Lerøy Salmon TM

LERØY SALMONTM THE NORWEGIAN SEAFOOD PIONEER SINCE 1899

LERØY SALMONTM – 1

LERØY SALMONTM Over the years, we have made several responsible and sustainable choices regarding our selection of fish feed and farming operations.

These choices differ from those made by others in the industry. To ensure credibility and to document these choices, we have, in collaboration with DNV GL, prepared a Product Certification (STP86).

Lerøy SalmonTM is produced in accordance with requirements in STP86.

All operations, from feed to farming, harvesting and sales are audited on an annual basis by a third party to document that all requirements for STP86 are met.

Fish feed • Our fish are fed with alternative raw materials (microalgae, insect meal and camelina oil) • Zero use of salmon oil • Zero use of ethoxyquin • Zero use of blood meal from land animals • Full traceability of feed ingredients Farming • Farms certified with ASC or GlobalG.A.P.

• • • • •

Full traceability via Fishtrack High survival rates Zero use of antibiotics Zero use of chitin inhibitors Zero escapes

Industry • GFSI Food safety certification • Omega-3 level above 2.9 g/100 g • EPA/DHA levels above 1 g/100 g • Omega-6/Omega-3 ratio below 1 • PCB & PCB-like dioxin levels below 0.5 ng/kg

INTEGRATED

REDFISH ROE

SMOLT PRODUCTION

VALUE CHAIN

FARMING

We care!

PROCESSING

WHITEFISH WILD CATCH

2 – LERØY SALMONTM

PROCESSING

VAP

DISTRIBUTION

CUSTOMER

Lerøy Seafood Group is one of the largest seafood companies in the world. The Group’s operations are based on the natural resources produced in the sea and rely on these resources being properly managed so that we can continue to supply sustainable seafood in the future.

Lerøy Seafood is fully committed to protecting the earth’s natural resources and having a minimal environmental impact in the processes involved in the value chain. To illustrate how we are taking action today, we will show you the Lerøy Way within each of the following areas: • • • • • •

Fish feed & raw materials Traceability – Lerøy Fishtrack Fish welfare Food safety and health Certification Code of conduct

FISH FEED & RAW MATERIALS Feed is the most significant input factor when it comes to sustainability, biodiversity and levels of emissions from salmon farming. To reduce the footprint from our activities, we have made several responsible and purposeful choices regarding feed composition.

MARINE RAW MATERIALS We work actively to keep the FIFO ratio as low as possible (FIFO=Fish in/Fish out). This is achieved through the careful selection of raw materials. Our FIFO goal is to use less than 1 kg of wild fish as raw material in fish feed for the production of 1 kg of farmed salmon. In 2019, the FIFO ratio achieved was 0.69.

The raw materials required to produce the fish feed are sourced only from areas regulated by national quotas for the respective species. The allocated quotas are in compliance with accepted scientific recommendations, such as ICES, FAO, IMARPE and SERNAPESCA*. The Group requires all feed suppliers to prioritise the use of raw materials certified in compliance with IFFO’s standard for sustainability, or raw materials with MSC-certification or similar.

The certification schemes used by our suppliers are part of ISEAL, and our suppliers have guidelines for sustainability requirements, including small pelagic fisheries.

Lerøy aims to utilise cuttings from wild catches as much as possible in feed. The minimum ratio of cuttings in Lerøy’s feed is 5% of the marine raw materials for Lerøy SalmonTM weighing more than 1 kg. Through ownership of Lerøy Havfisk, Lerøy has a fantastic

LERØY SALMONTM – 3

future potential for use of cuttings and residual raw material.

Vegetable raw material Lerøy supports and has signed the Cerrado Manifesto regarding soy production.

The Cerrado Manifesto works to protect the Cerrado and prevent deforestation in Brazil.

Any soy raw materials are produced according to the “Roundtable on Responsible Soy” (RTRS) certification or similar..

The producer of Soy protein are deforistation.-free througout the value chain

NEW RAW MATERIALS FOR FISH FEED To decrease our footprint and help feed a growing population, Lerøy is always looking for new sustainable raw materials to feed our fish, while not competing with products that can be used directly for human consumption. To maintain the beneficial health effects for both fish and humans, we aim for raw materials with a high content of Omega-3, especially essential fatty acids (EPA/DHA). Protein sources that minimise dependency on soy are also a high priority.

To date, we have introduced the use of three new kinds of raw materials in our feed: Microalgae Lerøy was the first producer to add microalgae commercially to salmon feed. Naturally found

4 – LERØY SALMONTM

in the marine environment, the algae used in the feed are grown/cultivated on land in fermentation tanks. The production process involves feeding nutrients to the algae so that they grow and accumulate Omega-3 fatty acids. The microalgae are produced with low carbon, water and land use impacts.

