Msc Pre-Assessment Report

SCS Global Services Report

MSC PRE-ASSESSMENT REPORT

Pacific Cupped Oyster (Crassostrea gigas Thunberg, 1793) Enhanced Fisheries in Hiroshima and Hiro Bays, Hiroshima Prefecture, Japan

Client Representative: Kurahashijima Kaisan Co., Ltd. Hideo Okami (Dir.) Kurahashicho 747-5, Kure, Hiroshima Prefecture, Japan http://www.kurahashij.co.jp Client Group Members: Kawasaki Suisan Ltd., Aya Suisan Ltd., Amibun Kaisan Ltd., Yoneda Suisan Ltd., Dairyo Ltd.)

DATE OF REPORT 09/30/18

Prepared by:

Dr. Mikio Moriyasu, Consultant, Principle 1 and 2 Dr. Reiko Omoto, Consultant, Principle 3 Mrs. Jennifer Humberstone, SCS Global Services, Quality Assurance

Natural Resources Division +1.510.452.6392 [email protected]

2000 Powell Street, Ste. 600, Emeryville, CA 94608 USA +1.510.452.8000 main | +1.510-452-8001 fax www.SCSGlobalServices.com SCS Global Services Report

Contents Contents ...... 1 Glossary...... 2 1. Executive summary ...... 4 Evaluation of Enhanced Fisheries and Scope Considerations ...... 5 Pre-assessment Process ...... 6 Summary of Findings ...... 6 2. Introduction ...... 10 2.1 Aims/scope of pre-assessment ...... 10 2.2 Constraints to the pre-assessment of the fishery ...... 11 2.3 Unit(s) of Assessment ...... 13 2.4 Total Allowable Catch (TAC) and Catch Data ...... 15 3. Description of the fishery ...... 18 3.1 Scope of the fishery in relation to the MSC programme ...... 18 3.2 Overview of the fishery ...... 21 3.3 Principle One: Target species background ...... 31 3.4 Principle Two: Ecosystem background ...... 36 3.5 Principle Three: Management system background ...... 52 4. Evaluation Procedure ...... 56 4.1 Assessment methodologies used ...... 56 4.2 Summary of site visits and meetings held during pre-assessment ...... 57 4.3 Stakeholders to be consulted during a full assessment ...... 58 4.4 Harmonisation with any overlapping MSC certified fisheries ...... 58 5. Traceability (issues relevant to Chain of Custody certification) ...... 59 5.1 Eligibility of fishery products to enter further Chains of Custody ...... 59 6. Preliminary evaluation of the fishery ...... 60 6.1 Applicability of the default assessment tree ...... 60 6.1.1 Expectations regarding use of the Risk-Based Framework (RBF) ...... 60 6.2 Evaluation of the fishery ...... 60 6.2.1 Other issues specific to this fishery ...... 60 6.3 Summary of likely PI scoring levels ...... 61 References ...... 67 1 Annex 1: Pre-assessment evaluation tables ...... 71 1.1 Principle 1- Not Scored ...... 71 1.2 Principle 2 ...... 71 1.3 Principle 3 ...... 87

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 1 SCS Global Services Report

Glossary

ASI Accreditation Services International AVS Acid Volatile Sulfide CAB Certification Assessment Body CAG Catch And Grow CITES Convention on International Trade in Endangered Species cm Centimeter DAT Default Assessment Tree DO Dissolved oxygen EEZ Exclusive Economic Zone ESMA Ecologically or Biologically Significant Marine Areas ETP Environmentally Threatened or Protected g Gram (0.001 kg) HFMC Hiroshima Prefectural Fishery Management Council IUCN International Union for Conservation of Nature Milligram per gram of dried sediment (measured unit for AVS in dried mg/g sediment ) JFPRA Japan Fisheries resources Protection Association MLIT Ministry of Labour, Infrastructure and Transport of Japan mm Millimetre MSC Marine Stewardship Council NGO Non-Governmental Organization PI Performance indicator Ren A single wire string comprised of scallop shells (collector) and spacer SCS Scientific Certification Systems SG scoring guidepost TN Total nitrogen TP Total phosphate TRP target reference point μM Micro Mole ASI Accreditation Services International

B0 unfished biomass

BMSY biomass at maximum sustainable yield CAB Certification Assessment Body CITES Convention on International Trade in Endangered Species cm Centimeter CPUE Catch Per Unit Effort DAT Default Assessment Tree ETP Environmentally Threatened or Protected F Fishing rate/catching rate FAO Food and Agriculture Organization [of the United Nations]

FLIM fishing rate at which catchability will be impaired

FMSY fishing rate at which catchability is sustainable and at a maximum FRER Fisheries Right Exercise Rules g Gram (0.001 kg)

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 2 SCS Global Services Report

IUCN International Union for Conservation of Nature LRP limit reference point mm Millimetre MSC Marine Stewardship Council NIES National Institute for Environmental Studies NGO Non-Governmental Organization PI performance indicator SCS Scientific Certification Systems SG scoring guidepost TL total length TN Total nitorgen TRP target reference point US United States VME Vulnerable Marine Ecosystem WWF World Wildlife Fund

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 3 SCS Global Services Report

1. Executive summary

This report discloses the results of a Marine Stewardship Council pre-assessment of one Unit of Assessment (UoA): Pacific cupped oyster ( Crassostrea gigas Thunberg, 1793) enhanced fishery in Hiroshima Bay and Hiro Bay, Hiroshima Prefecture, Japan in the geographic region of the Hiroshima Prefectural waters, Seto Inland Sea in the Japanese EEZ. The pre-assessment was undertaken by an SCS Global Services expert team via the fishery client group led by Kurahashijima Kaisan Co., Ltd., operating out of Hiroshima Japan. To our knowledge, this is the first time that the any component of the above mentioned fisheries has undergone pre-assessment against the MSC standard.

The oyster culture operation occurs in three stages, and this would be reflected in three UoAs. For the purposes of the pre-assessment, there is a single set of scores, and where outcomes may differ between the three units, or stages of production, the scores are provided based on the lowest scoring unit (or production stage with highest impact concern). Differences in scoring outcomes between these units is only considered likely when considering localized habitat and endangered, threatened and protected (ETP) species impacts (PIs 2.3.X and 2.4.X).

Table 1. Description of the fishery’s Units of Assessment. Stock/Species Method of Capture/Production Fishing fleet (FCR V2.0 7.4.7.1) (FCR V2.0 7.4.7.2) (FCR V2.0 7.4.7.3)

Hiroshima Bay sub- 1. Spat collection followed by hanging The following operators in population of Pacific culture using scallop shells and final raft Hiroshima Bay and Hiro Bay, cupped oyster suspending culture Hiroshima Prefecture, Seto (Crassostrea gigas Inland Sea, Japan: Kawasaki Thunberg, 1793) 2. Oyster strengthening through hanging on Suisan Ltd., Aya Suisan Ltd., tidal flats Amibun Kaisan Ltd., Yoneda Suisan Ltd., Dairyo Ltd. 3. Outgrowth via raft suspending culture and collection

Fishery Operations Overview

The client for this assessment is Kurahashijima Kaisan Co., Ltd., which is an oyster processing business based in Kure on the shore of Hiroshima Bay in Seto Inland Sea, Japan. Hiroshima Bay is a relatively closed bay and the largest in the Seto Inland Sea. The surface of Hiroshima Bay is 1,043 km 2 and the the average depth is 26 m including shallow water (<10m) surface of 94 km 2. Hiroshima Bay consists of two areas separated by Nasabi strait, the northern area is 210 km 2 with the volume of 2.2 x 10 9m, the southern area is 833 km 2 with the total volume at 2.47 x 1,010m 3. Hiroshima prefecture includes two additional bays: Hiro and Mitsu.

Hiroshima Prefecture and in particular Hiroshima Bay have historically been subject to intensive anthropogenic impacts, many unrelated to the fishery. Dredging and land reclamation led to habitat loss and water quality impacts. After a series of typhoons, the region also suffered repeated red tide

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 4 SCS Global Services Report

episodes. Run-off from the Ohta River affects water quality in the coastal waters. In general, the environmental condition in the southern Hiroshima Bay shows healthier conditions compared to the northern Hiroshima Bay (Okada, 2006). Impacts from these non-fishery related activities do not bear on the scoring of this fishery, but may make habitats and ecosystem components more vulnerable to additional impacts from any fishery operations.

Five different companies (Kawasaki Suisan, Aya Suisan, Amibun Kaisan,Yoneda Kaisan and Dairyo) conducting the oyster raft hanging culture are grouped under the client. Client operations occur in both Hiroshima Bay and Hiro Bay, but not Mitsu. Thus, Mitsu is not considered part of the UoA. In the current fishery, translocation per se of seeds occurs in two occasions (spat collection to seed strengthening process in the shallow tidal plane area and to final cultivation site). Although each company’s geographic positions of spat collection, strengthening and final raft hanging sites vary, all production is conducted within a surface of approximately 50 km x 50 km in Hiroshima Bay area including east coast of Kurahashi Island and Port of Kure in Hiro Bay. The clients belong to several different Fishery Cooperative Associations (FCAs), but undergo cohesive management via a Federation of Hiroshima FCAs comprised of all local FCAs in the area.

Evaluation of Enhanced Fisheries and Scope Considerations

Enhanced Fisheries

In the MSC system, enhanced fisheries undergo additional scope considerations (FCRV2.0 Table 1, see Section 3.1). In addition, enhanced bivalve fisheries are subject to normative modifications to the default assessment tree found in Annex SB of the FCR. These scope considerations and implications of the assessment are detailed in Section 3.1, and key considerations summarized here.

