Salmones Camanchaca SA

The company does not have a science-based emission reduction target.

The company reports its commitment to become carbon neutral by 2025 regarding Scope 1 and 2 emissions and reduce total emissions from 2020 levels by more than 40%. It plans to reduce its emissions through the "Hidroelena" hydroelectric power plant, which will allow a reduction in emissions of around 35% of Scope 1 and 2 by changing the use of diesel energy to emission-free renewable energy in 2022. However, it does not set a target to reduce its Scope emissions. It has a Fish Feed Sustainability Statement where it commits to work with its feed suppliers to achieve Science-based targets by year-end 2023. It reports that feed suppliers contributed 63.91% of Scope 3 emissions in 2021. However, it has not disclosed feed supplier contribution as the Green Gases Effect Report has not yet been published.

The company mentions that it is working with feed suppliers to set GHG reduction targets by the guidelines produced by the Science-Based Targets initiative.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming

The company mentions that it switched its corporate electricity contract to entirely renewable energy resources to reduce CO2 emissions in the operations. It also replaces diesel with renewable energy at the Petrohue hatchery to reduce 35% of Scope 1 and 2 by changing diesel energy to emission-free renewable energy.

The company reports that its Scope 1 emissions in 2022 were 23,058 tons of CO2, Scope 2 emissions market-based were 1,233 tons of CO2, Scope 2 emissions location-based were 5,330 tons of CO2 and Scope 3 emissions were 183,195 tons of CO2.

The company discloses the Scope 1(9.85 tCO2e) and 2 emissions (585 tCO2e) from hatcheries. It discloses that the emission from the feed is 116,511 tCO2e in 2022.

The GHG inventory of the company is audited and verified by Deloitte.

The company's total GHG emissions have decreased from 247,315 tons of CO2 in 2020 to 207,486 tons of CO2 in 2022. This represents a decrease of 16.10% when the GHG inventory is complete. Compared to the previous reporting period, the company's GHG emissions have increased from 205,313 tons of CO2 in 2021 to 207,486 tons of CO2 in 2022.

The company acknowledges that climate change represents a significant risk. It discusses that changes in oceanographic temperature and marine currents, algal blooms, red tides, storm surges, and falling oxygen levels, among other potential environmental changes, can affect fish farming conditions. It has implemented prevention and mitigation measures to minimise such risks by diversifying farming sites, finding alternative species and adapting new technologies and devices. While the board has issued recommendations based on the data collected in 2021 to follow the TCFD guidelines and that the company has made progress in its communication, it does not explicitly disclose any formal climate-related scenario analysis.

The company reports that raw materials such as rapeseed oil, soy and wheat are subject to unpredictable fluctuations in price. It also states that climate change-induced risks, such as increasing seawater temperature, can affect fish oil and fishmeal. To mitigate these risks, it says it is leveraging technology to reduce the feed falling to the seabed, reducing feed conversion ratios and increasing feed efficiency. It discloses that climate change may aggravate natural events such as oceanographic temperature or marine currents, algae blooms, red tides, storm surges, falling oxygen levels and other extreme weather conditions. As a result, it expects these climate risks to result in losses in cultivated biomass, more excellent fish escapes and other commercial impacts. To mitigate these risks, it is looking to diversify farming seawater sites, farming alternative species and using new technologies. It states that algae blooms took place in 2021, leading to an extraordinary amount of mortalities, resulting in direct costs upwards of USD 14.8 million. It incurred USD 8.5 million in expenses related to this event. However, it needs to report the number of material circumstances in the current reporting period.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company states that the feed it uses includes vegetable raw materials such as soy, wheat, and corn. It mentions that all the soy-derived raw materials used in 2022 are backed by RTRS credits that ensure responsible soy production. The company discloses that 7.5% of the total ingredients it uses in feed are soy derivatives. It has a clear commitment to preserve the ecosystem and avoid deforestation. The company discloses a list of its main suppliers, however does not disclose if these are all 100% deforestation-free.

