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A safe workplace is a place where people are happy and feel seen and included. To achieve this, we believe that it is important to have fun together. Having fun together is an important motto for Eide and a parameter that we measure every year in our employee surveys (on a scale from 1-5, where 5 is the highest score). In the previous employee survey our score was 4.4, compared to our goal of 4.0.
Eide does not discriminate based on sex, skin-color, religion or sexual orientation. We shall have diversity as a focus area when hiring apprentices, recruiting new employees, establishing management teams and appointing board positions. We have not discovered any incidents of discrimination in 2023.
The group has great diversity in the workplace, with employees from as many as twelve different nations. In addition to our Norwegian employees, who make up the majority of employees, we have employees from Sweden, Denmark, Germany, Lithuania, the Netherlands, Portugal, Italy, Mexico, Syria, Pakistan and India! The employees mainly live in the local area where we run our business. All our employees live and work in Norway, with the exception of one permanent, full-time employee who lives and works in Italy.
At the end of the year, we had 128 employees, of whom 102 are permanent employees and 26 temporary employees. This is a significant increase from 77 employees in 2022, mainly due to new employees in our tech department Watermoon and our new restaurant Iris. 105 people have a full-time position and 23 people have a part-time position. The 26 temporary employees include apprentices, trainees, PhD students and temps. The vast majority of our activities are carried out by our own employees, and we do not have large seasonal variations in our work. In connection with holiday processing for our employees and in connection with certain work operations, we make use of summer helpers and on-call temporary workers. The number of temporary employees includes eight on-call substitutes and extra helpers who have been active in 2023.
31 of our employees are women and the proportion of women in the group is 24% of all employees (18% in 2022). Although we still have few women compared to men, we are happy that the proportion of women has increased significantly from 16% in 2021. The Director of the board in the group is a woman.
In addition to those who are employed at year-end, we also have other workers who perform work at our locations during periods and under our health, safety, and environmental regulations or under our control. Extra helpers and on-call substitutes who are not employed at the end of the year perform simple work tasks at our production locations, especially in conjunction with holiday processing and when additional staffing is needed in connection with work operations. Apprentices, trainees and PhD candidates are included in the number of employees and are categorized as temporary employees. Apprentices perform various tasks within their specialist area at our locations, under training from experienced employees. In 2023, we have had two people who have the status of "self-employed". These have worked on various projects in administration.
In connection with the construction of our new technology Watermoon®, I have been responsible for employees at subcontractors, among other things, in connection with assembly and installation. In such cases, these are subject to our HSE rules and work procedures. In our production, we use subcontractors to carry out certain operations at our facilities. This applies, among other things, to service teams that are responsible for flushing nuts. In such cases, these are subject to our HSE rules and work procedures.
The extent of workers who are not employees is generally low and constitutes a small part compared to the number of employees and total hours worked. The scope is stable during the year but has increased compared to previous years due to the use of subcontractors in the construction and assembly of our new Watermoon® technology. We do not have precise numbers on workers who are not employees, but we estimate this to be about 40 full-time equivalents in total.
The average salary for all women in the group is 98% of the average salary for all men (average across all types of positions and roles). The main reason for the difference in average salary is that we have a high female share amongst our apprentices. The total remuneration ration was 3x the median salary for 2023, measured by total compensation of the highest paid individual over the median salary. The percentage increase in total remuneration for the highest paid individual was equal to the annual increase of the median salary.
Annual salary adjustments are determined by the daily manager in consultation with the board and management. The group mainly uses fixed and hourly pay, and has very little variable pay, not even among our managers. All the permanent employees have the same bonus and pension scheme, and the annual bonus is been determined at the discretion of the board based on the year's result in the group. The board will consider both financial and non-financial results (the triple bottom line). There are no agreements on signing bonuses, termination pay, clawbacks, stock options, loans, or similar for members of the board or senior management.
None of our employees are covered by collective bargaining agreements. However, we base our terms and working conditions on the Aquaculture Agreement (“Havbruksoverenskomsten”) between NHO (“The Confederation of Norwegian Enterprise”) and LO (The Norwegian Confederation of Trade Unions). We also comply by the Norwegian Working Environment Act and are subject to audits and inspections by the Norwegian Labor Inspection Authority and the Norwegian Maritime Authority.
