our procurement strategy, it isstrategy. Last year we announced that we will beessential that we are acting under the guidance

progressing local validation trials with String Bio’sof verified primary data, that has been collected

SCP Pro-DG at the Experimental Aquaculture

in a standardised way. Only then can we have

Facility. We see this a critical first step in securing

total confidence the decisions we make and feela supply of the raw materials that will define thesecure in committing to long-term relationships.

next decade of our industry.

Primary data is only one step in the scope 3

The key benefit of working with novel raw material

story though. Once we have the data, we are still

suppliers in the true alignment between out

required to reduce our footprint. Skretting, as

ambitions. Whether it’s the environmental benefit

part of Nutreco, has set Science-Based Targets

through carbon capture and storage associatedand we will request the suppliers that contributewith SCPs, or the reduction methane emissions

most to our scope 3 to do the same. This way,from waste streams associated with insect meal

we are not placing out of scope demands on our

production, these materials not only help us

suppliers, but rather having conversations on how

to feed the future, but help to ensure there is a

we can work together to realise our joint ambition.

future to feed. It is clear to us that these are theseManagement disclosure
Health & welfare

Climate & circularity

new relationships will endure into long-lasting
partnerships

Amber Zheng
Procurement Manager
Skretting Australia

Good citizenship
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Skretting Sustainability Report 2022

Climate & Circularity
A significant part of 2022 was spent extending the boundaries of our environmental
management system to ensure that the system covers both production facilities, aswell as all warehouses, administration offices, and research facilities. Towards theend of the year this system was externally certified to ISO 14001, which was a newaccomplishment for all sites other than the Cambridge facility.

Water use - litres / tonne per Skretting Australia
800

Skretting Australia did not see any significant improvements across the key
environmental KPIs of water, greenhouse gas emissions, electricity, and waste. This is
in part due to the addition of our second manufacturing plant, which has had ongoingchallenges during the early stages of production, resulting in a disproportionate level ofwaste per tonne of feed for Skretting Australia in 2022.
We see the challenges presented by managing multiple sites as an opportunity togrow - we are determined to see significant improvements across these KPIs in 2023.
Most notably, we are taking actions to reduce the absolute volume of waste generated
through our process, whilst also acknowledging that a future increase in production
volume help improve our key environmental KPIs (on a per tonne basis).

Waste disposal

600

400

525

200

2018

Waste type0.1%
1.5%

2019

2020

2021

2022

litres/ tonne feed

Waste - kg / tonne feed sold Skretting Australia

1.4%

1.7%

12

11%

21%

21.4%

Management disclosure

8

Health & welfare

60.1%
4

79%

General/ landfill
Reused/ composted

General/ landfill

Skretting Sustainability Report 2022

Metal

Organic

Organic

Wood

Comingle

Paper /cardboard

E-wasteHazardous

105

6.46
0

2018

2019

2020

2021

2022

kgs/ tonne feed

Climate & circularity
Good citizenship
Ingredient deep dive
About

Good CitizenshipThis pillar of RoadMap 2025 is primarily focused on diversity andinclusion.
We address good citizenship internally, ensuring that we continue tobe a diverse and inclusive employer.
We aim for our teams to reflect the diverse and global society we live
and work in, and to be the change we want to see. We want everyone
to thrive in an environment where we feel valued and respected, in a
culture that brings out the best in all of us.
To help us succeed in Feeding the Future, we welcome everyone asvalued members of our family, with equal opportunities to be the best
we can. We respect people for who they are and embrace diversity,
listening to and learning from each other’s unique perspectives.

Our targets

Our progress

Management disclosure
Health & welfare

30% women in senior leadership by 2025

33% women in leadership

Climate & circularity

Conduct 3 bi-biennial community openday

Due to ongoing COVID
restrictions and supply
commitments, Skretting
Australia was unable to conduct
a community open day. Three
events are planned for 2023.

Good citizenship
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106

Skretting Sustainability Report 2022

RoadMap 2025 targets and progress related to Good CitizenshipDiversity & Inclusivity“

At Skretting Australia we try to drive
two parallel philosophies through one
statement: we are one team, consistingof 116 individuals. As a business with agrowing geographical footprint, we are
feeling the need more than ever to honein on our shared mission for feeding thefuture; which can only be realised under theunity of a single team. However, it is equallyimportant that we do not lose the essenceof what makes Skretting Australia a centreof excellence – the individuals within ourteam.
Gillian Smith, Skretting Australia’s HR
manager comments on what diversity andinclusivity means to her.

