Deforestation

Challenges

It is estimated that at least one third of forest areas worldwide have been destroyed. The most significant deforestation is currently found in the tropical areas. When a forest disappears, both the landscape and climate undergo major changes.  We see a reduction in evaporation and air humidity, resulting in changes to the climate and water cycle not just in the local area but, in some cases, also at some distance from the deforested areas.

Deforestation leads to the release of organically bound carbon. There is also the loss of or significant reduction in CO2 capture by the trees for photosynthesis in these areas. As a result, more carbon is emitted to the atmosphere as carbon dioxide, and this can substantially increase the greenhouse effect.

Soy is a raw material used to produce animal feed and is also used in feed for redfish. We have a requirement that all raw materials used in our fish feed shall be GMO-free. Very few countries produce GMO-free soy, but Brazil has large-scale production. The challenges represented by soy produced in Brazil can be that it is produced in deforested areas. This is not prohibited by Brazilian legislation, but is negative for the climate.

Lerøy only makes use of Pro Terra soy, certified as originating from areas that have not been deforested. Nonetheless, as a major purchaser in this area, we are very much aware of our responsibility to continue to work in alliances and with partners to prevent soy production in areas cleared by means of deforestation.

Lerøy ambitions in this area

Lerøy aims to contribute towards stopping global deforestation to the greatest extent possible. Lerøy shall not make use of raw materials cultivated in areas cleared via deforestation. Deforestation is mainly related to raw materials for fish feed in our aquaculture business, but may also be relevant in connection with the purchase of packaging materials.

Action taken by Lerøy in the area

• Lerøy only purchases Pro Terra certified soy from Brazil. This standard guarantees that soy production is deforestation-free.
• Lerøy is also a Statement of Support signatory for the Cerrado Manifesto, thus working with our feed suppliers to bring an end to deforestation in the Cerrado in Brazil.
• Lerøy is an active partner in alliances promoting a ban on deforestation.
• The Group has requested information on their feed suppliers’ total exposure in terms of deforestation throughout the value chain, and has clearly communicated that raw materials from areas cleared via deforestation are not acceptable.

How we measure our impact in this area

We measure our impact via close dialogue and follow-up, in addition to third-party audits and use of our traceability system.

KPI/Targets 

• Zero input to our value chain of materials produced in areas cleared by means of deforestation
• Exploit our position to encourage feed producers to focus on the subject, also for raw materials not delivered to Lerøy

Results

• All soy delivered to Lerøy has been deforestation-free for many years.
• By taking part in “the Aquaculture Dialogue on Sustainable Soy Sourcing in Brazil”, Lerøy has been instrumental in ensuring that the three suppliers of soy protein concentrate are now 100% free of deforestation and land alteration activities (DCF), with cut-off date in August 2020.
• These three suppliers have also confirmed their plans to implement a monitoring, reporting and verification system (MRV) to ensure full traceability throughout the value chain.
• Our feed suppliers who continue to sell soy from deforested areas have been notified that we expect them to change their operations in Brazil. “Business as usual” is unacceptable. These expectations have been discussed on numerous occasions with the executive management in the companies in question, and we expect to see change in this area in the near future.
• Examples of our efforts to prevent deforestation:

Lerøy has high expectations of its suppliers and are engaging with Cargill as they work to transform the food supply chain to be more sustainable. Our engagement with Cargill extends beyond the aqua nutrition business and is focused on making meaningful progress toward addressing climate change and eliminating deforestation from their supply chains in the shortest time possible.

“Lerøy is an important and valued customer of Cargill, and we have worked together to find innovative solutions which provide high-quality aquafeed produced in the most sustainable way. Our engagement and work with Lerøy is driving meaningful change in our approach – especially in accelerating our progress on protecting forests in Brazil – and this is critical in building a more sustainable path forward to transform the food supply chain.” Dave MacLennan, Cargill Chairman and Chief Executive Officer.

Efforts going forward

Lerøy aims to continue to contribute towards ensuring that raw materials used in fish feed do not originate from deforested areas.  We will continue to work in this area by means of:

• Partnerships and organisations
• Dialogue with feed companies
• Dialogue with customers
• Various NGOs