Appendix

Appendix 1a

Milarex consumer impact calculations and sources

Total consumer impact: EUR 587.9m

Our methodology is guided by Harvard Business School’s Impact-Weighted Accounts (“IWA”) methodology for capturing consumer impact. Key to this methodology are “impact pathways,” the logical connection between a business activity and the change in the wellbeing of a client or consumer which is then monetized. Impact pathways are generated for each company’s product and/ or service, with company data used wherever possible and assumptions used to triangulate data and estimate monetary values.

Assumptions driving this year’s Consumer IWAs for Milarex and Pagero are more granular than last year’s pilot. We also acknowledge that there is an inherent trade-off between the accuracy and scalability of impact monetization analysis and have therefore prioritized a moderate scope of impacts and stakeholders. As impact monetization is more widely adopted and quality industry data becomes more widely available, we and other practitioners will continue to refine assumptions to increase accuracy and generate insights for strategic decisions. Appendix 1a and 1b provide a simplified overview of the calculations underpinning the monetization of impacts for Milarex and Pagero.

Underserved impact #1: Food access and malnutrition

Lack of adequate nutrition can lead to malnutrition-related healthcare costs. Monetization captures the additional utility of having access to food in emerging economies.

Total estimated number of consumers of Milarex fish products (emerging economies only)30 641

Approximate annual cost of malnutritionx EUR 138

Estimated % of Milarex consumer diet consisting of seafood (emerging economies only)x 5.44%

Annual underserved impact= EUR 0.2m

Sources: Milarex, Global Panel – The Cost of Malnutrition, World Economic Forum, EU Commission, Good Seed Ventures

Effectiveness impact #1: Cardiovascular disease

Consumption of Omega-3 rich seafoods, primarily salmon, can prevent high risk consumers (e.g., hypertension patients) from developing cardiovascular disease. Monetization captures averted healthcare costs of CVD treatment due to prevention of disease onset.

Total estimated number of consumers of Milarex salmon products1 897 420

Proportion of Milarex salmon consumers who are adultsx 0.8

% of adult population with hypertensionx 25%

Estimated number of consumers at-risk for CVD= 379 484

% of consumers eating recommended levels of seafoodx 51%

Risk reduction of CVD from consuming fish with Omega-3 fatty acidsx 20%

Estimated number of at-risk consumers receiving health benefits from Milarex salmon products= 38 707

Approx. annual cost burden of CVD treatment per personx EUR 3 932

Annual Underserved Impact= EUR 152.2m

Sources: Milarex, CIA, Centers for Disease Control and Prevention, Norwegian Seafood Council, National Library of Medicine, European Society of Cardiology, World Health Organization

Effectiveness impact #4: Brain function and cognitive decline

Limited research suggests that fatty acids present in seafood can lower a consumer’s lifetime risk of developing Alzheimer’s and other forms of dementia. Monetization captures the averted healthcare costs associated with treatment of dementia annually.

Total estimated number of consumers of Milarex fish products2 120 055

Proportion of Milarex consumers aged 65+x 0.15

Proportion of adult population at-risk of developing dementiax 4.67%

Estimated number of Milarex consumers at-risk of developing dementia= 14 851

% of consumers eating recommended levels of seafoodx 51%

Risk reduction of cognitive decline from consuming fishx 10%

Estimated number of at-risk consumers receiving health benefits from Milarex fish products= 757

Approx. annual cost burden of dementia treatment per personx EUR 38 203

Annual effectiveness impact= EUR 28.9m

Sources: Milarex, Alzheimer’s Association, Fisher Center for Alzheimer’s Research Foundation, Norwegian Seafood Council, Alzheimer’s Society

Effectiveness impact #5: Mercury over-intake

Pre-natal mercury exposure is associated with IQ loss and in turn loss of lifetime productivity. Monetization captures the diminished per year earning potential of an individual due to lower productivity from exposure.

Total estimated number of consumers of Milarex fish products high in mercury24 629

Prevalence of excessive mercury exposure in annual birthsx 31%

Approximate annual cost burden due to prenatal mercury exposure per personx (EUR137.5)

Annual effectiveness impact= (EUR 1.0m)

Sources: Milarex, National Library of Medicine

Effectiveness #2: Breast cancer

Marine Omega-3 fatty acids from dietary sources, primarily salmon, are associated with a reduction in the likelihood of developing breast cancer. Monetization captures the averted healthcare costs of breast cancer treatment for populations at risk of the disease.

Total estimated number of consumers of Milarex salmon products1 897 420

Proportion of population who are womenx 49.7%

Proportion of women at-risk of developing breast cancerx 13%

Estimated number of consumers at-risk of developing breast cancer= 122 592

% of consumers eating recommended levels of seafoodx 51%

Risk reduction of breast cancer from consuming EPA and DHAx 31.25%

Estimated number of at-risk consumers receiving health benefits from Milarex salmon products= 19 538

Approx. annual cost burden of breast cancer treatment per personx EUR 10 970

Annual effectiveness impact= EUR 214.3m

Sources: Milarex, National Library of Medicine, Norwegian Seafood Council, American Cancer Society, The World Bank

Effectiveness impact #3: Rheumatoid arthritis

Academic research supports the idea that consumption of Omega-3 rich seafood, primarily salmon, can serve to manage symptoms of rheumatoid arthritis. Monetization captures the averted healthcare costs due to a reduction in symptoms of rheumatoid arthritis for existing patients.

Total estimated number of consumers of Milarex salmon products1 897 420

Proportion of population with RAx 0.75%

Estimated number of Milarex consumers with RA= 14 231

% of consumers eating recommended levels of seafoodx 51%

Estimated number of consumers with RA receiving health benefits from Milarex salmon= 7 258

Approx. annual cost burden of RA treatment per personx EUR 13 620

Annual effectiveness impact= EUR 98.9m

Sources: Milarex, National Library of Medicine, Norwegian Seafood Council, Medical News Today

Health and Safety impact #1: Cost of product recalls

Listeria poisoning can lead to significant health complications which require medical attention. Monetization captures the approximate health costs incurred per consumer seeking treatment for poisoning.

Total consumers infected from Milarex product recalls0

Approx. health costs of treating listeria poisoning per personx (EUR 1 839 294)

Annual health and safety impact= (EUR 0m)

Sources: Milarex, U.S. Department of Agriculture

Basic Need impact #1: Food nutrition and economic productivity

Regardless of geographic context, access (or lack thereof) to food affects the economic productivity of consumers. Monetization captures the approximate productivity gains due to access to fish products.

Total estimated number of consumers of Milarex fish products2 120 055

Average GDP per capita of Milarex marketsx (EUR 41 964

Average productivity loss due to malnutritionx 3%)

Estimated % of Milarex consumer diet consisting of seafoodx 3.54%

Annual health and safety impact= EUR 94.4m

Sources: Milarex, World Bank, National Library of Medicine

For more information on HBS’ approach to impact monetization, please consult the following sources:

Impact-Weighted Accounts
Practitioner Guide to Calculating Product and Service Impact