SUSTAINABILITY REPORT EMPRESAS AQUACHILE 2017 REPORTE... · 2018-06-11 · SUSTAINABILITY REPORT...

SUSTAINABILITY REPORTEMPRESAS AQUACHILE2017

Welcome to our eleventh sustainability report

This report has been developed according to the Essential option of the GRI Standards and has been checked by Deloitte.

The contents of this Report cover the period of January to December 2017 and complements information that the company periodically delivers via its Annual Report, corporate presentations and reports for investors, among other documents that are available on its website (www.aquachile.com).

Contentsempresas aquachile / sustainability report 2017

01: introducción

/ Letter from the Chairman

/ Letter from the CEO

/ Empresas AquaChile

/ Strategy

/ Corporate governance

/ Key topics

/ Performance

02: healthy food

03: sustainable processes

04: health and safety

05: ethics and compliance

06: social responsibility

07: about this resport

08: apendix standards

09: gri content index

10: independent auditor´s report

03

04

05

06

08

09

14

18

19

30

54

59

64

74

81

115

120

SUSTAINABILITY REPORT 2017

01: INTRODUCTION

At AquaChile we are proud of our Patagonian origins and of being able to develop our activities in harmony with the same landscape in the south of the world that witnessed the birth of our company.

introduction

healthy food

sustainable processes

health and safety

ethics and compliance

social responsibility

standards

about this report

4contents indicators

víctor hugo puchi acuñaChairman of the Board

This year we signed an Agreement for Cooperation and Strengthening of Labor

Relations, as the result of continued dialogue with the

company’s unions. In the document, the proposals

put forward were completely addressed, with the objective

of defending the stability of their source of employment.

letter from the chairmanDuring 2017. we attained greater efficiencies. In this regard we highlight

important facts that demarcate a sustainable future for our activity; one of

them was acquiring control of Salmones Chaicas, a recirculation hatchery that

has state-of-the-art technology to produce broodstock, eggs and smolts,

in high biosecurity conditions, and they are land-based facilities where the

Atlantic salmon’s complete life cycle can be completed.

For its part, AquaInnovo, the technology-based subsidiary of AquaChile,

celebrated a decade of creating technical solutions to ensure continuous

improvements in production efficiency, with a strong focus on innovation in

genetic development. Its results have been successfully applied in different

generations of fish of different species. Today, it has become a scientific pole

that generates science and knowledge from the south of Chile for the

whole world.

In the framework of the commitment that AquaChile has towards its people,

we signed an Agreement of Cooperation and Strengthening of Labor

Relations. This document was the result of sustained dialogue with the

company’s unions, and completely addressed the proposals that were put

forward by the National Coordination of Workers of the Salmon Industry and

Allied Branches, an organization that is composed of the unions of different

companies in the sector and that came together after the algal bloom, with

the objective of defending the stability of their source of employment.

To be part of the community, making our work known, participating in its

activities and committing to its development, is one of our company’s main

objectives. That is why this year we focused on an extensive program of

visits that opened our doors to our neighbors. We have participated in the

activities that are important to the towns we are part of and we have joined

in educational initiatives that aim to reduce the gap that exists in this issue

among children in our region.

At AquaChile we are proud of our Patagonian origins and of being able to

develop our activities in harmony with the same landscape in the south of the

world that witnessed the birth of our company. We work on a daily basis with

the firm conviction that our work respects the natural lifecycle of the species

we farm and delivers a product that feeds the world with a healthy, nutritious

and wholesome protein.

Thus, we invite you to read our sustainability report 2017. which is developed

according to the Global Reporting Initiative’s (GRI) standards and as always

abides by the commitments we signed up to with the Global Salmon Initiative

(GSI). Therefore, on completing a decade of reporting on the achievements of

our company each year, on this eleventh version, our company wanted to take

a step further towards transparency and ensure the credibility of the data we

present, by validating them via the certification of a well known international

organization.

sustainability report 2017 / introduction


agustín ugaldeCEO

letter from the ceo

The demand for our premium brand Verlasso® experienced

strong growth in 2017 and today it is sold in 30 states

in the United States. In 2013. Verlasso® was the first

farmed Atlantic salmon recommended as a “good

alternative” by theSeafood Watch program at

the Monterey Bay Aquarium. In 2017 it was ratified

in this category.

Salmon and tilapia are tasty and healthy food. Global interest in high quality

proteins, like the ones provided in our fish, has followed an upward trend that

enables us to recognize the huge potential of our business and look to the future

with great optimism.

In 2017 we achieved better results, thanks to the review of different processes,

which has enabled us to be more efficient and competitive; both of these

attributes are critical to our environmental and social sustainability.

There are more than 4.800 people in Chile, Costa Rica and the United States who

work for AquaChile. Maintaining constant dialogue, improving working conditions,

fostering personal growth via training and, above all, ensuring conditions that avoid

and prevent accidents, are all part of an effort that we appreciate on a daily basis.

We feel part of the community in which we operate, and this is why we have a

strong commitment to local development. We favor the hiring of people who live

in the towns where we have our operations and we prefer to purchase and hire the

services that these communities offer. We have actively participated in initiatives

in the area of education, in massive sporting activities and we have grown closer

to the people around us, via an open doors policy that has generated hundreds of

visits to our facilities. In a same vein, we moved forward with our stores in all the

regions where we have operations, which enable us to bring our products to the

Chilean market.

At AquaChile we continue working to produce fish under the certifications of

the most demanding markets in the world. In 2017 we managed to add farms

under the Aquaculture Stewardship Council (ASC) certification, a standard that

is endorsed by the World Wildlife Fund (WWF) and that addresses the social,

environmental and productive impact of the industry, integrating the community

within its criteria. Furthermore, we added hatcheries and farms to the Best

Aquaculture Practices (BAP) standard, which addresses the whole production

chain, and thereby adds to this certification processing plants and feed plants.

Both ASC and BAP are rigorous, science-based standards, that incentivize us to

constantly improve.

The demand for our premium brand Verlasso® experienced strong growth in

2017 and today it is sold in 30 states in the United States. In 2013. Verlasso® was

the first farmed Atlantic salmon recommended as a “good alternative” by the

Seafood Watch program at the Monterey Bay Aquarium. In 2017. it was ratified

in this category, after an exhaustive assessment process that highlighted its

production model that limits the use of antibiotics, reduces sea based ingredients

and respects the environment in its operations.

The objective of reporting the result of our work annually is to be transparent and,

along with this, keep our commitment to be sustainable in each of the production

stages. I leave you with our 2017 report.



empresas aquachile

Information: appendix of indicatorsWFE= Whole Fish Equivalent. This is a standard industry measurement that refers to the weight of a fish that has been bled.

atlantic salmon pacific salmon sea trout tilapia

our products

annual sales (Million dollars)

processing plants (Number)

consolidated ebitda (Million dollars)

operational farms(Number)

harvest volume (Tonnes WFE of salmonids and tilapia)

total production capacity (Tonnes WFE)

202,000

6192016 2017

62016

62017

633 632016 2017

57

572016 2017

142 99,040 99,7222016 2017

total staff 2017(Number of employees)

Employees

Employees

Employees

chile

costa rica

ee.uu.

3,940

897

12



value chainEmpresas AquaChile is present in the entire value chain of the aquaculture industry, from genetic selection

to distribution, with farms in Chile and Costa Rica, and sales offices in the U.S.

In February 2017. via the purchase of third party shares, Empresas AquaChile gained 100% ownership of

Salmones Chaicas S.A., a company that produces broodstock, eggs and Atlantic salmon smolts.

(1): Includes AquaChile S.A., Salmones Cailín S.A., Salmones Australes S.A., Salmones Maullín S.A., Salmones Maullín Ltda., Acuícola El Volcán Ltda., Piscicultura Aquasan S.A. and Procesadora Hueñocoihue(2): Includes: Aguas Claras S.A. and Antarfood S.A.(3): Includes Servicios Aguas Claras S.A. and Procesadora Aguas Claras Ltda.(4): Includes Aquacorporación Internacional S.A., Terrapez S.A., Aquacultura del Pacífico S.A., RFA Inc., Aquapanamá S.A., Biomar AquaCorporation Products S.A., Aquasea de Costa Rica S.A.

100% 100% 100% 100% 100% 100% 50% 79.96% 100% 100%

Genetics and Laboratory

Fresh water Production

Sea water Production

Processing

Sales & Marketing

Feed

empresasaquachile s.a

production of salmonids feed tilapia genetics laboratory

inversiones salmones australes

ltda.(1)

inversiones antarfish

ltda.(2)

antarfishs.a.(3)

aquachile inc.

salmones chaicas s.a.

alitecpargua s.a.

grupoaci s.a.(4)

aquainnovo s.a.

laboratorios antares s.a.



our strategy

We seek to be recognized worldwide for the quality of our products, the sustainability

of our processes and respect for our workers.

visión

ourcommitment

ourvalues

To produce healthy aquaculture-based food for this and future generations, respecting

and valuing the environment and our people with a sustainability outlook.

mission

Respect for people, work and the environment

Passion for our work

Initiative and creativity

Openness to change and new challenges

Commitment to a safe working environment

Austerity

PRODUCE QUALITY, HEALTHY

AND SAFE FOOD.

0.1 0.2 0.3 0.4

BE PROACTIVE AND RESPECTFUL

TOWARDS THE ENVIRONMENT.

DEVELOP A SAFE AND HEALTHY

WORKING ENVIRONMENT.

BENEFIT THE COMMUNITIES AND

SUPPLIERS IN THE PLACES WHERE

THE COMPANY OPERATES.



corporate governanceOur Board meets monthly at AquaChile head office in Puerto Montt, in the south of Chile, to assess and

guide actions in the most important matters for the company’s sustainability, considering economic

as well as social and environmental aspects.

empresas aquachile s.a. isa publicly traded company, whose shares are traded on the chilean stock exchange. at 31 december 2017. its social capital was distributed among150 shareholders.

the company’s board is composed of seven members elected by

the agm every three years, and is responsible for strategic

direction and is the most important entity for mechanisms

of internal control.

the board of directors comprises three board members, according

to what is stipulated by article 50 bis of law 18.046 on publicly

traded companies. among its main functions are the analysis of

external auditors reports.

support units

• Sales management • Technical management • Administration & Finance• Management control• Human Resources• Health & Safety• Development• Health

subsidiaries

• Grupo ACI S.A. (Costa Rica)• AquaChile Inc. (U.S.)• AquaInnovo S.A. (Chile)• Aquasan S.A. (Chile)• Laboratorio Antares S.A. (Chile)

production units

• Processing plants• Freshwater production• Araucanía region• Aysén region• Seawater production• Infrastructure and operations• Los Lagos region• Coho salmon production

agm

ownership structure

33.03% puchifamily

33.03% fischerfamily

33.94% others

board ofdirectorsand auditing

seniormanagement

board



From left to right: Alejandro Pérez, Jorge Tagle, Víctor Hugo Puchi,

Humberto Fischer, Bernardo Fontaine, Francisco Puga y Mario Puchi.

boardAt 31 December 2017

chair of the board

víctor hugo puchi acuña

Puchi holds an undergraduate degree in economics and

business administration from the Universidad Católica

de Chile and an MBA from the University of Chicago.

After completing his studies, he worked in finance in

companies such as Iansa, Grupo BHC and Quiñenco. He

is a director of Centrovet and Empresas Hidronor. He has

business activities in the real estate, tourism and cattle

farming sectors in the Los Lagos and Aysén regions.

directores

humberto fischer llop

Fischer is a veterinary physician from the Universidad

Austral de Chile. He was one of the pioneers of the

salmon industry and, in 1985. founded Salmones

Pacífico Sur S.A., a company that initially focused on

the seawater growth stage and sales of the product.

He has investments in the tourism, agriculture, cattle

farming and real estate sectors. He is also a director

of the Dreams hotel and casino chain that is present

throughout the country.

mario puchi acuña

Puchi holds a technical university degree in fishing

from the Universidad Técnica del Estado. He began his

professional career in the Agricultural Inspection Service

(SAG) in Aysén and then for the National Fisheries Service

(SERNAPESCA) in the same region, an activity that

allowed him to specialize and participate in the project

for the introduction of Pacific salmon into Chile. He has

aquaculture and cattle farming business activities in the

Los Lagos and Aysén regions.

alejandro pérez rodríguez

Pérez holds an undergraduate degree in civil industrial

engineering from the Universidad de Chile and a master’s

degree in economics from the University of Chicago. He is

vice-chairman of the board of Clínica Indisa, a director of

Entel S.A. and Clínica Los Andes de Puerto Montt S.A and

a member of the board of Universidad San Sebastián.

He was a director of Copec S.A., general manager of

Celulosa Arauco y Constitución S.A. and Soprole S.A.

bernardo fontaine talavera

Fontaine holds a degree in economics from the Pontificia

Universidad Católica de Chile. He is director of Coca-

Cola Embonor S.A., Bicecorp S.A., Banco Bice, Bice

Vida Compañía de Seguros S.A. and Fundación El Buen

Samaritano. He was chairman of Ópticas Place Vendôme

and director of Metro S.A. and LAN Airlines.

francisco puga matte

Puga holds a degree in civil industrial engineering from

the Universidad de Chile. He is CEO of Puga, Mujica

Asociados S.A. (PUMA), an engineering and construction

company in Chile. He was CEO of Hatfield International

Chile, operations manager of Bomasa S.A., CEO of

Lácteos Miraflores S.A. (Ecuador) and CEO of Salmones

Mainstream Chile S.A.

jorge tagle ovalle

Tagle holds a degree in civil industrial engineering

from the Pontificia Universidad Católica de Chile and

an MBA from The Wharton School of the University of

Pennsylvania. He is partner of Altis Servicios Financieros

and director of Megeve Investments. He was director

of Banchile Administradora General de Fondos S.A. and

other companies in the Luksic group, deputy CEO and

director of the commercial banking division of Banco de

Chile, executive vicepresident of Nexans S.A., corporate

CEO of Alusa S.A., director of corporate finance at

Madeco S.A. and director of new business at Quiñenco.



principal executivesAt 31 December 2017

empresas aquachile

CEO

josé agustín ugalde preuss

Degree in agricultural engineering

Pontificia Universidad Católica de Chile

CFO

francisco lepeley contesse

Degree in civil industrial engineering


MBA University of Chicago, U.S.

CCO

vicente de la cruz weinstein

Degree in economics and business administration


LAWYER

álvaro varela walker

Lawyer

Universidad de Chile

Universidad de Barcelona, Spain

CONTROLLER

francisco javier matamala ubilla


Universidad de Santiago

MANAGER OF SEAWATER

PRODUCTION

juan carlos lópez sebastián

Veterinary doctor

Universidad Austral de Chile

Masters degree in veterinary science


MBA Universidad Adolfo Ibáñez

MANAGER PROCESSING PLANTS

ignacio sandoval gallardo

Degree in civil engineering


MANAGER FRESHWATER PRODUCTION,

AYSÉN REGION

juan carlos puchi acuña

Degree in mechanical engineering

Instituto Nacional de Capacitación

HUMAN RESOURCES MANAGER

alejandra cid peña

Degrees in economics and business administration and in

accounting and auditing

Universidad de Santiago


TECHNICAL MANAGER

rodolfo alvarado rodríguez

Degree in agricultural engineering


MBA Universidad de Chile

MANAGER OPERATIONS

guido fuentes meneses


Universidad de la Frontera

MANAGER HEALTH

claudio valenzuela rojas

Veterinary doctor


subsidiaries

CEO GRUPO ACI S.A.

luis guillermo vásquez cabezas

Degree in business administration, specialization finance

Universidad Latina de Costa Rica

CEO AQUACHILE INC.

vicente de la cruz weinstein

Degree in economics and business administration


CEO SALMONES CHAICAS S.A.

gabriel puchi germani

Fisheries Engineer

Pontificia Universidad Católica de Valparaíso

CEO AQUINNOVO S.A.

matías del campo barquín

Degree in aquaculture

Universidad Andrés Bello

CEO AQUASAN S.A.

luis felipe díaz cortés

Veterinary doctor


MANAGER LABORATORIO ANTARES S.A.

alexis martínez hernández

Degree in biochemistry




focus on sustainability

Ensure customer satisfaction, producing a healthy and safe food, with the best

service and at a competitive price.

Guarantee compliance with legal requirements as indicated by national and

international regulations.

Promote occupational health and safety in production processes, committing all

personnel to the safety of all individuals who work in different areas of the company,

enabling workers, providers and third parties to carry out their jobs safely

and efficiently.

Drive the professional and individual development of workers who are part of the

value chain as well as promote ethical responsibility and safe working environments.

Ensure the community’s well-being and the conservation of the environment,

benefitting communities in places where the company develops its operations.

Comply with current legislation and other acquired voluntary commitments, with

an emphasis on the issue of managing the sustainability, occupational health and

safety, quality and the environment.

PRODUCE QUALITY, HEALTHY AND SAFE FOOD.