The MSC certification requirements for CAG bivalve fisheries state that Principle 1 does not need to be evaluated in the assessment in cases where translocation is not involved in the cultivation system and there is no evidence that the fishery negatively impacts the parental stock. (Seed translocation is defined here as movement of seed which poses a risk to the genetic diversity of the wild population.)

Based on the oceanographic characteristics of this area (degree of closeness of the Bay, the depth contours, the current force and direction), the limited translocation of the movement of oyster seed that does occur does not pose a risk to neither the genetic diversity of the wild population nor introduction of diseases (FCR Annex SB 2.1.3). See Section 2.2 on Constraints to the Pre-assessment for further discussion regarding ambiguity in the MSC definition for translocation, and Section 3.1 for a deeper discussion of scope considerations.

Therefore, because the fishery was deemed to not undergo translocation, and the assessment team determined via initial evaluation that there was no evidence that the enhanced catch-and-grow (CAG) operation was impacting the parent stock (FCRV2.0 2.1.2), Principle 1 was not scored (SB2.1.4). In addition, because the fishery does not include a dredging operation for harvest, Primary and Secondary species PIs (2.1.X and 2.2.X) were not scored (SB 3.1.1).

Scoping and Traceability

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 5 SCS Global Services Report

The client elected to include only the traditional hanging culture, and exclude single seed culture that is conducted on the same rafts, with a separate target market. While commercially this exclusion may be appropriate, having a type of production that has not been assessed for certification in the same production area (and even the same raft) as the assessed and certified product would complicate MSC Chain of Custody (CoC). CoC must begin where there is a risk of mixing certified and non-certified materials. If all oysters produced together are certified, then Chain of Custody may likely begin at landing or first sale: this would simplify and reduce the cost and burden of the client group for Chain of Custody certification. If there is potential to mix certified and non-certified product during the at-sea production, then CoC may be required to begin at sea, which would imply that the client group members would need to fund annual audits of their traceability systems during at sea production. See Section 5 on Traceability for more on this consideration and recommendation to consider including all forms of production in the UoA.

Pre-assessment Process

This assessment was primarily conducted by Dr. Reiko Omoto (Principle 3) and Dr. Mikio Moriyasu (Principles 1 and 2) under the guidance of SCS Global Services, and project coordination and quality oversight of Mrs. Jennifer Humberstone. See Section 4 for a summary of the team qualifications. The assessment was carried out using the MSC Certification Requirements v2.0, which became mandatory for use by any new fisheries entering MSC assessment after April 1, 2015.

The evaluation process for this assessment began with information gathering on the fishery in question prior to the pre-assessment meeting. Documentation was provided by the client group via a submission process that began in March 2018 and closed in June 26, 2018 prior to the on-site meeting. An on-site meeting was held on June 27 and 28 in Hiroshima-city, 2018, to facilitate the assessment team’s discussion with experts and stakeholders and examination of relevant information. The onsite meeting was attended by Dr Reiko Omoto, and Dr Mikio Moriyasu (through Skype on 28th), representatives from 5 client companies and relevant management organizations. Additional documentation was provided after the on-site audit with a due date of July 4, 2018, and there was additional follow up for clarification thereafter through the report development stage.

Summary of Findings

In the MSC Standard, there are 3 Principles, each comprised of numerous Performance Indicators (PIs) scored individually. PIs scoring under 60 represent pre-conditions, where any single score under 60 would preclude the fishery from receiving a certificate. Performance indicators scoring under 80 (60-75) represent conditional passes, and require the fishery to move performance from the current level to the 80 level over the 5-year duration of the certificate. Scores above 80 are considered ‘unconditional’ passes. There is no maximum on the number of conditions that a fishery may carry and still receiving a certificate: however, scores within each Principle need to average 80, and therefore too many conditions under a single Principle may prevent certification.

Principle 1

The main strength of this fishery is that the spat used for this fishery is collected by using additional substrate (scallop shells), and therefore the settlement of this spat can be considered additional to

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 6 SCS Global Services Report naturally occurring settlement of the wild oysters. This means there is no risk that there would be a negative impact on the size or productivity of the parental wild stock. All of the cultivation activity takes place on scallop shells suspended from rafts at the surface. The oyster farms cultivation process requires no external inputs of food or any chemicals, and production is based on collection of spat from the wild population. In addition, no commercial fishery on Pacific cupped oysters exists in this area. Hiroshima Bay oysters are genetically considered as an independent subpopulation and there is no genetic impact of cultured oysters on the wild population. Translocation per MSC’s definition does not occur. These factors support compliance with MSC scope requirements under Table 1 of FCRV2.0, and make it unnecessary to score Principle 1.

Principle 2

Oyster production is also known to provide for some ecosystem benefits, including habitat creation for fish and micro- and macro-seaweed, which in turn absorb nutrients and filter the suspended organic matter and act as an efficient biological tool to harvest material from the coastal ecosystem to the land. Due to issues relating to carrying capacity and the trophic effects of bivalve filtration/feeding, prolonged culture period of larger oysters may have a negative impact on the availability of plankton and other suspended organic matters.

There is a high intensity of oyster production in the area, and excess production can lead to anoxic sediments and degrade benthic health. Hiroshima Bay is a very closed marine environment with relatively low tidal movement, making the benthic environment more vulnerable to bio-deposition. Accordingly, fallen organic matter, the faeces and pseudo-faeces produced by growing oysters fall onto the sea bed beneath the hanging rafts together with fallen oysters from the cultivation substratum, presents a serious risk to the bottom environment. The accumulation of organic material results in eutrophication (final product of toxic free S 2-) and low oxygen levels, which leads to reduced diversity of the benthic community.

There is evidence of degradation of the benthic habitat in certain raft hanging culture areas and in certain seasons, particularly in the summer, in Hiroshima Bay. Measurements during certain periods of the year or in these areas may exceed sediment quality criterion set by Japan Fisheries Protection Association (JFPA) (i.e. AVS 0.2 mg/g). JFPA provides this maximum AVS (Acid Volatile Sulfur) level at 0.2mg/g of dried sediment as a threshold for marine sediment quality for fisheries species. This issue is more evident in the northern and northwestern portions of Hiroshima Bay, and particularly in Etajima Bay (which is absent of UoA client production sites).

The MSC guidance uses an alternative criterion (Total Free Sulphide (S 2-)) as an indicator to evaluate the extent of benthic impacts. The assessment team did not receive information that allowed clear alignment between the AVS criterion and MSC’s recommendation to support highly robust scoring. See Section 2.2. for a discussion of challenges of aligning the AVS measure and threshold to the MSC criteria and Guidance. Concerns over the extent of habitat degradation creates scoring concerns under PI 2.4.1. More information on how benthic habitat monitoring criteria are selected, and any associated thresholds, is needed to determine with confidence the level of impact in the areas where the client operates. Accordingly, measurements should be taken in or adjacent to client sites, to ensure that all client site impacts are known and able to be assessment.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 7 SCS Global Services Report

Similarly, another key weakness of this fishery is that the team did not receive evidence of management measures that are clearly designed to achieve any scientifically-based outcome regarding habitat protection. Despite scientific modelling research showed the capability of estimating an appropriate number of hanging rafts in Hiroshima Bay at around 10,000 rafts (Hashimoto et al., 2007), the current limit on the number of rafts is not apparently set accordingly. The total raft numbers determined by Fisheries Right Exercise Rules (FRER) have been slowly decreasing due to the decline of the number of enterprises, which may have led management to choose not to impose additional or alternative measures.

Per the 1999 Law to Ensure Sustainable Aquaculture Production, each cooperative should have an Aquaculture Ground Improvement Program. The assessment team received only a proposal, for such a program in Hiroshima, which covered the years 2013-2018. This proposal includes several monitoring criteria and thresholds, but these thresholds often exceed the levels proposed in national guidance. There is no explanation for the thresholds elected, and no clear management action required should these thresholds be exceeded. We consider that evidence of an approved AGIP may provide a basis for higher scoring outcomes under Principle 2 if clear science-based monitoring criteria and precautionary management thresholds are therein defined. Based on information received, there are no clear management measures or strategies in place that include a mechanism to revise regulations on the basis of ongoing monitoring and according to any particular thresholds. Under the MSC Standard, management strategies should be designed to achieve science-based targets, be revised if targets are not being met, and include sufficient monitoring to ensure management can adjust measures as needed. The MSC standard also evaluates UoA impacts on areas defined as “Vulnerable Marine Ecosystems.” In the Seto Inland Sea there are 55 ‘Ecologically or Biologically Significant Marine Areas’ (ESMA) identified by Ministry of Environment of Japan ( http://www.env.go.jp/nature/biodic/kaiyo- hozen/kaiiki/engan/index.html ). There are 10 ESMAs falling in Hiroshima Prefecture and 6 fall in Hiroshima Bay and Hiro Bay (Figure 19), and we preliminarily consider these VMEs. Several of these ESMAs overlap with oyster production. In order to ensure that the UoA meets the MSC requirements for VMEs, more information is needed about the designation of these ESMA sites, and how necessary management measures are determined, including decision-making on whether fisheries such as oyster production can occur.

Finally, although not perceived an area of fishery impact concern, more information on Endangered Threatened and Protected (ETP) species in the region and existing regulations for monitoring and protection will be needed in any full assessment.