Regarding DHA content, one tonne of algae Omega-3 is the equivalent of 40 tonnes of wild caught fish from our oceans. Lerøy SalmonTM is fed with microalgae.

Insect protein Since 2019, Lerøy has been using insect meal as part of our feed specification during the freshwater phase of farming salmonids. The insect protein replaces some of the fishmeal in the feed and therefore minimises dependency on fishmeal from wild fish. The insects feed upon the biproducts from the starch industry. The insects thus convert one waste product into a high-quality protein. Insect protein production is extremely area-efficient, does not utilise fertilizers, insecticides/ pesticides and consumes very little fresh water. Insect protein is undoubtedly one of the most sustainable protein sources we have, and this food supply chain is a perfect example of a circular economy.

Camelina oil Camelina oil is an ingredient in the Lerøy feed and is extracted from the Camelina plant, which is known for its ability to grow in infertile soil with a modest need of water and fertilizer. The oil from this plant is particularly rich in Omega-3 fatty acids and has an extra-low content of Omega-6 fatty acids. We aim to minimise the amount of Omega-6 fatty acids in our salmon, in order to improve the positive human health effects from eating Lerøy SalmonTM.

RESTRICTIONS APPLIED TO FISH FEED IN LERØY Through active and constructive dialogue with both the market and regulatory institutions, Lerøy has the world’s leading track record for being a prime mover on many issues regarding salmonid feed choices. Lerøy has taken an active stance on the following: Zero salmon oil We do not use raw materials from the same species for

ethical reasons, and therefore do not use salmon oil in Lerøy feed.

Zero GMOs The end consumer, particularly in Europe, does not want genetically modified raw materials in fish feed. Lerøy has chosen not to use GMOs in fish feed.

Zero ethoxyquin We do not use ethoxyquin in raw materials for fish feed.

Zero palm oil From an environmental standpoint, and to protect the Indonesian rainforest, we choose not to use any palm oil in our feed Zero bone or blood meal from land animals (mammals) We do not use bone or blood meal from mammals in our fish feed.

Zero chitin inhibitors Chitin synthesis inhibitors, such as diflubenzuron and teflubenzuron, have been shown to present a risk of harm for other sea life. We do not use chitin inhibitors in our feed.

LERØY SALMONTM – 5

TRACEABILITY – LERØY FISHTRACK PRODUCT TRACEABILITY Lerøy Seafood Group has full traceability for all products.

In 2003, Lerøy launched Fishtrack to insure full transparency in the future.

Fishtrack is our online traceability system, where each customer can access all relevant information from roe to finished products.

To retrieve traceability information for your Lerøy SalmonTM, go to the Lerøy Seafood Group’s website and download the traceability information. The traceability system follows a fish from roe stage to finished packaged product. When customers log onto the system, they receive detailed information on the product throughout the entire value chain. The system provides information on fish from parent fish stage to harvest, such as location, treatments and quality information such as fat, colour and condition. It is also possible to link traceability information to different traceability platforms.

FEED TRACEABILITY – RAW MATERIALS All raw materials included in an individual batch of fish feed can be traced back to the specific raw material used to produce that batch.

6 – LERØY SALMONTM

Species and country of origin are important data, and this tool simplifies our follow-up of raw materials and enables us to track individual commodities online at any given time.

The following traceability on all raw material in feed is available online.

• Delivery date • Name of raw material • Country of origin per raw material • Species • Marine or vegetable ingredients • Sustainability certified ingredients

FISH WELFARE Lerøy strives to promote good fish welfare throughout our farming activities. Studies from NOFIMA Food Research Institute have shown that by focusing on measures to improve fish welfare, the salmon are more robust, grow better and achieve better quality. All employees involved in fish farming take part in training focusing on fish welfare with the mantra: “know your salmon”. Fish welfare is ensured by: • The approved Lerøy feed recipe and strategy to ensure that all nutritional requirements for the salmon are met • Ensuring handling with minimum stress and injuries • Continuous monitoring of fish behaviour • Veterinary control • Ethical harvesting using

ELECTRONIC CATCH NOTE CATCH CERTIFICATE

LERØY AURORA

FISHTALK

LERØY MIDT FISHTRACK

TRADING LERØY SJØTROLL

NORWAY SCOTLAND/ SHETLAND NORTH AMERICA

SPAIN PORTUGAL

FINLAND SWEDEN DENMARK NETHERLANDS FRANCE ITALY TURKEY

JAPAN CHINA

LERØY SALMONTM – 7

stunning method • Low cage density, average 10 kg/m3 in the Group • Supervision of oxygen levels and current conditions

SURVIVAL RATES High survival rates are correlated with good fish welfare. The goal for Lerøy SalmonTM is a yearly survival rate higher than 90%.