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Eide shall be a safe and responsible workplace. We are committed to maintaining a productive workplace, and in collaboration with employees, to minimize the risk of injury and exposure to health hazards.
Eide is committed to continuously assess risks, follow up on incidents, and implement necessary measures related to HSE.
All employees working at sea shall have access to a safety radio with a water sensor connected to a 24-hour manned alarm center. This should always be used during solitary work or during specific operations.
All employees shall have access to necessary protective equipment, and the protective equipment shall be used. Life jacket or flotation suit shall always be used on board boats.
All employees shall receive the necessary training, and equipment such as boats, winches, pulleys, and cranes should not be used unless training has been documented and the necessary courses and certificates have been passed.
Everyone performing work at an Eide facility shall follow Eide's HSE procedures.
We have a dedicated system in place to handle HSE-risks and continuously perform risk assessments related to HSE and register and follow up deviations and incidents. The HSE management system applies to, and is accessible to all our staff, permanent and temporary. Subcontractors are obliged to comply with our HSE rules and procedures.
Eide's vision is to set the standard for future aquaculture. This also applies to internal control and risk management. We have complex activities that contain many different elements of risk. Be it health and safety, escape of fish, fish welfare, discharge to the external environment, reputation, etc. Eide has a comprehensive system for risk assessment and risk management. This includes routines for identifying and assessing work-related hazards through continuous and thorough assessments that cover both routine and extraordinary situations. To ensure efficiency and reliability in these processes, we place great emphasis on competence development among our employees and use advanced methods and technologies.
We recognize the importance of the workers' participation and contribution in these processes. We have therefore established clear guidelines and safe channels for reporting hazards and potential risks in the workplace, and we guarantee that no worker will face reprisals for reporting such situations. Furthermore, our employees have the right to withdraw from work situations they believe are dangerous, without fear of negative consequences. Employees are also protected against reprisals through the Working Environment Act.
In the case of work-related incidents, we carry out detailed investigation processes designed to identify causes and potential dangers, and to assess risks linked to the incidents. Based on the findings of these investigations, I use the control hierarchy to determine effective corrective measures. Through this process, we not only ensure efficient handling of specific incidents, but also continuous improvement and strengthening of our HSE management system.
We have HSE officers for each region with whom we have regular HSE inspections. We also have a monthly meeting between the management and the HSE officer, where we discuss matters relating to HSE. This is an important forum for establishing a constructive dialogue between the HSE officer and the management. The HSE officer shall assert the interests of the employees in matters relating to the working environment and ensure that the business and work are organized so that HSE risks are acceptable. The HSE officer has, among other things, the right to immediately stop dangerous work if it considers that it is necessary to prevent danger to life or health.
Our employees carry out first aid courses, courses in escape prevention and the use of security radios. In addition, they participate in emergency drills, MOB drills and HSE reviews on site. Our HSE-officers also complete an extended mandatory HSE course. Competence management is carried out via an own competence matrix so that I have control over the training in the company at any time. Essential information about HSE is easily available to all employees in the quality system through our HSE handbook.
All employees are covered by public health services in Norway, which offer high-quality services for the entire population. All employees are also covered by statutory occupational injury insurance. In addition to this, permanent employees are covered by additional health insurance, as well as extended occupational injury and accident insurance. All our employees are offered chiropractic treatment to prevent strain injuries. Participation is voluntary, free of charge and carried out during working hours. We have a strong focus on having fun as a team and have a tradition of getting together as a team for summer parties and Christmas parties.
The group is connected to the occupational health service, which also advises in matters dealing with HSE. All our permanent employees are offered a free annual health check and the occupational health service also carries out an annual status report related to occupational health. Among other things, exposure to dust, chemicals, vibration, noise and physical stress is mapped here. The aim of the health check is to give employees a status on their own health and early warning or prevention of serious illness. The employees can carry out the examination during their working hours, and the employer sends out a notice and information about the health examination annually. The results of the health examinations are confidential between doctor and staff, but we received aggregated data.