Principle 3

For Principle 3, which focuses on governance and fishery-specific management, a key strength in this fishery is the nearshore nature of the operation, which minimizes compliance concerns. The licensing process is clear and the rules around use rights are written explicitly at each Fishery Cooperative Association, which is the local implementation entity under Hiroshima Prefectural Federation of Fishery Cooperative Associations. The community-based management approach and clear structure provides for clear roles and responsibilities, and inherent opportunities for fishers as key stakeholders in consultations.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 8 SCS Global Services Report

An important weakness of this fishery regarding Principle 3 is that there is not a clear statement of short and long-term objectives guiding the overarching governance and fishery specific management system relevant to enhanced fisheries. The Law to Ensure Sustainable Aquaculture Production of 1999 provides a basis for such objectives, which may be reflected locally in an Aquaculture Grounds Improvement Program (AGIP). However, there was not clear evidence that objectives for sustainability outcomes aligned with MSC Principles 1 and 2 exist at the Hiroshima level in any current formal AGIP or other document. This lack of clear long and short-term objectives for the fishery that align with the MSC Standard affects scoring outcomes on PIs 3.1.3 and 3.2.1.

Additional evidence will be needed to support condition-free passes on other scores as well, in particular regarding decision making processes and consultation with non-fishery stakeholders. There must be evidence that decision-making processes clearly utilize best available science and use the precautionary approach. While there is evidence that the fishery management system acts in a precautionary manner pertaining to water quality issues that affect food safety, it is not clear that this approach is applied for broader ecosystem impact considerations and habitat impacts in particular. In addition, it is important that a broad range of stakeholders (including non-fishers) are provided consultation opportunities and input is considered. This is most easily demonstrated through meeting minutes and attendance lists, and rules that govern how decisions are made and how interested parties may provide input into management.

Recommendations

SCS does not recommend that the fishery proceed to full assessment at this time. The primary concern regarding compliance with the MSC standard pertains to habitat impacts and associated management. We consider it possible that additional information may demonstrate that habitat impacts by the client group are within limits as expressed by the MSC guidance for habitat criteria for enhanced bivalve fisheries (FCRV2.0 GSB 1.3.1), and that management measures are adequate. However, at this time there is not enough evidence to support this conclusion.

Based on the information received, there are likewise likely too many conditional passes (Scores below 80) for Principle 3 to pass. With additional evidence as described above, several scores may be increased. It is possible that this evidence exists but was not made available to the team. Document gathering is without doubt the most challenging aspect of an MSC evaluation on the part of the client. When new to the MSC program, documentation requests may not seem clear, and the technical nature of the MSC evaluation may not be suited to the practical and operational expertise of the clients seeking certification. The documentation collection process to support the assessment process was extended beyond the usual duration; and the assessment team was not able to acquire all desired information to the level of detail necessary to support the highest scoring outcomes potentially possible. We recommend that in a future assessment the client group seek support from an independent or government science representative to help identify and obtain some of the needed technical information.

Finally, as noted earlier in this executive summary and elaborated in the Traceability Section, we recommend the client consider the traceability and Chain of Custody implications of excluding single seed culture from the scope of assessment.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 9 SCS Global Services Report

2. Introduction

This report sets out the results of a Marine Stewardship Council pre-assessment of the Pacific cupped oyster ( Crassostrea gigas Thunberg, 1793) raft culture in Hiroshima Bay and Hiro Bay, Hiroshima Prefecture, Seto Inland Sea, Japan. This assessment refers to the Marine Stewardship Council’s (MSC) Principles and Criteria for Sustainable Fishing (the ‘MSC standard’).

Products originating from MSC certified fisheries are eligible to carry the blue-eco-label of the MSC.

The blue eco-label is a symbol that is easily recognized by consumers so that they can be confident that they are purchasing a seafood product that originates from a sustainable source. This pre- assessment will aid in determining whether this fishery may be prepared for an MSC assessment. The report can provide guidance only and the outcome of a full assessment will be the subject of deliberation by an assessment team. A full MSC assessment would not necessarily be influenced by the results of this pre-assessment. In the MSC assessment process, the burden of proof is on the fishery. The assessment team may only consider information that is also available to the public and it is the client’s responsibility to assemble an information package for the assessment team. The MSC assessment process is also a public process where the public is invited to engage in contributing to the assessment.

2.1 Aims/scope of pre-assessment

The principal aim of the pre-assessment is to determine, on the basis of information made available by the client, the position of the fishery in relation to the Marine Stewardship Council (MSC) Principles and Criteria. In particular, the pre-assessment will:

... Outline the key components of the fishery and determine the scope of the main certification ... Identify any obstacles or problems for certification ... Provide a recommendation on whether or not the fishery may be ready to proceed with MSC certification

It should be noted that no verification of information or contacting of stakeholders has taken place at this stage. This would be part of a full MSC assessment which is open to public scrutiny and comment.

This report sets out:

... Species biology and description of the fishery

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 10 SCS Global Services Report

... Geographic range ... Life-cycle and reproduction ... Role of the fish species in the ecosystem ... Stocks in the area ... The Unit of Assessment and Certification in Pre-Assessment ... Historical background of the fishery and research ... Description of fishery management ... Other fisheries in the vicinity ... Disposition of the product ... Stakeholders ... Preliminary evaluation of the fishery against the MSC Principles and Criteria ... Obstacles or problems to certification for the fishery in the form of potential Conditions to meet before entering full assessment ... A recommendation as to whether or not the fishery should move to main assessment at this time ... Description of next steps in the Certification process

2.2 Constraints to the pre-assessment of the fishery By design, a pre-assessment provides only a cursory review of a fishery relative to the MSC standard, producing only likely, but not guaranteed scores, and only at the Performance Indicator level. In addition, the assessment team noted some challenges in applying the fishery-specific information to the MSC Standard that provide additional uncertainty to the findings presented:

1) The MSC definition for translocation is not detailed, and only goes so far as to state: Enhanced CAG bivalve fisheries involving translocations that remove seed stock from source locations should be scored against the stock status, harvest strategy/control rules and tools PIs to ensure that the exploitation of the source seed resource is properly managed. Since it is problematic to assess stock size in relation to biomass or fishing mortality, the RBF may be used. Translocations of native species among different geographic areas may also pose risks to the genetic diversity of wild populations. This issue is most often associated with escapes from salmon net pen culture. However, the life history and genetic characteristics of bivalve populations are very different from those of salmon and other finfish. Salmon populations are highly structured by homing behaviour and adaptations to natal freshwater spawning grounds. Marine shellfish, on the other hand, have widely dispersing planktonic larvae and typically show minimal genetic divergence over broad spatial scales. While there is a low risk for translocations of marine shellfish to affect the genetic integrity of wild populations (depending on the scale of the translocation), it is still necessary for assessment teams to examine each situation and provide rationale and evidence explaining the level of risk if it exists. This will be achieved by scoring the Genetic outcome PI. (GSB2.1.2 ).

On the genetic characteristics of Hiroshima oysters, Nakagawa et al (2010) conducted a genetic study on three Pacific Cupped Oyster groups in Japan (Buzen, Hiroshima and Miyagi) with microsatellite DNA marker and showed that they are genetically independent sub-populations. Sekino et al. (2003) also indicated that the genetic impact of cultured Pacific Cupped oysters have

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 11 SCS Global Services Report negligible influence on the wild population around Japan. There is no known oyster disease occurring in very limited surface in Hiroshima Bay which can be spread by translocation of cultured oysters within Hiroshima Bay and Hiro Bay. In terms of reproductive potential of wild oysters, because the spat used is collected by using additional substrate (scallop shells), the settlement of this spat can be considered additional to naturally occurring settlement of the wild oysters and there is no risk that there would be any impact on the size or productivity of the parental stock. In addition, no commercial fishery on Pacific cupped oysters exists in Hiroshima prefectural waters.

Based on the available information, it was concluded despite of lack of clear MSC definition for geographic range for translocation (or scale of translocation) that the seed stock is grown in the same ‘location’ as source ‘location’, although from seed to outgrowth bivalves are moved geographically within approximately a 50 km radius. There is no physical barrier in between locations (spat collection, cultivation and wild population occur in the same area), genetic divergence is ensured, there has been no apparent effect on the wild population throughout the entire cultivation history, and any adverse effects such as invasive species and diseases are highly unlikely to occur. Therefore, CAB concluded that such a limited movement of oyster seed does not pose a risk to neither the genetic diversity of the wild population nor introduction of diseases (CR Annex CK and GCR Annex GCK), and thus the movement should not qualify as ‘Translocation’ per the understood MSC intent. However, we note that the MSC has recognized the ambiguity in this terminology and may put forward additional guidance that could lead to a reconsideration of whether ‘Translocation’ is occurring. If translocation were deemed to occur, then Principle 1 would require scoring as well as the Translocation PI under Principle 2.