It is my vision to ensure that Skretting Australia
becomes a place where everyone comes to work
completely as themselves. Strengths are celebrated
to be and enhanced. Weaknesses are to be
accepted and supported by the greater team. The
best way to foster such a culture is to ensure that
our teams are diverse, and we are as our team beto as inclusive of this diversity as we can possiblybe.

To improve our gender balance we follow these
recruitment guidelines:

While gender is only one part of diversity, we wantto ensure we have a good representation of women.
Our target is to have 1 in 3 women in seniorleadership positions by 2025. In addition, 1 out of 3
new hires for senior roles are to be female.

The nature of our operation means that we have adiverse range of professional pathways available
within our business. Although we have no prejudicein our hiring process, unfortunately there is a still a
global self-perpetuating cycle which disadvantages
women in science, technology, engineering, andmathematics (STEM), with a report of only 27% of
the global STEM workforce being female.

Key diversity Skretting Australia Diversity KPIs from 2022

27%
Gender Diversity 20%
Female Hires 58%

Cultural Diversity

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Skretting Sustainability Report 2022

“It is my vision toensure Skretting
Australia becomes+10% from 2021

a place where
everyone comes to+2% from 2021

work completely asthemselves”-4% from 2021

• We aim for applicant distribution on first short-list
to be 50:50 male/female• On interview short-list 1 out of 3 candidates
should be female, where they are available• We ensure we have at least 1 female on the 			interview panel“

Good Citizenship

We are proud to report that in 2022 over 50% of
our Quality and Product Performance teams werecompromised of female employees.
However, our job is never done. In 2023 weare developing our strategy to attract female
candidates to all positions with a strong focus on
Operational employees. This strategy will involve
identifying avenues to interest female applicants
including starting at a school level.

Gillian Smith
HR Manager
Skretting Australia

Management disclosure
Health & welfare
Climate & circularity

Good citizenship
Ingredient deep dive
About

RoadMap 2025 - Good Citizenship10,000 Trees Planted
For the last 10 years Skretting Australia has been working withlocal not-for-profit organisation 15 Trees, to unofficially offset ourgreenhouse gas emissions associated with business travel.
In 2022 we donated 1,000 trees to local Landcare groups, taking the
grand total of Skretting donated trees to over 10,000! These trees
not only support ecological restoration projects across Tasmania,
but also support local community groups to introduce the next
generation to conservation principles.

Mateship Mondays

2022 Community Engagement Projects

In 2022 we achieved ISO 45001 accreditation, externally validating
our occupational health and safety systems. Although Skretting
Australia has made great progress in addressing physical safety
hazards along our safety journey, our progress in addressing
psychological risks has received less focus and prioritisation fromthe business.

• 15 Trees

In collaboration with Trade Mutt, we launched “Mateship Mondays”,
a weekly event where our team wears vibrantly patterned shirtslabelled “this is a conversation starter.” Not only do these shirts help
to lighten the mood on a Monday morning, but they also symbolisethat having conversations around mental health are uncomfortable,and place us all in situations that we are not necessarily used to.

• Meander Valley Suns Football Club
• Cambridge Primary School Fair
• Lions Club Tasmania• Ronald McDonald House• Hope in the Huon
• MS Australia• Stay ChatTY• Sea Rescue Tas

Moving into 2023 Skretting Australia has engaged independent third
party, Rural Alive and Well, to support with an on-site engagement
and education strategy to address psychological risks within ourbusiness.
Management disclosure
Health & welfare
Climate & circularity

Good citizenship
Skretting Australia Team members
following a local beach clean-up
event

Ingredient deep dive
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108

Skretting Sustainability Report 2022

Progress through collaboration
Importance of collaboration
Across Australia and New Zealand aquaculture
production is expected to grow by up to 35,000
tonnes between 2020 and 2030 (FAO, 2020). If
the industry is to sustainably realise this vision,
collaboration needs to be at the heart of our progress.
We see it as a priority to to invest in local collaboration
among various stakeholders, including scientists,
farmers, policymakers, and industry experts, to drive
the development of true best practices and guidelines.
By working together, we can share expertise,exchange ideas, and develop innovative solutions toaddress key industry challenges, to drive sustainablegrowth in our local aquaculture industries.
We see the Blue Economy CRC as a key agency intransforming Australia’s ocean spaces into a space ofa space of thriving economic activity for aquaculture