The company discloses that 100% of the soy it uses is RTRS certified and requires that each supplier must have RTRS or Proterra certification. The company has a commitment that all fish feed used must be certified as Deforestation and Conversion Free by 2025. The cut-off date for RTRS certified soy is 2020. This target has been achieved by the company as all its soy is RTRS certified.

The company discloses that all its soy is RTRS-certified.

Since the company's entire soybean supply is RTRS certified, data on progress towards its target is considered to be verified by a third party.

The company expects its suppliers to comply with the guidelines associated with biodiversity protection in its Suppliers Code of Conduct. These guidelines include biodiversity conservation, minimising their impact on ecosystems, respecting legally protected areas, and avoiding entering reserves and national parks. The company is working with soy suppliers to improve sustainability performance in its value chain. In February 2021, it announced a two-year initiative with Biomar and Skretting, two of its four feed suppliers, aiming to 1) formulate diets using raw materials that have not contributed to deforestation 2) agree to SBTI-approved GHG reduction targets, 3) use 100% renewable energy and 4) implement a lifecycle analysis method that selects ingredients for fish diets on the basis of reducing the overall impact on the environment. However, the company does not report any follow ups related to this agreement in its latest report. Salmones Camanchaca discloses a requirement for feed suppliers to monitor their processes and to analyse their life cycle, environmental footprint, impact on climate change and water footprint of feeds.

The company states although 100% of soy is certified from RTRS, it has not implemented its own traceability system.

The company does not discuss innovations and/or practices to move towards sustainable feed sources.

The company discloses that 100% of salmon production is certified with the Best Aquaculture Practices (BAP) certification.

The company discloses its feed ingredients by percentage, broken down into categories but not disaggregated by species. The company states that all sourced soy-based raw materials are backed by RTRS credits. It also states that 82% of fish meal and 54% of fish oil are certified by MarinTrust, and 12% of fishmeal and 14% of fish oil are certified by MSC. In addition, the company discloses its FFDRo and FFDRm.

The company discloses that in 2022, FCR decreased from 1.38 in 2021 to 1.17 in 2022 and attributes this to a reduced percentage of fishmeal included in diets. The company discloses a decrease in FFDRm over the past three years, but an increase in FFDRo across three years, from 1.52 in 2019 to 1.58 in 2022. The company also discloses protein conversion efficiency over 4 years and includes calculation methodology.

The company does not disclose its strategy for feed innovation.

The company does not dsiclose the percentage of R&D allocated to novel ingredients development. Further, it does not disclose a target related to feed innovation. It also does not disclose the average EPA and DHA content of salmon it produces.

The company disclosed the sea lice count and the monthly compliance rate with regulatory limits of sea lice count from 2013 to 2022 on the GSI's website.

The company discloses selecting species which are less vulnerable to sea lice infestation and making use of modern well boats which can employ non-pharmacological methods of sea lice removal.

The company reports that no fish escaped in the current reporting period. It states fish escape prevention plans that include specific risk assessments for each cultivation site and classification based on oceanographic conditions, according to international standards. The company has stated it has implemented procedures to verify the tension within external nets and conducts regular inspections using an ROV. The company has a continuous commitment to preventing fish escapes each year but does not have a time-bound target for a definite end to escapes, including clear development of strategies and failure clauses.

The company acknowledges its responsibility for preserving the biodiversity in the areas where it operates. The company mentions that all employees are trained to understand the potential effects on local flora and fauna to monitor the impact of business on animal species living in the surrounding environment. It also records events and interactions with marine species yearly to ensure compliance with legal regulations and avoid any intervention within a protected area. The company also has complaint channels for the community to make suggestions, inquiries, and complaints about the impact on biodiversity. However, the company does not provide sufficient information on how exactly it aims to manage or reduce biodiversity impact through research and biodiversity projects. It does not disclose a time-bound target to end human-wildlife contact in its operations.

