Policy for use of freshwater

Purpose

Lerøy Seafood Group (Lerøy) shall take measures to minimise our impact on local water sources and the surrounding environment that we directly and indirectly use in our operations. Sustainable management of these water sources is important to ensure continued operations and a sound business model.

The world’s dependency on access to clean, high-quality freshwater has never been greater. Freshwater is a renewable resource. In some areas of the world, however, the use of freshwater may exceed the natural processes that refill the water magazines. Water stress or water depletion in individual areas may have a negative impact on our  operations and business and on society in general. Access to freshwater for our operations is essential for the following reasons:

• We rely on freshwater for our smolt production operations.
• Our processing operations are dependent on clean freshwater to uphold hygienic standards.
• Our workers and local communities need access to clean drinking water and sanitation.
• Raw materials for salmon feed are sourced from agriculture

According to The World Resource Institute’s (WRI) Aqueduct Water Risk Atlas, 2019, no areas in Norway, where all of our water-intensive operations (smolt production) are located, are categorised as being at risk of water stress or water depletion. Some of our processing plants in Europe are located in areas where there are medium water stress or water depletion risks. None of our operations are located in high risk areas according to the WRI.

Our main actions to ensure sustainable management of and minimal impact on water bodies/sources are as follows:

• Implementation of RAS technology in our smolt operations. RAS technology can reduce our water usage by 99% per location.
• Investment in, and Implementation of water-saving equipment and technology at our processing plants.
• Communication and cooperation with the local government to ensure good water management.
  • Our operations must not result in denying any local communities access to clean freshwater.
• Training of own personnel who manage risk and control our water usage at water-intensive locations.
• Improving our systems for reporting of freshwater usage and wastewater in the Group.
• Ensure that wastewater treatments at our locations are in accordance with applicable legislation.
• Strive to use the best solutions and technology available to ensure that local habitats, wildlife and ecosystems are not affected negatively.
• Ensure that Lerøy does not pollute any freshwater sources.

Valid for

This policy is applicable to all employees at Lerøy.

Definitions

Water stress: Baseline water stress measures the ratio of total water withdrawals to available renewable surface and groundwater supplies.

Source: WRI Aqueduct 2019

Water depletion: Baseline water depletion measures the ratio of total water consumption to available renewable water supplies.

Source: WRI Aqueduct 2019

WRI, Aqueduct Water Risk Atlas; https://www.wri.org/aqueduct

Framework and principles

• Regulation concerning water supply and water intended for human consumption [Drinking water regulations]
• Act relating to river systems and groundwater [Water Resources Act]
• Regulations relating to pollution control [Pollution regulations]

Roles and responsibilities

• All employees are responsible for complying with this policy.
• The top management in each company is responsible for ensuring that the company has personnel with the competencies required to ensure compliance with local regulations.
  
  

Policy ownership and implementation

• The Head of ESG & Quality is the owner of this document and is also responsible for updating the document.
• The policy has been approved by the corporate management at Lerøy, and is presented to the Group's Board of Directors. The CEO of Lerøy Seafood Group has overall responsibility for the policy.
• The Group’s Procurement Policy shall be available via the Group's quality management system.