Communication on Progress

Participant
Published
  • 2020/11/05
Time period
  • November 2020  –  November 2021
Format
  • Stand alone document – Basic COP Template
Differentiation Level
  • This COP qualifies for the Global Compact Active level
Self-assessment
  • Includes a CEO statement of continued support for the UN Global Compact and its ten principles
  • Description of actions or relevant policies related to Human Rights
  • Description of actions or relevant policies related to Labour
  • Description of actions or relevant policies related to Environment
  • Description of actions or relevant policies related to Anti-Corruption
  • Includes a measurement of outcomes
 
  • Statement of continued support by the Chief Executive Officer
  • Statement of the company's chief executive (CEO or equivalent) expressing continued support for the Global Compact and renewing the company's ongoing commitment to the initiative and its principles.

  • H.E. António Guterres
    Secretary-General
    United Nations
    New York, NY 10017
    USA

    30 October 2020

    Dear Mr Secretary-General

    I am pleased to confirm that New Zealand King Salmon reaffirms its support of the ten principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

    As this is our second annual Communication on Progress, our accompanying documents have described our continued actions to integrate the Global Compact and its principles into our business strategy, culture and daily operations.

    We are also committed to sharing this information with our stakeholders, using our primary channels of communication.

    Yours sincerely

    Grant Rosewarne
    CEO & Managing Director
    New Zealand King Salmon

Human Rights
  • Assessment, policy and goals
  • Description of the relevance of human rights for the company (i.e. human rights risk-assessment). Description of policies, public commitments and company goals on Human Rights.

  • NZKS CEO Grant Rosewarne has signed an updated statement of continued support for the ten principles of the United Nations Global Compact in the area of Human Rights and Labour, Environment, and Anti-corruption.
    NZKS also provides an employee code of conduct that covers areas such as fair and open selection and provision of good and safe working conditions including freedom from harassment or discrimination.
    NZKS continues to support social responsibility through voluntarily engaging with The Best Aquaculture Practices. BAP is the world’s most trusted, comprehensive and proven third-party aquaculture certification program. BAP has continuously supported the improvement of the environmental, social and economic performance of the aquaculture supply chain and growing the global supply of responsibly farmed seafood.
    NZKS are 4-star BAP-certified which incorporates Feed, Hatchery, Sea Farm and Processing. The standard also ensures compliance with the International Labour Organisation (ILO) minimum age convention.

  • Implementation
  • Description of concrete actions to implement Human Rights policies, address Human Rights risks and respond to Human Rights violations.

  • Since our last report, we have developed and implemented a supplier code of conduct that requires suppliers to adhere to the Global Compact principles on Human Rights and the NZKS code of conduct. We have maintained our BAP 4-star Certification and have also achieved Aquaculture Stewardship Council (ASC) certification on one of our farms. ASC uses the ISEAL Code of practice for assessing the impacts of Social and Environmental activities through rigorous monitoring and evaluation.
    We have implemented a supplier code of conduct to encourage suppliers to support the United Nations Global Compact in the area of Human Rights. Based on feedback from our ASC certification audits we have amended our Labour employment agreements to further communicate team members' right to freedom of association.
    Several NZKS company policies are under review to incorporate relevant up to date terminology to support human rights and the development of new training on discrimination etc. NZKS has developed a flexible working policy in response to changing work practices post Covid-19.
    The addition of an internal whistleblowing option for potential unethical or Labour Rights infringements is under consideration.
    Policies are reviewed and updated as required and advise implemented for external certification bodies.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • NZKS has focused on the retention of the BAP and ASC voluntary certification standard that audit our social and environmental activities to global standards.
    NZKS continues to report annually to the Global Salmon Initiative (GSI) and the information submitted is independently verified.
    NZKS also presents a comprehensive Annual Report on company performance to shareholders and the community.
    https://www.kingsalmon.co.nz/kingsalmon/wp-content/uploads/2018/10/NKS23278-Annual-Report-2018-03.10.18.pdf

Labour
  • Assessment, policy and goals
  • Description of the relevance of labour rights for the company (i.e. labour rights-related risks and opportunities). Description of written policies, public commitments and company goals on labour rights.