2) MSC requirements states that: “For suspended culture, the scoring of Principle 2 habitat Performance Indicators (PIs) should clearly focus on the benthic impacts of bio-deposition and organic enrichment, and the scoring of ecosystem PIs should clearly focus on issues relating to carrying capacity and the trophic effects of bivalve filtration/feeding (SB 3.1.3.1).”GSB 3.1.3.1 recommends that:

Total ‘free’ sulfide (S2-) in surficial (0-2 cm) sediments is a cost-effective indicator of the organic enrichment effects of suspended shellfish cultivation on benthic communities. In general, there is a consistency between changes in various biological and geochemical variables and total S2-in surface sediments along organic enrichment gradients. Impacts to benthic biodiversity resulting from increased S2-concentrations can be significant and occur even at low S2-levels. The transition from normal to hypoxic conditions has been identified as occurring at 1,500 μM S2-. This threshold represents a transition from “moderate” to “reduced” macrobenthic sulfide concentration and changes in the benthic macrofauna community structure. Anoxic sediments are characterised by S2-concentrations >6,000 μM. A transition within the hypoxic class of sediments at 3,000 μM has been identified where less S-tolerant taxa disappear but more tolerant opportunistic species have not yet increased in abundance. S2-levels above 3,000 μM represent a condition that exerts severe hypoxic stress on benthic community structure and characterise a polluted sediment condition that poses a high risk to benthic habitat.

For the Hiroshima fishery, although the sediment sulfide level is available, the measurement unit (mg/ g of dried sediment) is different from suggested criteria (micro mole). There was no confirmed conversion method available at the time of the pre-assessment, and no means to compare the local criterion relative to the threshold levels put forward in the MSC guidance to understand whether

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 12 SCS Global Services Report

they aimed to achieve comparative levels of impact. Therefore, we used sediment sulfide measurements expressed mg/g of dried sediment available in the Hiroshima prefectural waters relative to local recommended criterion based on these units. These were used together with other parameters such as benthic community monitoring to assess specific farming operations impact on the benthic environment.

It is not a requirement for the MSC assessment to use the measures and units (micro moles) put forward in the Guidance (GSB 3.1.3.1); however, the team did not have resources available to evaluate with confidence how the sulfide levels expressed in mg/g compared to the recommended levels in micro moles for the purpose of scoring.

Scoring of MSC outcome PIs (e.g. PI 2.4.1) depend in part on a level of confidence. A report of the measure of free sulphides as proposed by the MSC guidance, or information that allows for a direct comparison between the habitat impacts expressed in the MSC recommended measure relative to that used in Hiroshima Prefecture, would support higher confidence in scores and potential higher scoring outcomes.

3) Document gathering is without doubt the most challenging aspect of an MSC evaluation on the part of the client. When new to the MSC program, documentation requests may not seem clear, and the technical nature of the MSC evaluation may not be suited to the practical and operational expertise of the clients seeking certification.

The documentation collection process to support the assessment process was extended beyond the usual duration; and the assessment team was not able to acquire all desired information to the level of detail necessary to support the highest scoring outcomes potentially possible. We recommend that in a future assessment the client group seek support from an independent or government science representative, who will more easily grasp and obtain some of the needed information.

2.3 Unit(s) of Assessment

The MSC Requirements (7.4.6., 7.4.7., 7.4.8., 7.4.9) to define the unit of assessment includes "The fishery or fish stock (=biologically distinct unit) combined with the fishing method/gear and practice (=vessel(s) pursuing the fish of that stock)".

The Assessment scope includes a group of fishers/cultivators represented by the client (Kurahashijima Kaisan Co., Ltd) who are practicing Pacific cupped oyster raft hanging culture in Hiroshima Bay and adjacent Hiro Bay, in Hiroshima Prefecture. There is one additional Bay in Hiroshima Prefecture, Mitsu Bay, but this is considered outside the UoA as no client production facilities are located in this area. Adjacent to Hiroshima Prefecture lies Yamaguchi (west) and Okayama (east). Yamaguchi prefecture has no oyster culture, and Okayama prefecture has some oyster culture but the culture site is far from the eastern most culture site (Mitsu bay) in Hiroshima prefecture. Thus, these approximate production sites (Mitsu Bay and Okayama prefecture) were not considered of consequence in this assessment.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 13 SCS Global Services Report

Pacific cupped oyster in Hiroshima Bay is considered to be a genetically distinct ‘Hiroshima Bay’ subpopulation and genetic variability of cultured oysters have remained at the same level as wild oysters (Ha et al., 2006).

All cultivation processes from spat collection, strengthening to final culture are done within the area indicated in (mainly in Hiroshima Bay with 3 locations for strengthening sites in Hiro Bay).

The raft hanging grown oyster fishery has three continuous steps:

1. i.e., oyster spat collection from the plankton of wild Hiroshima Bay subpopulation of Pacific cupped oyster (Ha et al. 2006) using scallop shells as spat collectors,

2. spat collector medium (scallop shells) are rearranged for final hanging and go through two processes i.e., strengthening period of spats/juveniles,

3. then they are hanged for the final growth from the rafts. Throughout the culture process from spat collection to raft hanging growth, the original culture medium (scallop shells) is kept. They are suspended in the water for 1-2.5 years before the adult oysters are harvested.

Unlike other bivalve culture such as scallop and mussel, the oyster culture in Hiroshima Prefecture uses the same material/fishing gear (scallop shell) throughout the entire culture process. Scallop and mussel cultures include two distinct processes, i.e. spat collection and hanging culture, between which culture material (fishing gear) changes from nylon mesh or webbing collector, to pearl/lantern net or ear hanging (scallops) or socking (mussels).

The raft hanging cultured oysters are mainly commercialized for frozen shucked bulk meats. Five companies also do box net culture (called single seed culture) of the same oysters collected from spat collectors and separate individually to cultivate in a box net. This is called ‘single seed culture’ and is targeted to the individual shelled market. Because the client does not plan to market the single seek product as MSC certified it was not included in the scope of the UoA: however, we recommend the client consider including this production to simplify traceability considerations. For more detail on Traceability see Section 5.

Based on the above description, the UoA is appropriately described as Pacific cupped oyster raft hanging culture using scallop shell as spat collector and growing process medium throughout the entire cultivation process in geographically defined Hiroshima Bay and neighboring Hiro Bay. In accordance with existing MSC assessments of enhanced bivalve fisheries, there are three UoAs, one for each stage of production.

Table 2. Description of the fishery Units of Assessment (UoA) (Equivalent to the Unit of Certification (UoC))

Stock/Species Method of Fishing fleet (FCR V2.0 7.4.7.1) Capture/Production (FCR V2.0 7.4.7.3) (FCR V2.0 7.4.7.2)

Hiroshima Bay sub-population Spat collection followed The following operators in Hiroshima of Pacific cupped oyster by hanging culture using Bay and Hiro Bay, Hiroshima

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 14 SCS Global Services Report

(Crassostrea gigas Thunberg, scallop shells and final Prefecture, Seto Inland Sea, Japan: 1793) raft suspending culture Kawasaki Suisan Ltd., Aya Suisan Ltd., Amibun Kaisan Ltd., Yoneda Suisan Ltd., Dairyo Ltd. Oyster strengthening through hanging on tidal flats

Outgrowth via raft suspending culture and collection

Figure 1. Approximate geographic positions of oyster raft hanging culture sites by 5 companies. (Blue circle: Spat collection sites; Yellow square: Strengthening site; Red circle: Raft hanging culture site. A; Amibun Kaisan; a: Aya Suisan; K: Kawasaki Suisan; Y: Yoneda Kaisan; T : Dairyo). Modified from original information provided by Mr. Okami, Kurahashijima Kaisan Ltd.

2.4 Total Allowable Catch (TAC) and Catch Data

Landings are recorded in two manners, with shell and shucked. Shucked meat often is estimated by using the ratio of whole: shucked.

Landings of five oyster culture companies (Kawasaki Suisan Ltd., Aya Suisan Ltd., Amibun Kaisan Ltd., Yoneda Suisan Ltd., Dairyo Ltd.) in Hiroshima and Hiro Bays (UoC) in recent years (2012-2014) with a monthly breakdown between October and May are presented in Table 3. The total landings of five

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 15 SCS Global Services Report companies varied between 820 and 860 t annually. In 2016 the total number of oyster enterprises in Hiroshima Prefecture was 304.

Table 3. Monthly harvest amount of shucked oyster meat (in kg) in the last three years by 5 companies.

For Pacific cupped oyster raft hanging culture in Hiroshima prefecture, no TAC is set. Fisheries Right Exercise Rules authorized the total number of rafts at 12,659 for the 2017 season for Hiroshima prefecture. Based on information found in the Fisheries Right Exercise Rules, the clients operate a total of 784 rafts. Detailed recent landings by type of production (in ton of shucked meat) for the Hiroshima prefecture are as follows (landing records are tallied from July to June of a following year, Hiroshima Prefecture Fisheries Services):

Year 2009 2010 2011 2012 2013 2014 2015 2016 Raw 8,300 7,600 10,000 8,700 9,000 7,300 7,200 7,100 Canned 110 ------Frozen 10,140 10,640 9,970 9,540 10,800 11,050 8,910 10,110 Dried 1,750 1,260 1,130 1,060 1,400 350 990 1,590 Total 20,300 19,500 21,100 19,300 21,200 18,700 17,100 18,800

The team did not receive information that details how production varies based on the proportion of single seed versus traditional hanging culture.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 16 SCS Global Services Report

The landings recorded in Hiroshima prefecture are available from 1952-2014 (Figure 4. The total landings also include the landings of single seed box net cultured oysters (not included in the UoA), but the detailed landing information to differentiate between these production methods was not available. The landings (in shucked meat) are from three major bays (Hiroshima, Hiro and Mitsu) with the estimated percentage in landing weight (in shucked meat) at 64:26:10 based on shelled oyster landings (personal comm. Mr. Okami, Kurahasijima Kaisan Ltd).

