Arctic: Lerøy Seafood Group - Expect negative consensus revisions ahead

Research evidence excerpt

Arctic: Lerøy Seafood Group - Expect negative consensus revisions ahead

ESG Considerations Key ESG risks

Sustainability at Lerøy Seafood Key risks How Lerøy Seafood is positioned

Value chain environmental

• Partners providing 100% deforestation free production of soy for fish feed

impact  Lerøy is well positioned for increased global ESG focus as a

producer of fish protein, which has lower carbon intensity than other

• 86% of wild catch are certified marine species.

types of animal protein production. Lerøy has a higher ESG risk and

• Holding 10% of the quota for cod fishing North-Norway. Hence, Lerøy is exposed to strict scores lower on some metrics than other salmon producers as the

Ecosystem quota regulations and possible changes.

company also operates within the wild-catch segment, with higher

• New post smolt facility in Fitjar, with capacity to produce 12m smolts with sizes up to 1.2kg, carbon intensity and seabed impact. Lerøy was ranked fourth on the

reducing fish time in sea and hazards exposure (e.g., lice, algae etc.) Coller FAIRR index in 2021

 Lerøy discloses ESG metrics in its sustainability report which is • Mortality rates of 7.8%, 7.5% and 6.6% in 2020-2022, respectively.

Fish health

included in its annual report with third-party verification from PWC. • 100% of sites are GlobalGap/ASC certified.

The company reports in accordance with the Global Reporting

Initiative (GRI). • Wild catch segment has approx. 8x higher carbon intensity (tCO2e/tGWE) than its farming

GHG emissions segment, resulting in a higher total carbon intensity than farming peers (scope 1 & 2) but

 The EU Taxonomy does currently not include aquaculture or fishing, lower than beef, poultry and pork.

and Lerøy is therefore not Taxonomy aligned.

ESG performance data