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Skretting Sustainability Report 2022

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Transparency and trust

Transparent supply chains can drive more responsible practices and concerted efforts for a sustainable development of aquaculture. They also enable consumers to access the information they need to trust their seafood.

As aquaculture assumes an expanding role in meeting consumer demand for seafood products, it is only natural that the quality and safety of products come under the scrutiny of national and international organisations responsible for food safety, and that consumers are demanding more food quality and safety information. We have made transparency and trust core pillars of our work at Skretting. Read on to find out more.

Traceability, a key component for building transparency and trust

A traceability system allows us to identify the origin of our products all the way from the field to the consumer. Changes to the product, for example if it has been transformed or processed are included in the system. Traceability in the feed sector is directly related to food safety, sustainability, ethics, and commercial responsibility. The existence of an adequate and integrated traceability system, covering all feed ingredients, is essential for us to carry out an effective risk assessment throughout the production chain.

  • Traceability must be done both up and down. This means we must be able to trace products from the agricultural field to the final product and the other way around. By law, companies must be able to trace one step back and one step forward in the value chain.

    Skretting demands that suppliers who manufacture, process, pack or hold feed ingredients destined for our facilities maintain and share specific information (key data elements or KDEs) for certain critical tracking events (CTEs) in the feed supply chain. This framework forms the foundation for effective and efficient tracing and clearly communicates the information that Skretting needs to perform such tracing.

    Key numbers for the system includes the lot number for each consignment of each ingredient, and the batch number of finished product. From these numbers we can trace from a specific delivery of an ingredient, to the product it was used to produce, which batch was delivered to a customer, and vice versa.

    Some of the most important key data elements provided by the traceability keys include: 

    • Supplier data (name, address, country). In the case that the manufacturer of the feed ingredient is different from the supplier, it is variable how easily available this information is
    • Information linked to the origin of the feed ingredients where available, including country of origin of primary production (agricultural products). Registration of this information is dependent upon how we evaluate the risk of the primary feed ingredient

    • Specifically for marine ingredients we also receive: 

      • Manufacturer information (name, location and validity and certification schemes) 
      • Country of origin (country where the batch was processed)
      • Species that make up the batch, including the common name in English and the Latin name. When a complete list of by-catch is declared, species that in total constitute less than 5% of the batch can be recorded as “other”
      • Certification status such as Marine Stewardship Council (MSC), MSC Fishery Improvement Project (Comprehensive), MarinTrust, MarinTrust Fishery Improvement Project, no certification
      • Type of product (whole fish or by-product)
      • FAO fishing area

      Information requested from our suppliers is stored in Skretting’s enterprise resource planning (ERP) system. The data are usually transferred via documentation that corresponds with the batch to be delivered. Traceability data as of today are not electronically transferred to us from our suppliers, although this is something that we want to prioritise in the short term.

      The data can be verified in several ways. In the case of supplier audits, verification of traceability data is an important part of the audit. Verification can also be obtaind through analyses from external laboratories, verified by certification schemes and independent surveyors. The type of verification used will be partially dependent upon how critical the information is.

    The value of the traceability system will be dependent upon how it is integrated with the quality management system

    The value of the traceability system will be dependent upon how it is integrated with the quality management system. Skretting works to secure that the integration is completed, and the traceability system is linked with areas like: 

    • Risk analyses and product recall procedures
    • Feed ingredient approval, feed ingredient supplier and manufacturer approval
    • HACCP analyses
    • Responsible souring policies
    • Analytical results of feed ingredients and finished products

    Supply chain corporate social responsibility assessment

    In 2022, Skretting implemented the EcoVadis IQ and Ratings programs, which helps us understand and mitigate sustainability risks among our suppliers, so we can continuously improve on environmental and social topics across the value chain. EcoVadis is one of the tools used to embed sustainability into our procurement processes, including category management, sourcing, supplier risk assessment, and supplier performance.

    The EcoVadis IQ software enables us to conduct four different supplier risk assessments:

    • Environmental risk
    • Labor and human rights risk
    • Ethics risk
    • Sustainable procurement risk

    The risk level for each of these topics is based on the geographic location of the supplier, and the industry the supplier operates in. When combining these four risks with the relative spend level of the supplier, we can prioritise further actions to highrisk suppliers. Suppliers cumulatively contributing to 66% of Skretting’s 2022 spend have been assessed, highlighting 33 high-risk suppliers.

    In 2023 we will engage with these suppliers to further evaluate the risk through the EcoVadis Ratings platform. Within EcoVadis Ratings, suppliers will be required to return a sustainability questionnaire and provide proof for their answers. The information provided is then evaluated by EcoVadis and the supplier is scored accordingly. This allows us to analyse the robustness of our supplier’s sustainability policies in a standardised way. The assessment also highlights which areas each supplier covers, and which areas require improvement.

    In 2022, 183 of Nutreco’s suppliers had an EcoVadis rating available, many of which supply to the Skretting business as well, and we aim to increase this number over 2023.

    We are happy to see that two of Skretting Norway’s high-risk suppliers have recently performed an EcoVadis Ratings assessment, both scoring above the average EcoVadis score with one even being in the top 1% best scoring companies on the platform

    Norwegian Transparency Act

    On July 1 2022, the Norwegian Transparency Act entered into force with the aim of enhancing the accountability of larger Norwegian corporations in addressing potential human rights violations in their operations and those within their supply chains. In response to this new law we began a pilot of EcoVadis at our Skretting Norway business.

    We performed the risk assessment as described above, and this revealed 12 high-risk suppliers that require further attention in 2023. We will request an EcoVadis Ratings assessment from these suppliers, so we are able to identify any material gaps. We are happy to see that two of Skretting Norway’s high-risk suppliers have recently performed an EcoVadis Ratings assessment, both scoring above the average EcoVadis score with one even being in the top 1% best scoring companies on the platform. Regardless of the scores, we will pursue corrective actions on any material shortcomings identified during the process.

    We recognise that the Norwegian Transparency Act is only one of the many due diligence laws to come in many of the countries where we operate, therefore we are designing policies and processes to be able to comply with all these laws.

    Next: About Skretting

    Skretting is the global leader in providing innovative and sustainable nutritional solutions for the aquaculture industry. Skretting has production facilities in 17 countries, and its 3,798 employees manufacture and deliver high-quality feeds from hatching to harvest for more than 60 species. In 2022, Skretting produced 3 million tonnes of aquaculture feed.

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