Table 4. TAC and catch data TAC Year No TAC Amount N/A Estimated raft hanging Year 2014 Amount 18,700 t cultured oyster production (shucked meat in ton) for UoA* UoA/U oC Production Year 2014 Amount 822 t Total green weight catch by Year (most 2014 Amount 822 t UoC recent) Year (second 201 3 Amount 823 t most recent) *Estimated shucked meat weight in Hiroshima Prefecture, minus Mitsu Bay (which is not part of the UoA)

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 17 SCS Global Services Report

3. Description of the fishery

3.1 Scope of the fishery in relation to the MSC programme

Pacific cupped oyster raft hanging fishery has been found to meet scope requirements (FCR v2.0 7.4) for MSC fishery assessments as it:

... Does not operate under a controversial unilateral exemption to an international agreement, use destructive fishing practice does not target amphibians, birds, reptiles or mammals and is not overwhelmed by dispute. (FCR 7.4.1.1, 7.4.1.2, 7.4.1.3, 7.4.2).does not engage in shark finning, has mechanisms for resolving disputes (FCR 7.4.2.1), and has not previously failed assessment or had a certificate withdrawn. ... does not represent an inseparable or practically inseparable species and is not based on an introduced species (FCR 7.4.3, 7.4.4, 7.4.13-15). ... does not overlap with another MSC certified or applicant fishery (7.4.16), ... And does not include an entity successfully prosecuted for violating forced labor laws (7.4.1.4)

During full assessment, The proposed Unit of Assessment, Unit of Certification, and eligible fishers will be finalized and clearly defined, traceability risks characterized in detail, and the client will give a clear indication of their position relative to certificate sharing (7.4.6-7.4.12).

Assessment of an Enhanced Fishery

There are additional scope criteria for enhanced fisheries in the MSC system (7.4.3. Table 1).

Table 5. Table 1 of FCRV2.0 Scope Criteria for Enhanced Fisheries

A Linkages to and maintenance of a wild stock i At some point in the production process, the system relies upon the capture of fish from the wild environment . Such fish may be taken at any stage of the life cycle including eggs, larvae, juveniles or adults. The ‘wild environment’ in this context includes marine, freshwater and any other aquatic ecosystems. ii The species are native to the geographic region of the fishery and the natural production areas from which the fishery’s catch originates unless MSC has accepted a variation request to include introduced species for the pilot phase. iii There are natural reproductive components of the stock from which the fishery’s catch originates that maintain themselves without having to be restocked every year. iv Where fish stocking is used in hatch -and -catch (HAC) systems, such stocking does not form a major part of a current rebuilding plan for depleted stocks. Note: This requirement shall apply to the “current” status of the fishery. Wild stocks shall be managed by other conventional means. If rebuilding has been done by stocking in the past, it shall not result in an out-of-scope determination as long as other measures are now in place. B Feeding and Husbandry i The production system operates without substantial augmentation of food supply . In HAC systems, any feeding is used only to grow the animals to a small size prior to release (not more than 10% of the average adult maximum weight), such that most of the total growth (not less than 90%) is achieved during the wild phase. In catch-and-grow (CAG) systems, feeding during the captive phase is only by natural means (e.g., filter feeding in mussels), or at a level and duration that provide only for the maintenance of condition (e.g., crustacean in holding tanks) rather than to achieve growth. ii In CAG systems, production during the captive phase does not routinely require disease

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 18 SCS Global Services Report

prevention involving chemicals or compounds with medicinal prophylactic properties. C Habitat and ecosystem impacts i Any modifications to the habitat of the stock are reversible and do not cause serious or irreversible harm to the natural ecosystem’s structure and function. Note: Habitat modifications that are not reversible, are already in place and are not created specifically for the fishery shall be in scope. This includes:  Large-scale artificial reefs.  Structures associated with enhancement activities that do not cause irreversible harm to the natural ecosystem inhabited by the stock, such as salmon fry farms next to river systems.

As described in Section 2.3, the raft hanging grown oyster fishery has three continuous steps:

1. Oyster spat collection from the plankton from the wild environment using scallop shells as spat collectors;

2. Spat collector medium (scallop shell) are rearranged (wire string is changed with stronger wire to support full grown oysters and longer spacer between scallop shells) and moved to tidal plane for strengthening process;

3. The final step is to hang each string of juvenile oysters attached on scallop shells under bamboo rafts for grown process. The full grown oysters will be harvested from the same scallop shells.

Throughout the culture process from spat collection to raft hanging growth, the original culture medium (scallop shells) is kept. They are suspended in the water for 1-3 years before the full grown adult oysters are harvested.

The Hiroshima Bay oyster raft hanging fishery satisfies the Enhanced Fishery criteria as at some point in the production process- Stage 1 above- the system relies upon the capture of fish from the wild environment. (7.4.3. Table 1 A-i); The species are native to the geographic region of the fishery and the natural production areas from which the fishery’s catch originates (7.4.3.Table 1 A-ii) and there are natural reproductive components of the stock from which the fishery’s catch originates that maintain themselves without having to be restocked every year (7.4.3. Table 1 A-iii).

The MSC classifies enhanced fisheries amongst three categories: Hatch and Catch (HAC), such as salmon fisheries using hatcheries to release fish to be caught at sea; Catch and Grow (CAG) fisheries such as bivalve cultivation from wild spat collection, and modified habitat fisheries, which may also qualify as HAC or CAG.

The raft hanging oyster culture is classified as a “Catch and Grow” (CAG fishery) under the MSC scheme. The production system operates without substantial augmentation of food supply, and feeding during the captive phase is only by natural means (7.4.3. Table 1 B-i). In CAG systems, production during the captive phase does not routinely require disease prevention involving chemicals or compounds with medicinal prophylactic properties (7.4.3. Table 1 B-ii). The spat collectors and final raft hanging culture used in this process are unlikely to have irreversible effects on the ecosystem, and no impact on the wild population (7.4.3. Table 1 C-i). Because the UoA

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 19 SCS Global Services Report

complies with all of the above Table 1 requirements, this fishery is eligible for MSC certification as Enhanced Fishery.

Enhanced fisheries are subject to alternative and additional considerations in scoring relative to non- enhanced fisheries. For two common types of enhanced fisheries: HAC salmon and enhanced bivalve (HAC and CAG), the MSC has developed normative modifications. The normative modification for enhanced bivalve fisheries is found in Annex SB.

Under Annex SB, when evaluating a CAG fishery, there are several key considerations that determine the necessary scope of scoring:

Principle 1 Considerations

1) Is there evidence that an enhanced catch-and-grow (CAG) bivalve fishery negatively impacts the parent stock? (SB2.1.2)

2) Is there translocation? (SB 2.1.3)

If the answer to both 1 and 2 are no, then the team may choose not to score Principle 1. If translocation is occurring, there is an additional PI regarding genetic impacts (PI 1.1.3) that must also be scored.

Nakagawa et al. (2010) conducted genetic study on three Pacific Cupped Oyster groups (Buzen, Hiroshima and Miyagi) with microsatellite DNA markers and showed that they are genetically independent sub-populations. Sekino et al (2003) also indicated that the genetic impact of cultured Pacific Cupped oysters have negligible influence on the wild population around Japan. Ha et al. (2006) described that genetic variability of cultured oyster in Hiroshima Bay remained at the same level as the wild oyster and both populations share the same gene. There is no wild oyster harvesting in Hiroshima prefecture. Cultured oysters with a raft hanging system also spawn at least once after 8 months in age (up to three times depending on the culture length), prior to harvest, and therefore also contribute to the recruitment to the wild population.

Translocation impact concerns focus on genetic impacts and disease introduction. The main culture sites in Hiroshima prefecture are concentrated in Hiroshima Bay and Hiro Bay and fall in the geographic area at 50 km radius, and oysters are moved twice during their 3-stage production within this area. Hiroshima Bay is a highly closed marine environment which subject to the same diseases, parasites and invasive species, as such translocation of spats, juvenile and adult oysters within the traditionally existing oyster culture sites does not pose any harm to the wild oyster population. Although the oysters are physically moved during their production the team does not consider translocation requirements to be invoked because the distances are small and within the same ecological environment, and there is no indication of genetic of disease introduction impacts.

Based on the above, the team has determined that the answer to questions 1 and 2 above is no, and therefore Principle 1 need not be scored.

Note: see Section 2.2 regarding the lack of clear guidance from the MSC regarding the definition for translocation, which means there is some chance that if further guidance from the MSC provides a

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 20 SCS Global Services Report

clarified definition and geographic range, it is possible the fishery would be considered to be conducting translocation. In this case, Principle 1 and the Principle 2 PIs on translocation would require scoring.

Principle 2 Considerations

If translocation is considered not to be occurring, and the fishery does not dredge, then Primary and Secondary species PIs need not be scored (PIs 2.1.X and 2.2.X). If translocation is occurring but no dredging, then Primary and Secondary species remain un-scored, but there is an additional PI to score that evaluated impacts of translocation. If dredging occurs, then Primary and Secondary species must be evaluated. In all cases, the remaining Principle 2 PIs are scored: Endangered Threatened and Protected Species (ETP) under PI 2.3.X, habitat impacts under PIs 2.4.X, and ecosystem impacts under PIs 2.5.X.

In this fishery, with no translocation and no dredging, only PIS 2.3.X, 2.4.X and 2.5.X required scoring.