We had no fatalities or serious work-related injuries in 2023. We did not have any such cased in 2022 either. In 2023 we had five work-related injuries, compared to one work related injury in 2022. This corresponds to four cases per 200,000 hours worked, compared to two cases per 200,000 hours in 2022. Out of the incidents four was with our own employees and one was with external contractors or personnel. The identified injury in 2022 also occurred with a subcontractor working at our site. All incidents are followed up in our HSE monitoring system. The total absence rate was 3.0% in 2023, an increase from 3.5% in 2022. We consider the change to be within normal fluctuations and have not identified any important factors behind the increase.
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We shall contribute to creating and preserving good meeting places and lively villages in the areas where we operate, among other things by actively participating in the local community, utilizing local businesses, and employing local workers and apprentices.
We shall contribute to open and constructive dialogue with neighbors, authorities, and others, based on facts and research.
We also believe in the importance of local suppliers and businesses. Therefore, we try to purchase most of what we need from local or regional suppliers and businesses when this is possible. Fish nets, cages, vessels, safety equipment, diving and ROV-services, logistics and processing are all carried out by local companies in the regions where we operate.
To ensure access to skilled workers in the communities we focus on education. Eide is an important employer in many communities and a certified company to apprenticeship in both the aquaculture profession and the automation profession. We normally have around six apprentices amongst our employees. We also have a close cooperation with the aquaculture education program of the local high school Fusa Vidaregåande skule.
Local activities are important to ensure thriving communities, and in Eide the sport mentality and competitive instinct are both strong. We are therefore proud sponsors of local sports teams and cultural activities in the area where we operate our business. Winter sports in general and biathlon in particular have a special place in Hålandsdalen and in the Eide family. That is why we are also a proud sponsor of local biathlon talents such as Martin Femsteinevik.
Eide's operations utilizes our common fjords for parts of its production. In return, the company contributes significant payments of taxes and fees to the Norwegian state, the county, and the municipalities. Some of these are in the form of regular taxes and fees that apply to all companies, such as corporate tax and employer's social security contributions, while there are also a number of special fees and taxes on the industry that are intended to compensate, to a greater or lesser extent, for the use of common resources and areas.
Every year, Eide pays property tax on the value of the sea facilities to the municipalities. Most municipalities have a rate of 0.7% of the value annually. In 2023, this amounted to about 0.5 million NOK.
Eide also pays ground rent tax on the part of the value creation that occurs in the sea phase and on commercial aquaculture licenses. The rate of this tax is 25% and is in addition to the regular corporate tax of 22%. The revenues from the ground rent tax go to the state.
Much of the fish we produce is for export. When we export fish, Eide pays an export fee, which consists of a research fee of 0.3% of the export value and a marketing fee of 0.3% of the export value. These fees go to the state and are used to finance research and joint marketing efforts to promote Norwegian seafood.
In addition, Eide pays a production fee per kilogram of salmon produced. The rate for 2023 was 0.90 NOK per kilogram of slaughtered fish and amounted to about 14 million NOK for Eide's production volume. The production fee goes into the state-owned Aquaculture Fund, which is then distributed to aquaculture municipalities based on production capacity.
When Eide is to increase production, we purchase extra capacity from the state at auction. This ensures that as much as possible of the values benefit society and can be used for good purposes in the municipalities that have made areas available for aquaculture. Payments from the auction of licenses are also paid into the Aquaculture Fund and paid out to the aquaculture municipalities based on production capacity. Over the past three years, Eide has paid 46 million NOK to increase capacity.
In 2023, the municipalities where we have our sea facilities received 10 million NOK in annual payments from the Aquaculture Fund for Eide's facilities. Municipalities that have set aside new areas or increased the capacity of existing areas receive an extra one-time allocation for this. In 2023, Eide increased capacity at locations in Bremanger and Kvinnherad municipality, which gave these two municipalities an extra payment from the Aquaculture Fund of 5 million NOK each. In addition, 2 million NOK went to Vestland County Municipality so that the total payment to municipalities and the county in 2023 related to Eide's facilities was 22 million NOK.
All Eide's shareholders reside in Norway and pay taxes to Norway. Therefore, they also pay annual wealth tax on the value of the company, with a portion going to the municipality where the shareholders reside and a portion to the state. The wealth tax is in reality a discriminating tax on Norwegian ownership, but it plays an important role in redistribution of wealth in the Norwegian social model, where those who earn the most should contribute the most. To pay the wealth tax, our owners must first take out dividends from the company, which in addition is taxed at 38% to the state.