BE PROACTIVE AND RESPECTFUL TOWARDS THE ENVIRONMENT.

DEVELOP A SAFE AND HEALTHY WORKING ENVIRONMENT.

BENEFIT THE COMMUNITIES AND SUPPLIERS IN THE PLACES

WHERE THE COMPANY OPERATES.

0.1

0.2

0.3

0.4

Sustainability is a key component of our corporate

strategy and business model and it is incorporated into

our policies and actions in each stage of the value chain. It

is also deeply embedded in our corporate culture and our

basic principles.

commitments objectives

In April 2017. we updated our Integrated Policy of Quality,

Sustainability, Occupational Health and Safety. In its

development there was participation from the CEO and

Human Resources, Processes and Production, Technical,

Enviroment and Risk Prevention management areas.



external initiatives We address the challenges of sustainability in collaboration with other companies,

organizations and associations.

in the u.s.

salmon council of the national fisheries institute (nfi)www.aboutseafood.comIts mission is to promote salmon as a high quality fish and with important benefits for the health of the heart and the brain.

Empresas AquaChile became an active member of the NFISalmon Council in April 2017.

in chile

global salmon initiative (gsi)www.globalsalmoninitiative.orgAn international initiative that brings together about 50% of the producers of farmed salmon. By way of worldwide collaboration and research, the GSI seeks to bring about important improvements in the whole industry, with relation to social responsibility, environmental impact and contribution to society.

AquaChile is a member of this entity.

salmonchile www.salmonchile.clThe Association for the Salmon Industry in Chile groups together the main companies that produce Atlantic and Pacific salmon, as well as sea trout, and their suppliers, to work together on sanitary, environmental, regulatory, social and economic challenges in the salmon-producing sector, in the national as well as international arena.

Empresas AquaChile is a member of this entity and its chairman Victor Hugo Puchi is a member of the board.

society for the promotion of industry www.sofofa.clA trade association that brings together companies and guilds linked to the Chilean industrial sector. It covers almost 4.000 companies, 38 sector associations and 23 regional businesstrade associations.

chilean-norwegian chamber of commerce www.noruega.clPromotes Norway's economic, cultural and social activities in Chile and collaborates with Norwegian companies established in Chile.

in costa rica

institute for technical standards in costa rica (inteco)www.inteco.orgPrivate non-profit association, recognized as a national regulatory entity. It represents the International Organization for Standardization (ISO) in Costa Rica.

gs1 association costa ricawww.gs1cr.orgPrivate non-profit entity that advises companies on matters of commercial best practices. Grupo ACI receives identification services via barcodes and other standards for exporting.

chamber of commerce of costa rica www.camara-comercio.comA trade association that contributes to the development and defense of commercial interests via different programs. These include the Center for Conciliation and Arbitration (CCA), an entity for alternative conflict resolution.

chamber of industries of costa rica (cicr) www.cicr.comAn institution that represents the industrial sector in the country. Its objective is to strengthen the industry supporting its members in the creation of business and acting as a liaison with the government to drive initiatives. It also offers training, consultancy and counseling.

the basc coalition of costa rica www.wbasco.orgThe Business Alliance for Secure Commerce (BASC) is a business partnership that promotes secure trade in cooperation with international governments and organizations. Its mission is to create a culture of security throughout the supply chain, using management systems and instruments applied to international trade and related sectors.

association of duty free zones of costa rica (azofras)www.azofras.comAn association that represents companies in duty-free zones to governmental entities and other organizations from the private sector.

Grupo ACI is an active member of AZOFRAS.

chamber of exporters of costa rica (cadexco) www.cadexco.netTrade organization that supports and defends the exporters of Costa Rican goods and services; informing and managing export alternatives and acting as a link with governmental entities.

national chamber of exporters of fish products of costa rica (canepp)www.canepp.comA trade association whose objective is to support fisheries that export from Costa Rica.


globalsalmoninitiative.org

www.salmonchile.cl

www.sofofa.cl

www.noruega.cl

globalsalmoninitiative.org


key topicsEach of the following issues that have been identified as fundamental in the process

of defining the content of this report, represents a risk or an opportunity that we are

managing to fulfill our mission and vision of the business, considering the impact that

we create and legitimate concerns from our stakeholder groups.

topic

why it is important

In its operations, the

company makes use

of public goods that

are granted to it via

aquaculture licenses.

The Chilean salmon

industry is highly

regulated.

Fish is an essential source

of food for a growing

worldwide population.

Salmon is considered to

be a “superfood” due to

its multiple nutritional

benefits. It is an excellent

source of protein and

it contains 75% less

saturated fat than a piece

of meat. Tilapia offers

low fat content and a high

concentration of protein.

As for all food, AquaChile

products must guarantee

their safety.

Work at sea and at

processing plants imply

risks that we must mitigate

against.

Great part of the

company’s operations

are developed in places

that are far from large

urban centers, in which

AquaChile’s activities

represent an important

alternative of employment.

Maintaining a constant

and fluent dialogue with

our workers enables us to

strengthen labor relations

and move forward together

in the delivery of labor

conditions that improve

each day.

The jobs that are carried

out at each stage of the

production cycle are highly

complex and specific.

Because of this, the training

and education of new

and external staff and

the constant renewal of

techniques and knowledge

for all workers are extremely

important.

ethics and legalcompliance

clients’ healthand safety

health and safetyin the workplace

generation of local employment

relations betweenthe company

and its workers

training ofemployees and

external workers



Fish escaping can cause

disruptions to biodiversity.

It is important to have

technical measures that

prevent these accidents

and, if they do happen,

to immediately alert the

pertinent authorities.

In the areas where the

company has operations

in Chile, there are two

protected species,

included in the Red Book

of the National Forestry

Corporation (Conaf in

Spanish): the huillín otter

and the black-necked swan.

In Costa Rica, the

company’s operations are

developed in harmony with

two endangered species;

the crocodile (Crocodrylus

acutus) and the Jabirú stork

(Jabirú Mycteria).

In 2015 AquaChile signed

an Agreement for Clean

Production (APL for its

abbreviation in Spanish),

for the conservation of

the blue whale and other

large cetaceans in northern

Patagonia and the Los

Lagos and Aysén regions.

This is an unprecedented

initiative in the country.

The accumulation of

sediment under the

farm units, mainly due

to unconsumed feed,

can produce damage

that it is necessary to

prevent by taking constant

measurements and using

technical tools.

With the objective of

making our activity more

and more sustainable

each day, the worldwide

tendency is to reduce

the use of sea-based

ingredients in fishes’ diets,

preferring derivatives

that can obtain the

same benefits.

It is important to apply

good rearing techniques to

avoid stressing the fish.

In Chile, there are infectious

diseases that are endemic,

such as the SRS bacteria

and the risk of caligidosis.

Using the management

of vaccinations and

appropriate stocking

densities, the use of

antibiotics has been

significantly reduced. The

company uses them when

strictly necessary and

when there is a waiting

period that guarantees

the absence of traces

of antibiotics in the

final product.

prevention offish escaping

interaction withprotected species

quality of sedimentand water

use of marineingredients in

fishes’ diet

fish wellbeing(stocking density,culling methods)

use of antibiotics in the treatmentof fish diseases.

Key topics


topic

why it is important


Caligus stresses, weakens

and predisposes the fish

to more serious diseases.

It is estimated that it

generates annual losses

of US$350 million to the

Chilean industry.

Since 2007. Chile has had

a program for sea lice

monitoring and control.

recount andtreatment of

caligus (sea lice)

Scientific studies have

confirmed that waste

can generate serious

damage to marine fauna

(for example, intestinal

obstructions because

of the accidental intake

of plastic). AquaChile

does not produce waste

on the coastline, but it

actively collaborates

with beach cleaning

initiatives, organized by

the marine authorities and

neighboring communities.

care of coastline(beach cleaning)

The World Economic

Forum’s Global Risk Report

says, “Climate change is an

important trend for 2017.

and for the first time the

environmental risks are

shaping to be the most

probable and of greater

impact for the world.”

Chile is a country that is

highly vulnerable to the

effects of climate change,

due to the characteristics

of its territory (low level of

its coastline, rivers fed by

snow and glaciers, types of

woodland and oceans).

actions to confront climate change.

Using innovation it is

possible to produce higher

quality fish, with a better

growth rate, a color that

meets the demands of

markets and a greater

resistance to diseases.

AquaInnovo, subsidiary

of AquaChile, has made

important achievements in

this area.

research &development

AquaChile is a publicly

traded company and one

of the largest exporters

of Chilean salmon.

Its financial results,

published periodically,

are as important to its

shareholders as they are to

the industry and the towns

in which the company

is present.

economicperformance

Key topics


topic

why it is important


material topics in our value chain

research & development

fish feed farming growing processing distribution

topicsEthics and legal compliance

Clients’ health and safety

Health and safety in the workplace

Generation of local employment

Relations between the company and its workers

Training of employees and external workers

Prevention of fish escaping

Interaction with protected species

Quality of sediments and water

Use of sea-based ingredients in the fishes’ diet

Fish wellbeing (stocking densities, culling methods)

Use of antibiotics in treatment of fish diseases

Recount and treatment of Caligus (sea lice)

Care of coastline (beach cleaning)

Actions to confront effects of climate change

Research & Development

Economic performance



achievements 2017

workers’ health and safety

water quality

innovation + research + development

actions to combat climate change

efficient use of sea-based ingredients (salmon and sea trout)

protection of biodiversity

waste management


2.53%accident rate for operations in Chileand Costa Rica

0fish escapes in Chile and Costa Rica

95%of water used in the production of tilapia returnsto irrigation channels in a purified state

60%of boats in the Los Lagos region use liquid gasinstead of diesel.

3,768 hours of training of 41 students from the PolytechnicSchool of Calbuco

76.6%of waste in Chile sent to be recycled

100tests and assays at ATC Patagonia

1.27fish oil dependency rate


19sustainability report 2017

02: HEALTHY FOOD

Salmon has attained the status of a nutritional “superfood” thanks to its multiple benefits, and tilapia stands out due to its combination of a low caloric content and high concentration of protein.

introduction

healthy food


health and safety



standards

about this report


(1): http://www.doh.wa.gov/CommunityandEnvironment/Food/Fish/HealthBenefits (2): http://www.fda.gov/Food/FoodborneIllnessContaminants/Metals/ucm393070.htm (3): FAO Report 2016. The State of World Fisheries and Aquaculture 2016. Contribution to food safety and nutrition for everyone.(4): http://time.com/3895811/tilapia-health-benefits/(5): http://www.natursan.net/tilapia-beneficios-y-propiedades/; https://nutritionj.biomedcentral.com/articles/10.1186/s12937-016-0182-9.(6): Global Salmon Initiative (GSI)(7): Ytrestoyl et. al. (2014), National Beef Association UK; Volden, H. and Nielsen, N. I. (2011), Energy and 14 metabolizable protein supply, www.journalofanimalscience.org; Skretting (2012), Delivering sustainable feed solutions for aquaculture; SINTEF Report (2009), Carbon footprint and energy use of Norwegian seafood products.

essential qualities

reduces the risk of coronary diseases, sudden death,

and stroke;

helps control blood pressure;

promotes growth and development, especially of

the brain, vision, and the nervous system during the

gestation period, and

contributes to reducing the possibilities of developing

depression, dementia, diabetes, Alzheimer's disease,

and arthritis1.

the consumption of salmon:Fish represents about 17% of the intake of animal proteins

by the worldwide population.

Fish has minerals such as calcium, iodine, zinc, iron,

sodium, and selenium, as well as amino acids and

omega-3 fatty acids3.

Tilapia offers low fat content and a high concentration of

protein, with an average of 23 grams for every 113 grams

of meat4.

Due to its low mercury content and high presence of

docosahexaenoic acid (DHA), tilapia is suggested for the

diet of pregnant women5.

grams of fish2 as aweekly average227

recommended consumption

sustainability report 2017 / healthy food

less saturated fat than a pieceof red meat

75%protein retention (vs. 21% for chicken, 18% for pork, and 5% for lamb6)

31%

of a salmon’s meat can be used for human consumption7

68%


our products

8 a 10 monthsfreshwater hatchery

8 a 10 mesessea

7 a 9 monthsfreshwater hatchery

pacific salmon (or coho) tilapia

The farming of this species is seasonal and it grows more quickly than any other species. It is also the salmonid

with the most intense color.

All year long

Rain Forest, St. Peter´s

1 kg

u.s. costa rica

10 to 12 monthsfreshwater hatchery

12 to 18 months sea

All year longharvesting

harvesting

harvesting

harvesting

AquaChile,Verlasso

our brands

our brands

our brands

our brands

4.5 kg to 6.0 kgweight

weight

weight

weight

u.s. brazil eurasian union

atlantic salmon

It has a long body that is slightly compressed on its sides. The color of

its back can be bluey gray, light or dark green.

chile main markets main markets

main marketschile costa rica

It is an excellent source of protein, low in calories, and free from trans fats or carbohydrates. It has several minerals

and vitamins.

All year long Peakbetween October and February

Empresas AquaChile,Aguas Claras

10 a 12 monthsfreswater hatchery

12 a 14 monthssea

2.8 kg to 3.5 kg

u.s.russiajapan brazil

Silver colored fish, with bluey green shades on its back. Its flesh is fattier and

very flavorsome.

chile

rainbow trout

Between Octoberand February

AquaChile,Salmosan

2.5 to 3.5 kg

japan

main markets



Date of Report in Chile: June 13. 2017 (Salar, Sea Trout, and Coho)

Laboratory: CORTHORN QUALITY

Date of Report in Costa Rica: April 10. 2017 (Tilapia)

Laboratory: LAMBDA

nutritional information

atlantic salmon sea trout pacific salmon tilapiaaverage average average average

nutritional value of our products

pH at 20 °C 6.29 6.28 6.27 6.26

Moisture (%) 70.56 68.43 69.54 77.8

Protein (N2 x 6.25), (g/100 g) 18.00 21.06 21.00 19.3

Energy (Kcal/100 g) 138.10 154.10 147.20 93.00

Ash (%) 1.98 2.75 2.44 1.00

Total fat (g/100 g) 5.65 7.76 7.02 1.70

Saturated fat (g/100 g) 1.11 1.30 1.34 0.90

Monounsaturated fat (g/100 g) 2.02 3.02 2.94

Polyunsaturated fat (g/100 g) 1.50 2.20 2.34

Trans fatty acids (g/100 g) traces 0.02 0.03

Cholesterol (mg/100 g) 16.30 12.90 53.90 <2

Iron (mg/100 g) <0.01 <0.01 <0.01 1.50

Potassium (mg/100 g) 293.19 242.38 290.60 346.1

Sodium (mg/100 g) 45.73 87.94 109.84 69.80

Phosphorus (mg/kg) 245.74 227.49 177.09

Magnesium (mg/kg)

Vitamin D (mcg/100 g) 18.60 10.20 15.40



main destinations At the end of 2017, AquaChile was the sixth largest global producer and the second largest

Chilean exporter of salmon, with 9.9% of the total net tonnes exported.

distribution of net volume sold 2017salmon and sea trout

Japan and the United States accounted for 56% of the volume of salmon sold by AquaChile in 2017.

Sales of Verlasso® salmon grew by 39% in the United States in 2017. At year end, this Atlantic salmon produced

by AquaChile in the south of Chile was distributed in over thirty US states.

+320in more than 35 countries

clients

japan32%russia13%

thailand2%

other countries

5%

china2%

united states 24%

chile4%

mexico3%

colombia2%

brazil9%

argentina2%

spain2%



Through its subsidiary, Grupo ACI, AquaChile is one of the largest producers of tilapia in

Central America, the largest producer in Costa Rica, and one of the primary suppliers of fresh

tilapia to the United States, with a marketshare of around 21%.

The primary import market for tilapia is the United States.