The company recognises algal blooms as a severe risk to its business operations. It aims to equip its farming sites with the latest technologies that mitigate the effects of stronger currents and algae blooms, switching to alternative species and using emergency oxygenation systems and Bubble curtains. According to Chilean regulations, each salmon farmer must have a contingency plan for harmful algae blooms, which must be published and authorised by the Chilean Environmental Assessment Service.

The company discloses that it does not operate in regions with high or extremely high water stress. According to its assessment, it operates in medium-water stress regions, however, the company does not explicitly state whether they operate in low-water stress areas or not. It operates a Hatchery and processing plant in the Biobío Region, which has medium water stress. It discloses water consumption in the reporting year and also refers to a water recirculation system at a farm located in the Petrohué River which achieves water savings, but does not elaborate on the impact of this system.

The company has a water consumption target for one plant which aims for a 25% reduction in water consumption compared to 2021. Salmones Camanchaca reports progress against this target. The company states that in 2022 the company had achieved a 22% reduction in water consumption intensity compared to 2021. The company has also set medium-term target of reducing the plant’s water consumption by 30% and long-term to reduce water consumption by 40%.

The company discloses water withdrawals by source in 2022 and reports total water withdrawals for the year. It discloses the water withdrawal for the plant which operates in an area of medium water stress, but does not disclose this information for the hatchery whcih operates in the same region. The company's report, including water-related data, was audited by Deloitte. Salmones reports that water consumption decreased in 2022 due to the implementation of a water recirculation system. Water withdrawals also decreased in 2022.

The company does not disclose information relating to water scarcity risks in feed farming. It signed an agreement with feed suppliers BioMar and Skretting in 2021, which includes managing environmental and social risks within feed supply chains. However, it is unclear if the company provides guidance, support and incentives to feed suppliers or growers regarding water use.

The company discloses the water footprint of feed to be 2,176m3/ton of finished product. Furthermore, it discloses that 59% of the ingredients used in salmon production come from regions with high or extremely high water stress levels. However, the company does not reveal the proportion of each ingredient sourced from water-stressed areas.

Based on a water risk assessment, the company does not operate in regions with high or extremely high water stress. The company has a water management policy, which considers calculating the water footprint of all its facilities. It mentions that the Rio Petrohué hatchery has a water recirculation system, which achieves significant water savings compared to other methods, such as open-flow hatcheries. Its marine grow-out sites do not require fresh water; as such, fresh water is only consumed by employees.

The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company reports zero non-compliance regarding permits, water quality standards, and regulations. The company does not operate in regions with high or extremely high water stress. It uses the Polcura hatchery and Tomé processing plant in the Biobío region, which has medium water stress. However, the company does not explicitly state that this assessment has been undertaken from a quality perspective.

The company states that it analyses physicochemical metrics of the water bodies that receive effluents from processing facilities. In 2022, the company disclosed the water quality discharged from two processing plants. Salmones also announces the volume of wastewater removed by destination and the total volume of sewage released in 2022. Deloitte has audited water discharge data.

Salmones discloses that specialist companies compost sludge produced at the Tomé processing plant and Petrohué Hatchery. The company discovered a decreased water quality at its San José and Tomé facilities. The company reports a 3% reduction in wastewater discharged in 2022. It states that this is due to increasing processed biomass and process optimisation.

The company does not disclose information relating to nutrient management in feed farming.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company monitors the amount of organic waste generated. It has a nutrient recovery indicator that provides annual data relating to organic waste generated annually. However, it does not state having conducted a risk assessment to identify if its farms operate in locations sensitive to nutrient pollution.

The company has a community relations strategy with principles and action plans focused on preventing and mitigating the possible impacts of the company's activity. However, the engagement is not carried out regarding nutrient management in Aquaculture.

The company commits to a no routine use of antibiotics policy, limiting use only to clinically diagnosed diseases and explicitly prohibiting medically and critically essential antibiotics. It further bolsters this commitment with preventive strategies such as fish vaccinations and participation in the Pincoy Project to reduce antibiotics in salmon farming.