3.2 Overview of the fishery

Hiroshima Bay

Hiroshima Bay is a relatively closed bay and the largest in the Seto Inland Sea (Figure 3). The surface of Hiroshima Bay is 1,043 km 2 and the total volume at 2.69 x 1010 with a high tidal level difference (3.4 m). The average depth is 26 m including shallow water (<10m) surface of 94 km 2. Hiroshima Bay consists of two areas separated by Nasabi strait, the northern area is 210 km 2 with the volume of 2.2 x 10 9m, the southern area is 833 km 2 with the total volume at 2.47 x 1,010m 3.

The tidal current speed is relatively slow compared to other major bays in Japan, especially in the northern and western part. The degree of closure of Hiroshima Bay (total surface1/2*maximum depth)/width of mouth of bay * maximum depth at the mouth of bay) is 2.1 showing the second rank among major bays in Japan following Osaka Bay (3.2). The northern portion of Hiroshima Bay is the most closed environment with the degree of closure at 4.01. There is a high salinity gradient resulting from freshwater run-off, and the water column is always stratified by salinity difference.

The size of the catchment area is 3,743 km 2 and the annual volume of flow of class-A river (Ohta River) is 2.9 x 109m 3. As Ohta river runs through the center of Hiroshima city (population of 1,150,000), various nutrients inflow is inevitable (Okada, 2006; Hashimoto et al., 2009). Seto Inland Sea is the one of the most productive marine environment in Japan for chlorophyll-a.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 21 SCS Global Services Report

Figure 2. Geographic location of Hiroshima Bay (defined by red line) with Northern (contoured by blue line) and southern bay (contoured by orange line).

Historic evolution of oyster culture in Hiroshima Bay

Oyster culture in the bay has a long history (approximately 500 years, believed to have started in the mid 1500’s) and had begun on a tidal flat of estuary by the sowing farming method called ‘Chimaki’. Over time new methods have been introduced such as a cracked farming method called ‘Hibitate’ and simple drooping method called ‘kan-i-suika’. This method continued until the end of 1960’s until the oyster hanging culture method by rafts of bamboo called ‘Ikadashiki Suika’ spread over the Hiroshima Bay after 1970. The raft hanging culture has spread towards the offshore area since 1990.

The fluctuation in annual oyster production (expressed as fresh meat weight FMW) in Hiroshima prefecture since 1960 is shown in Figure 3. The majority of oyster landings in Hiroshima prefecture originate from the Hiroshima Bay area. From 1952 to 1968, oyster production has continuously increased from 5,000 t to 31,000t with the spread of the hanging raft culture. However, in 1969 and 1970, the oyster production decreased to 17-18,000 t due to dense settlement of serpulid worm (Arakawa, 1971). In 1971 the production recovered to 26,000t then slightly decreased 22-23,000t until 1976, due to the decline of the number of oyster producers with increased surface of reclaimed land. Then the production has again started to increase toward 1986 by reaching again closer to the 30,000 t level. Overall, the number of oyster producers in Hiroshima Bay has been declining constantly between 1967 (600) and 2004 (300). Production has declined to around 20,000t towards

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 22 SCS Global Services Report

2005 due to the damaged oyster hanging culture infrastructure from typhoons in 1991, 1999 and 2004 (Okada, 2006), which was then followed by a frequent incidence of red tide. In recent years, implementation of production controls resulted in the total production level fluctuating around 20,000t, which corresponds to 55% of total national production.

Spat collection and raft hanging culture sites have been changed with time. Until the 1970’s, spat collection was done on the tidal flat. Since then, producers were obliged to move out due to development of coastal area (increased surface of reclaimed land) towards northern shore of Hiroshima Bay where production remained focused until the 1980’s. However, due to frequent red tide and anoxic water mass, the spawning oyster rafts were moved offshore and spat collection rafts followed accordingly. The current geographic distribution of oyster hanging rafts in Hiroshima Bay and Hiro Bay is shown in Figure 3.

Figure 3. Historic fluctuation of total oyster landings (shucked meat weight) in Hiroshima prefecture.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 23 SCS Global Services Report

Figure 4. Distribution of oyster hanging culture sites in Hiroshima (and Partial Hiro Bay) (Regional Coast Guard, 2018)

Pattern of oyster raft hanging culture in Hiroshima Bay and surrounding area

The basic method of oyster culture in Hiroshima Prefecture can be summarized as follows: Spat collection – Strengthening tidal flat site – Raft hanging culture (changing wire) – Growth process (deep or direct hanging) – Harvest. The timing and duration of each step differ and the pattern of oyster culture in Hiroshima Bay is classified into four patterns according to the length of the culture period (Figure 6).

In the 1-year-culture method called "Waka", oyster spats are collected in the summer, grown in the winter, and harvested before the following summer (less than 12 months old). This method was used between 1943 and 1968. In the 2-year-culture methods called "Yokusei" and "Ikisu", oyster spats are hardened on intertidal racks for 2 to 3 months and 6 to 10 months, respectively, after spat collection in summer, grown under rafts over the next summer, and harvested during the following harvest season (13-23 months old). In the 3-year-culture method called "Nokoshi ", oyster spats are hardened by the same method as in the "Yokusei" method, grown over two summers, and harvested during the following harvest season (25- 35 months old). ‘Furuse’ method has long period (up to 12 months) of strengthening process followed by final hanging process of up to 16 months. The combination of these culture methods in Hiroshima Bay had changed as follows: In the 1960s, oysters were produced by a combination of the 1 and 2-yearculture methods. Only a 2-year-culture method was used from the 1970s to the beginning of the 1980s. In the latter half of the 1980s, the 3- year- culture method has been introduced in addition to the 2-year-culture method, and its ratio has increased after the consecutive outbreak of shellfish poisoning. Current production may employ any of the above culture durations, and changes annually depending on market demand.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 24 SCS Global Services Report

Figure 5. Simplified summary of oyster culture methods used in Hiroshima prefecture. (modified from information leaflet prepared by Hiroshima City Agriculture and Fisheries Promotional Center).

Oyster culture process

In Summer, newly hatched oysters settle down on hard substrate after 2 weeks of planktonic life, during which spat collection is conducted (mid-July-mid-September). For spat collection, scallop shell is used as a hard substrate for settlement. Large scale spat collection is accomplished by suspending wires ("Ren') of 1 to 2 m length, which bear many scallop shells, from a bamboo framework driven into the bottom. The wires are hung across the frame in half, thereby forming a double collector string of about 1 m or less in length. The wire is No. 16 galvanized, made especially for oyster farming, and is generally called "half-steel" wire. The collectors are pierced and strung on the wire about 1-2 cm apart with bamboo or plastic spacers between the shells (Figure 6, Figure 7, Figure 8).

When oysters reach seed size the collectors are removed from the collecting racks, unstrung from the wires, cleaned, and restrung on new, heavier wires (No. 13) with bamboo or plastic spacers about 20 cm in length; then moved to tidal zone (rack method). Timing of transferring the spats to strengthening site depends on each fisher, but general criterion for transfer is when minimum of 100 spats on one side are settled. The spat collection lasts about 7-10 days and at the end of collection process the spats reach at approximately 0.1- 0.3 mm in shell length (pers. Comm. Mr. Okami, Kurahasijima Kaisan Ltd.).

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 25 SCS Global Services Report

Figure 6. Image of spat collectors in the water (from Hiroshima Prefectural Agriculture, Forestry and Fisheries Promotional Centre, Fish Division. http://www.haff.city.hiroshima.jp/info/suisansc/

Figure 7. Image of collector deployment (A) and a part of 'Ren' (B) (from Fujita, 1970)

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 26 SCS Global Services Report

Figure 8. Pre-immersed scallop shells prepared for spat collection (courtesy of Mr. Okami, Kurahasijima Kaisan Co. Ltd.)

The rack method is a shallow water modification of the hanging method and has been used for mostly for hardening of young oysters. Pacific oysters grown in suspended culture are commonly 'hardened' for a period of up to three or four months prior to final culture (Figures 9 and 10). The process of hardening allows daily periods of exposure to air and generally takes place in the intertidal zone or in shallow water where tidal range is sufficient. Aerially exposed oysters have higher meat content and better keeping qualities once harvested. On the structure of the rack, poles (usually bamboo, 2-5 m long) are driven into the ground. These vertical poles are connected by horizontal poles at any spacing desired. Usually, the vertical poles are aligned with each other, in both directions, with horizontal cross bracing. The wire ‘Rens’ are hung from these horizontal poles. The length of wire ‘Ren’ depends on the depth of the water.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 27 SCS Global Services Report

Figure 9. Oyster strengthening site on the tidal plane (coutesy of Mr. Okami, Kurahashijima Kaisan Co., Ltd.).

Figure 10. Schematic presentation of strengthening oyster rack (from Fujita, 1970).

Once oysters are hardened, they are moved to the final culture sites by means of raft method. The rafts used for oyster farming are standardized in size and construction; they are made from 10-15 cm diameter bamboo or wood (cedar) poles (lashed with wire) in two layers at right angles to each other and with the poles 30-60 cm apart. The standard raft in the Hiroshima Bay is about 16 X 8 m in size and carries 500-600 wire ‘Rens’. The rafts are buoyed by styrofoam cylinders about the size of a 50 gallon drum. As the growth of the oyster proceeds and their weight increases, additional floats are added as required. The styrofoam floats are usually encased in a large polyethylene bag to protect them from barnacles and other organisms (Figure 11, Figure 12). Depending on the market destination, the oysters are harvested in spring or winter (Figure 5, Figure 13).