Per capita consumption of tilapia recorded a compound

annual growth rate of 8.4% between 2001 and 2016. taking

this species to fourth place among consumer preferences

after shrimp, salmon, and tuna.

the tilapia harvests of grupo aci in costa rica reached 17.351 wfe tonnes in 2017.

united states

costa rica

paraguay

perú

80% 18%

1%

1%

tilapia


main destinations


PRODUCTION LINESThe versatility of the species we farm allows us to satisfy a wide array of preferences, thereby adding

value to our products. In the United States, for example, consumers lean towards filleted products,

whereas in Russia they prefer whole fish and in Japan they seek a mixed offer (complete and smaller

pieces). These products are also free of pork, which is valued in the Arab market.

atlantic salmon pacific salmon sea trout tilapia


whole honwhole gutted, frozen IQF

whole hgwhole gutted, headless,

frozen IQF

portionsskinned portions, frozen

bits & piecespieces of salmon, skinned

and de-boned

pulpsalmon meat pulp

fillet trim-cfillet skin on (trim c), frozen

IQF or vacuum-packed

whole honWhole gutted head on,

frozen IQF or vacuum-

packed .

whole hgWhole gutted headless,

frozen IQF.

fillet trim-bFillet skin on (Trim C)

weighing 500-1.000

grams, frozen IQF or

vacuum packed.

fillet trim-dFillet skin on (Trim C)

weighing 2-3 lbs frozen IQF

or vacuum-packed.

whole tilapia(Fresh/frozen)

skinned fillet(Fresh/frozen)

fillet head on(Fresh/frozen)

natural breaded fillet (Fresh/frozen)

other varieties· Fresh fillet, semi-deep cut

· Fresh export fillet

· Fresh loin

· Fresh pieces

· Fresh belly

· Natural breaded belly

· Tilapia chops

whole hgWhole gutted headless,

frozen IQF.

fillet trim-c Fillet skin on (Trim C), frozen

IQF or vacuum-packed.

fillet trim-eSkinned fillet without

peritoneal membrane (Trim

D), frozen IQF or vacuum-

packed.

fillet trim-dfillet skin on, without

peritoneal membrane (trim

d), frozen IQF or vacuum-

packed

fillet trim-eskinned fillet, without

peritoneal membrane,

frozen IQF or vacuum-

packed

belly / harasuventral fillet (belly / harasu)

other varieties· skinned fillet

· skin on portion

· skin on portions

loinSkinned fillet without

peritoneal membrane (Trim

D), frozen IQF or vacu-

um-packed.

harami Trout fillet skin on, with

bones, salted, frozen IQF.

belly / harasu Belly / Harasu (ventral fillet).

pulp Trout meat pulp.


Program of species

improvements by selection,

with no type of genetic

modification.

Prior to obtaining the

gametes, broodstock are

subjected to screening

to detect the presence of

viruses or bacteria.

Alevins and smolts are

monitored via a control

and vaccination program

carried out by the Health

Department.

Audits of plants that

provide feed are carried

out.

Periodical analysis of

nutritional quality of fish

food and pigmentation.

Use of pharmacological

products authorized by SAG

and only when the health of

the fish is endangered.

Analysis prior to harvest,

carried out by independent

entities and supervised

by Sernapesca to confirm

that there are no residual

antibiotics or forbidden

substances.

Application of quality

assurance program based

on hazard analysis and

critical control points

(HACCP).

Registry of historical

information about the

raw material harvested in

production lots, as part

of the traceability system

from the beginning to final

destination.

Labeling of all products with

the information required by

authorities and competent

organizations.

Formal system of reception

and analysis of complaints

by the Quality Department.

key measures to guarantee safety

0.1 0.2 0.3 0.4 0.5

quality and safetyTo guarantee food health and safety, it is essential to carry out controls established by current regulations

and the requirements of the target markets. Therefore, AquaChile's processes are submitted to controls

applied by sector-specific authorities as well as voluntary certifications and inspections by clients. In each

stage, the company incorporates protocols and methodologies as suggested by the Global Food Safety

Initiative (GFSI), legal regulations, and specialized and independent entities.



control prior to harvest

request for sample and analysis for residual contaminants and forbidden substances (by farm) and non-authorized substances (by groups of fish)

on-growingin sea farms

decision pen to be

harvested

request for sample and analysis for residual drugs (by farming unit)

¿ok?

harvest 100 %

sample carried out by authorized external entity and supervised by sernapesca

analysis report issued

analysis of samples in an authorized laboratory and supervised by sernapesca

At this stage, independent entities check that the fish being processed have

no residual drugs or forbidden substances.

Environmental Reports (INFA

in Spanish) were prepared at

AquaChile's farms two months

before the harvest began (maximum

biomass) or prior to stocking. The

company added the contracting of

an additional 65 reports to the 64

INFA reports coordinated

by Sernapesca.

no

yes129



traceability

AquaChile uses IT tools to manage information online, which allows it to ensure the traceability of its products.

raw material

The farms that provide AquaChile's processing plants

with raw material have been controlled since 2001 using

a specialized online software. Based on this information,

at the end of every month the company is able to project

production scenarios and define a new production plan for

the following period.

Furthermore, the National Fisheries Service (Sernapesca)

consolidates the production information weekly in its

Information System for Aquaculture Controls (SIFA in

Spanish). All farms in operation in the country must submit

these data.

finished product

At the processing plants, the company also uses IT

tools to control the process, from the entry of the raw

material to obtaining and sending the finished product.

Each batch of fish that enters the plant generates a

specific production lot in this system's database. As of

that moment, there is a record of how many fish have

been received, in what conditions, and their origin. All the

traceable information for each product is in the software.

The records are not eliminated from the historical

databases.

all of the company's processing plants in chile and costa rica have the asc chain of custody certification (asc coc).

To obtain this seal, each company that handles the

product in the supply chain must have a valid CoC

certificate. Only then is the product approved to display the

ASC logo. To obtain the CoC certification, each company

from the supply chain must strictly comply with the

requirements and have traceability systems in operation

to ensure the products were produced in compliance with

the ASC standards for responsible aquaculture.



inspections at our processing plants

date August 17 and 18. 2017

audit FDA

plantCardonal

areaSafety (Food Defense)

date November 15 and 16. 2017

audit MARUHA-NICHIRO

plantAguas Claras

areaSafety and Occupational

Health and Safety

dateDecember 20 and 21. 2017

audit MITSUBISHI-TOYOREIZO

plantAguas Claras

areaSafety

dateOctober 17 and 18. 2017

audit SYSCO

plantCardonal

areaOccupational Health and Safety,

Environment, Employment legal

compliance

date December 11 and 12. 2017

audit REDLOBSTER

plantCardonal

areaQuality, specifications

date October 19 and 20. 2017

audit SYSCO

plantAguas Claras



compliance

date November 13 and 14. 2017

audit MARUHA-NICHIRO

plantAntarfood

areaSafety and Occupational

Health and Safety

As suppliers, we are periodically subjected to audits

carried out on behalf of our clients. These inspections are

focused on the verification of compliance with regulations

and the traceability of products.

Likewise, the processing plants that export finished

products to the United States are subjected to periodic

audits conducted during 2017

FDA (U.S. Food and Drug Administration) audits that are

part of the 7303.842 inspections program (local fish and

fishery program and inspection programs of aquaculture

products). It also covers the programs on good

manufacturing practices and hazard analysis and critical

control points (HACCP).

The inspection conducted in August 2017 by the FDA

verified that the three observations made during its 2008

visit were duly considered and corrected. During this audit,

the agency emphasized that AquaChile's products are

trustworthy and safe for entry into the United States. It

also confirmed that the program is being applied properly.

date October 16. 2017

auditCOSTCO

plantCardonal



compliance


30

03: SUSTAINABLE PROCESSES

The efficient and careful use of natural resources is fundamental for the development of our strategy.

sustainability report 2017

introduction

healthy food


health and safety



standards

about this report


production cycle of salmon and sea trout

farming time periods

AquaChile, via its subsidiaries, produces its own Pacific

salmon and rainbow trout eggs, satisfying 100% of its

needs and even keeping a surplus that is sold to third

parties. Also, it covers its needs for Atlantic salmon eggs,

mainly through its subsidiary Salmones Chaicas S.A., as

well as other contracts with third parties.

aquachile has 153 seawater licenses located between the los lagos, aysén and magallanes regions. the company is present in 28 neighborhoods (48% of the total).

sustainability report 2017 / sustainable processes

1 / selection of broodstock

3 / incubation

4 / hatching and absorption of yolk sac

5 / alevin stage

6 / smoltification

7 / on-growing/ harvest

8 / final product 2 / spawning

feed

seawater h

arvest

fres

h

wat

er

ha

rv

est

10 to 12 months in fresh water 12 to 18 months in seawater

atlantic salmon

8 to 10 months in fresh water 8 to 10 months in seawater

pacific salmon

10 to 12 months fresh water (lake) 12 to 14 months in seawater

sea trout


production cycle of tilapia

Grupo ACI produces its own tilapia eggs and has the support of AquaInnovo that manages a genetic improvement program forthis species.In Costa Rica, tilapia is farmed in land-based tanks that

cover a total area of 330 hectares of water.

The optimal development of tilapia is achieved in water

temperatures above 24ºC.

1 / selection of progenitors

3 / incubation

5 / alevin stage (ne)

4 / alevin stage (sr)6 / pre-growing

7 / on-growing

8 / final product 2 / reproduction

feed


farming time period

7 to 9 months fresh water

tilapia


los ríos

los lagos

aysén aysén

magallanes

licenses in useat 31/12/17



total surface area

total surface area

total surface area total surface area

total surface area

1

55

95 4

3

1

19 3

22.33 ha

782.8 ha

789.84 ha 33.97 ha

15.75 ha

operation centers

At 31 December 2017 the company was using 24% of its aquaculture licenses in rivers, sea and lakes.In Costa Rica, the farming of tilapia is carried out

completely in freshwater, in farms located in

Cañas, Guanacaste.

sea and river licenses (own) lake licenses (own)

los lagos total surface area

8 25.48 ha


licenses in useat 31/12/1717 1



processing plants

geographic location of sea water licenses

24 neighborhoods55 licenses in 16

neighborhoods

industryaquachile

los lagos region

34 neighborhoods95 licenses in12 neighborhoods

industryaquachile

aysén region

21 neighborhoods3 licenses in 2

neighborhoods

industryaquachile

magallanes region

total capacity (thousands of annual tonnes wfe)

Cardonal Puerto Montt (Chile) 50

Cailín Quellón (Chile) 26

Antarfood Chonchi (Chile) 34

Hueñocoihue Chonchi (Chile) 34

Calbuco Calbuco (Chile) 37

Terrapez Guanacaste (Costa Rica) 21



certification of good practices

The legal framework for the development of our products

includes, among other things, the Sanitary Regulations

for Food in Chile and the Manual for Fishing Sanitation

in Chile. Similarly important are the FDA regulations and

the Codex Alimentarius or “Food code” as set out by the

Food and Agriculture Organization of the United Nations—

FAO—and the World Health Organization. Furthermore,

we certify our best production practices according to

the specific international standards for our industry, as

Best Aquaculture Practices (BAP), International Featured

Standards (IFS), Global G.A.P. and the Aquaculture

Stewardship Council (ASC). All of these seals of approval

consider social and environmental issues in their

assessment, as well as regulatory compliance.

issues assessed

Compliance with applicable legislation

Corporate Social Responsibility

Workers’ safety and rights

Water quality and waste

Fish feed management

Escape control

Biodiversity and conservation

Chemicals and waste management

Use of drugs

Animal health and welfare

Biosafety and disease management

Food safety

Quality assurance

Identification and traceability

Cultural/religious aspects

bap

inspections of certification

haccp / semape sca

asc seafood watch del

monterey bay aquarium

ifs globalg.a.p

coc asc kosher halal nch 17025

International standards guarantee the responsible development of our products.



current certifications at 31 december 2017

haccp seafood watch

ifs globalg.a.p.

cocasc

kosher halal nch17025

chile LaboratoryAlab (Puerto Montt)Processing plantsCardonal (Puerto Montt)Procesadora Aguas Claras (Calbuco)Antarfood (Chonchi)Guafo (Chonchi)Salmones Cailín (Quellón)HatcheriesRío Maullín (Puerto Varas)Agua Buena (Puerto Octay)Aucar (Quemchi)Salmones Chaicas (Puerto Montt)Ensenada (Puerto Varas)Río Las Marcas (Puerto Varas)Río Rollizo (Cochamó)Halcones Chicos (Corral)On-growing farmsVerlasso (en X y XI región)Mauchil (Quellón)Punta Paula (Quellón)Benjamín (Aysén)Caleta Madina (Aysén)Canal Temuán (Aysén)Cascada (Aysén)Punta Porvenir (Aysén)Canalad 1 (Aysén)Ensenada Queten (Hualaihué)Puqueldón (Puerto Montt)Capera (Puerto Montt)Huenquillahue (Puerto Montt)Huelmo (Puerto Montt)Abtao (Calbuco)Detif (Puqueldón)Yatac (Quellón)Canal Pérez Norte (Cisnes)Valverde (Cisnes)Betecoi (Guaitecas)Pangal 1 (Cisnes)Serapio (Cochamó)Chauques (Quemchi)Quilque Sur (Calbuco)

bap asc

Certification in process



Current Certifications at 31 December 2017

bap asc basc fssc22000

esencial costa rica

cocasc

costa rica Processing plants

Terrapez (Cañas)

Hatcheries

Aquacorporación Internacional S.A. (Cañas)

On-growing farms

Aquacorporación Internacional S.A. (Cañas)


contents indicators 38

genetic improvement program

AquaInnovo S.A., the technology-based subsidiary of AquaChile, was created in 2007. with the objective of using genetic

selection to produce higher quality fish with a better growth rate, a more suitable color for the demands of markets and

a greater resistance to diseases. On completing a decade of this activity, this company handles four different genetic

improvement programs for four species of fish, in three countries. As a product of its development, adult fish in this

program reach growth rates that are between 7-12% higher than the control group, by generation, depending on

the species.

AquaInnovo currently develops two business lines: genetic services and applied genomics, via fish genetic improvement

programs, as well as development studies, assays and tests, validation and records of products for use on fish.

assays for the development, validation and records of products for use on fish

genetic improvementprograms

230

4

productive indicators of the genetic improvement program

for 4 species of fish

during the past three years

atlanticsalmon

40-50 10-15million improved eggs

and juveniles

pacificsalmon

million improved eggsand juveniles

tilapia

60-70million improved

larvae

sea trout

15-20million improved eggs

and juveniles



Achievements during the yearfirst snpchip made in chile for the genomic selection of tilapia

This initiative is a continuation of the project that developed

a chip that enables Atlantic salmon to be analyzed on a

genomic level and thereby carry out a better selection of

candidates that are more resistant to diseases like SRS

(Septicemia Rickettsial Salmonídea) and Caligus.

In the case of tilapia, using a similar method, AquaInnovo

can offer the service of genetic analysis of the DNA of

broodstock fish, so that, from the results, clients can

choose among their resources those fish that present the

best genetic characteristics.

Continuing on from this development, the company was

able to expand its services to markets like Brazil, Costa Rica

and Ecuador.

start of operations of atc patagonia

In 2017. the Aquaculture Technology Center Patagonia

(ATC Patagonia) began to operate as a center created

by AquaInnovo and the Danish company BioMar in

a partnership that materialized in October 2016 and

donation to the universidad de chile

AquaChile contributed US$ 300.000 to the Agricultural Sciences Faculty of the Universidad de Chile, with the aim of thanking

and supporting the contribution that it makes in the genetic research of fish and training specialists. The donation will help

to modernize infrastructure (laboratories and classrooms) and the construction of tanks for research in the faculty. The

Universidad de Chile played an important role in the birth of AquaInnovo, as part of a biotechnological consortium that also

included the Production Development Corporation (CORFO), via Innova Chile, and Empresas AquaChile.

20

60

10

assays with about ten clients

high complexity assays as part ofthe R&D program driven by BioMar

tests of products and treatmentsfor SRS and Caligus

that meant the latter’s purchase of 30% of the Lenca

Experimental Station.

ATC Patagonia is an initiative that affords clients facilities

with a high level of biosecurity and efficiency to carry out

tests and research on genetic resistance to diseases,

nutrition and health, among other lines of research,

development and innovation.

This international center has the latest available technology

for bioassays and technological transfer, in a surface

area of over 2.500 m2 built on the banks of the Lenca

river, 45 minutes from Puerto Montt. It has 14 rooms and

16 independent water recirculation systems, which can

function with fresh water or seawater, and where it is

possible to control temperatures between 3ºC and 28ºC.

Together with this center, ATC Patagonia contributes to

the high quality training of human capital, creating a space

for scientific knowledge to have a concrete impact on

production, generating spaces for education and debate

among researchers and the industry.



evolution of dependency rates

2013 0.85 2.372014 0.66 1.862015 0.80 2.302016 0.82 2.072016 (1) 0.72 1.832017 0.62 1.27

(1) Excluding the farms that were affected by the algal bloom.

FFDRm= Fish Feed Dependency Ratio meal (pelagic fishing used as fishmeal to produce one kg of farmed fish).

FFDRo= Fish Feed Dependency Ratio oil, (pelagic fishing used as fishing oil to produce one kg of farmed fish).

fishmeal fish oilFFDRm FFDRo

use of marine ingredients

In comparison with other protein of animal origin, salmon and tilapia are efficient food convertors (the

conversion factor—called FCR—is the indicator that enables us to measure how many kilos of food are

necessary to produce one kilo of live animal). This greater efficiency is due to the fact that fish, because of

their cold blood, spend less energy to reach a suitable body temperature.

Source: Kontali Analyse AS

tuna

20

pork

4

beed poultry

7 2

tilapia salmon

1.8 1.3

conversion factors(kg of feed necessary to produce one kg of live animal)

The salmon industry has been looking for a way to optimize the use of natural resources, reducing the

fishmeal used in these fishes’ food. During the past 12 years, the average percentage of fishmeal used in a

salmon’s diet has gone down from 30% to less than 12%, without losing the necessary characteristics to

obtain a quality product.