The company reports a decrease in antibiotic usage from 703.1 gr API/tonne in 2021 to 452.4 gr API/tonne in 2022 (active pharmaceutical ingredients (API) per tonne) and confirms data auditing by Deloitte. It also specifies that 80% of the harvested biomass was treated with antibiotics, from which 99% Florfenicol and 1% Oxytetracycline.

The company states that it strictly complies with the recommendations of the OIE Aquatic Animal Health Code, which respects the Five Freedoms. The company discusses several steps to ensure animal welfare, such as maintaining fish density in line with regulations, providing farming structures with systems that maintain optimal environmental conditions for the fish to prevent and mitigate stress, and monitoring the mortality and its causes daily to implement timely treatment. The company's Animal Welfare policy includes a monitoring programme for animal welfare indicators, detailed handling protocols to improve fish health and welfare, and training for people in contact with fish during production and health care. The company discloses that it uses pneumatic stunners for fish.

The company reports that the Atlantic Salmon operations had an average density of 9.5kg/m3 and Coho Salmon had an average density of 5.6kg/m3 in the reporting period and assures that the maximum stocking density for all farmed salmon species does not exceed 17kg/m3. The company indicates animal welfare monitoring indicators based on the production phase, such as fish mortality before slaughtering, health/disease metrics, injuries and wounds, density and various other indicators.

The company does not disclose information in relation to the eye-stalk ablation of shrimps.

The company reports that in 2022, the mortality rate of Atlantic Salmon was 4.6% and 7.8% of Coho Salmon at sea, and the mortality rate was 10.5% for freshwater salmon and 4.2% for freshwater coho salmon. The company discloses that in 2022, Atlantic salmon's mortality rate has reduced in freshwater and seawater. In contrast, coho salmon's mortality rate has increased in freshwater and seawater. The leading causes of mortality are jaundice, HSMI, mechanical damage and transport. The company does not have a time-bound target in place for increasing mortality.

Although the company discloses that it did not have any statistically significant increases in mortality in any salmon farm and hatchery related to suspicions of transmissible agents of unknown origin, it does not disclose the number of disease outbreaks in this reporting period or for previous ones. The company states it has implemented various measures to tackle disease outbreaks without using medicines or chemicals. These include collaborating with the Pontificia Universidad Católica de Valparaíso on studies about functional diets to diminish antibiotic consumption, establishing the Fish Feed Department to further concentrate on non-pharmacological disease control methods, utilising natural treatments such as Lyptus Plus for sea lice, and adopting well boats, including the “Orca Yka”, which employ closed non-pharmacological freshwater bathing systems, along with the SFI mechanical bath.

The company commits in writing to respect human rights per the Universal Declaration of Human Rights and the ILO conventions.

The company conducted a detailed human rights due diligence process in 2021. The resulting actions were carried out in 2022 and included training employees and contractors on the company Code of Conduct and HR policy and informing employees and contractors of the company's complaints channel. Furthermore, the company provides a breakdown of the risk results from external audits of suppliers. Companies rated with low compliance in 2022 had to follow an immediate time-bound improvement plan. That said, the company does not discuss how it monitors human rights and identifies the next action steps in its operation. Further, the company does not provide more detail on mitigating identified risks.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence

The company commits in writing to prohibit discrimination, child labour, forced labour and harassment/abuse. The company also discloses that it promotes fair wages by paying employees a living wage, calculated via the SA8000 method. The company also monitors compliance with these policies through internal audits. In addition, the company expects suppliers to prohibit discrimination, child labour, forced labour and harassment/abuse. However, it does not require suppliers to promote fair wages or provide details of sick pay for its operations.

The company has conducted external audits covering the human rights of 11 suppliers considered high-risk for ESG issues, equating to 22% of its high-risk suppliers. However, the company does not disclose its plans to audit the remaining high-risk suppliers. The company has established an anonymous communication channel for directors, executives, employees and suppliers to report conduct or events that could violate the company's crime prevention model. However, the company does not mention whether mechanisms are designed in consultation with stakeholders (unions, employees, etc.). The company does not disclose the total number of grievances it received in the reporting year.