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 28 SCS Global Services Report

Figure 11. Raft structure for oyster hanging culture in Hiroshima prefecture (from Fujita, 1970). a: top view, b: lateral view in the water.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 29 SCS Global Services Report

Figure 12. Schematic presentation of oyster 'Ren' for final hanging culture process. (from Fujita, 1970).

Figure 13. Oyster harvest (courtesy of Mr. Okami, Kurahashijima Kaisan Co., Ltd. )

Oyster rafts are secured with wooden piles (not treated chemically) put in the sediment. No bottom sediment digging is involved in securing the piles. The rafts stay in place after the oyster harvest, therefore they are quasi-static infrastructure for the oyster culture. However, in special case such as typhoon, red tide and anoxic water mass, the rafts may be moved to another location.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 30 SCS Global Services Report

3.3 Principle One: Target species background

As described in Section 3.1, because this is a CAG fishery that does not undergo translocation (per the MSC definition and intent), Principle 1 does not require scoring. This is because it is understand that this type of enhancement operation should not have negative effects on the wild population and movement of the oysters is minimal and within a single bay, and thus does not qualify as translocation. This conclusion has been supported with research specific to this UoA. A background on Principle 1 characteristics is still included for thoroughness below.

Biology of Pacific cupped oyster

Figure 14. Image of Pacific cupped oyster (Picture from GB Non-Native Species Secretariat).

The species of oyster which are commercially valued in Japan are: Crassostrea gigas ("Magaki"), Ostrea denselamelIaris ("Itabogaki"), Crassostrea rivularis ("Suminoegaki"), Crassostrea nippona ("Iwagaki"), Ostrea edulis (Europian oyster), Crassostrea angulata (Portuguese oyster) and Crassostrea virginica (American oyster). Among these valuable species, Crassostrea gigas is the most important one in Japan and the only species grown in Hiroshima.

The Pacific cupped oyster is a plankton feeder and has a solid shell, inequivalve, extremely rough, extensively fluted, and laminated; left (lower) valve deeply cupped, its sides sometimes almost vertical, the right (upper) valve flat or slightly convex sitting withing left; inequilateral, beaks and umbones often overgrown; tending to be oblong in outline but often distorted and very irregular. The shape of the shell varies with the environment. Colour usually whitish with many purple streaks and spots radiating away from the umbo. The interior of the shell is white, with a single muscle scar that is sometimes dark, but never purple or black.

Pacific cupped oyster is an estuarine species, preferring firm bottom substrates where it leads a sedentary existence attached to rocks, debris and shells from the lower intertidal zone to depths of 40 m. However, these oysters can also be found on mud and sand-mud bottoms. Optimal salinity range is between 20 and 25‰ although the species can occur at salinities below 10‰ and will

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 31 SCS Global Services Report

survive salinities in excess of 35‰, where it is unlikely to breed. It also has a broad temperature tolerance, with a range of –1.8 to 35 °C.

Pacific oysters are protandrous hermaphrodites, most commonly maturing first as males. In areas with good food supply the sex ratio in older oysters shows a predominance of females, whereas the reverse is true in areas of low food supply. Females can revert back to male when food supply is limiting as, for example, when they are severely overcrowded. Gametogenesis begins at water temperatures around 10°C with salinity levels between 15 and 32‰ and is rarely completed at higher salinities. Spawning generally occurs synchronously at temperatures above 20 °C and rarely at 15–18 °C. The species is very fecund with 8–15 cm length females producing between 50–200 million eggs in a single spawning. Larvae are planktotrophic and are distributed throughout the water column. They measure 70 µm shell length at the prodissoconch I stage and the early stage veligers are <120 µm shell length. When larvae are close to settlement, darkly pigmented 'eye-spots' develop, which are clearly visible through the transparent shell valves. A foot also develops at this stage and the animal settles out of the water column to crawl, using the larval foot, to seek a suitable settlement location for attachment when 300–340 µm. This may take two to three weeks, depending on water temperature, salinity and food supply, during which time the oystesr can be dispersed over a wide area by water currents. As in other oyster species, mature Pacific cupped oyster larvae attach permanently to the chosen substrate by a cement secretion from a gland in the foot. Once settled they metamorphose into the juvenile form. Their growth rate is very rapid in good conditions; market size being attained in 18 to 30 months.

Target stock status

There are two aspects to stock status for the enhanced fishery i.e. stock within the cultivated system and the wild stock outside that system. As noted above, genetic studies showed that Hiroshima Bay Pacific cupped oyster is an independent sub-population, and that the cultivated oyster has a negligible genetic impact on wild population. Cultured oysters with a raft hanging system also spawn after 8 months in age, prior to harvest, and therefore also contribute to the recruitment to the wild population. The total annual harvest of oyster in Hiroshima prefecture is around 20,000 t and each of the cultivated oyster has the potential to produce around 40-50 million gametes per year, so the reproductive output of the oyster stock in cultivation is astronomic. There is no wild Pacific cupped oyster fishery in Hiroshima prefecture and no stock status is available. The oysters settle on either soft or hard substratum shallower than 10m in depth and grow (Figure 15). The relatively shallow water environment in Hiroshima Bay and surrounding area provides a vast habitat to wild oysters. Although no formal assessment has been conducted on wild oyster in Hiroshima prefecture, there is no concern on the status of Pacific cupped oysters expressed by research community.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 32 SCS Global Services Report

Figure 15. Image of wild oysters growing along the port structure in Hiroshima Bay (from Hirata, 2008)

Management unit

The Hiroshima oyster culture area is divided into 293 oyster production sites/permits, within which 124 sites are specifically designated for strengthening. These sites are from Hiroshima Bay, Hiro Bay and Mitsu Bay (about 50 km from the center of Hiroshima Bay and outside the UoA: Figure 16). The current estimated surface of oyster culture is 46.5 km 2 as of 2002 (Hirata, 2008). The number of oyster hanging culture enterprises has been decreasing since the early 1970’s when the total number of oyster enterprises was over 600 (Figure 16). The number of enterprises is 278 in 2017, representing less than half of the highest number observed in the 1960’s (Table 6 and Figure 16).

Figure 16. Historic fluctuation of the oyster culture enterprises in Hiroshima Bay (Okada, 2006).

Landings data are aggregated by Fisheries Cooperative/by city (Tables 6 and 7). In terms of the number of landings, Hiroshima Bay and Hiro Bay including Ohtake, Hatsukaichi, Hiroshima, Kure and Etashima cities represent about 95% of total landings in Hiroshima Prefecture.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 33 SCS Global Services Report

Table 6. Number of oyster hanging culture enterprises in Hiroshima Bay and Hiro Bay (data provided by Hiroshima Prefecture, Fisheries Section).

City 2013 2014 2015 2016 2017 Ohtake 20 20 19 20 20 Hatsukaichi 63 63 61 59 59 Hiroshima 76 76 80 71 71 Kure 65 65 65 63 62 Etashima 63 63 64 67 66 Total 287 287 289 280 278 No data for Higashi Hiroshima and Takehara.

Table 7. Cultured oyster landings (in ton of shucked meat) by city in Hiroshima Prefecture (including Mitsu Bay).

City 2011 2012 2013 2014 2015 Ohtake 818 863 834 1,031 1,096 Hatsukaichi 3,150 3,159 3,098 3,413 3,044 Hiroshima 4,144 4,254 3,937 4,397 3,898 Kure 4,785 5,186 4,827 5,326 4,672 Etashima 4,612 5,149 4,727 5,062 4,669 Higashi Hiroshima 710 984 867 823 713 Takehara 181 186 137 180 300 Total 19,407 20,639 19,188 21,098 19,322 NB: Approximate shucked meat weight was estimated by Mr. Miyabayashi (Hiroshima Fisheries Oceanography Technology Center) based on the Agriculture, Forestry and Fisheries Statistical yearbook. Estimation based on ratio of shelled weight to shucked meat weight.

For public health control purposes only, the Hiroshima oyster production areas are divided into seven groups belonging to three bays: Hiroshima Bay (further sub-divided into 4 zones: northern Hiroshima Bay (N), western Hiroshima Bay (W), Central Hiroshima Bay (C) and southern Hiroshima Bay (S)); Hiro Bay (K); and Mitsu Bay (M) by Hiroshima public health center (Figure 16). Mitsu Bay is not considered part of the UoA.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 34 SCS Global Services Report

Figure 17. Oyster raft hanging culture site in Hiroshima prefecture (upper) and raft hanging oyster culture management area (lower). (from Hiroshima Oyster Wikipedia (https://ja.wikipedia.org/wiki/%E5%BA%83%E5%B3%B6%E3%81%8B%E3%81%8D)

Regulations

There is no clearly established management rule to limit production nor a landing/harvesting limit in Hiroshima Prefecture. The number of rafts by licensed operators is determined in the Fishery Right Exercise Rule, but there is no indication that the number of rafts is limited to any science based target. The size and structure of raft are regulated in each culture site by the Cooperative Fishery Right Exercise Rule as the first category grid fishery. The structural regulation of the raft differs slightly from one site to another, but the size of the raft is set at 22 (21.8) m in length x 10 (9.1) m in width and the maximum number of lateral bamboo rod is set at 43. The maximum number of hanging wires is set at maximum of 14-16 per lateral supporting bamboo rod, the maximum number of scallop shell by strings is set at 36-40 throughout the prefectural waters. In certain area the total length of a hanging ‘Ren’ at maximum of 9.1m and the length of spacing bamboo tube at minimum of 24.2cm. However, there is no clear evidence of verification nor enforcement effort to ensure compliance with these measures.