AquaChile focuses on reaching the best food conversion in the production cycles of all of

its species, and thereby maximize efficiencies in the use of nutritional inputs. This greater

efficiency and, therefore, more reduced use of food, also has a positive impact on water

quality, as it limits the surplus liberation of nutrients into the environment.

To measure progress in the efficiency of the use of food, aquaculture uses the Fish Feed

Dependency Ratio (FFDR) as an indicator of the dependency on marine ingredients. This

indicator, based on parameters of the ASC seal, establishes a relationship between the

pelagic fishing needed and the production of one kg of farmed fish.



During 2017, AquaChile collaborated with two English entrepreneurs who travelled to the company’s facilities to study and develop an Artificial Intelligence system aimed at maximizing the potential of farms. The result was a software called “Observe” that analyzes the cameras, sensors and flow of available data in these farms

with the objective of optimizing the fishes’ feed.

The program works by drawing a correlation between the pattern of feeding observed by the underwater cameras, and

the growth data of the fish, oxygen, temperature and historic feeding patterns. This analysis throws out the optimal

quantity of feed that should be given throughout the day. If there is too much feed, the software automatically detects

the loss of pellets and sends an alert that enables a correction to be made.

efficient production of verlasso®

The reduced use of marine ingredients that AquaChile has achieved in its production of Verlasso®

Atlantic salmon has been one of the factors that has enabled this brand to receive the seal of

approval of the Seafood Watch of Monterey Bay Aquarium in the U.S. since 2013. This recognition,

ratified in 2017. recognizes the good production practices that this brand has and its low impact

on the oceans.

observe software that optimizes the use of feed



water quality

The company’s operations do not significantly affect water flow. In both Chile and Costa Rica, the company uses a lower volume of water than what is authorized. For the stages of freshwater salmon and sea trout farming, Empresas AquaChile has 122 water rights in the south of

Chile, with a total volume of 66.672.99 liters per second (l/s). Five of these rights correspond to variable flows (according

to the month of the dry season), in which case the flows are calculated as the geometric mean.

In Costa Rica, Grupo ACI has 11 water rights with a total volume of 16.248 liters per second (l/s).

Farming tilapia is carried out entirely in fresh water. Grupo ACI uses two sources of water in its operations: one is

underground (six authorized wells) and another is on the surface (a man-made canal of the government agency SENARA,

which supplies it for irrigation and hatchery activities. All the water used on the farms and in the Grupo ACI plant is

delivered, after complying with the required treatment, to irrigation canals to be reused in rice and sugar cane crops. The

theoretical loss of water is 5%, from natural evaporation.

water rights in chile

Metropolitan Region

Araucanía Region

Los Lagos Region

Aysén Region

Los Ríos Region

Total

4

14

77

23

4

122

region quantity


contents indicators 43índice indicadores

capturing waterTotal volume 2017

chile

costa rica

The calculation was made on the basis of the "annual average flow" recorded by the DGA (General Water Directorate) a) Only considers operational licenses.b) The surface source does not distinguish between systems: (Continuous permanent - Discontinued permanent; Continuous provisional – discontinued provisional)c) The underground water can be used in consumption or in the production process.d) It does not include the use of potable water because its consumption is not significant.

NotesSurface source: calculation based on a report sent by a government entity, with a consumption of cubic meters per second. The formula is: m3 * second x 3,600 x 24 x 365.Underground source: measurement of consumption using a hydrometer placed at the exit of the wells. The formula is: liters per second x 3,600 x 24 x 365/100.

Surface

Underground

157,608,328

404,830

source volume (m3/year)

Surface

Underground

373,386,240

170,883

source volume (m3/year)



water reuse Since 2015. AquaChile's hatchery in Peñaflor (Metropolitan

Region) has used a system that allows effluents to enter

the system again after passing through the deaerators.

Likewise, at the Cherquenco hatchery (Araucanía Region),

there is a water reuse system in 8 out of 9 tanks (the

ninth uses recirculation technology, as well as Salmones

Chaicas, a company that became fully controlled by

Empresas AquaChile this past year).

During 2017. these technologies permitted 98% of the

effluents from the Salmones Chaicas hatchery and 50%

from the Cherquenco hatchery to be reused. The reuse

systems allow the volume of water to be maintained

during a time of water deficit and the management of

environmental and sanitary variables to improve.

Note:Measurement of continuous flow carried out with a flowmeter.

of the water used in the company's production processes receives treatment according to the re-quirements of the wastewater emission standards for each establishment.

100%

Primary treatment

Primary treatment

17 hatcheries

5 plants

166,579,964

950,173

liw treated in chile 2017 facilities volume (m3/year)

The reused water enabled the volume

of water to be maintained during a time

of water deficit, and the management

of environmental and sanitary variables

to improve. This same system is being

studied to be implemented in other

company hatcheries.

peñaflor(Metropolitan Region)

cherquenco chaicas

35%2016

sin operación durante el

2017

70% 98%2016 20162017 2017

50% 98%

treatment method: reuse of its effluents treatment method: recirculation technology

chilepercentage of total water reused in fish farming centers



Water reuse

At a man-made wetland with a surface area of 18

hectares, built by Grupo ACI, the treatment of used water is

performed in the process before sending it to the irrigation

canals.

In Costa Rica, all water used on farms and in the Terrapez plant, after being treated, is deliveredto the irrigation canals of riceand sugar cane plantations.

0

20,000,000

2016 2017

40,000,000

60,000,000

80,000,000

100,000,000

200,000,000

140,000,000

240,000,000

120,000,000

220,000,000

160,000,000

260,000,000

280,000,000

300,000,000

340,000,000

320,000,000

360,000,000

180,000,000

costa ricavolume of water reused (m3/year)

Surface Underground

5%is the theoretical loss of water from naturalevaporation

219,000m3/ year

162,339m3/ year

241,171,560m3/ year

354,716,930m3/ year



The AquaChile Management Plan for the Environment, Conservation, and Biodiversity organizes actions aimed at

identifying and valuing the main emissions, discharges, and waste from the production process, with the objective of

minimizing the risks related to the diversity of species and the conservation of natural resources. To ensure that these

objectives are met, operations have a manual for waste management and for the operation of the effluent treatment

systems for processing plants and hatcheries.

waste management

5continuous improvements are made on the effluent treatment systems.

In waste management, the company prioritizes revaluation and recycling over final disposal, and only hires service companies authorized in waste management.

AquaChile’s processing plants



hatcheries

farms

processing plants

Controlled density of fish in each tank periodically check and cleaning of effluents treatment plants.

Disposal of all waste, especially the sewage generated, in authorized places.

Efficient use of water.

Monthly checks of our effluents carried out by external laboratories that are accredited by the authorities.

Ongoing cleaning of beaches and surrounding areas

Segregation between domestic, hazardous and industrial waste, for storage, transport and final disposal in an authorized place.

Procedures for storing, handling and the disposal of waste via regular removal and shipment to authorized sites for its treatment and final disposal.

Stocking densities controlled in each farm unit.

Regular monitoring of the seabed and water column carried out by external companies authorized by Sernapesca.

Regulation of the fishes’ diet with highly digestible nutrients to reduce excrements.

Feed management strategies via the use of devices that monitor the intake of food by the fish (submarine cameras show the moment that the fish enter the

period of satiety and enable a timely end to the feeding).



All the company’s facilities that have a floating inhabitable structure at sea have a wastewater treatment system approved by government authorities.

Ongoing cleaning in the surrounding areas of our operations at sea.

Treatment of 100% of the water, which once it is filtered and disinfected in compliance with environmental regulations, is discharged into the public network

or a submarine emissary in accordance with authorized rules.

Rigorous monitoring of effluents carried out by external certified laboratories.


Delivery of organic waste to specialized companies for its treatment and reuse (fishmeal and oil).

Promotion of recycling using the delivery of packaging waste (polyethylene and plastics) to specialized companies for their reprocessing or recycling.

Management and revaluation of organic solid waste in reducing plants.


measures to control effluents and waste



Recycling

Waste landfill

Hazardous waste landfill

Total

Recycling

Authorized landfill

Incineration (massive burning of hazardous waste from medical and veterinary clinics)

Total

2016

34,672

6,874

541

42,087

2016

1,872.0

s/i *

0.062

1,872

2017

35,276

10,198

591

46,065

2017

2,594.89

491.43

0.169

3,086

annual volume (tonnes)

annual volume (tonnes)

destination of waste

destination of waste

Note:(*) Data for 2016 was not supplied by the municipality, as the waste management system changed.

76.6%of waste from processing plants inchile was destined for recycling.

chile

costa rica

Destination of waste



fish health

At AquaChile, we are working to reduce the incidence of disease at the farms and thereby reduce the use of antibiotics.Biosecurity, or disease management, is a priority issue for the global farmed salmon industry.

As a policy, we only use antibiotics when it is necessary, following the guidelines of a veterinary prescription and under

the strict supervision of a certified professional.

management practices focused on the welfare of our fish

Use of vaccines for disease prevention.

Final densities per species that are lower than the maximum allowed by regulations (see table).

Installation of anti-predator nets in all farms.

Nets for the control of sea lions designed with a size that is appropriate to avoid this predator

getting trapped, and thus keep them away from the fish production units.

Fish feed optimization on a daily basis, avoiding the fish fasting.

Use of balanced diets as per the requirements of the species and growth phase.

Use of functional and reinforced diets for phases of higher production or environmental

demands.

Backup oxygenation systems to avoid conditions of hypoxia.

Transportation of live harvest in specialized boats (wellboats) with monitoring of oxygen,

pH and CO2.

Ongoing management and maintenance of the fishes’ state of health.



Pacific Salmon 12 kg/m3 9.86 kg/ m3

Sea Trout 12 kg/m3 9.37 kg/ m3

Atlantic Salmon 17 kg/m3 15.07 kg/ m3

Verlasso® 17 kg/m3 11.99 kg/ m3

Source: Regulation No. 1449 from June 2009.

species density at harvest to determinethe maximum stocking required

by the regulation on sanitary management

average density at harvestaccording to the stocking number

of aquachile in 2017

Regulation No. 1449 from June 12. 2009 and its modifications on sanitary management establish that, to comply with this

regulation, the maximum number of fishes that may enter each farming unit at the beginning of the on-growing stage is

to be calculated using the following formula:

Volume of flooating structure in m3 x Regulation desnsity (kg/m3 )

target harvest weight (kg)

(1- % mortality x 100)

N° of fish to stock =

densities at harvest

Assumptions of this calculation:

- Harvest weight of 4.5 kilos for Atlantic salmon and 2.9 kilos for Pacific salmon and sea trout;

- mortality of 15% for all three species, and

- a depth of 15 meters to determine the volume of each cage.



fish mortalityMortality is a key measure to assess the health of fish during production. The Global Salmon Initiative measures this

variable using a 12-month rotating mortality rate. This measure calculates the mortality of the past 12 months (January

to December) as a proportion of the estimated number of fish at sea in the last month of the year (adjusted for harvest

and mortality).

fish mortality at aquachile

chile costa rica

2017 4.85% 10.91% 4.10% 6.21%2016(*) 7.02 (*) 6.52% 8.52% 5.13% 2015 7.65% 5.87% 10.21% 4.44%2014 8.80% 4.30% 8.80% 1.27%2013 7.00% 5.60% 10.90% 0.51%

atlantic salmon coho salmon rainbow sea trout tilapia

12 months rotating

mortality

x 100

(Total no. of mortality at sea in the past 12 months - total no. of fish sacrificed because of disease or similar and that are not counted in harvest figures)

(Closing no. of fish at sea + total no. of mortalities during the past 12 months + total no. of harvested fish in the past 12 months + total no. of fish sacrificed at sea)

With the purpose of taking immediate actions in the face of events such as the harmful algal blooms, in 2017 the

implementation of microscopes began at the sea farms, and specific training sessions were conducted for professionals

from the farms.

(*) This value does not include the mortality generated by the HAB (Harmful Algal Bloom) that occurred in February and March 2016. Considering this event, the mortality rate was 19.06%.

The calculation is done as follows:



biodiversity

Definition of the management plan of this area, jointly with the Municipality of Cisnes, the Ministry

of the Environment, the World Wildlife Fund (WWF), and the community of Raúl Marín Balmaceda.

The company is participating at periodic meetings to establish agreements that will guarantee

compatibility between production activities and the conservation of the sector.

Annual contributions to funding the studies and maintenance tasks performed by the Pitipalena-

Añihue Marine Protected Area Foundation for the conservation of this region, spearheaded by the

community of Raúl Marín.

0.1

0.2

AquaChile is partnering on initiatives relatedto the Pitipalena-Añihue Marine Protected Area (in the region of Aysén).

chile

marine areas

protected species

There are two protected species inhabiting the areas

where the company operates in Chile, and they are

included in the National Forestry Corporation’s (Conaf)

Red Book: the Huillín (Lontra provocax) and the

Black-Necked Swan (Cygnus melancoryphus). The

common sea lion (Otaria flavescens) also inhabits

this place, and its conservation status, according to

this registry, qualifies under the category of “least

concern.” Sea lions have greater interaction with the

farms because they are natural predators of fish,

unlike the huillín. Black-Necked Swans move around

throughout the coastal region with little or infrequent

direct interaction with the farms.

In the event a sea lion, huillín, or another species gets

trapped in one of the farming nets, the company has

action protocols which establish procedures and

responsibilities in the implementation of these measures,

and communication and records with the respective

authority; in this case it is the National Fisheries

and Aquaculture Service.

The sea lion is a species that regularly interacts with farms, as it tries to catch salmon and sea

trout for its food. With the purpose of preventing these attacks without harming the species,

the company maintains nets that are especially designed to to keep sea lions away from

the fishing nets without getting trapped in them. The sea lion nets are installed around the

perimeter of the gangways, including the bottom of these, and at a distance from the fishing

nets. A daily extraction of fish mortality is carried out, ensuring immediate silage, to minimize

the time in contact with the marine environment, sanitary and environmental impact,

and interaction with predators.

(lontra provocax)

(cygnus melancoryphus)

Huillín

Black-Necked Swan



Biodiversitycosta rica In Costa Rica, the company’s operations are

developed in harmony with two endangered species: the crocodile (Crocodrylus acutus) and

the Jabiru Mycteria bird.For the protection of crocodiles, Grupo ACI maintains a conservation and handling program jointly with Costa Rica’s

Ministry for the Environment and Energy (MINAE). As part of this program, the crocodiles are captured and sent to a

temporary refuge in the winter when the rain causes river levels to rise, and during their breeding season.

At the farms at Pelón de la Bajura (Liberia, Guanacaste), the Jabiru Mycteria can be observed; it is a bird that the company

protects by expressly forbidding actions that may harm it.

protectedcrocodile371

in 2017

(crocodrylus acutus)Crocodile

(jabirú mycteria)Jabirú

Crocodile protection2017 count

distribution by sexMales

Females

distribution by farmPelón

Llano Verde

Santa Paula

Other

distribution by destinationSite

River

distribution by monthJanuary

February

March

April

May

June

July

August

September

October

November

December

229

142

62%

38%

302

46

18

5

81%

12%

5%

2%

160

211

43%

57%

14

8

18

7

36

43

45

89

30

36

24

21

4%

2%

5%

2%

10%

12%

12%

24%

8%

10%

6%

5%


54

04: HEALTH AND SAFETY

The prevention of accidents and promotion of healthy living for peoplewho work at the company are core goals of our management.


introduction

healthy food


health and safety



standards

about this report


focal points

The main risks for people are related to the performance of demanding tasks that require adequate preparation.

of the activities cause eighty percent ofoccupational accidents or diseases.

20%

freshwater seawaterprocessing

plants

riskiest activities

preventive measures

Handling of chemical products

Manual handling of loads

Personnel trained in handling chemical substances

and the use of personal protective equipment.

Assessment of job positions according to the

handling of loads and the implementation of

engineering measures.

Diving for inspection and repair of farming units

Before and after physical evaluation

Replacement of humans by submarine robots

Diving training

Repetitive movements of the fish

slaughtering process and product

packaging

Active work breaks

sustainability report 2017 / health and safety


management program Our corporate prevention program is based on the periodic analysis of the processes and

the creation of risk matrices which make it possible to advance towards focused plans of

action for each activity, which are applied systematically by the different production units.

our objectives main initiatives

Build and maintain a culture of safety.

Reduce the rate of accidents and occupational diseases.

Conduct constant analyses of the processes with the aim

to create risk matrices for each activity and define focused

plans of action.

Develop individual programs by farm and processing plant

with an emphasis on strengthening safe consultation work,

regulatory compliance, and leveling out competencies in

occupational safety and health.

“Stop, Think, and Act” Campaign. Aimed at motivating all workers to identify the risks in the tasks

they perform and to take the necessary safety measures. In 2017. 1.028 people participated.

Promoting leadership in occupational health and safety.

Training and development of a culture of prevention, compliance with procedures and essential

safety rules.