To achieve this, we have more than 25% Omega-3 in the feed ingredients compared to standard commercial feed to ensure that the fish are more robust, achieve a higher survival rate and better welfare.

Lerøy Seafood Group has an extensive vaccination programme to ensure high survival rates, good fish welfare and reduction in the use of medical treatments.

Surveillance and emergency plans have been implemented to monitor fish welfare. This will reduce our response time in case of fish mortality.

Employees are extensively trained to ensure the fastest possible response time in all situations.

PRODUCTION SITES For every new site location, Lerøy Seafood Group performs an extensive analysis of the land and seabed to ensure optimal conditions.

All locations utilised by Lerøy are approved for fish farming

by Norwegian authorities, and usage approval is required from a number of official bodies. Other conditions for approval include compliance with numerous analyses of local environmental conditions.

The most important of these is the MOM-B1 evaluation.

A MOM-B evaluation is carried out by an independent third party and involves extraction of samples from the seabed under and around the cages in a facility.

1 A MOM-B is a trend monitoring of the bottom conditions under and in the immediate surroundings of an aquaculture plant and measures the impact of the plant.

8 – LERØY SALMONTM

Fauna investigation A fauna investigation is a detailed assessment involving sensory and chemistry evaluations of the seabed.

On the MOM scale of 1-4, with 1 being the best possible score, Lerøy SalmonTM scores between 1.0-1.5.

For locations that produce Lerøy SalmonTM, the average environmental status for MOM-B shall be max 1.5.

STOCKING DENSITY Stocking density, i.e. how much space the fish have in the cage, also influences fish welfare. The maximum limit for Lerøy SalmonTM is 25 kg/m3. In a cage with fish, the fish to water ratio shall be 2.5% fish and 97.5% water. Lerøy’s average density during a production year is lower than 10 m3/kg in the Group.

ANTIBIOTICS Lerøy Seafood Group shall not use any kind of antibiotics unless deemed necessary to improve fish welfare.

*

We guarantee that zero antibiotics are used in any farming operationsfor Lerøy SalmonTM

Zero Anti-inflammatory drugs nor hormones Lerøy Seafood Group does not use anti-inflammatory drugs, hormones or growth promotion treatments in our salmon production.

CHITIN INHIBITORS Chitin synthesis inhibitors (diflubenzuron and teflubenzuron) are substances in fish feed used in treatment against salmon lice.

Lerøy does not use chitin inhibitors for medical treatments. Due to concerns about the negative effects these have on the health of wild crustaceans, we have chosen not to use chitin inhibitors.

*

We guarantee that zero chitin inhibitors are used in any farming operations for Lerøy SalmonTM

LERØY SALMONTM – 9

PIGMENT Due to the concerns regarding the negative effects of canthaxanthin as a pigment source on human health, we only use astaxanthin in Lerøy SalmonTM.

CARBON FOOTPRINT The maximum carbon footprint for Lerøy SalmonTM does not exceed 0.2 tonnes CO2 equivalent per tonne gross weight product.

ESCAPES Preventing escapes of fish is a high-priority area for Lerøy.

Escaped farmed salmon can breed with the wild salmon and affect the diversity of the wild salmon genetics.

The Group invests a considerable amount of work in optimising equipment and routines specifically to avoid escapes of fish. All incidents of escapes, and all events that may lead to escapes, are reported to the fisheries authorities.

Leroy’s key elements to prevent escapes of fish: • Focus on Attitude, Action, and Responsibility among our employees • Certified fish farm installations and equipment • Training of our personnel • Equipment testing and control (NYTEK) • Visual inspections of the farming equipment both above and below the surface

10 – LERØY SALMONTM

• Ensure restrictions and surveillance of traffic in close vicinity to locations to prevent accidental damage to the farming construction

*

We guarantee that Lerøy SalmonTM are harvested from farm cages with zero escapes for each generation

FOOD SAFETY AND HEALTH FOOD SAFETY Lerøy Seafood Group takes an active role in all parts of the value chain to ensure supply of safe and high-quality products. Based on many years of experience, we have developed a quality system with mitigating procedures, contingency plans and routines to ensure food safety. The Group conducts internal audits, and tests the contingency plans every year to make sure that the quality system works properly.

