27 May 2020,

To our stakeholders:

I am pleased to confirm that Aker BioMarine reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Matts Johansen
Chief Executive Officer

- People policy: Trust and freedom, we believe people fundamentally want to do a good job. Don’t need control mechanisms to track that people are doing their job, manager follow-up if a problem.
-Goals: measure in feedback tool for instance “this workplace is psychologically safe/physically safe”, “at work, my opinion seems to count” and “I feel valued at work”.
- We aim to apply Norwegian labour rights and values globally, harmonized with local practice. One example of this is that we practice 2-4 weeks of termination notice to employees as compared to general US employment practice which is zero.
- Member of NHO, and adhere to the “hovedavtalen”
- Code of Conduct addresses Human Rights

- Whistleblower channel.
-Currently reviewing regulations and our practice for offshore workers.

- Absenteeism is low, globally about 1,5%
- Gender diversity: 30% women in plant in Houston and 50% women in leadership positions
- 450 employees, 32 nationalities
- Leadership team: 4 of 9 are women

- We aim to apply Norwegian labour rights and values globally, harmonized with local practice. One example of this is that we practice 2-4 weeks of termination notice to employees as compared to general US employment practice which is zero.
- Member of NHO, and adhere to the “hovedavtalen”

- People policy: Trust and freedom, we believe people fundamentally want to do a good job. Don’t need control mechanisms to track that people are doing their job, manager follow-up if a problem.
-Goals: measure in feedback tool for instance “this workplace is psychologically safe/physically safe”, “at work, my opinion seems to count” and “I feel valued at work”.
- We aim to apply Norwegian labour rights and values globally, harmonized with local practice. One example of this is that we practice 2-4 weeks of termination notice to employees as compared to general US employment practice which is zero.
- Member of NHO, and adhere to the “hovedavtalen”
- Code of Conduct addresses Human Rights

- Whistleblower channel.
-Currently reviewing regulations and our practice for offshore workers.

- Absenteeism is low, globally about 1,5%
- Gender diversity: 30% women in plant in Houston and 50% women in leadership positions
- 450 employees, 32 nationalities
- Leadership team: 4 of 9 are women

Full Control of Our Value Chain:
• Aker BioMarine’s vertical integration as its biggest asset in producing a sustainable product.
• By owning our whole value chain from vessels, to logistics, to our Houston, TX based factory, we have the opportunity to continually improve across all areas of production. We continuously drive multiple technological improvement projects througout our supply chain to minimize the industrial footprint of energy use (CO2-emissions), freshwater and chemical addings, as well as increase the recycinlg % of our plastic in packaging.
• Early on, we created Eco-Harvesting, a fishing method that offers enzymatic protection of krill, ensuring the freshness and quality of the product. This technology platform successfully prevents bycatch of birds, marine mammals and fish, which is critical to our company’s sustainability efforts.

Sustainable harvest:
• Compared to other fisheries where precautionary catch limits are set to 10% or more, the total allowable krill catch is limited to 1% of the stock biomass, leaving 99% of the biomass for other predators.
• For the fifth year in a row, Aker BioMarine has received an ‘A’ rating from the Sustainable Fisheries Partnership, meaning the krill fishery is in very good condition.The SFP is an independent non-profit organization that evaluates the sustainability of global fisheries and we have an ambitious sustainability strategy to keep the A rating.
• We have the MSC and Friends of the Sea certifications for our fishery and supply chains of our products.
• New international research, surveying the krill biomass around the Antarctic Peninsula for the first time in 19 years, has determined that the krill biomass is healthy. The numbers are up by more than 2 million tonnes since the last large-scale krill survey conducted in year 2000.
• By working side by side with the international community of states, scientists and NGOs, companies like Aker BioMarine are taking important steps forward in the reform of the krill management system of the Southern Ocean in Antarctica.

Beyond regulations: Voluntary Protection Zones of penguins in Antarctica:
• The krill industry wants to be leaders and move in front of the regulations. Back to the point of partnerships and collaborations, the Association for Responsible Krill Harvesters (ARK) has become a very important arena for us as a company, where we join forces with krill harvesters from countries like Chile, Korea and China (see http://www.ark-krill.org/).
• Through ARK, we have been in close collaboration with scientists (both Norwegian but also other international scientists, like the British BAS) to elaborate on voluntary protection measures.
• The NGOs active in Antarctica, and very much engaged in the marine protection agenda, have become an increasingly important part in this collaboration on voluntary protection zones.
• 2018 was the first season we implemented the “penguin buffer zones”, a set of scientifically mapped and voluntarily adopted no-go zones.

Aker BioMarine pushing the agenda for integrated ocean management:
• The Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR), the international treaty managing the krill fishery in the Southern Ocean, has made decisive steps towards a more dynamic and scientific data driven management regime.
• In order to take on this challenge to better monitor the krill biomass, and to stay ahead of the curve in a data-driven era, we recently launched an unmanned solar-powered ocean data drone (Sailbuoy) as part of our operations in Antarctica.
• The two-meter long Sailbuoy is equipped with echosounder and environmental sensors to collect, process and transmit density and distribution data from wherever it is deployed, in real time.

- We monitor CO2 emissions througout own supply chain.
- Integrated reporting on financial, social and environmental parameters in Annual Reports.
- In the process of setting 2030 targets for water, CO2 and plastic reduction, implementing digital reporting 2020.
- Continuously drive forward our stakeholder management throughout the calendar year and in particular related to the CCAMLR annual meetings in Hobart, Australia, the ARK industry meetings, and the manamgent of the Voluntary Restrictive Zones.

- Aker BioMarine has a fully integrated value chain which gives us good control over products and services delivered from beginning to end and low exposure to compliance risks.
- Externally, we have drafted and made public our Code of Conduct, in which we have a zero tolerance policy towards corruption, bribery and extortion. In addition, we make our suppliers commit to our Supplier Declaration in which they commit to international conventions and regulations within anti-bribery, corruption and to ensure sure and proper working conditions.
- Internally, we have policies on inter alia Gifts and Hospitality, Whistleblowing, Screening of business partners and a good track record within compliance.

- Whistleblowing mechanism for grievances
- Gift register for all gifts received through business.
- All new employees are onboarded within inter alia Code of Coduct anti-corruption
- Responsibility is delegated to line, Chief Compliance Officer handles policies, case handling etc, Board of Directors ultimately responsible with frequent reporting

- Our limited exposure to corruption from customer and/or supplier side has resulted in severance of all ties
- We have implemented new screening and monitoring tool for surveillance of business partners
- Increased internal controls on anti-corruption