Strengthening the management of Joint Health and Safety Committees.

Operational control of processes.

Provision of necessary equipment and tools for performing tasks in a healthy and safe manner,

linked to the ongoing process of identifying hazards and the management of incidents in all

production units.

0.1

0.2

0.3

0.4

workers participated in the “Stop, Think, and Act” campaign.

1,028sustainability report 2017 / health and safety


joint health and safety committeesIn operations in Chile, there are eight Joint Health & Safety Committees, with representation

from over 88% of workers. Each of these committees consists of three representatives from

management and three from the workers, all of them with respective substitutes.

In Costa Rica, these committees are called Occupational Health Committees. In Grupo ACI,

25 workers participate in these meetings. Committee members participate directly in the

company. Each month they hold meetings and the minutes are sent to the Occupational

Health Manager for him/her to take relevant actions. Each year, the committees send a

management report for the period to the Occupational Health Council.

acknowledgment from mutual de seguridad

In 2017. Mutual de Seguridad acknowledged the long-term management

developed by AquaChile regarding risk prevention and occupational safety,

highlighting the remarkable decrease this policy produced in the company's

accident rates in comparison with 2014.

main functions of the joint committees

Advise and instruct workers on the proper use of items for

personal protection.

Periodically visit places of work to review and carry out an

analysis of procedures and use of protective measures.

Organize information and training meetings.

Monitor the compliance of preventive hygiene and safety

measures, of the company as well as the workers.

0.1

0.2

0.3

0.4



chile costa rica

RATE OF ACCIDENTS WITH INJURIES

RATE OF OCCUPATIONAL DISEASES

0%

0.6%

2015 2016 2017

1.2%

1.8%

2.4%

3%

3.6%

(N° of people diagnosed with occupational diseases during the year x 100) / Average workers per year.

0%

0.6%

2015 2016 2017

1.2%

1.8%

2.4%

3%

3.6%

Evolution of indicators

3.52% 1.54%

0.21% 0.84%2.8%1.14%

0.11% 0.65%2.87% 1.04%0.091% 0.23%

(N° of accidents per year x 100) / Average workers per year.


05: ETHICS AND COMPLIANCE

Respect for regulations is key to the long-term sustainability of our industry.


introduction

healthy food


health and safety



standards

about this report


our framework for action

We act with respect for people, work and the environment

We feel passionate about the work being done

We are creative and display initiative every day

We prevent and act safely

We undertake new challenges and are open to change

We are cautious in our actions.

Code of Ethics and Conduct

Integrated Policy on Quality, Sustainability, and Occupational Health and Safety

Policy for the Prevention of Alcohol and Drugs

Internal procedures and instructions.

Rules of Conduct

Recruitment Policy

Discrimination Policy

Compensation and Benefits Policy

Guidelines on Situations, Complaints or Ideas

Anti-Sexual Harassment and Victimization Policy

Disciplinary Regime

Internal Promotion Policy

Student Policy

Health Support and Subsidy Policy.

corporate values

empresas aquachile

grupo aci (costa rica)

internal regulations

sustainability report 2017 / ethics and compliance


law no. 18.892. from 1989. and its modifications, general law for fisheries and aquacultureIt establishes the legal framework for importing hydrobiological resources, for access to areas for aquaculture, licenses, environmental and sanitary conditions for its practice, rules to practice aquaculture for scientific or ornamental purposes, infringements and system to apply sanctions.supreme decree no. 430 (1992) Sets the consolidated, coordinated and systematized text for the General Law for Fisheries and Aquaculture and its modifications.main modifications law nº 20.091 (2006) Modifies the General Law for Fisheries and Aquaculture for matters related to aquaculture. law n° 20.434 (2010) Modifies the General Law for Fisheries and Aquaculture for matters related to aquaculture.law n° 20.597 (2012) Modifies the General Law for Fisheries and Aquaculture in details regarding artisan fishing, creates the National Commission for Aquaculture and Zonal Fisheries Councils that it specifies, and other matters, and it modifies other related legal bodies. law n° 20.657 (2013) Makes modifications in the area of hydrobiological resources, access to industrial and artisan fishing activities and regulations for research and inspection, the General Law for Fisheries and Aquaculture contained in Law No. 18.892 and its modifications. law n° 20.825 (2015) Extends the closing date for awarding new aquaculture licenses.

regulatory context

supreme decree nº 550 (1992) Regulation for area limits for aquaculture licenses and authorizations.supreme decree n° 290 (1993) Regulation for aquaculture licenses. (Updates S.D. No. 171 from 2014 signed 7/24/2015).supreme decree nº 499 (1994) Regulation for the National Aquaculture Registry. (Updates S.D. No. 48 from 2006).supreme decree n° 113 (2013) Approves regulation for the Public Registry of Aquaculture Licenses. (signed 3/8/2014).supreme decree n° 383 (2007) Regulation that sets the minimum operation levels per species and area. (Updates S.D.No. 330-2009).supreme decree n° 171 (2014) Modifies S.D. No. 290-1993 Regulation for aquaculture licenses. (signed 7/24/2015).supreme decree n° 2 (2005) Regulation for Marine Licenses. Replaces Regulation for Marine Licenses, set by Supreme Decree (M) No. 660. from June 14. 1988.

supreme decree n° 320 (2001).ministry of economy. Environmental Regulation for Aquaculture (Updates S.D. 7-2016)supreme decree nº 49 (2006) Regulation for Storage Centers and Slaughtering Centers. (Updates S.D. No. 46-2015)supreme decree n° 345 (2005) Regulation for Hydrobiological Pests. (Updates S.D. 239-2010) supreme decree n° 20 (2015) Modifies Environmental Regulation for Aquaculture. Revokes S.D. No. 159-2014.supreme decree n° 129 (2013) Regulation for the Delivery of Information about Fishing and Aquaculture and Accreditation of Origin. Revokes S.D. No. 464-1995. (signed 12/18/2013).supreme decree nº 7 (2016) Modifies Supreme Decree No. 320 (2001)

supreme decree n°319 (2001). ministry of economy. Regulation for measures for the protection, control and eradication of high-risk diseases for hydrobiological species (modified by S.D. No. 74 -2016) (signed 8/23/2016) and S.D. No. 186-2015 (signed 5/4/2016).supreme decree n° 45 (2015) Modifies Supreme Decree No. 319 from 2001. supreme decree n° 46 (2015) Modifies S.D. No. 49-2006 Regulation for Storage Centers and Slaughtering Centers. general sanitary programs, issued by Exempt Resolutions (E.R.) of the National Fisheries Service: i. Vaccinations (E.R. No. 60/2003)ii. Official Disease Research (E.R. No. 62/2003) iii. Statistics Registry and Delivery of Laboratory Information (E.R. No. 63/2003)iv. Disinfection of Salmon Eggs (E.R. No. 65/2003) v. Disease Management (E.R. No. 67/2003) vi. Waste Management (E.R. No. 68/2003)vii. Sanitary Management of Fish Reproduction (E.R. No. 70/2003)viii. Food Handling (E.R. No. 71/2003) ix. Transport Procedures (E.R. No. 2010/2011) x. Cleaning and Disinfection Applied to Fish Production (E.R. No. 2011/2011) xi. Mortality Management (E.R. No. 1468/2012. modified by E.R. No. 126/2016) xii. When Faced with Suspicion of High-Risk Disease from List 1 and Unknown Etiology (E.R. No. 2101/2014); xiii. Harvest Procedures (E.R. No. 2009/2014); xiv. Techniques and methods for disinfecting water flows and effluents, modes for the control and treatment of solid organic waste (E.R. No. 4866/2014) xv. Compartments free of high-risk diseases (E.R. No. 1012/2015)xvi. Use of Antimicrobials in the Farming of Salmon and Other Fish (E.R. No. 8228/2015).specific sanitary programs issued by Exempt Resolutions (E.R.) of the National Fisheries Service:i. Active Monitoring for High-Risk Diseases (HRD) in Farmed Fish (E.R. No. 065/2003)ii. Monitoring and Control of Infectious Salmon Anemia Virus (E.R. No. 1577/2011)iii. Monitoring and Control of Piscirickrettsiois (E.R. No. 3174/2012)iv. Monitoring and control of Caligidosis (E.R. No. 13/2015. replaces previous Sanitary Program and complemented by E.R. No. 1.240/2016).supreme decree nº 186 (2016) Sanitary Regulation. Modifies Supreme Decree No. 319 (2001)supreme decree nº 74 (2016). Modifies Supreme Decree No. 319 (2001)

legal framework, salmon industry in chile

licenses sanitary regulations environment



regulatory changes 2017

Via Exempt Resolution No. 6246. published in the Official Gazette on December 27. 2017. preventive

measures were established to maintain or improve the sanitary status of salmon farming in this

region. The preventive measures refer to ensuring the sanitary condition of the smolts that enter the

region, providing samples and vaccination of smolts; establishing usage restrictions on bait derived

from salmonid species, and requirements for the use of nets, which only allow the use of new nets or

nets used in the same region that may have been subjected to cleaning and disinfecting procedures

stipulated by Sernapesca, and provide identification of the nets through an individual code allowing

for traceability.

By virtue of E.R. No. 4151. published in the Official Gazette on September 29. 2017. the definitions of

the Annual General Diagnosis per Pen (DGJA in Spanish) were incorporated, a process in which all the

sea farm pens, including the estuaries, that may have salmonid fish are sampled in order to count the

number of Caligus present in these fish; and of the General Diagnosis per Entry Pen (DGJI in Spanish), the

same aforementioned process that must be carried out once 30 days have passed from the

end of stocking.

Likewise, the salmon farms from the region of Magallanes and Chilean Antarctica were incorporated as

farms with high surveillance for caligidosis.

E.R. No. 3375 was modified via this resolution, thereby incorporating formulas and procedures for

determining the indicator of losses and the sanitary indicator to determine the harvest reduction

percentage, pursuant to the new methodology for determining the biosecurity classification of the

clusters, in accordance with the provisions of S.D. No. 216. This regulation began to be applied to the

Clusters that began their fallowing period between October 2017 and March 2018 to determine the

alternative and voluntary measurement of the harvest reduction percentage.

general sanitary program on monitoring and control for the region of magallanes and chilean antarctica

modification of the specific sanitary program on the monitoring and control of caligidosis

e.r. no. 3471 from the undersecretary of fisheries onfarming densities

Published in the Official Gazette on August 5. 2017. It stipulates that the farming density shall be

established by half-year for all clusters that begin their coordinated fallowing period within the

same half-year (half-years correspond to the periods from April to September of the same year

and from October of the same year to March of the following year). License holders may opt for

the harvest percentage reduction and distribute it among their farms, from the same or different

cluster, as long as they correspond to the clusters with a farming density established in the

same half-year. This regulation started to be applied to the clusters of licenses that began their

coordinated fallowing period in October 2017. and to those that will begin it in March 2018.

supreme decree no. 216 on establishing farming densities



compliance indicators

chile costa rica

aspect gri standard contents our performance in 2017

Environmental compliance

Socio-economic

compliance

Marketing and labeling

307-1

419-1

417-2

Non-compliance with environmental laws and regulations

Monetary value of important fines

Number of non-monetary sanctions for non- compliance of

environmental legislation and standards

Cases presented before institutions of arbitration.

US$ 52,088.20

0

0

0

0

0

Non-compliance with laws and regulations in the social and

economic areas

Monetary value of important fines

Number of non-monetary sanctions

Cases presented before institutions of arbitration.

US$ 62,054.05

0

0

US$ 10,947.29

0

0

Cases of non-compliance related to information and the labeling

of products and services.

0 0


64

06: SOCIAL RESPONSIBILITY

One of our primary goals is to be a good neighbor and be part of the communities where we operate.


introduction

healthy food


health and safety



standards

about this report


SourcesChile: INEC, 2017 Census. / Costa Rica: INEC, 2011 Census. General results

of the country’s population





7.6%

0.6%4.7%2.2%5.4%

chile costa rica

AquaChile's activities are mainly carried out between the La Araucanía Region, where our freshwater

farms are located, and the Los Lagos and Aysén regions, where we have hatcheries, farms, and processing

plants. According to the results from the 2017 Census, 12.9% of the country's population lives in these three

regions.

AquaChile operations in Costa Rica are based in the province of Guanacaste, located in the far northwest

of the country. This province is divided into 11 cantons, one of which is Cañas, where the Grupo ACI facilities

are located. Besides creating jobs for the inhabitants of Cañas, the company employs people coming from

other nearby cantons, such as Upala and Bagaces.

AquaChile opened up two specific channels of communication to receive suggestions and answer

questions: toll-free telephone line (800-100700) and an email address: [email protected].

local presence

of workers live and work in the region in Chile where operations are located.

of the country's population lives in the regions where AquaChile operates.

91.71%

12.9%

guanacasteprovince

aysénregion

los lagosregion

los ríosregion

araucaníaregion

326,900

103,158828,708384,837957,224

inhabitants

inhabitantsinhabitantsinhabitantsinhabitants

sustainability report 2017 / social responsibility


boost the overall wellbeing of our workers, fostering ongoing training, improvement of the work environment, anti-discrimination, and free association.

promote the efficient use of resources and care of the environment in our operations, clients and community. establish community relations based on transparency, openness to dialogue and commitment to actively participate in their development, to achieve the ongoing improvement of the towns where the company operates.

participate in social causes, where culture, education and entrepreneurship are the main areas of social investment.

lines of action

The purpose of our Policy on Corporate Social Responsibility is to be part of the communities where the Company operates to achieve the sustainable development of our industry.

our objectives



our organization in 2017

62%

men women

38%

diversity

4,849total staff as of december 2017

workers

length of service in the company age

Under 3 years

Between 3-12 years

Between 6-9 years

Between 9-12 years

Over 12 years

1,253

454

46

41

70

women nº of people

Less than 30

Between 30-40

Between 41-50

Between 51-60

Between 61-70

Over 70

Total

Less than 30

Between 30-40

Between 41-50

Between 51-60

Between 61-70

Over 70

Total

516

625

481

209

31

2

1,864

960

934

655

348

82

6

2,985

women mennº of people nº of people

Under 3 years

Between 3-12 years

Between 6-9 years

Between 9-12 years

Over 12 years

1,751

670

189

116

259

men nº of people



In this agreement, AquaChile fully accepted matters

related to eight points proposed by the National

Coordinator of Workers from the Salmon Industry and

Similar Industries. Among the agreements, a policy on

long-term employment stands out, through two-way

communication and the ongoing participation of workers

in matters of this nature.

wellbeing of our workers

In July 2017, AquaChile signed an Agreement on Cooperation and Strengthening of Labor Relations withits labor unions in Chile.

we give priority to recruiting people who live in the areas where we develop our activities.

training 2017chile

workers attended trainingactivities

of the hours dedicated toregulatory issues

total hours

of the training activities were heldat the processing plants

2,353

49.8%

64,218

80.9%

courses held

Good Manufacturing Practices (GMPs): Course on regulatory matters overseen by Sernapesca,

which is held annually at the processing plants

Sanitation Operational Procedures: Course on regulatory matters

Healthy Living: Professional competence course

Prevention of Occupational Hazards: Occupational Health and Safety Course

1,712

1,512

260

623

topic number of people trained

To achieve this objective, in 2017 we participated in two

large employment fairs organized by the National Training

and Employment Service (Sence) in the cities of Puerto

Montt and Castro.

During 2017. Sence acknowledged the work performed in

training activities, specifically for the number of people

trained, with the delivery of recognition in this area and an

invitation to participate as panelists at the event “Human

Capital: a journey to extraordinary worlds,” held in the Los

Lagos Region.



support of education

Through partnerships, we are contributingto strengthening technical educationand employability.

calbuco polytechnic high school

As part of the partnership agreement entered into with

the Calbuco Polytechnic High School, 40 students from

12th grade were the beneficiaries of around 500 additional

hours of training in their technical career, which were

complemented with a number of visits, internships,

practicums, and motivational lectures. The initiative included

traineeships for teachers to upgrade their knowledge on

technologies and processes the industry has adopted over

recent years. The social investment of AquaChile in this

initiative added up to $22 million in 2017.

education - company connection

Since 2014. AquaChile has been an active partner of

ONG Canales, a non-profit development corporation

whose mission is to strengthen technical-professional

establishments in the southernmost region, forming

ties with the production sector to improve the students’

educational process. The organization is present in 26

districts in the Los Ríos, Los Lagos, Aysén and Magallanes

regions, and it impacts over 8.000 students.

Our partnership is tied to the “Education-Company

Connection” program, which creates bonding activities

between professional-technical high schools and

companies. Through this program, we make our hatcheries,

farms, and processing plants available for students to be

able to get a feel for the salmon production process.

During 2017. 72 students visited AquaChile's hatcheries and

processing plants, and three students from 12th grade did

professional practicums as part of this program.