In addition to these contributions directly from Eide's companies and owners, all Eide's employees contribute with tax revenues on the salaries they receive from us, all our customers who buy salmon in the store contribute with VAT, and all our suppliers contribute with a local multiplier effects that are often at least as large as the contributions from the aquaculture industry itself. Local electrical companies, carpenters, shipyards, and mechanical businesses, and many others are important suppliers to both Eide and the industry.
We are certain that part of the solution for producing enough food for future generations lies in the sea, so an important focus area for us is to contribute to fact-based knowledge about sustainable aquaculture. This is an important inspiration behind our new visitor center Salmon Eye, which you can read more about on the following pages.
The debate about the aquaculture industry and its impact on the environment and surrounding ecosystems is often in the media. In addition to the local impact our industry has, the global sustainability and climate debate is also increasing its focus on sustainable food production. The debate is complex, it follows political divides and is sometimes characterized by populism, ideology and economical incentives and interests. Science and fact-based knowledge are frequently challenged by myths, undocumented opinions, misleading information and alternative facts.
With our visitor center in Rosendal, Eide Fjordbruk wants to contribute to science and fact-based knowledge, and put local challenges, solutions and innovations in a global context, with a special attention to the environmental aspects of the production. The center and its content will be independent from Eide. This is ensured by having the content approved by a group of independent experts. The advisory group includes:
• Friede Andersen
• Jostein Bakke
• Konrad Sekkingstad
• Kenneth Bruvik
• Linda Nøstbakken
• Øystein Skaala
From the harbor in Rosendal the visitors will embark on a journey in our fully electric vessels Malm and Melder transporting the guests silently through the water to Salmon Eye outside Snilstveitøy.
With its unique design, Salmon Eye will be an icon and at the same time offer an exciting learning experience for the guests to the center. Salmon Eye aim to be a monument for sustainable food production in the sea.
Here the visitors will both learn, engage actively and be able to provide their own ideas on how to make aquaculture even more sustainable in the future. Read more on www.salmoneye.no
It is difficult to assess the effectiveness and results of measures linked to reputation and social acceptance, and we do not have any own KPI in this area. Our assessment is that even if the industry's reputation has weakened over the past year, among other things as a result of negative media attention linked to lice, tax and mortality, Eide has a good reputation.
We generally experience good dialogue with neighbors, municipalities and organizations in the area where we operate, and that many are aware of the positive ripple effects the business has. We also try to minimize the impact on the local community and, among other things, have significantly reduced noise through investment in land current, which has removed noise from diesel generators. We also hope and believe that measures such as the Salmon Eye viewing center contribute positively to knowledge, cooperation and a climate of debate.
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We shall always deliver safe and healthy fish. To ensure this, we shall have routines that ensure that all applicable residue limits are met, focus on risk assessment and hygienic design, as well as traceability and testing. We shall actively use audits and third-party certifications, both at our own facilities and with suppliers. We shall only deliver fish to primary processing facilities approved and certified by the Norwegian Food Safety authorities.
All our farms are certified according to the Global-GAP standard, an internationally recognized standard for food safety and traceability in aquaculture. Facilities slaughtering Eide fish also hold their own third-party certifications for food safety such as BRC to manage food safety risks and implement measures to prevent and detect potential issues related to food safety. Food safety is one of six main areas covered under the Global GAP-certification and is based, among other things, on the HACCP methodology to analyze risks and establish critical control points. Monitoring of residues, hygiene and waste management, and strict routines for tracking raw materials and products are also included.
We have also implemented strict procedures to ensure safe raw materials and products in our own quality management system. We have our own quality manager responsible for handling food safety, as well as a community engagement manager who is in continuous dialog with our stakeholders.
The Norwegian directorate for public health recommends eating fish for dinner two to three times a week and that at least one of these with fatty fish such as salmon. Salmon are easily digestible sources of protein, and naturally rich in fatty acids such as Omega-3’s, and fat-soluble vitamins such as vitamin D, selenium vitamin B12, vitamin A, iodine and anti-oxidants. Norwegian salmon is also naturally free of Anisakis, a parasite that occur naturally in most wild caught fish requiring the products to be frozen or heated before consumed raw. With Norwegian salmon this is not required.
