Water Management Policy v. 1.0

Arnarlax value:
Quality in Everything We Do

Implementation:
Careful consideration in strategic decisions and situational awareness in everyday operations

Water Management Policy
Aquaculture generally has a low freshwater requirement compared to other types of food production. The fish live a large part of their lives in the sea where they do not depend on supplies of fresh water. Arnarlax's freshwater consumption derives largely from its onshore hatcheries and its processing plant.

In large parts of the world, access to fresh water is a challenge. Arnarlax uses fresh water only from areas where the risk of water shortages, or the risk of poor water quality, is low. The water risk map produced by the World Resource Institute provides a good overview of the water risk around the world. All the areas in which Arnarlax operates are defined as low risk in Iceland. Risks caused by water scarcity are rooted in the top management, with the CEO as the overall responsible party. These risks are recognized by Arnarlax and integrated into regular risk assessments and our overall business strategy.

Most of Arnarlax's water consumption originates from our onshore hatcheries. An important prerequisite for the construction and placement of these hatcheries are whether we can provide sustainable water sources to the facilities. Fresh, clean water is the most important factor contributing to good fish welfare in fish farming. Water quality is of the highest importance for Arnarlax, and we employ several experts tasked with continuous control and monitoring of water quality.

All wastewater from smolt production is purified before it is discharged to the recipient. Our goal is to not affect the recipient negatively, but rather try to improve the water quality in the recipient by choosing the right treatment and discharge point. Arnarlax's strategy for collected sludge from the hatcheries/smolt facilities is the best possible reuse, either as a raw material for fertilizers or for the production of biogas.

Arnarlax' feed suppliers are involved in activities in areas with higher water risk and Arnarlax expects these feed suppliers to withdraw, consume and discharge water responsibly and sustainably, and to have a clear strategy towards reducing its freshwater use. Arnarlax holds all suppliers accountable and responsible for their activities and their impacts and engages in continuous dialogues to identify and implement best practice on sustainability, such as water use efficiency.