In the same vein, we coordinated inter-regionally so that

the students from the Huelpún School on the Cailín Island of

Quellón could go on a school trip to Puerto Cisnes. We also

make efforts to support the youth basketball team from

Puerto Aysén, where we also partner in the organization of a

seminar on school integration and teaching methodologies

focused on learning difficulties.

enseña chile

The company maintains an annual agreement with the

Enseña Chile foundation, which aims to bridge the existing

educational gap in the country through the placement of

professionals from different disciplines who are previously

selected and prepared by the program. They work as

teachers for students from 7th grade to 12th grade from

establishments in remote places and which are highly

vulnerable. This program is present in 19 schools from the

regions where AquaChile operates, with 42 professionals

who have given classes in places such as Los Muermos,

Puerto Varas, Puerto Montt, Ancud, Castro, Quinchao,

Chonchi, and Quellón; and in Coyhaique, Puerto Aysén, and

Villa Cerro Castillo in the Aysén Region.



Support of education

educational events

Along with these long-term bonds, we are present in school

fairs and other opportunities for bringing our production

activity closer to the community. In 2017. we participated in

the first version of the Sea Fair in Cochamó, organized by

the Chilean Navy. The initiative involved the placement of

a stand with audiovisual material and multimedia to teach

children about the salmon life cycle, as well as collaborating

in the organization of a family fun-run in Puerto Cisnes. We

were also part of the Science and Technology Fair organized

by the Bernardo O’Higgins School that neighbors the plant

in Calbuco.

visits to our facilities

AquaChile has implemented an open-door policy which

has made it possible to teach and inform the community

on the different stages of the salmon production process.

In 2017. more than 340 people visited the company's

hatcheries, farms, and processing plants. Included among

these visitors were students of all different levels, including

children in elementary education, neighbors, and tradesmen

from traditional markets.

school scholarships

For the second year in a row, AquaChile participated in

the school scholarships program for young people from

Melinka who decide to finish high school at educational

establishments in Chiloé or Puerto Montt. This scholarship

provides resources to fund personal expenses and

is deposited monthly to the student selected by the

municipality to receive this benefit. This program makes it

possible to help around 300 students from the district.


340people visited the company´s hatcheries, farms and processing plants.


promoting care of the environment

efficient use of resources

In 2017. AquaChile committed to partner in the project entitled “Reuse of materials from the salmon industry for growing

vegetables,” developed by members of the Río Claro and Coyhaique Bajo Horticulture Committee. This initiative was

awarded funds from the Ministry of the Environment to contribute to the protection of the environment by reusing elements

disposed of by the salmon farming industry in the Aysén Region. Our company will provide this committee with the inorganic

waste from the farms, such as plastic, rods, and nets, and these items will be put to a new and different use in the agriculture

industry and for the construction of school gardens and greenhouses, particularly in two schools in Coyhaique.

beach cleaning

As in previous years, AquaChile actively participated in beach-cleaning activities organized by the community, and in the

International Day of Beach Cleaning organized by the Chilean Navy. These initiatives include, besides collecting waste, the

classification of garbage into glass, plastic, electronic devices and other items, to ascertain where it comes from and the

possibilities of recycling it.

Municipalities, schools, authorities and the community work together in these activities. The coordinated cleaning is carried

out in areas of tourism and where garbage collects naturally because of currents and the tide.

AquaChile is called on to participate through work done by its teams, and the provision of cleaning materials, sunscreen, and

snacks for the children. In 2017. the cleaning was done at Villarrica Lake with the cooperation of the Aquasan team; at the

Chinquihue beach in Puerto Montt, with the Environmental and Social Responsibility Departments; at Río Negro Hornopirén

thanks to the work from the Quetén farm; and at Puerto Cisnes with the cooperation of the AquaChile S.A. team and Jorge

Avendaño from EASA.

In addition, the company participated in a long-term program in the Reloncaví Estuary arranged by SalmonChile. For close

to one week, the Navy, mussel farmers, artisan fishermen, the community, and our team from Centro Serapio worked to

remove Styrofoam from the estuary.



After two years of implementation, in 2017. the guidelines

and indicators were updated of the Clean Production

Agreement (CPA) for the conservation of the blue whale

and other large cetaceans in Northern Patagonia, the Los

Lagos Region, and Aysén.

It is an unprecedented initiative in the country, in which

government entities, companies from the salmon industry,

civil society and academia participate: the Ministry of

Economy, Ministry of the Environment, Sernapesca,

Directemar, National Council for Clean Production, WWF,

Blue Whale Center, the Universidad Austral de Chile, Los

Fiordos, Blumar, Multiexport, Camanchaca, Ventisqueros,

and AquaChile.

The purpose of the CPA is to implement a system of

monitoring and spotting large cetaceans, mainly blue

whales, with the goal of feeding and rearing of this species

becoming sustainable.

blue whale

blue whale conservation

In 2017, the decision was made to expand from five to 20 satellite transmitters that would allow us to learn about the migratory habits of these cetaceans.

As part of the project, training has been given on spotting large cetaceans. These activities

have taken place in the main facilities of the company Los Fiordos, in the district of

Guaitecas, and workers from the farms that join in this project have participated.



contribution to economic development

culture

The company participated in the initiative entitled “Octay Boats,”

which aims to encourage lake activities among the community of

Octay through building sailboats by oneself, sailing classes, and then

allowing young people to participate in the different regattas held at

the Llanquihue Lake. This initiative benefited 15 families from the town.

connectivity

The teacher from the rural Piedra Blanca school is shuttled daily

between the López pier in Quellón to her place of work by boat which

connects the farms from the Quellón area (Punta Paula, Mauchil,

and Yatac). The same occurs with the teacher who is shuttled from

Chayahué to Huapi Abtao, and with the teacher from the Piedra Lille

school on Laitec Island.

Likewise, workers from the Abtao farm coordinate a round-trip shuttle

every month for the doctor that periodically visits the clinic on the

Huapi Abtao Island from Punta Auco.

The 2017 Census was a task that required the collaboration of

thousands of volunteers throughout the country. Our employees

from the most remote farms supported this endeavor, personally

conducting the census for workers who were on their shifts, and,

afterwards, making sure the data reached the INE.

sports

During 2017. we supported initiatives that increase the flow of visitors

to regions where we are present.

Chiloé Cycling Tour, in which we sponsored the seven team

members from Castro and we provided 50 kilograms of salmon

for the competitors.

International Kayaking Event, which saw the participation of

over 80 local athletes, as well as from other places in the country

and abroad. The event was part of the celebration of the Week of

Tourism in Puerto Aysén, and was organized by the town's

Chamber of Tourism.

million pesos were contributed in 2017 by the company to social initiatives in towns neighboring their operations in Chile.

87


74

07: ABOUT THIS REPORT

To present the company’s performance in the wider context of sustainability, we reviewed studies carried out by leading organizations that allowed us to identify impacts, risks or opportunities that were global, local and of the industry of which the company is part.


introduction

healthy food


health and safety



standards

about this report


report profile

1 January to 31 December 2017

2016

Anual

Essential

Rodolfo Alvarado Technical Manager of Empresas AquaChileTel. +56 65 433550 [email protected]

Empresas AquaChileGrupo ACI (Costa Rica)

period

last report

presentation cycle

option of conformity to gri

contact

scope

sustainability report 2017 / about this report


content definition

Following the recommendations of the GRI Standards guide (Global Reporting Initiative), the

definition process of the contents of this report considered the following actions in regard to the

principles that are fundamental for guaranteeing transparency and relevance of the information

(sustainability and materiality context). To present the company’s performance in the wider

context of sustainability, we reviewed studies carried out by leading organizations that allowed

us to identify impact, risks or opportunities that were global, local and of the

industry of which the company is part.

1. identification of relevant issues 2. prioritizing of material issues

Global Risks Report 2017 from the World Economic Forum

Selection conducted by the general manager and main executives from the Legal and Production areas, Human Resources, Processing plants, Licenses, and Environment.

OECD Better Life Index (Chile)

Primary environmental problems of Chile. Study from the UC Public Policy Center

World Economic Forum Competitiveness Ranking

Press review

Analysis of meeting minutes with community representatives

Survey of representatives from stakeholder groups

AquaChile reports to investors

Corporate policies

Sustainability reports and annual reports

Press releases

2016 Global Salmon Initiative Sustainability Report

BAP (Best Aquaculture Practices) and ASC (Aquaculture Stewardship Council) certification manuals

Road Map for the National Aquaculture Strategic Program. UNTEC - U. de Chile (August 2016)

2016 sustainability reports from six of the largest salmon producers in the world and in Chile

SDG Industry Matrix– Food, beverage and consumer goods, study conducted by KPMG and Global Compact with the collaboration of GSI, among other partners.

PwC SDG Engagement Survey, 2015: Study on the objectives on which companies would have the greatest impact, according to the industry they belong to.

Press review

United Nations 17 Sustainable Development Goals 2030

global context relevance for aquachile

country context relevance for stakeholders

aquachile strategy

aquaculture industry



identified relevant topics

asc principles1 requirements of the bap standard2

for farmed salmonindicators included in the global salmon initiative (gsi) report related gri standards

1. Legal compliance

2. Environmental conservation and biodiversity 3. Conservation of water resources

4. Conservation of the diversity of species and wild populations 5. Responsible use of feed for fish and other resources

6. Animal health

7. Social responsibility

Proprietary rights and regulatory compliance

Storage and disposal of supplies (feed, fuel, lubricants…)

Quality of sediment and water

Escape control(Physical) interactions between predators and wildlife

Preservation of fishmeal and oil

Animal health and welfareManagement of biosecurity and diseases

Relations with the community

Worker safetyEmployee relations Food safetyTraceability

Compliance

Certifications and permits related to the environment

Fish escapesInteractions with fauna

Use of marine ingredients in feed

Fish mortalityUse of antibioticsCaligus countCaligus treatmentsNon-medicinal methods

Interaction with the community Occupational health and safetyDirect labor

307: Environmental compliance419: Socio-economic compliance

304: Biodiversity 306: Effluents and waste 308: Environmental assessment of suppliers

303: Water 306: Effluents and waste

304: Biodiversity 304: Biodiversity

304: Biodiversity

416: Customer health and safety

201: Economic performance 202: Market presence 203: Indirect economic impacts 203: Indirect economic impacts 204: Procurement practices 413: Local communities 403: Health and safety at work 401: Employment 402: Worker-company relations 404: Training and education 405: Diversity and equal opportunity 416: Customer health and safety 417: Marketing and labeling

1: Aquaculture Stewardship Council (ASC).2: Best Aquaculture Practices (BAP).



materiality matrix

importance of the economic, environmental and social impact

infl

uen

ce o

n t

he

asse

ssm

ents

an

d d

ecis

ion

sm

ade

by s

tak

eho

lder

s

low medium high

general

use of antibiotics

counting and treatment ofcaligus

interaction with protected species

fishescapes

use of marine ingredients

effluents and waste


care of the coastal area

emissionsenergy

climatechange

fishhealth

fish welfare

information safety and privacy

diversity and equal opportunity

relations with the local community

market presence

research & development

economic performance

water quality

environment economy social

low

med

ium

hig

h

customer health and safety

generation of local employment

healthand safetyat work

workercompany relations

training

materiality matrixThe identified relevant issues were prioritized considering the following criteria: magnitude of the impact

(positive or negative) generated by the company, strategic importance of the issue, degree to which

Empresas AquaChile can influence or contribute, relevance for stakeholders, presence of the issue in

communication media, opportunities and risks for the company and the industry, regulation,

and public policies.



coverage of material aspects

category material aspects coverage (where is this aspect material)interior exterior

social

environment

economy

Generation of local employment

Health and safety at work

Training of employees and external workers

Customer health and safety

Relations with the local community

Fish welfare

Ethics and legal compliance

Relations between the company and its workers

Biodiversity

Effluents and waste

Fish escape prevention

Interaction with protected species

Quality of sediment and water

Use of marine ingredients in the fishes’ diet

Fish welfare

Use of antibiotics in the treatment of fish diseases

Counting and treatment of Caligus

Care of the coastal area

Actions for adapting to climate change

Economic performance

Market presence

Research & development

All operations

All operative units

All operative units

All operative units

All operative units

Freshwater and seawater farms

All operative units

Freshwater and seawater farms

Farms and processing plants

Operations in Costa Rica

Communities close to operational centers in Chile and Costa Rica

AquaChile employees

AquaChile employees

Customers and consumers

Authorities, customers, and consumers

Authorities, NGOs

Clients, authorities

Communities, authorities and NGOs



All operative units

All production units

All production units

Neighboring communities





stakeholder engagement

stakeholder form of contact frequency

Workers

Local authorities

Community

Customers

Industrial associations

Non-governmental organizations (NGOs)

Shareholders

Suppliers

Ongoing

Monthly

Ongoing

Monthly

Monthly

Periodic

Ongoing

Ongoing

Periodic

Periodic

Periodic

Periodic

Annual

When needed

Ongoing

Ongoing

Each trimester

Periodic

Ongoing

Ongoing

Intranet

Informational newsletter

Notice board

Hygiene and safety joint committees

Bipartite training committees

Committee for the AquaChile Healthy Team Program

Extended meetings

Toll-free telephone line (800 100 700) to respond to questions

Direct interaction with executives

Meetings in sales offices

Participation in international tradeshows

Participation in Global Salmon Initiative

Meetings

General Ordinary Meeting of Shareholders

Extraordinary meetings

Investors’ page on website

Support of the Investors Relations manager

Publication of financial reports

Meetings with executives in related areas

Contract administration unit

Health & Safety Department

Representatives from the stakeholder groups consulted for the assessment of the 2016 Empresas AquaChile Sustainability Report and the prioritizing of the material topics indicated there were opportunities for improvement in the general contents (Introduction chapter) and in the chapters referring to Social Responsibility, primarily.


Appendix standards

01. general content

/ Information on employees and other workers

02. economic

/ Economic performance

/ Market presence

/ Procurement practices

03. environmental

/ Water

/ Biodiversity

/ Animal welfare

/ Effluents and waste

04. social

/ Employment

/ Occupational health and safety

/ Training and education

/ Diversity and equal opportunity

82

87

88

90

91

94

98

103

106

109

112

114

indexsustainability report 2017

contents indicators 82indicators / general disclosures / 102-8

Information on employees and other workers

chile

2015 2016 2017

2017

Total employees 4,239 3,837 3,841Total with permanent contract 2,830 2,073 1,965Women 1,076 746 704Men 1,754 1,327 1,261 Total with temporary contract 1,409 1,764 1,876Women 648 842 927Men 761 922 949

total number of employees by employment contract (perma-nence), by gender

2015 2016

Total with permanent contract 2,830 2,073 1,965Araucanía Region 24 25 22Los Ríos Region 85 12 12Los Lagos Region 2,433 1,805 1,710General Carlos Ibáñez del Campo Aysén Region 268 219 211Metropolitan Region 20 12 10Total with temporary contract 1,409 1,764 1,876Araucanía Region 1 7 1Los Ríos Regions 0 0 0Los Lagos Region 1,320 1,682 1,795General Carlos Ibáñez del Campo Aysén Region 85 74 78Metropolitan Region 3 1 2

total number of employees by employment contract (perma-nence), by region

3,841chile

Total number of employees

Data as of December 31 of each year

standardsindex


2015 2015

2015

2016 2016

2016

2017 2017

2017

total number of employees by employment type (full-time and part-time), by gender

workers who are notemployees

size of staff byregion and gender

chile

Total full-time employees 4,233 3,928 3,837Women 1,720 1,591 1,629Men 2,513 2,337 2,208Total part-time employees 6 7 4

Women 4 5 2

Men 2 2 2

Nature of the work performedSupport of production workTotal external workers 1,999 1,556 1,481Women 43 79 97

Men 1,956 1,477 1,384

Araucanía RegionWomen 12 10 10Men 13 22 13Total 25 32 23Los Ríos Region Women 23 6 5

Men 62 6 7

Total 85 12 12Los Lagos RegionWomen 1,636 1,537 1,572

Men 2,117 2,048 1,933Total 3,753 3,487 3,505General Carlos Ibáñez del CampoAysén Region Women 45 37 38Men 308 256 251Total 353 293 289Metropolitan Region of Santiago Women 8 6 6

Men 15 7 6Total 23 13 12

standardsindex indicators / general disclosures / 102-8


2015

2015

2016

2016

2017

2017

total number of employees by employment contract (perma-nence), by gender

total number of employees by employment contract (perma-nence), by region

costa rica

Total employees 934 914 897Total with permanent contractWomen 200 217 216Men 734 697 681Total with temporary contractWomen 0 0

Men 0 0

Total with permanent contractCañas 711 702 723Bijagua 12 11 14Bagaces 55 60 67Liberia 60 55 41Abangares 63 61 40

Colorado 9 12 3Tilarán 10 8 9

Panamá 9 0 0Miami 5 5 5Total with temporary contractCañas 0 0 0Bijagua 0 0 0Bagaces 0 0 0

Liberia 0 0 0Abangares 0 0 0Colorado 0 0 0Tilarán 0 0 0

Panamá 0 0 0Miami 0 0 0

897costa rica

Total number of employees



2015

2015

2016

2016

2017

2017

total number of employees by employment type (full-time and part-time), by gender

workers who are notemployees

Total full-time employeesWomen 200 217 216Men 734 697 681Total part-time employeesWomen 0 0Men 0 0

Total external workers 30 30 25Women 0 0 0Men 30 30 25

Nature of the work performed(Outsourcing) Security guards, drivers who transport workers, environmental officer and crocodile officer.



