Sustainability governance

These documents outline EWOS’ definitions and process for risk assessment, materiality analyses, scope of the report, data measuring, and stakeholder dialogues including key topics and concerns that have been raised through stakeholder engagement.

GRI 1.2 Description of Key Impacts, Risks and Opportunities

Key impacts on sustainability and effects on stakeholder.

The sustainability aspects of greatest impact to the company and stakeholders are identified through the EWOS materiality analysis .

For the analysis a risk assessment matrix is used where management judge the probability and impact of potential incidents. The key sustainability aspects and our response is shown in the table below. The risk exposure is categorized as Critical, Significant, and Insignificant.

Aspect

EWOS response

Indicator Reference

Occupational Health & Safety (OHS)

Significant risk to EWOS

All EWOS operations are certified according to OHSAS 18001, Occupational Health & Safety Management Standard.

LA7

Responsible Sourcing

Significant risk to EWOS

EWOS has implemented a supplier sourcing policy. EWOS has a Self-assessment form for EWOS suppliers based on the UN Global Compact commitments. In addition suppliers are asked to confirm acceptance of EWOS group sourcing policy. EWOS is performing regular supplier audits.

EW 10

Consumer Health & Safety

Significant risk to EWOS

All EWOS operations except EWOS Vietnam are certified to ISO 22000 Food Safety Management Standard. EWOS Vietnam use HACCP (Hazard Analysis Critical Control Point) methodology to manage food safety risk. All operating companies are certified to Global Gap standards. EWOS Scotland is certified under the UFAS scheme. The UFAS scheme is benchmarked against the compound feed module of GlobalGAP, and UFAS certification is accepted for supply to GlobalGAP certified customers.

EW 13

PR 2

Corruption

Significant risk to EWOS

EWOS has a zero-tolerance policy for corruption and has defined ethical guidelines on corruption and procedures for whistle blowing.

Training tools are used to within the organization for anti-corruption training.

SO 3

Non-compliance with environmental, societal, product and service and food quality regulations

Insignificant risk to EWOS

Through the management standards to which EWOS is certified, policies and procedures are in place to ensure compliance.

EN 28

SO 8

PR 2

PR 9

EWOS's management approach towards sustainability reflects the interest amongst stakeholders towards the group's social and environmental impacts. In order to manage the long term influence of these impacts  on the organization, risks and opportunities are systematically managed, as described above.

GRI 3.5: Process for defining report content

EWOS is a leading and trusted supplier of feed and nutrition for the international aquaculture industry. EWOS’s vision is Seafood for Generations. This implies practices that do not compromise possibilities for future generations. A successful future is thus dependent on sustainable conduct from all players engaged in the aquaculture industry.

Targets and disclosure

EWOS has defined its social and environmental sustainability principles (available at www.EWOS.com) and has introduced robust systems to manage, improve and report its performance. The 2014 report is a GRI level B. 

Responsibility

The operational responsibility for ensuring sustainable business practice ultimately lies with the Managing Director for each of the EWOS operations. The Board of Directors holds the overall responsibility to ensure that necessary systems and procedures are in place.

EWOS also recognizes the importance of responsible behavior from each and every employee. This is also integrated in the company’s guidelines for ethical and corporate responsibility

Internal Systems

Monitoring and follow-up of sustainability performance is approached at both local and corporate levels.

At the local level, operating companies use international management standards which ensure that key sustainability impacts are addressed through a system of procedures, audits and continuous improvement.

At the corporate level, EWOS's executive management receive a quarterly sustainability report outlining social and environmental performance for the preceding period and highlighting any emerging issue or concern. This report is also issued to the Board of Directors on a quarterly basis.

A summary of the performance results are communicated to all employees.

DETERMINING MATERIALITY

In defining material interests, EWOS identifies the aspects with highest potential impact to the sustainability of its operations and also includes additional aspects which are of high concern to external stakeholders. 

Some description

The materiality analysis and the sustainability indicators are reviewed annually based on input from stakeholders, scientific information, management considerations and sustainability performance.

Stakeholders and prioritizing topics in the report

Customers, investors, NGO's and authorities are all stakeholders interested in EWOS sustainability performance. EWOS engages with stakeholder groups at varying levels of intensity and through dialogue seeks to respond to reasonable expectations and interests. Future development is also based on scientific evidence and industry consultations.