All processing facilities harvesting Lerøy SalmonTM have a Global Food Safety Initiative (GFSI) certificate. All batches are microbiologically tested to ensure food safety.

PCB & FOREIGN SUBSTANCES The maximum limits for Lerøy SalmonTM are within Norwegian and international standards for threshold values:

• • • •

Dioxins max. 1.75 ng/kg Cadmium max. 1 mg/kg Lead max. 5 mg/kg Mercury max. 0.2 mg/kg

acids are DHA and EPA. These essential fatty acids are only found in seafood and can only be obtained through diet.

HEALTH Norwegian health authorities and the World Health Organization (WHO) recommend eating seafood two to three times a week or 300450 grams of pure fish a week.

Lerøy SalmonTM is rich in protein and Omega-3. There is a current trend for diets high in sugar and with excessive levels of Omega6. By replacing parts of your diet with seafood, you gain a double benefit: You eat less sugar and less Omega-6, while at the same time consuming more Omega-3 and other important nutrients (Vitamin D, selenium and iodine).

The most important Omega-3 fatty

DHA

EYE BRAIN HEALTH HEALTH

It is vitally important to supply the body with the right type of Omega-3.

The most current nutritional science reveals the importance of essential fatty acids in preventing, for example, cardiovascular diseases and arteriosclerosis.

Lerøy therefore maintains a high level of Omega-3 in our salmon.

Our feed contains a higher level of Omega-3 than is common in most farmed salmon. Our oil mix contains 7.5% EPA/DHA.

*

We guarantee that Omega-3 in Lerøy SalmonTM is above 2.9 grams per 100 grams

EPA

TOTAL JOINT HEART HEALTH HEALTH HEALTH

LERØY SALMONTM – 11

LEVEL OF OMEGA-3 AND EPA/DHA IN LERØY SALMONTM VS. CONVENTIONAL FARMED SALMON Omega-3

Sum EPA/DHA 0

0.5

2

2.5

Standard Norwegian salmon

1

1.5

Lerøy

3

3.5

4

LEVELS OF OMEGA-6/OMEGA-3 IN LERØY SALMONTM 2011-2020 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2011

2012

2013

2014

2015

2016

2017

2018

2017

2018

2019

2020

LEVELS OF EPA AND DHA (g/100 g) IN LERØY SALMONTM.2011-2020 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2011

2012

2013

12 – LERØY SALMONTM

2014

2015

2016

2019

2020

LEVEL OF PCB & PCB-LIKE DIOXIN (pg/g) IN LERØY SALMONTM 2006-2020 1.800 1.600 1.400 1.000 0.800 0.600 0.400 0.200 0.000

2006

2007

2008

2009

2010

2011

2012

Due to increased consumption of processed products and fast food, the intake of Omega-6 has increased significantly in recent years. An imbalance between Omega-3 and Omega-6 fatty acids contributes to diseases such as heart disease, diabetes type 2, cancer and mental illnesses. The ratio of these two acids in food should not exceed 5:1 according to Norwegian health authorities.

Lerøy SalmonTM have a more positive effect on the ratio between Omega-3 and Omega-6 in our diet, and an optimal ratio will contribute to improved human health benefits.

2013

2014

2015

2016

2017

2018

2019

2020

CERTIFICATION Feed suppliers, production sites and processing stations are audited once a year by DNV GL to verify that Lerøy SalmonTM are in accordance with the requirements in STP86.

All the locations is Global G.A.P. or ASC approved.

Lerøy processing factories are required to be GFSI food safety approved.

As a result of our conscious choices, we have reduced the level of foreign substances (i.e. a reduction in PCB and dioxin-like PCB of 71%) in Lerøy SalmonTM and maintained a high level of EPA/ DHA.

LERØY SALMONTM – 13

2.5% fish 97.5% water

14 – LERØY SALMONTM

CODE OF CONDUCT Lerøy Seafood Group is a global corporation conducting business and interacting with suppliers and subcontractors worldwide. In order to safeguard all our activities, we have drawn up a set of values that ensure best practices and fulfilment of our commitments to our customers: • Fair compensation • Safe working conditions and environment • Equality, protection, and responsibility Lerøy's code of conduct is based on GRASP (Global G.A.P. Risk Assessment on Social Practice) and is available at www. leroyseafood.com.

We have communicated our code of conduct to all our suppliers and subcontractors. Through audits, we ensure that our code of conduct is also followed by our partners.

LERØY SALMONTM – 15

THE NORWEGIAN SEAFOOD PIONEER SINCE 1899

16 – LERØY SALMONTM