The company provides a high-level statement regarding its commitment to protecting the health and safety of all its workers. It also states that its Tomé plant was the first plant certified to ISO 45001. However, no other company facility seems to hold a similar certification. The company also discloses that its farming sites have two Joint Health and Safety Committees meeting monthly. Still, it does not discuss the percentage of its facilities with health and safety committees with worker representatives.

The company's lost time accident rate has increased from 12.5 in 2021 to 14.2 in 2022. In both 2021 and 2022, the company reported zero work-related fatalities. The company also discloses its general turnover rate as 32.9% in 2022. It breaks down turnover rates by age and gender but not by seniority level.

The company states it supports employees' rights to freedom of association and discloses that 843 employees are part of a trade union, which represents 48% of their workforce. In the supplier code of conduct, the company states that it expects its suppliers to respect the right of their employees to bargain collectively and to join unions or other similar organisations. The company does not describe any measures it takes to support its employees' rights to freedom of association and collective bargaining.

The company discloses that collective bargaining agreements cover 48% of its employees. The company also provides the distribution of its workforce by contract type.

The company states that it achieved 100% BAP-certified Atlantic and Pacific salmon biomass, which the Global Aquaculture Alliance Seafood develops. It also mentions that its Río del Este hatchery and San José primary plant are GlobalGAP certified. Both are GFSI-recognised programmes. Further, it reports that 100% of fish feed suppliers have GlobalGAP certification. It strictly collaborates with its feed suppliers to have GlobalGAP and BAP certifications. However, it is unclear if this is a requirement or not.

In each primary and secondary process plant of the company, an internal audit and an official BAP and ASC audit are carried out annually. It states that zero major non-conformities were found in San José and Tomé plants. However, five minor non-conformities were found in the San José plant, and six were found in the Tomé plant. The rate of corrective actions for significant non-conformances was 0 for major and 1.4 for minor non-conformities. It does not disclose whether it is developing or has developed consumer-facing technology for food safety.

The company's product recall system comprises six steps. It includes convening a recall assessment team. However, it does not mention further details, such as the roles and responsibilities of personnel involved in the recall system. There were zero recall incidents in 2022.

The company states that the sale of products was not prohibited in any of the countries which imported its products in 2022.

The company has created a sustainability committee comprised of the Vice Chairman and senior executives. The committee aims to validate, support and follow up on the company's corporate sustainability commitments. In 2019, the company developed a materiality process based on an analysis of the priorities of each stakeholder, operational impacts and global trends. It identified 25 material issues through this assessment. The company then further explored its progress during 2022 and reduced the material issues to 16 critical issues. These include biosecurity and animal welfare, occupational health, safety, welfare, local engagement and conflict resolution, interactions with wildlife, food safety and nutrition, human rights and ethics, transparency and compliance. However, it is not clear how the board is involved in the assessment. The company reports holding board-level sustainability expertise but not food safety or innovation.

The company has not disclosed executive monetary remunerations linked with climate or sustainability performance. The company engages with several national and international organisations on topics relating to the overall sustainability of the salmon-producing industry. The company has adopted the Clean Production Agreement "Climate Change and Circular Economy Strategy for the Salmon Industry" led by SalmonChile. This agreement requires adopting seven specific targets within the United Nations Sustainable Development Goals framework, which include producing and measuring carbon footprint standards for the entire value chain. The company is also part of the GSI, the Pincoy Project and The Chilean Salmon Antibiotic Reduction Program (CSARP), which works with members to reduce antibiotic use by 50%. The company reports a list of its memberships with trade organisations. However, it does not discuss aligning its policy-engagement strategy to restrict global temperature rise to 1.5°C.

The company has developed nine internal research projects in production, animal health and other collaborative efforts. For example, the company has a compostable packaging project which extends the shelf life of fresh chilled salmon for export. The company also benchmarks itself against peers in sustainability and innovation using Pacific Alliance rankings, the Dow Jones Sustainability Index and the Coller FAIRR Protein Producer Index.

The company does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources

The company does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.