GRI 3.6: Scope and boundary of the sustainability report

EWOS sustainability reporting covers the fish feed activities where EWOS has financial control and thus is in a position to manage sustainability impacts. 

This sustainability reporting concentrates on EWOS feed and R&D operations.

This report has been prepared in line with the GRI G3 guidelines to meet the level B requirements.

EWOS was until 01 Nov, 2013 part of the Cermaq ASA reporting at GRI level B+ in 2012. EWOS will continue to report sustainability performance in the future and continuously adapt the reporting to the stakeholders needs.

Some description

GRI 3.9: Data Measurement Techniques

EWOS has established a system for gathering, consolidating, analysing and reporting non-financial data. This sustainability management system has become critical to the production of regular internal sustainability reports for group management and the Board of Directors.

The EWOS Reporting Cycle

Some description

The reporting cycle is fundamentally based upon our insights from years of continuous dialogue with stakeholders (owners, customers, suppliers, employees and NGOs and society). These insights have been compiled into a set of sustainability principles at corporate level and also into management standards at local operating level. Accordingly, EWOS's reporting cycle has four distinct phases. First, sustainability indicators are routinely and consistently applied to measure local sustainability performance on a quarterly basis. The reporting process is well developed with handbooks, definitions and documented audit trails. The resulting data is then consolidated, analyzed and measured towards targets at the corporate level, providing detailed information about sustainability performance throughout the group. These performance insights are then reporting internally to group management, using a simple “traffic light rating (Red Amber Green rating) to identify areas of concern and any specific issues that may require remedial measures. From 2013, the internal sustainability management report is presented to the Board of Directors regularly.  All employees are also updated every half-year with key outputs from the reporting cycle, through presentations, email or newsletters. The cycle is concluded with external sustainability reporting which is structured according to the GRI Framework and published on the EWOS web site.

Feedback from internal and external sustainability reports is used to inform improvements to the reporting cycle going forward.

Bases of Calculations

EWOS has applied the following key calculations in our sustainability reporting:

PERFORMANCE INDICATOR

UNITS

CALCULATION

Marine index

% marine ingredients in feed produced

% fish trimmings and by-products of marine ingredients

(Tonnes of fishmeal + Tonnes of fish oil) /
Tonnes of fish feed produced * 100

(Tonnes of fish trimmings and by-products fish oil + fish meal) / tonnes of marine ingredients*100

Marine nutrient ratio

-

Nutrient Ratio = Marine nutrients consumed by salmon /
Marine nutrients produced in salmon

Energy consumption

GJ / tonne produced

GJ energy consumed /

Tonnes of material produced (feed or fish (Live Weight))

GHG emissions by weight

kgCO2e

GJ energy consumed by source * GHG emission factors

OHS

Injury frequency rate (H2)

Number of injuries / million working hours

OHS

Lost time injury frequency rate (H1)

Number of lost time injuries / million working hours

OHS

Lost time frequency rate (F-value)

Number of lost days/million working hours

OHS

Absentee days

Absentee days as a % of total work days

Divergences from GRI Indicator Protocols

In reporting performance data for GRI indicator LA 7, EWOS has chosen to continue reporting using the OHS formulas listed above, instead of adopting the GRI formulas. This is to ensure consistency in the annual report, compared to previous years, for such an important sustainability indicator. In addition, the rates EWOS uses are widely used by peers and large Norwegian industrial companies.

In reporting performance data for GRI indicator EN 4, EWOS has reported intermediate energy purchased and consumed from non-renewable energy sources but has not yet calculated the corresponding primary energy consumed in the production of indirect energy.

GRI 4.16: Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

EWOS’s approach to stakeholder engagement is to concentrate on entities or individuals that can reasonably be expected to be significantly affected by the organization’s activities, products, and/or services; and whose actions can reasonably be expected to affect the ability of the organization to successfully implement its strategies and achieve its objectives.

Stakeholders may have rights under national laws as well as under international conventions. Important international conventions related to indigenous rights are ILO Convention 169 and the UN Declaration of Indigenous Peoples (UNDRIP). Other central conventions include the eight ILO core conventions of the "Declaration of Fundamental Principles and Rights at Work" and the International Bill of Human Rights, including the right to freedom of association, collective bargaining and human rights.

Dialogue with employees is continuous, through well-established local management structures and practices. Employee relations are comprehensibly regulated by law and agreement in most countries.  EWOS applies one set of standards and values across its operations.  The competence, engagement and efforts of all employees are crucial to the success of EWOS’s business.