About the Blue Economy CRC

Established in 2019, Blue Economy CRC is anindependent not-for-profit company limited
by guarantee and is a Cooperative ResearchCentre under the Australian Government’s CRC
Program.
With a 10-year life, the Blue Economy CRC
brings together 44 industry, government, andresearch partners from ten countries withexpertise in aquaculture, marine renewableenergy, maritime engineering, environmental
assessments and policy and regulation. We see
our work with the BE CRC as an essential stepin sustainably growing the Australian and New
Zealand Aquaculture industries.
Skretting Australia is partnering on two projects“Experimental Platform for Aquaculture
Production” and “Key Challenges for Offshore/High Energy Salmon Aquaculture Production.”

Key Challenges for Offshore

Experimental Platform for Aquaculture Production

The global aquaculture industry is increasingly

The principal aim of this project is to support andinterested in “offshore” development. Moving

improve offshore Atlantic salmon aquaculture

operations into deeper, higher energy

through a collaborative experimental teamenvironments may provide positive outcomesapproach that addressed critical knowledge gaps

for farmers against challenging environmental

in salmon production biology by working closely

conditions. Offshore/high energy aquaculture

with industry partners including the Tasmanian

initiatives are increasing globally but relevant

selective breeding program.

production biology research may or may not bealigned with local technology, commercial needs

The project aims to better understand genetic andor offshore/high energy environmental challenges.

environmental influences on salmon performance

The importance of research in closing theseand how to link experimental and commercial

knowledge gaps cannot be overstated.

data. The main focus is on climate change
impacts by tracking salmon through sub-optimum

The aim is to identify knowledge gaps andsummer conditions and an autumn recovery.

prioritise BE CRC research by scoping research
relevant to key salmon production biology
challenges and to available and emerging
technology. The findings of this project will be
immediately relevant to offshore salmon farmingin Australia and NZ, paving the way for ourManagement disclosuresustainable growth.

Health & welfare
Climate & circularity

Good citizenship

Dr Rhys Hauler
Marketing Manager
Skretting Australia

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Skretting Sustainability Report 2022

Ingredient deep dive
About

Ingredient Deep DiveThe production of fish and shrimp feed is an intricate matter.
Strict criteria regulate the physical quality of the pellets, andsophisticated process equipment is needed. Raw material
procurement is a big cost driver, so a significant part of thefeed production research aims to increase both raw material
flexibility and functionality.
Every improvement in product technology can lead to better
quality, increased efficiency and a more sustainable process.
Skretting Australia produces more than 100,000 tonnes of feedeach year, which means that even small improvements can add
up to big numbers.

Our targets

Our progress

Source 100% of marine ingredients fromsources audited and certified by MarinTrustor MSC

85% of our whole fish andtrimmings are MarinTrust,
MSC or MarinTrust-FIP
certified

All purchased soy will be deforestation-freeby 2025

100% of our purchased soy
is in class A or B according
to our sourcing policy

Ensure that by 2022, all agriculturalvegetable products are traced back to
the country where they were cultivated,
to use in a risk filter and for foot-printing
requirements

We have traceability for soy and palm
ingredients to the country where they
are cultivated. Unfortunately, we have
not yet successfully implemented a
traceability system for other vegetable
ingredients due to the complexityof supply chains and the significant
increase in administration that comeswith it, both for us and our suppliers.

5-10% of feed ingredients come fromalternative novel sources

Skretting Australia has
been actively trialling novel
ingredients and building
relationships with suppliers.
Average inclusion sits well
below 1%.

Management disclosure
Health & welfare
Climate & circularity

Achieve ASC feed mill Certification

The ASC feed mill standard
officially came into effectJanuary 14 2023. Skretting
Australia is committed toachieving certification by 2025.

Good citizenship

Ingredient deep dive
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Skretting Sustainability Report 2022

Ingredient deep dive - what’s in feed?