  • New Zealand Bill of Rights Act 1990 states everyone has the right to freedom of association. All New Zealand King Salmon staff have the right to freedom of association and collective bargaining. Through our BAP certification, NZKS is audited across several Labour criteria in the BAP certification process and NZKS are certified compliant. Examples of areas covered in the BAP are minimum wage, zero use of child labour, protection of young workers, working week mandate, compliance with local laws, etc.
    NZKS has achieved our goal to introduce a supplier code of conduct that requires suppliers to adhere to the UN Global Compact principles on human rights and references human rights in the NZKS code of conduct.
    NZKS also has a clear and fair recruitment policy and process in place that is managed by the People and Culture department. There is defined pay bands used to develop salaries and pay scales, incorporating fairness and preventing discrimination.
    The People and Culture team has reviewed and updated the discrimination and harassment policy and developed training to be delivered to management.
    NZKS are participating in integrating Blue Economy Governance Integrity Research. NZKS has committed time to support this research project and is sharing knowledge on social license and ethical challenges of the Blue Economy.

  • Implementation
  • Description of concrete actions taken by the company to implement labour policies, address labour risks and respond to labour violations.

  • NZKS has a dedicated People and Culture department that develops and manages Labour related policies and procedures. All NKZS team members have a contract in place stating hours of work, meals and breaks, work location, remuneration, holidays, and leave all agreements to comply with local and national laws.
    NZKS has several policies in place, including remuneration guide, Flexible work guide, Code of conduct, etc. These guidelines are in line with Employment New Zealand.
    The Health safety and risk committee has operated since 2015 to assist the board to provide leadership and policy for health and safety NZKS Annual Report 2020, pg96.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • NZKS is committed to supporting a diverse workforce in terms of race, age, and gender and our membership of the Employee Assistance Program continues to ensure relevant support and advice is readily available to every team member. NZKS has worked to rebalance gender on the board of directors with the appointment of a female independent director. Our goal remains that all employees will receive a living wage, however, this has been further impacted by Covid-19.
    In the NZKS Annual Report 2020, pg.90 our Corporate Governance section refers to the code of ethical behaviour. This document is signed by the Board and all employees of the company. The code of ethics sets out a framework of ethical standards that cover several areas of the business, including compliance with laws and policies.

Environment
  • Assessment, policy and goals
  • Description of the relevance of environmental protection for the company (i.e. environmental risks and opportunities). Description of policies, public commitments and company goals on environmental protection.

  • NZKS has recently completed its first carbon analysis and addressed Climate in the 2020 Annual Report, pg30.
    NZKS is a signatory to the Sustainable Ocean Business Platform and endorses the United Nations Global Compact’s Sustainable Ocean Principles. NZKS has collaborated on the Practical Guidance for the UN Global Compact Sustainable Ocean Principles, a framework for assessing and disclosing Ocean Practices.
    NZKS will continue to monitor compliance with resource consents for our hatcheries and farms to meet consent and voluntary standard requirements.
    NZKS is committed to improving fish health performance through ongoing training. We have developed a team that will focus on improving key challenges, such as summer performance. NZKS continues to work with science providers to improve the utilisation of salmon feed and improve environmental performance.
    NZKS has introduced a supplier code of conduct that requires suppliers to adhere to the UN Global Compact principles on environment.

  • Implementation
  • Description of concrete actions to implement environmental policies, address environmental risks and respond to environmental incidents.