Collective bargaining agreements

percentage of the total employees covered by collective bargaining agreements

chile

costa rica

201523.7%

201573.30%

201665.31%

201774.13%

201623.8%

2017

30.40%



Direct economic value generated and distributed

figures in dollars as of 31 december 2017

Economic value generated Economic value distributed

Economic value retained 69,558,947

172,255,781 -102,696,834

Income due to ordinary activities Salaries and benefits for employees

Financial incomes Payments to the government (taxes)

Operational costs Payments to providers of capital

Investments in the community

632,738,367 -63,561,130

1,024,544 -20,549,135

-461,507,130 -18,215,455

-371,114

economic value generated valor económico distribuido

standardsindex indicators / economic performance / 201-1


Ratios of standard entry level wage by gender compared to local minimum wage

NOTE: The percentages for Costa Rica were calculated for the four base categories of operational salaries with regard to thelegal minimum.

2015

2015

2016

2016

2017

2017

los lagos region andaysén region

guanacasteprovince

Average difference 2.1% 1.7% 2.20%TotalMen 2.7% 2.2% 3.00%Women 1.2% 0.7% 0.60%

Average difference 4.1% 3.3% 2.80%TotalMen 4.1% 3.1% 3.57%Women 4.1% 3.1% 0.62%

chile

costa rica

standardsindex indicators / market presence / 202-1


Proportion of senior management hired from the local community

chile costa rica

Los Lagos Region 33.3% 50.0% 92.9%Aysén Region 81.8% 81.0% 100%

Guanacaste Province 28.6% 50.0 50.0%

2015 2016 2017 2015 2016 2017

los lagosregion

guanacasteprovince

aysénregion

92.9%

50%

100%

standardsindex indicators / market presence / 202-2


Proportion of spending on local suppliers

purchases from local suppliers

chile

costa rica

Los Lagos Region 80.0% 82.0% 71.4%Aysén Region 1% 1.3% 0.5%

Guanacaste Province 83.0% 86.0% 90.0%

2015 2016 2017

2015 2016 2017

71.4%

90.0%

standardsindex indicators / procurement practices / 204-1

Los Lagos Region


Water withdrawal by source

total volume of water withdrawn

surface 157,608,328

surface 373,386,240

underground 404,830

underground 170,883

On the basis of the "Annual average flow" recorded by the DGA (General Water Directorate)

Based on a report sent by a government entity, with a consumption of cubic meters per second. The formula is: m3 *second x 3,600 x 24 x 365

Measurement of consumption using a hydrometer placed at the exit of the wells. The formula is: liters persecond x 3,600 x 24 x 365/100.

On the basis of the "Annual average flow" recorded by the DGA (General Water Directorate)

calculation

calculation

source

source

volume (m3/year)

volume (m3/year)

NOTESa) Only considers operational licenses b) Above ground does not distinguish between systems: (Permanent continuous-permanent discontinuous: Provisional continuous - provisional discontinuous). c) Underground may be consumption or production.

chile

costa rica

surface source

underground source

standardsindex indicators / water / 303-1


Water sources significantly affected by withdrawal of water

Considering the withdrawal of surface water, no water was significantly affected by the withdrawal, as a free quantity of "ecological flow" water was considered to maintain aquatic life.

The water used in the operation in Costa Rica comes from two sources, which are six wells authorized for potable water and the Senara canal for fish production. Neither of these two sources has been affected by the company's normal operations.

number of sources affected source

chile

costa rica



Recycled and reused water

chile

costa rica

peñaflor (metropolitan region)

cherquenco

chaicas

Reuse of effluents The reused water enable the volume of water to be maintained during a time of water deficit and the management of environmental and sanitary variables to improve. This same

system is being studied for implementation in other

company hatcheries.

Reuse of effluents

Recirculation technology

hatchery treatment method reused intotal percentageof water reused

All the water used in farms and in the plant is delivered to the irrigation canals after being treated, to be reused in rice and sugar cane crops.

The theoretical loss of water is 5% from natural evaporation.

The Chaicas hatchery was incorporated, which was acquired by Empresas AquaChile in 2017. and in contrast to the other hatcheries, is a recirculation hatchery.

2016

35%

70%

98%

2017

No operation in 2017

50%

98%



IUCN Red List species and national conservation list species with habitats in areasaffected by operations

chile

costa rica

common name

common name

scientific name

scientific name

uicn conservation status

uicn conservation status

rce category

rce category

Austral Gull Leucophaeus scoresbii Least concern Not classifiedFranklin Gull Leucophaeus pipixcan Least concern Not classifiedCahuil Gull Chroicopcephalus maculipennis Least concern Not classifiedDominican Gull Larus dominicanus Least concern Not classifiedNon flying Quetru Tachyeres pteneres Least concern Not classifiedHumboldt Penguin Spheniscus humbolti Vulnerable VulnerableImperial Cormorant Phalacrocorax atriceps Least concern Not classifiedLile Cormorant Phalacrocorax gaimardi Least concern Not classifiedYeco Cormorant Phalacrocorax brasilianus Least concern Not classifiedBlack Brow Albatross Thalassarche melanophrys Near threatened Not classifiedBlack-necked Swan Cygnus melancoryphus Least concern EndangeredTiuque bird Milvago chimango Least concern Not classified Huillín (river otter) Lontra provocax Endangered EndangeredChungungo (sea otter) Lontra felina Endangered VulnerableCommon Sea Lion Otaria flavescens Least concern Least concernChilean Dolphin Cephalorhynchus eutropia Least concern Vulnerable

Crocodile Crocodrylus acutus Vulnerable VulnerableJabirú Jabirú Mycteria Vulnerable Vulnerable

*Information is part of the Environment, Conservation and Biodiversity Management Plan. IUCN – International Union for the Conservation of Nature RCE (in Spanish) = Regulation for the Classification of Wild Species

standardsindex indicators / biodiversity / 304-4


Fish escapes (2017)

There were no fishescapes at AquaChilein 2017.

There were no fishescapes at Grupo ACIin 2017.

-

-

0

0

0

0

0

0

-

-

incident date

incident date

name of the species

name of the species

number of fish that escaped (after net recapture)

number of fish that escaped (after net recapture)

reasons identified for escape

reasons identified for escape

details of the mitigationstrategy/corrective measures

details of the mitigationstrategy/corrective measures

freshwater or seawater

freshwater or seawater

chile

costa rica

standardsindex indicators / biodiversity / gsi


Interactions with fauna (2017)

chile

costa rica

Accidental mortalities 0 0Intentional mortalities 0 0

Accidental mortalities 0 0Intentional mortalities 0 0

* CALCULATION METHOD:total number of interactions divided by the total number of farms from January to December each year.

Period January - December

birds mammals

birds mammals

(lontra provocax)

(cygnus melancoryphus)

Huillín

BlackNecked Swan

standardsindex indicators / biodiversity / gsi


Use of antibiotics

January-December 2016 2.74




2015 2015

period periodnº of treatments nº of treatments

2016 20162017 2017

chile costa rica

* Number of treatments during complete production cycle.

Grams of antibiotics per tonne harvested in closed groups. Grams of antibiotics per tonne produced in closed groups.

* Number of treatments during complete production cycle.

2016*: report value last year was in kilograms (0.1007 kg)

use of antibiotics in aquachile salmon and sea trout use of antibiotics in tilapia

Atlantic Salmon 739 538 555Pacific Salmon 346 84 307Sea Trout 573 166 350Total 622 426 459

Tilapia 0.073 101 82

standardsindex indicators / environmental / gsi


Caligus count

chile

atlantic salmon

coho salmon

rainbow sea trout

Total average number of adult Caligus per month

Total average number ofadult Caligus per month

Total average number ofadult Caligus per month

1.32

0.00

1.29

2.19

0.00

1.41

2.97

0.03

1.80

2.78

0.03

1.59

2.39

0.02

1.28

4.00

0.05

0.28

3.00

0.05

0.43

2.27

0.08

0.69

2.34

0.04

0.77

2.58

0.07

1.17

2.38

0.03

1.26

2.84

0.09

1.17

jan feb mar apr may jun jul aug sep oct nov dec



Total average number of adults (mobile and gestating females) = 3

standardsindex indicators / animal welfare / gsi


Caligus treatments

Atlantic Salmon (Production) 10.55Coho Salmon (Production) 0Rainbow Sea Trout (Production) 0.88

Atlantic Salmon (Production) 13.45Coho Salmon (Production) 0.00Rainbow Sea Trout (Production) 1.76


Atlantic Salmon (Production) 0.14Coho Salmon (Production) 0Rainbow Sea Trout (Production) 0.1


Atlantic Salmon (Production) 0.19Coho Salmon (Production) 0.00Rainbow Sea Trout trout (Production) 0.05

2017

2016

species

species

species

species

species

species

g api per tonne

g api per tonne

g api per tonne

g api per tonne

g api per tonne

g api per tonne

medicinal bath treatments (original)


medicinal bath treatments (surviving)

medicinal feed treatments (original)


medicinal feed treatments(surviving)

chile

If the levels of caligus are close to the advised levels, the fish receive a treatment of authorized drugs, and it is important

to measure the amount used. The quantity of treatment used is calculated as a quantity of active pharmaceutical

ingredients (API) used (in grams) per tonne of produced fish (LWE).

* For 2016, we show the quantity of treatments in the production cycle (original), and the quantity for fish surviving the algal bloom and harvested for consumption (Surviving).









2015

2014

2013

species

species

species

species

species

species

g api per tonne

g api per tonne

g api per tonne

g api per tonne

g api per tonne

g api per tonne



chile

Caligus treatments



Non-medicinal methods

chile

Non-medicinal approaches can also be used to combat Caligus. Many of these

approaches are still in development, but it is expected that with time they may be used

regularly and may reduce the need for medicinal treatments.

No methods to report



Functional feed against sea lice YesTraps for sea lice Yes

Thermal treatments No(meaning Thermolicer or Optilicer)

2017

2016

2014

2015

2013

method

method

continuous use

continuous use



Fish mortality The mortality of fish is a key measure that is used to assess the health of fish during production. We have chosen to measure mortality using a 12-month

rotating mortality rate. This measure calculates the mortality of the past 12 months (January to December) as a proportion of the estimated number of

fish at sea, in the last month of the year (adjusted for harvest and mortality).

chile costa rica

2017 4.85% 10.91% 4.10% 6.21%2016 7.02 (*) 6.52% 8.52% 5.13%2015 7.65% 5.87% 10.21% 4.44%2014 8.80% 4.30% 8.80% 1.27%2013 7.00% 5.60% 10.90% 0.51%

atlantic salmon coho salmon rainbow sea trout tilapia

12 monthsrotating mortality x 100

(Total no. of mortality at sea in the past 12 months - total no. of fish sacrificed because of disease of similar and that are not counted in harvest figures)

* CALCULATION FORMULA

(Closing no. of fish at sea + total no. of mortalities during the past 12 months + total no. of harvested fish in the past 12 months + total no. of fish sacrificed at sea)

(*) This value does not include the mortality generated by the HAB (Harmful Algal Bloom) that occurred in February and March 2016. Considering this event, the mortality rate was 19.06%.



Water discharge by quality and destination

chile

hatcheries

plants

Measurement of continuous flow carried out with a

flowmeter

166,579,964

950,173

total volume discharged(m3/ year)

calculation method

costa rica

surface

underground Triangular landfill, flow capacity

Triangular landfill, flow capacity

Rice and sugar cane irrigation

Rice and sugar cane irrigation

calculation method

Man-made wetlands

Anaerobic and Aerobic treatment lagoons

treatment method reused intype of water discharged or reused

volume of water reused

(m3/ year)

354,716,930

162,339

standardsindex indicators / effluents and waste / 306-1


Waste by type and disposal method

chile

quantity (t)quantity (t) quantity (t)quantity (t) destinationdestination

20162016 20172017

Recycling 34,6712 35,276Waste landfill 6,874 10,198Hazardous waste landfill 541 591Total 42,087 46,065

Recycling 1,872.0 2,594.89Waste landfill s/i* 491.43Incineration (massive combustion of hazardous waste from medical and veterinary clinics)

0.062 0.169

Total 1,872 3,086

costa rica

We only work with authorized service companies with whom we manage waste. Additionally, revaluation and recycling take priority over final disposal.

* Data for 2016 was not supplied by the municipality, as the waste management system changed.



Significant spills

0

0

0

0chile

costa rica

total number and volume of recorded significant spills

2016 2017



chile

new hires turnover

New employee hires and employee turnover

NEW HIRES: employees that entered the organization for the first time. TURNOVER: employees that leave the organization voluntarily or because of dismissal, retirement or death.

* Calculation formula:

(Entries + Exits) / 2(Initial final average staf)

(Entries)(final average staf)

Rotation=

Hires =

x100

x100

2015 2016 2017 2015 2016 2017

Total 180 122 746

Total rate 4.2% 3.2% 19.9% 25.10% 28.2% 34.%

Age

Age under 30 85 64 366 39.40% 39.5% 55.5%

Between 30 and 50 85 49 299 20.00% 24.9% 27.1%

Over 50 10 9 81 12.70% 17.8% 21.6%

Sex

Women 48 28 341 22.60% 27.4% 34.4%

Men 132 94 405 26.70% 28.7% 33.8%

Region

Araucanía 3 5 3 20.60% 24.1% 29.3%

Los Ríos 2 0 0 4.50% 0.3% 0.6%

Los Lagos 126 95 687 25.00% 28.5% 35.4%

Aysén 43 21 53 31.10% 25.3% 23.3%

Metropolitan Region of Santiago 6 1 3 23.105 37.1% 29.2%

standardsindex indicators / employment / 401-1


New employee hires and employee turnover costa rica

2015 2016 2017 2015 2016 2017

Total 349 490 473 366 281 253

Total rate 37% 53% 52% 38% 42% 40%

Age

Age under 30 257 316 385 22.9% 26.9% 31.1%

Between 30 and 50 88 159 79 8.3% 14.3% 8.5%

Over 50 4 15 9 0.4% 1.0% 0.6%

Sex

Women 84 134 145 8.0% 10.5% 18.4%

Men 265 356 328 23.6% 31.7% 21.9%

Region

Cañas 266 381 397 23.5% 32.1% 32.9%

Bijagua 3 4 3 0.5% 0.4% 0.6%

Bagaces 30 34 38 2.6% 2.8% 3.2%

Liberia 22 30 9 2.3% 3.3% 0.9%

Abangares 17 36 23 1.7 3.2% 2.5%

Colorado 3 0 1 0.4% 0.1% 0.2%

Tilarán 8 5 2 0.6% 0.4% 0.1%

new hires turnover



Parental leave

Note: in Costa Rica there is no right to leave for the father; Grupo ACI gives two days as a benefit. Grupo ACI has only recorded information about paternity leave since 2016.

2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017

Total 45 107 73 45 107 73 60 120 91 94% 100% 94% 25% 43% 77%Women 44 104 73 45 104 73 59 117 91 94% 100% 96% 25% 44% 77%Men 1 3 0 1 3 0 1 3 0 100% 100% - - - -

2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017

Total 15 26 5 15 26 5 15 26 5 100% 100% 100% 100% 100% 100%Women 15 12 5 15 12 5 15 12 5 100% 100% 100% 100% 100% 100%Men ND 14 2 ND 14 2 ND 14 2 ND 100% 100% ND 100% 100%

with rightto leave

with rightto leave

number of employees

number of employees

exercisedright

exercisedright

retention rate

retention rate

reincorporated into work

reincorporated into work

reincorporation rate

reincorporation rate

chile

costa rica

reincorporation into work after parental leave

Reincorporation rate: (reincorporated in 2017 thet began in 2017/ Quantity that exercised right to begin leave in 2017) *100% Retention rate: (reincorporated in 2017 thet began in 2017/ reincorporated in 2017 even though they started leave in 2016)*100%

Reincorporation rate= (70/73) *100% Retention rate= (70/91) *100%

Reincorporation rate= 96% Retention rate= 77%



Workers representation in formal joint management-worker health and safety committees

percentage of workers with representation on formal joint management-worker health and safety committees

2016 20172015

chilecosta rica

70% 70% 88%

2.34% 2.23% 2.80%

standardsindex indicators / occupational health and safety / 403-1


chile

costa rica

men

men

women

women

Types of injury and rates of injury, occupational diseases, lost days and absenteeism,and number of work-related fatalities.