Average ingredient inclusions,

across all species and all dietsin 2022

Marine protein
Fishmeal (reduction fisheries)
7.1%
Fishmeal (by-products)
2.7%
Land animal proteins
Poultry meal
18.1%
Feather meal
4.0%
Blood meal
1.3%
Meat meal
0.1%
Vegetable protein
Wheat gluten
9.2%
Faba bean
5.1%
Lupin
3.0%
Soy protein concentrate
1.6%
Canola meal
1.2%
Soy bean meal
1.1%
Marine oil
Fish oil
8.6%
Land animal oil
Poultry oil
9.8%
Vegetable Oil
Canola Oil
9.1%
Carbohydrate
Wheat
11.5%
Technical & others
Functional
6.6%

Average diet composition for key species,
Grower diets only

6.6%

9.8%
Marine protein

11.5%
Protein

Vegetable protein

23.4%

9.1%

Land animal protein

Fish oil

Fat

9.8%

Atlantic Salmon(Salmo salar)

Barramundi(Lates calcarifer)

Land animal oils

Vegetable oil

Carbohydrates

8.6%

21.2%

Management disclosure

Micro-nutrients

Health & welfare
King Salmon(Oncorhynchus tshawytscha)

Giant Tiger Prawn(Oncorhynchus tshawytscha)

Climate & circularity
Good citizenship

Ingredient deep dive
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111

Skretting Sustainability Report 2022

Ingredient deep dive - marine ingredientsx

Least Concern

American Somoa Albacore tuna

Australia

Blue mackerel

Scomber australasiucus

-

0.5%

Least Concern

Jackmackerel

Trachurus declivis

-

1.0%

Least ConcernRed bait

Emmelichthys nitidus

-

0.4%

Least Concern

Aracanian herring

Strangomera bentincki

-

1.7%

Least Concern

Jackmackerel

Trachurus murphyi

-

0.1%

Mote Sculpin

Normanichthys crockeri

Starry Butterfish

Thunnus alalunga

4.8%

-

Least Concern



Skipjack tuna

Katsuwonus pelamis

10.7%

-

Least Concern

Yellowfin tuna

Thunnus albacares

1.9%

-

Least Concern

Albacore tuna

Thunnus alalunga Thunnus

0.3%

-

Least Concern



Bigeye tuna

Thunnus obesus

0.2%

-

Vulnerable3x

Least Concern



Skipjack tuna

Katsuwonus pelamis

1.7%

-

Least Concern-<0.1% Not assessedxYellowfin tuna

Thunnus albacares

0.2%

-

Least Concern

Stromateus stellatus-<0.1% Least Concernx

GemfishRexea solandri

<0.1%

-

Not assessedxChina anchovy

Stolephorus chinensis-

10.6% Least Concern

Southern hake

Merluccius australis

<0.1%

-

Not assessedJapanese anchovy

Engraulis japonicus

-

8.2%

Least Concern

x

Hoki

Macruronus novaezelandiae

0.7%

1.3%

Not assessed



India

Indian sardine

Sardinella longiceps-

15.1% Least Concernx

Javlinfish

Lepidorhynchus denticulatus

<0.1%

0.1%

Not assessed



Peru

Peruvian anchovy

Engraulis ringens

71.0%

59.6% Least Concern



New Zealand ling

Genypterus blacodes

0.1%

-

Not assessedMexicoMexican sardine

Sardinella aurita

-

1.3%



Rattail

Family Macrouridae

<0.1%

-

Not assessed

Spiny dogfish

Squalus acanthias

-

0.1%

Least Concern



Other

n/a

-

<0.1% n/a

Hake

Merluccius australis

Chile

China

Whole fish - TOTAL

Least Concern

Mauritius

New Zealand

75.7% 98.5%
1. International Union for the Conservation of Nature (IUCN)
2. ASC compliant volumes are calculated on a mass balance. Not all marine ingredients are required to be ASC
compliant. Skretting Australia is able to demonstrate that procured volumes of ASC compliant marine ingredientsexceed market requirements.

South Africa

Species

ASC Compliant

Country of Origin-

IUCN Status

ASC Compliant2

4.7%

Fish oil (%)

IUCN Status1

Euphausia superba

Fishmeal (%)

Fish oil (%)

Antarctic krill

Latin Name

Fishmeal (%)

Species

Antarctica

Species of purchases of fishmeal and fish oil in Skretting Australia in 2022 and which
originated from by-products

Latin NameCountry of Origin

Species of purchases of fishmeal and fish oil in Skretting Australia in 2022 and which
originated from whole fish

By-Products - TOTAL

3.6%

-

24.3%

1.5%

Least ConcernxManagement disclosure
Health & welfare

3. Skretting Australia sourced Big eye tuna is sourced from a fishing zone where Big eye tuna stocks are classed as healthy, thus we are not purchasing marine resources classed as vulnerable.
This has been externally validated by a consultant from Fishlistics.

