The Faroese salmon producer has commited to cutting its greenhouse gas emissions by 50 percent by 2030.
Faroese salmon producing giant Bakkafrost’s climate objectives have received endorsement from the United Nations-backed Science Based Targets initiative (SBTi).
The Science Based Targets initiative (SBTi) aids companies and financial institutions in understanding the necessary measures to curb greenhouse gas (GHG) emissions and counter the worst impacts of climate change.
SBTi was a principal collaborator in the “Business Ambition for 1.5°C” campaign and has guided more than 2,000 organisations globally in adopting science-grounded emission reduction goals.
The emissions reduction goals set by Bakkafrost underwent an evaluation to ensure they align with the most recent climate science findings, according to a release from the company.
The SBTi has affirmed that these objectives are scientifically grounded and match the reduction efforts necessary to restrict global warming to 1.5°C, which is consistent with the stipulations of the Paris Agreement.
Regin Jacobsen, Bakkafrost’s CEO, stressed the urgency of adopting science-based goals to try and restrict global temperature rise to 1.5°C.
“Despite the headway made in recent times, the global trajectory isn’t yet fully attuned with the Paris Agreement’s aim of curbing warming to 1.5°C,” Jacobsen said.
Bakkafrost has made a firm commitment to cutting its scope 1 and 2 GHG (Greenhouse Gas) emissions by 50 percent by 2030. The company has also pledged to lower its scope 3 GHG emissions by 52 percent per ton of product sold within that same period.
Tordis Poulsen, the Group Sustainability Director at Bakkafrost, spoke on the significance of this validation: “Receiving SBTi’s approval fortifies our dedication to GHG emissions reduction. Our focus lies in expanding our reliance on renewable energy sources and augmenting energy efficiency across our operational facilities. Furthermore, nurturing strong collaborations with our suppliers is crucial. This ensures concerted efforts in minimizing GHG emissions throughout our supply chain.”
Earlier in the year, Bakkafrost unveiled an investment strategy detailing the company’s intention to allocate 355 million DKK to Energy Transition, spanning from 2024 to 2028. In 2022, more than half of the energy produced in the Faroe Islands came from renewable sources. The archipelago aims to meet all its electricity needs from renewable sources by 2030.
Difficult quarter
Bakkafrost experienced a drop in Q2 earnings due to reduced harvest volumes and elevated farming costs at both its Faroes and Scottish locations, the company reported in August.
Following a July profit warning from the Faroese producer about potential low harvest volumes and significant mortality costs, operating earnings before interest, tax, depreciation and amortization (EBITDA) dropped 29.8 percent year-on-year to DKK 508 million (€68 million).
Despite revenues remaining stable with a slight 0.8 percent decline, production issues resulted in a 39.9 percent fall in operating profit to DKK 353 million (€47 million).
Bakkafrost’s combined Faroese farming and value-added production (VAP) operations reported a 57.6 percent drop in operational EBIT, landing at DKK 216 million (€29 million). The farming segment was the primary driver of this decline, experiencing a 60.8 percent decrease to DKK 242 million (€32.5 million).
In contrast, the Scottish farming segment saw a robust 73.2 percent increase in operating EBIT, reaching DKK 71 million (€9.5 million/$10.4 million).