Farmed salmon now contain slightly less Omega-3 fatty acids than wild salmon. This is due to plant-based ingredients without omega-3 added to the salmon feed. Still, farmed salmon is one of the best sources for Omega-3. A positive effect from having plant-based ingredients in the feed is that the content of toxins (dioxins and PCB’s) are lower than in wild caught fish, since these toxins accumulate in wild fish when they eat other marine species in the sea.
In our feed, we use fish oil that has been purified from environmental toxins (dioxins), allowing our fish to consume more marine raw materials in its diet, which in turn increases the Omega-3 content without adding more environmental toxins. That way you don’t have to compromise. When you eat a salmon from Eide you can also be certain that the fish has never been treated with antibiotics, added hormones or GMO’s .
We have not experienced any significant negative deviations or incidents in this regard in the last year and none of our products has been recalled from the market. Further, we have not had any incidents of non-compliance with food safety regulations leading to fines or warnings.
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All the salmon we produce is also Global GAP certified, a standard which include strict requirements on traceability and food safety, so that you can trust that our salmon is safe and healthy. We are also certified as a carbon neutral company and can offer certified carbon neutral salmon where all the carbon emissions in the value chain of the product are offset. We also produce and offer organic salmon, certified in Norway by Debio according to the EU regulations for organic farming. We work every day to improve. It is all about having skilled, passionate and local employees who all have the same goal: To produce salmon of the highest quality.
Our organic salmon was hatched in our own hatchery by the lake Skogseidvatnet. Here it is carefully nurtured and cared for by Frøydis and her team. After a short stay with Svein at our juvenile farm in the beautiful island community on Solund the fish is ready for the sea. At that time, our staff at our certified organic fish farm welcomes the fish, where it gets a lot of space and a special organic feed.
We produce our fjord trout in Osterfjorden. This fjord has excellent conditions for trout farming and has been the home for our trout production for many years. Here it is in good hands with site manager Stein Inge and his crew. Trout is a salmonid species with a lot in common with the Atlantic salmon, and many believe that it tastes even better than the salmon.
In addition to organic salmon and fjord trout we can offer certified carbon neutral salmon. All fish from Eide has a low carbon footprint, and you can read more about our measures and results to cut emissions in this report. For our carbon neutral salmon, we also offset all remaining emissions in the value chain of the product, including the feed which account for most of the emissions.
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To feed a growing population, more food is needed, but much of today's agriculture is under increasing pressure. The wild-caught marine raw materials are also limited. From our point of view, it is therefore crucial that we focus on aquaculture to ensure enough food for the future. At the same time, aquaculture has its own challenges that must be solved, including parasites like sea lice, diseases, escapes, and emissions of nutrients. It is important for us and our stakeholders that we contribute to solving these challenges so that the aquaculture industry can realize its full potential.
Where the visitor center at Salmon Eye addresses the professional and scientific side of these issues, the restaurant Iris employs other senses and means and invites its guests on a unique journey. An expedition through Norwegian nature with a focus on challenges and opportunities related to food production, culture, taste, and experiences.
The concept of Iris is about innovation, courage, and new thinking and merges Eide's vision of setting the standard for the future of aquaculture, with the team at Iris' goal of creating unique taste experiences from local and sometimes unexpected raw materials.
Norway is a major aquaculture nation, but we mostly produce salmon. Globally, however, salmon represents a very small part of aquaculture production. It's really only the imagination that sets limits on what we can produce in the sea. Everything from seaweed and kelp, to shellfish, sea cucumbers, and sea urchins can be produced sustainably with aquaculture! It all comes down to learning to cultivate the sea in the same way that we have learned to cultivate the land over thousands of years.
Through Iris, we want to showcase the breadth of what Norwegian fjords have to offer, challenge guests to explore new flavors and raw materials, and thus help to get people to eat more food from the sea in the future.
We hope that the view over the Rosendal Alps combined with the unique architecture of Salmon Eye and the location in the middle of Hardangerfjord in itself is a unique experience and will contribute to making a visit here an even more memorable and inspiring experience!