Suppliers of feed raw materials are of key importance to EWOS. A particular priority has been working with suppliers of marine ingredients where quality, safety and nutrition, as well as sustainability of the fisheries stock for example, are addressed. The Code of Conduct for EWOS suppliers expects suppliers have standards for ethics and corporate social responsibility and follow the UN Global Compact principles. If suppliers are not compliant with material standards for ethics and corporate social responsibilities, EWOS will as a first step work with the supplier to obtain improvements based on a Supplier Development Plan. EWOS is participating in meetings and conferences with supplier communities, e.g. fish oil and fish meal producers, to further enhance responsible sourcing - with a special focus on efficient use of by-products.  

EWOS has direct relationships with its customers, providing advice and services. EWOS also arranges local and regional customer conferences.

Authorities and politicians are stakeholders at the local, regional and national levels who define the framework conditions for the industry. EWOS believes transparent dialogue is a prerequisite for arriving at good and balanced decisions. EWOS actively engages with authorities and taking part in an open dialogue or information exchange.

The NGO community is diverse and EWOS is selectively concentrating on those NGOs that seek constructive improvements in the industry. This includes wide groups of environmental organisations, labour organisation and NGOs dedicated to other relevant topics.

EWOS works with development of industry standards based on multi-stakeholder involvement where various NGOs are represented. Examples from the operating companies include EWOS Scotland’s engagement with the River Carron Improvement Association, “RCIA” on a restoration of one of the West coast’s most prominent salmon and sea trout rivers.

EWOS sees industry associations necessary for ensuring sound regulatory framework for the aquaculture industry. EWOS is represented on the expert committee in working groups for the development of the ASC feed standard. In 2013 EWOS participated in FHL (Norway), AIC (UK), FEFAC (The European Animal Feed Industry Association). Also, EWOS is an associate of the Global Salmon Initiative (GSI) since this organization was founded (The Global Salmon Initiative (GSI) is a leadership initiative by global farmed salmon producers, focused on making significant progress towards fully realizing a shared goal of providing a highly sustainable source of healthy protein to feed a growing population, while minimizing our environmental footprint, and continuing to improve our social contribution).

It is important that local communities support EWOS’s local operations for future growth and recruitment of employees. EWOS contributes to local activity and employment and is a reliable partner for the local communities in which it operates. Dialogues with local communities are addressed mainly through the local stakeholder groups described above.

The general public is important for defining the framework conditions and support for aquaculture. Dialogue and transparent reporting are key elements for EWOS’s engagement with the general public. 

GRI 4.17: Key topics and concerns that have been raised through stakeholder engagement and how the organisation has responded to those topics and concerns, including through its reporting.

EWOS remains open to dialogue with stakeholders who are directly involved with or impacted by our industry or who constructively engage in seeking industry improvements. Stakeholder engagement is carried out at a local and a corporate level and our aim is to engage constructively based on respect and transparency.

The table below provides some examples of how EWOS responded to specific stakeholder concerns during 2014:

STAKEHOLDERS

CONCERNS

EWOS'S RESPONSES

Norwegian NGOs, Norwegian retailers, Norwegian EWOS customers.

Sustainability issues related to the production of palm oil (specifically rain forest depletion)

EWOS Norway provided certificates for certified palm oil.  Conclusion:  EWOS Norway terminated the use of all palm oil and derivatives in fish feed.

Retailers (mainly in France)

Icelandic whaling of the Fin Whale – said to be an endangered species, in breach with EU legislation on protection of endangered species.  Questions were raised regarding the sourcing of marine ingredients from Iceland.  

EWOS Norway collected statements from Icelandic suppliers regarding their position on whaling.  These statements were then distributed to the stakeholders who had raised concerns.

Retailers in Norway and EU, NGOs

Concerns about the sustainability of soy related to the deforestation of Brazilian rainforest.

EWOS has membership in RTRS, and is sponsoring ProTerra. EWOS purchase of soy with certificates during 2015. EWOS has committed to the New York declaration on deforestation.

Retailers in Norway.

DDT and its metabolites, dieldrin and metabolites were raised as a concern in fish feed  from some retailers in Norway.

Statement on analyses in feed materials and feed in Norway and Scotland distributed.   All analysis within legal limits.