Climate & circularity
Good citizenship

Ingredient deep dive
About

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Skretting Sustainability Report 2022

Ingredient deep dive
Progress on our marine sourcing policy
In 2022, Nutreco and Skretting published a responsible sourcing policy
for marine ingredients. We did this to solidify our commitment to protect
the ocean and ensure that fish stocks caught for direct or indirect
human consumption are fished within clearly defined, sustainable limits.
To achieve our ambitions, we strive to ensure that our marine feed
ingredients come from sustainable sources in the short- and long-term.
In practical terms, we have defined different sustainability classes forthe main groups of marine ingredients (whole fish, by-products fromwild fish and by-products from aquaculture). For details on the different
sustainability classes, please consult our sourcing policy.
2022 was a challenging year for our marine ingredient targets, withthe percentage of certified fish oil decreasing compared to 2021. We
understand that compliance to our 2025 ambition will not happen
without collaboration up and down the value chain. Moving forward weare focusing on engaging with uncertified fisheries, supporting them toenter fishery improvement programs.

Percentage of marine ingredients certified to MSC, MarineTrust (class A)

99%
Fish oil66%
Combined 85%
Fishmeal+9% from 2021
-12% from 2021

Read our Marine Ingredients
Sourcing Policy

Read our Soy and Palm
Sourcing Policy

Progress on ingredient sourcing policies in 2022 compared withtargets
Whole fish
Marine ingredient type

Target2022

Sustainability class A+ and A

85%

83.9%

Maximum 15%

7.1%

Sustainability class ASustainability class B

9.0%

Sustainability class C

0.0%
Marine By-products

Marine ingredient type

Target2022

Sustainability class A+ and A

50%

96%

Sustainability class A-

50%

3.8%

Sustainability class B

0.2%
Health & welfare

Soya
Soya ingredient type
Sustainability class A+ and A

Management disclosure2025 Target
100%

2022
100%

Climate & circularity

Sustainability class ASustainability class B

Good citizenship-3% from 2021
Ingredient deep dive
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Skretting Sustainability Report 2022

About Skretting Australia
SKRETTING AUSTRALIAORGANISATIONAL PROFILE 2022
Name
Gibson’s Limited trading as Skretting Australia

LocationsOperations

Factory & Office Locations
1 Cambridge, Tasmania, Australia
2 Westbury, Tasmania, Australia• Feeds for aquaculture species• Digitally enabled farm focused solution provider

4

Administration Office Locations
3 Invercargill, South Island, New Zealand
4 Proserpine, Queensland, Australia

Workforce• 99 Employees (88 Full-time, 3 Part-time, 8 temporary)• 84 Men, 15 Women• Leadership Team (4 men, 2 women)• 60% production, 35% sales and admin, 6% management

Research and Development Facilities
5 Taroona, Tasmania, Australia
6 Okiwi Bay, South Island, New Zealand

OwnerPart of Nutreco, privately-owned by SHV holdings.

Memberships

Scale of Operation>112,000T of feed produced

Report Period
1 January - 31st December 2022
2

Last Report
Skretting Australia Annual Sustainability Report 2021
Available at:5www.skretting.com/en-au/sustainability/sustainability-reporting

Certifications

Feeds sold per species type:114

Barramundi

63.1%

16.3%

8.1%

Health & welfare
Climate & circularity

Australia and New ZealandKingsalmon6Management disclosure

3

Markets and Customers

Atlantic
salmon1• Australian Barramundi Farmers Association• Australian Prawn Farmers Association• Australian Renderers Association• Chartered Accountants Australia and New Zealand• Experimental Aquaculture Facility Advisory Committee• New Zealand Salmon Farmers Association• Stockfeed Manufacturer’s Association• Seafood Industry Australia• Tasmanian Farmed Salmon Alliance

Giant
Tiger Prawn

Yellowtail
Kingfish

Trout

7.3%

3.1%

1.9%

Skretting Sustainability Report 2022

Good citizenship
Ingredient deep diveAbout

We hope you enjoyed reading our2022 Sustainability Report.
Please get in touch if you have any
questions or comments!

Click here to explore the rest of Skretting’s sustainability work