  • Each hatchery and farm operates under stringent consent criteria and includes yearly reporting across several environmental performance indicators. NZKS engages a recognised science provider to complete annual monitoring summaries for each of our farms to monitor our environmental performance. Reports are submitted to the local government in line with consent requirements and are publicly available.
    The 2014 ‘Best management practices (BMP) guidelines for Salmon Farms in the Marlborough Sounds-Benthic’ have already been incorporated at several of our farm sites. A review of the benthic standards was carried out in 2019 to ensure they are aligned with the latest knowledge.
    Fresh water and sea water teams are trained in a number of areas to monitor and protect the environment for example continuous environmental monitoring, handling of marine mammals etc.
    We have joined the Australian Packaging Covenant Organisation (APCO) which will enable us to analyse our packaging use regularly and we will be able to carry the logo on our products.
    NZKS has signed the new plastics economy global commitment led by the Ellen MacArthur Foundation. To meet this commitment the team has completed a packaging matrix, set internal targets for reducing, reusing and recycling packaging and completed a waste audit.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates environmental performance.

  • Each hatchery and farm operates under stringent consent criteria and includes yearly reporting across several environmental performance indicators. NZKS engages a recognised science provider to complete annual monitoring summaries for each of our farms to monitor our environmental performance. Reports are submitted to the local government in line with consent requirements for annual review.
    If an incident occurs, it would be reported to the correct monitoring body identified in the consent requirements.
    NZKS received two infringement notices for breaching consent conditions at two farms. Once the result was known at one farm NZKS took immediate remedial action. Further testing has been done and NZKS believes all our farms are now compliant. Working with local government and the company’s science provider, NZKS is making an application to change some consent conditions to simplify the consent process and ensure the company is compliant in the future.

    NZKS environmental performance is audited under the Global Salmon Institute (GSI) and the Best Aquaculture Practices (BAP). The company has achieved the goal to have a farm ASC certified which required further extensive auditing of technical and social practices.

Anti-Corruption
  • Assessment, policy and goals
  • Description of the relevance of anti-corruption for the company (i.e. anti-corruption risk-assessment). Description of policies, public commitments and company goals on anti-corruption.

  • The Board is legally responsible for the affairs and activities of the company.
    The Board Charter (Charter) sets out the role, responsibilities, composition, structure and approach of the Board.
    NZKS has a Corporate Governance code which covers our approach to anti-corruption.
    NZKS has not been involved in any legal cases, rulings or other events related to corruption and bribery over the COP reporting period.
    Each year NZKS publicly reports their financial statements which are third party externally reviewed and publicly available through the Annual Report.

  • Implementation
  • Description of concrete actions to implement anti-corruption policies, address anti-corruption risks and respond to incidents.

  • NZKS’s Audit and finance committee is responsible for the oversight of the company's external audit arrangements to safeguard the integrity of financial reporting.
    The company maintains an External Auditor Independence Policy to ensure that audit independence is maintained.
    The Charter provides guidance for the effective oversight of the company by the Board on behalf of its shareholders, employees, and other material stakeholders.
    The primary function of the company’s audit and finance committee is to assist the Board in fulfilling its oversight responsibilities relating to the company.
    - To oversee the financial reporting and continuous disclosure processes to ensure that the interests of the shareholder are properly protected in relation to financial reporting and internal control and disclosure maintains integrity, transparency, and adequacy
    NZKS complies with the Commerce Act which aims to promote competition in markets for the long-term benefit of consumers.
    NZKS has commissioned a climate disclosure gap assessment under the likely future reporting framework Taskforce on Climate-Related Financial Disclosure (TCFD). The analysis will serve as a useful foundation to decide on a programme of work formalising climate-related governance and management planning and strategy, alongside metrics to measure progress.
    New Zealand King Salmon Investments Limited Corporate Governance Code and NZKS internal policies.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates anti-corruption performance.

  • The company’s website includes a range of information relevant to shareholders and others concerning the operation of the company including information about the sites we operate, Aquaculture Best Management Practices (BMP), Certifications, our brands and the corporate governance policies of the company.
    Ref
    New Zealand King Salmon Annual Report 2020
    New Zealand King Salmon External Auditor Independence Policy pg. 86 of AR 2020
    NZKS on NZX https://www.nzx.com/companies/NZK