3.54

0.12

54.14

1

1.85

0.84

8.4

1

Rate of accidents with injuries

Rate of occupational illnesses

Rate of missed days

Fatal victims at work

Rate of accidents with injuries

Rate of occupational illnesses

Rate of missed days

Fatal victims at work

indicator

indicator

calculation formula

calculation formula

(No. of accidents in the year x 100) / average workers in the year

(No. of illnesses in the year x 100) / average workers in the year

(No. of missed days in the year x 100) / average workers in the year

(Considers external employees and workers)

(No. of accidents in the year x 100) / average workers in the year

(No. of illnesses in the year x 100) / average workers in the year

(No. of missed days in the year x 100) / average workers in the year

(Considers external employees and workers)

2.51

0

49.82

0

4.42

0.63

35.37

0

2.47

0.12

41.65

0

1.34

0.67

6.71

0

2.81

0.23

52.62

0

0.94

0.94

4.24

0

2015

2015

2016

2016

2016

2016

2017

2017

2017

2017

2015

2015

2.47

0.12

41.65

2

0.92

0.00

5.22

0

3.49

0.58

48.14

0

1.13

0.85

5.07

0

standardsindex indicators / occupational health and safety / 403-2


Rate of absence

January - December 11.43




chile

chile

costa rica

costa rica

period

period

period

period

rate of injuries with lost time

rate of absence

rate of injuries with lost time

rate of absence

*FORMULA: (Total number of injuries with lost time / Total number of hours worked) x 1.000.000

*FORMULA: (Total number of days of absence / total number of days of work) * 100

Rate of injuries with lost time

standardsindex indicators / occupational health and safety / gsi sso


work category women men women men women men

work category women men women men women men

chile

costa rica

2015

2015

2016

2016

2017

2017

Average hours of training per year per employee

average annual hours of training per employee

Executive 6 18 9.0 6.5 8.0 9.4Professional 9.3 14.5 16.5 17.8 12.9 14.0Middle management 15 14.5 19.0 15.4 9.2 9.3Administrative 12.2 15.7 32.9 20.9 16.7 16.3Technical 9.2 9.2 12.4 12.2 20.0 11.9Operational 6.4 8.6 6.5 7.5 8.6 8.9Total 7.5 10 9.5 10.4 9.0 9.8

Executive 0.0 0.0 0.0 0.0 0.0 0.0Professional 0.0 0.0 0.0 0.0 4.3 0.0Middle management 4.3 1.2 0.0 0.0 5.0 5.0Administrative 1.4 2.4 12.4 11.9 5.0 5.0Technical 0.0 0.0 0.0 0.0 0.0 0.0Operational 8.5 4.2 7.7 15.6 12.0 12.0Total 14.1 7.7 20.1 27.5 26.3 22.0

* CALCULATION FORMULA: Men hours of training = Total hours of training / Number of trained people

standardsindex indicators / training and education / 404-1


Percentage of employees receiving regular performance and careerdevelopment reviews

costa rica

costa rica

Operational workers

Total 0 745 793Women 100% 100%Men 100% 100%AdministrativeTotal 0 163 100Women 100% 0%Men 100% 0%ExecutivesTotal 0 6 4Women 100% 0%Men 100% 0%

chile

chile

2015 20152016 20162017 2017

Operational workers 326 868 623

Total 44.05% 77.85% 64.76%Women 14.4% 41.71% 15.73%Men 85.6% 58.3% 84%Administrative 371 243 339Total 50.13% 21.7% 35.24%Women 70.6% 36.6% 30.68Men 29.4% 63.37% 69.32%Executives 43 4 -Total 5.82% 0.36% -Women 16.2% 100% -Men 83.8% 0% -

Note: in 2015. general performance assessments were not implemented; nevertheless, the operational staff has their daily and weekly metrics.

2017

64.76%2017

100%

standardsindex indicators / training and education / 404-3


work category araucanía los lagos aysén total araucanía los lagos aysén total

work category total total

chile

costa rica

region region2016 2017

Ratio of basic salary and remuneration of women to men

Executive n/a 1.8 n/a 1.8 n/a 0.5 n/a 0.6Administrative 1.0 1.4 1.7 1.4 1.0 0.7 0.6 0.8Technical 1.2 1.3 1.5 1.3 0.8 0.8 0.7 0.8Operational workers 0.8 1.1 1.2 1.0 1.3 0.9 0.9 1.0Total 1.0 1.3 1.5 1.4 1.0 0.8 0.7 0.8

Executive 1.0 1.0 Administrative 1.0 1.0Technical 1.0 1.0Operational workers 1.0 1.0Total 1.0 1.0

n/a Does not apply (women do not hold these positions).

Note: Basic salaries of men and women are equal for equal positions.

X Basic Salary MenX Basic Salary Women

SB Relation=

standardsindex indicators / diversity and equal opportunity / 405-2


general disclosures

GRI content index

GRI 102 General Diclosures Organizational profile 102-1 Name of the organization 6 102-2 Activities, brands, products, and services 6, 21 102-3 Location of headquarters 9 102-4 Location of operations 33, 34 102-5 Ownership and legal form 9 102-6 Markets served 23, 24 102-7 Scale of the organization 6 102-8 Information on employees and other workers 83, 84, 85 102-9 Supply chain 7 102-10 Significant changes to the organization and its supply chain 7 102-11 Precautionary Principle or approach 16 102-12 External initiatives 13 102-13 Membership of associations 13 Strategy 102-14 Statement from senior decision-maker 4,5 Ethics and integrity 102-16 Values, principles, standards, and norms of behavior 60 Governance 102-18 Governance structure 9 Stakeholder engagement 102-40 List of stakeholder groups 80 102-41 Collective bargaining agreements 86 102-42 Identifying and selecting stakeholders 80 102-43 Approach to stakeholder engagement 80 102-44 Key topics and concerns raised 78, 80

gri standards content page

standardsindex indicators / index gri


GRI 102 General Diclosures Reporting practice 102-45 Entities included in the consolidated financial statements 7 102-46 Defining report content and topic Boundaries 76, 79 102-47 List of material topics 14, 15, 16 102-48 Restatements of information no 102-49 Changes in reporting no 102-50 Reporting period 75 102-51 Date of most recent report 75 102-52 Reporting cycle 75 102-53 Contact point for questions regarding the report 75 102-54 Claims of reporting in accordance with the GRI Standards 75 102-55 GRI content index 115 102-56 External assurance 120

MANAGEMENT APPROACH GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 16 103-2 The management approach and its components 8 103-3 Evaluation of the management approach 87 GRI 201: Economic performance 201-1 Direct economic value generated and distributed 87 MARKET PRESENCE GRI 202: Market presence 103-1 Explanation of the material topic and its Boundary 65 103-2 The management approach and its components 67 103-3 Evaluation of the management approach 69 to 73 GRI 202: Market presence 202-1 Ratios of standard entry level wage by gender compared to local minimum wage 88 202-2 Proportion of senior management hired from the local community 89 PROCUREMENT PRACTICES GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 65 103-2 The management approach and its components 66 103-3 Evaluation of the management approach 65 GRI 204: Procurement practices 204-1 Proportion of spending on local suppliers 90

general disclosures

economic standards




WATER GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 15 103-2 The management approach and its components 42 103-3 Evaluation of the management approach 44, 45 WATER GRI 303: Water 303-1 Water withdrawal by source 91 303-2 Water sources significantly affected by withdrawal of water 42, 92 303-3 Water recycled and reused 93 BIODIVERSITY GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 15 103-2 The management approach and its components 52 103-3 Evaluation of the management approach 52, 53 GRI 304: Biodiversity 304-2 Significant impacts of activities, products, and services on biodiversity n.a. 304-4 IUCN Red List species and national conservation list species with habitats in areas affected 94 by operations EFFLUENTS AND WASTE GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 15 103-2 The management approach and its components 47 103-3 Evaluation of the management approach 36 GRI 306: Effluents and waste 306-1 Water discharge by quality and destination 103 306-2 Waste by type and disposal method 104 306-3 Significant spills 105 ENVIORNMENTAL COMPLIANCE GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 14 103-2 The management approach and its components 35 103-3 Evaluation of the management approach 36, 63 GRI 307: Environmental compliance 307-1 Non-compliance with environmental laws and regulations 63

environmental standards




EMPLOYMENT GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 14 103-2 The management approach and its components 68 103-3 Evaluation of the management approach 65 GRI 401: Employment 401-1 New employee hires and employee turnover 106 401-3 Parental leave 108 OCCUPATIONAL HEALTH AND SAFETY GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 14 103-2 The management approach and its components 55 103-3 Evaluation of the management approach 58 GRI 403: Occupational health and safety 403-1 Workers representation in formal joint management-worker health and safety committees 109 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities 110 TRAINING AND EDUCATION GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 14 103-2 The management approach and its components 68 103-3 Evaluation of the management approach 68 GRI 404: Training and education 404-1 Average hours of training per year per employee 112 404-3 Percentage of employees receiving regular performance and career development reviews 113 DIVERSITY AND EQUAL OPPORTUNITY GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 66 103-2 The management approach and its components 66 103-3 Evaluation of the management approach 67 GRI 405: Diversity and equal opportunity 405-2 Ratio of basic salary and remuneration of women to men 114 CUSTOMER HEALTH AND SAFETY GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 14 103-2 The management approach and its components 26 103-3 Evaluation of the management approach 29, 35, 36

social standards





MARKETING AND LABELING

GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 28 103-2 The management approach and its components 28 103-3 Evaluation of the management approach 28 GRI 417: Marketing and labeling 417-1 Requirements for product and service information and labeling 28 417-2 Incidents of non-compliance concerning product and service information and labeling 63 SOCIOECONOMIC COMPLIANCE

GRI 103: Management approach 2017 103-1 Explanation of the material topic and its Boundary 14

103-2 The management approach and its components 60

103-3 Evaluation of the management approach 63

GRI 419: Socioeconomic compliance 419-1 Non-compliance with laws and regulations in the social and economic area 63


120indicadores / contenido general contents indicators

independent auditor’s report

INDEPENDENT REVISION REPORT OF

AQUACHILE SUSTAINABILITY REPORT 2017

Hereby, you can find the outcomes of the revision of AQUACHILE

Sustainability Report 2017 according to the following aspects:

SCOPE

Limited security revision of the contents and indicators’ adaptation of the

2017 Sustainability Report according to the GRI Standards, related to the

organizational profile and material indicators arisen from the materiality

process developed by the Company following the GRI Standards related to

economic, social and environmental dimensions.

STANDARDS AND ASSURANCE PROCESS

We have carried out our task according the guidelines of the International

Standard on Assurance Engagements Other than Audits or Reviews of

Historical Financial Information (ISAE 3000) issued by the International

Auditing and Assurance Standard Board (IAASB) of the International

Federation of Accountants (IFAC).

Our review has consisted in an enquiring process to different units and

management areas of Aquachile, which have been involved in the developing

process of the report, as well as in the application of analytic procedures and

checking tests, which are described in the following items:

sustainability report 2017 / external assurance

Deloitte Advisory SpA

Rosario Norte 407

Las Condes, Santiago

Chile

Fono: (56) 227 297 000

Fax: (56) 223 749 177

[email protected]

www.deloitte.cl

Meeting with the head of certifications Cristian Vargas and other key

informants of the report in the city of Puerto Montt.

Analysis of the adaptation of the 2017 Sustainability Report’s contents to

the GRI Standards: Core option, and the review of the indicators included

in the report in order to verify that they are aligned with the established

protocols in the standard. We also check whether the character of not

applicable or not material indicators is justified.

Verification, through checking tests of quantitative and qualitative

information according to the GRI Standards indicators included in the 2017

report, and its adequate gathering from the data provided by Aquachile

information sources.

120standardsindex


independent auditor’s reportCONCLUSIONS

The assurance process was based in the indicators established in the materiality process carried out

by Aquachile. Once those indicators were identified, prioritized and validated they were included in the

report. The indicators are indicated in the following table, making a difference between the indicators

verified for Chile and Costa Rica:

Regarding the verified indicators, we can say that has not revealed any attention that causes us to

believe that the Sustainability Report 2017 AQUACHILE has not been prepared in accordance with the

GRI Standards in those areas identified in the scope.

AQUACHILE DIRECTION AND DELOITTE RESPONSIBILITIES

The preparation of the 2017 Sustainability Report as well as its content is under Aquachile responsibility,

which is in charge of the definition, adaptation and maintenance of the management and internal

control systems from which the information is obtained.

Our responsibility is to emit an independent report based on the applied procedures in our review.

This report has been prepared exclusively by Aquachile interest, in accordance with the terms

established in the Engagement Letter.

102-1

102-2

102-3

102-4

102-5

102-6

102-7

102-8

102-1

102-2

102-3

102-4

102-5

102-6

102-7

102-8

102-9

102-10

102-11

102-12

102-13

103-1

103-2

103-3

102-9

102-10

102-11

102-12

102-13

103-1

103-2

103-3

102-14

102-16

102-18

102-40

102-41

102-42

102-43

102-44

102-14

102-16

102-18

102-41

102-45

102-50

102-51

102-52

102-45

102-46

102-47

102-50

102-51

102-52

102-53

102-54

102-53

102-54

102-55

102-56

202-1

202-2

204-1

303-3

102-55

102-56

202-1

202-2

204-1

303-1

303-2

303-3

304-4

306-3

401-1

401-3

304-4

306-2

306-3

306-1

401-1

401-3

403-1

403-2

404-1

404-3

405-2

chile costa rica

We have developed our work according to the Independence norms established in the Code of

Ethics of the IFAC.

The conclusions of the verification made by Deloitte go for the last version of the 2017

Aquachile Sustainability Report received on April 20, 2018.

The scope of a limited security revision is essentially inferior to a reasonable audit or security

revision, thus, we do not give any audit opinion about the 2017 Aquachile Sustainability Report.

fernando gazianoPartner

121sustainability report 2017 / external assurance standardsindex



Independent Auditor’s Report on the Sustainability Reporting Indicators of

the Global Salmon Initiative (GSI) 2017.

SCOPE

In this report, you will find the outcomes of the revision of the Sustainability

Report indicators of Global Salmon Initiative (GSI) 2017. The Report is the

responsibility of and has been approved by the management of AquaChile.

Our responsibility is to draw a conclusion based on our review.

STANDARDS AND ASSURANCE PROCESS

We have based our work on the international standard ISAE 3000 “Assurance

Engagements other than Audits or Reviews of Historical Financial

Information”, issued by the International Auditing and Assurance Standards

Board (IAASB) of the International Federation of Accountants (IFAC).

Our revision work consisted on requesting processes from different units and

management areas, which have been involved in the development process of

the report, as well as in the application of analytic procedures and audit tests

which are described below:

CONCLUSIONS

There is no evidence to suggest that the Global Salmon Initiative (GSI)

2017 Sustainability Reporting Indicators have not been prepared in

accordance with international standards of implementation.

There is no evidence to suggest that the information provided about

the Global Salmon Initiative (GSI) 2017 Sustainability Report Indicators

contains significant errors.

Face-to-face meetings with professionals representing the areas related

to the implementation of each of the Indicators of the Sustainability

Report of the GSI.

Receipt of the consolidated indicators and calculation tools for each of

these, folders with information and evidence about the data that were

considered for calculation, the first delivery was made on February 2018.

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Review of consistency and coherence of calculations and unit conversions

for each of the indicators.

Petition and receipt of uncovered evidence in the verification process of

the 2017 Sustainability Report Indicators.

Establishment of conclusions, limitations and recommendations

associated with the process.

sustainability report 2017 / external assurance standardsindex



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RESPONSIBILITIES OF AQUACHILE AND DELOITTE

The preparation of the Sustainability Reporting Indicators of the Global Salmon Initiative (GSI) 2017, as

well as the content, is the responsibility of AquaChile, which is also responsible for defining, adapting

and maintaining the internal management and control systems to obtain the information.

Our responsibility is to issue an independent report based on the procedures applied in our review.

This report has been prepared solely in the interest of AquaChile, according to the terms established

in the Engagement Letter. We do not assume any liability to third parties other than the Company's

Management.

The verification findings made by Deloitte are valid for the Global Salmon Initiative (GSI) 2017

Sustainability Report Indicators.

We have done our work in accordance with the standards of independence required by the Code of

Ethics of the International Federation of Accountants (IFAC).

We believe that our work provides an appropriate basis for us to provide a conclusion with a limited

level of safety in the respective subject areas. In this context, less guarantee is obtained than would be

the case if an audit-level (financial) work had been carried out.

Sincerely,

fernando gazianoPartner

sustainability report 2017 / external assurance standardsindex


Empresas AquaChile Sustainability Report 2017Publication an consultancy in GRI Standards / Alka Partners Design / Porta4 Design Studio

Special thanks to:Agustín UgaldeConstanza AguirrebeñaCristian VargasRodolfo Alvarado

And to the whole Aquachile team for their willingness to provide information and review the data presented on this report.

SUSTAINABILITY REPORT EMPRESAS AQUACHILE 2017 REPORTE... · 2018-06-11 · SUSTAINABILITY REPORT...

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