We have made a number of specific improvements in 2022:

• We have created a specialist team to strengthen our LCA Platform and tackle the Scope 3 Science Based Targets that we have set
• We launched our marine sourcing policy, describing in an open and transparent way (as we did for soy and oil palm) what ‘good’ looks like for sourcing marine products, and providing a step plan for our purchasing team
• We launched our sustainable packaging handbook, helping us improve our packaging material while maintaining the feed quality and often reducing the overall packaging cost

A call to strengthen collaboration with our suppliers

The procurement team in Skretting has long term partnerships with many suppliers. We develop new markets and ingredients together and aim to grow our joint business every year. The large number of suppliers choosing to join us at AquaVision 2022 demonstrates that Skretting is a trusted and valued partner.

The impact of these strong relationships has been clearly demonstrated in challenging times. Even over the last three years, we have never had to stop operations because of a raw material shortage. Relationships like this are built over years and depend on open communication and trust.

As Supplier Sustainability Manager, I support the procurement department to ensure that we reach our ambitious sustainability targets. There are two focus areas for the coming years that require close collaboration with our supply chain partners: due diligence and scope 3 reductions.

It is no longer enough to rely on a signed Supplier Code of Conduct to cover our due diligence, so more sophisticated risk assessments and mitigation methods need to be applied. We strive to accelerate the risk recognition and mitigation process through the roll-out of EcoVadis, which will be a key step in improving our due diligence.

Over 2022, the procurement and sustainability departments collaborated to create a scope 3 program, in which we outline the strategies to reduce our scope 3 emissions. I would like to elaborate on one specific strategy: supplier engagement.

During supplier engagement, the aim is to act as the liaison between procurement, suppliers and our LCA experts to gain a better understanding of the footprint of our ingredients

In conversations with our suppliers, we will request product specific footprint data, also called primary data which reflects the specific productive reality of our suppliers. By collecting primary data in a standardised way, we will be able to identify areas where there is a potential to reduce the ingredient’s footprint.

However, primary data collection is only part of the supplier engagement journey. Skretting, as part of Nutreco, has set Science-Based Targets and we will request the suppliers that contribute most to our scope 3 to do the same. This way we align emission reduction goals for our supply chain with our own and those of our customers.

Building strong connections with the sustainability departments of our suppliers, relevant stakeholders and customers will be an important factor for success for both our scope 3 program and our due diligence. Not solely for gathering data, but also to inspire proactive communication on sustainability issues occurring in the supply chain.

Only by strengthening the collaboration with our suppliers, not by excluding them, will we truly improve our supply chain sustainability.

During raw material scarcity situations, Skretting’s deep understanding of the value of each raw material and the nutritional requirements of fish and shrimp, coupled with our relationships with suppliers becomes invaluable. Since last year, we have successfully introduced nine protein and starch sources, entirely new to Skretting, with more undergoing R&D evaluation. The use of alternative omega-3 oils has also increased significantly from 2021 to 2022 to mitigate the impact of continued fish oil availability and price challenges. Beyond this, we have focused on long term supply security through innovative solutions, such as the use of enzymes to extract as much nutritional value as possible from ingredients, whilst also reducing discharge into the environment.

However, aquaculture feed production is not only about understanding the needs from a nutritional perspective, but also from quality perspective. Often feed is transported long distances, meaning maintaining pellet integrity is key. Traditionally, wheat has been used as the primary starch source to support physical quality of feeds, but by applying cross functional knowledge we have been able to successfully replace a relevant part of wheat demand in some geographies with alternative starch sources without impacting on quality.

Moving forward, price will continue to the one of the main challenges. Ingredient prices often follow one and other and so, whilst we may be able to increase flexibility, this is not necessarily reflected as a decrease in overall feed price. This constant focus does, however, ensure security of supply and reduce exposure to price vulnerability of individual ingredients.