It was suggested that production capacity of raft hanging oyster culture in Hiroshima Bay is around 9,000-10,000 rafts in 1999 (The Asahi Shinnbun, November 25, December 16, 1998). The suggestion was not supported with a clear scientific rationale, but urged management to decrease the total

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 35 SCS Global Services Report

number of rafts by 10% (at 14,500 in 1998) within 1 year. That year the Hiroshima Oyster Emergency Measure Liaison Conference set a target for the reduction of total number of raft by 30% (approximately 10,000), targeted to be realized within 5 years i.e. by 2003 (Hiroshima Prefecture, 2000). However, this Conference did not result in a regulatory action. Though this target raft number was not a explicitly science-based value when proposed, a later study (Hashimoto et al., 2007) confirmed that appropriateness of this target with ecological modelling As of 2017, total raft number in Hiroshima prefecture is at 12,659, representing only 13% reduction from the 1999 level.

3.4 Principle Two: Ecosystem background

Scope of P2

The analysis for P2 is made considering that the UoC (raft hanging oyster culture exercised by 5 companies in Hiroshima Bay and Hiro Bay) is a part of the larger UoA (raft hanging oyster culture exercised by 342 enterprises in Hiroshima prefecture). UoC excludes genetically modified (triploid) oysters and single seed hanging box culture.

As explained in Section 3.1, because this fisheries is an enhanced bivalve fishery, it is subject to different considerations than a fishery that does not feature enhancement. Per Annex SB, where an enhanced CAG bivalve fishery does not involve dredging, Primary and Secondary Species do not require scoring. Primary and Secondary species are otherwise scored in PIs 2.1.X and 2.2.X, and evaluate the species other than the target that are affected in fishing operations. Primary species are those managed with reference points, and Secondary are species that are not managed with reference points. These species may be considered ‘Main’ or ‘Minor’ based on the proportion of the total catch (including the target species) they comprise. The threshold for a Main species is 5% of th total catch by weight.

The remaining Principle 2 PIs regarding ETP species, habitat and ecosystem impacts are scored as per the default normative assessment tree.

Cumulative Impacts

To ensure that the cumulative impact of all MSC fisheries is within sustainable limits, a UoA assessed against standard V2.0 may need to consider the combined impact of itself and other overlapping UoAs. This determination will include other UoAs assessed against earlier versions of the CR (e.g., V1.3). UoAs assessed using default trees prior to CR v2.0 would not have to make this evaluation.

V2.0 of the MSC standard requires that any fishery under assessment that has spatial overlap with the Units of Assessment of any other MSC certified fisheries, be explicitly considered in Principle 2.

‘Overlapping UoAs’ are assessed at different levels depending on which PI is evaluated. For P2 primary species, teams need to evaluate whether the cumulative impact of overlapping MSC UoAs hinders the recovery of ‘main’ primary species. For secondary species, cumulative impacts only need to be considered in cases where two or more UoAs have ‘main’ catches that are ‘considerable’, defined as a species being 10% or more or the total catch. For ETP species, the combined impacts of MSC UoAs needs to be evaluated, but only in cases where either national and/or international requirements set catch limits for ETP species.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 36 SCS Global Services Report

All of the requirements for cumulative impacts for species are applicable to their respective Outcome PIs. For habitats, in contrast, cumulative impacts are evaluated in the management PI (2.4.2). The requirements here aim to ensure that vulnerable marine ecosystems (VMEs) are managed such that the impact of all MSC UoAs does not cause serious and irreversible harm to VMEs.

Non-Target Species Impacts

Although not subject to scoring as a CAG operation without translocation or dredging, the assessment team still inquired about non-target species interactions.

Discussion during the pre-assessment meetings indicated that no species other than oysters are retained as a commercial catch from either the spat collectors or the cultivation of adult oysters. Oyster farmers and biologists indicated that the abundance of species other than oysters on both the spat collectors and raft hanging was generally low, although heavy fouling by serpulid worm (Annelida, Polychaeta) and hydrozoa spp. has been a problem in certain period in the past. The main species found on the oyster collectors is blue mussels ( Mytilus galloprovincialis ), in negligible quantities as the spawning period of blue mussels in Hiroshima Bay is March-May (in cold water this spawning season may extend further) (Kusunoki, 1968), whereas oysters spawn in July and August/September. Therefore, spat collection does not occur during mussel settlement and settlement of mussel spat on the oyster collector likewise does not occur.

Arakawa (1973) described historic transition in abundance of fouling species on raft hanged oyster culture system. The main fouling species are marine bristle worm ( Hydroides norvegica ), Hydroid (Tubularia spp. and Halecium spp.), sea slug ( Sakuraeolis enoshimensis ), medusa worm ( Loimia medusa ), and Pinnotherid crab (Tritodynamia horvanthi ). Saito et al (2008) studied stomach contents of fish preying upon cultured oysters and fouling species. They categorized species found in fish stomach contents into algae, Ascidians, Bryozoan, Polychaetes, crabs, small crustaceans, barnacles and mussel. Larger non-target species (e.g. Ascidians, blue mussel) and those that are not attached to the oyster or scallop shells are discarded at sea as the spat collectors are rearranged for strengthening process. During the raft hanging process, fouling species are separated from the catch when it is processed on shore. None of fouling species of oyster hanging raft system has commercial value.

Pacific cupped oyster is species in scope, managed (by the total allowable raft number) and resilient consisting 100% of UoA catch, thus considered as primary (main) species, without any secondary species.

Endangered, Threatened and Protected Species

ETP species include species recognized by international agreements specified under FCRV2.0 SA3.1.5.2, including CITES Appendix 1 and out-of-scope species classified as Vulnerable, Endangered, or Critically Endangered by the IUCN. In addition, species recognized under national legislation are also qualified as ETP.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 37 SCS Global Services Report

The Red List of Threatened Species of Japan (http://www.env.go.jp/en/nature/biodiv/reddata.html) lists a number of demersal marine or migratory fish species as critically endangered or endangered, and these species are recognised by the Japanese Law for the Conservation of Endangered Species of Wild Fauna and Flora (1992). We note that the Red List exists at different levels of governance with some differences in species listed. The team focused on local listings for this pre-assessment.

In Seto Inland Sea, a marine mammal (Cetacea, Delphinoidea ), finless porpoise (‘Sunameri’) Neophocaena phocaenoides (G. Cuvier, 1829) that appears in Hiroshima Bay is listed as a threatened (vulnerable) species by IUCN Red List ver 3.1 (2001). This species is also registered as class-I endangered species by Hiroshima prefecture ( www.pref.hiroshima.lg.jp/soshiki/47/sunameri.html ). However, this species is not classified as threatened species by Ministry of Environment of Japan.

The Act on the Protection of Fishery Resources (Agriculture and Forestry order no 4, Article 1, June 16, 1952) prohibits its exploitation without special permission by the Minister of Agriculture and Forestry (MAFF). In addition, the area around Awano Island in Hiroshima Prefecture was designated as a natural memorial for Finless porpoise migration area, the only designation among cetacean species in Japan. As the sighting of this species is limited to the less polluted oceanic environment zone, this species is considered as indicative species for the advancement of revitalization of Seto Inland Sea.

The sand eel is the finless porpoise’s preferred pray and Suenaga et al. (2001) described that sand eel juvenile abundance decreased by 17% due to sand and gravel harvesting which resulted in the depth increase by 20-40 m. the average number of macro benthos varies 0-100/0.1m 2, the number of macro-benthos species 0-40/0.1m 2 and the diversity index 3.0> (Ministery of Environment, Government of Japan).

Ogawa (2016) indicated that increased water pollution and eutrophication due to chemical industrial development, surface of reclaimed land as well as industrial collection of sea sand and gravel in Seto Inland Sea since the 1960’s may have directly (habitat destruction and pollution) and indirectly (by decline of preferred prey i.e. sand eel) impacted the population of finless porpoise in the past. According to the comparison of population estimates of finless porpoise between the 1970’s and late 1990’s suggested the declining population size in Japan. However, Ogawa (2016) suggested the possibility that the population of finless porpoise in the Seto Inland Sea has been recovering in recent years. The formulation of Seto Inland Sea Environmental Protection Extraordinary Measures Law (1973), and Special Measures Law (1978) created to deal with water pollution in Seto Inland Sea, and the prohibition of sea sand harvesting implemented in coastal prefectures of Seto Inland Sea, seem to be positively reflecting on the increasing finless porpoise population. Sighting records organized by Ministry of Environment with participation of publics and marine transportation companies show (Figure 20 ) the occurrence of finless porpoise around Itsukushima (north-eastern part of Hiroshima Bay), Hiro Bay where oyster culture rafts are placed but also around Yashiro Island (southern-most part of Hiroshima Bay) where oyster culture is not conducted.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 38 SCS Global Services Report

Figure 18. Sighting records of finless porpoise in Seto Inland Sea (Ministry of Environment) SF: Sighting frequency per year.

The cetacean stranding record database (National Museum of Nature and Science) contains 2,657 stranding cases of finless porpoise including similar species around Japan (oldest record in 1886). Of these, 7 cases of stranding occurred in Hiroshima Bay (4 cases in active oyster culture areas and 3 cases outside the oyster culture area). There has not been any record of entanglement with the oyster raft hanging system, there are no loose floating elements, and the size (less than 2m in length) and shape of finless porpoise help to avoid entanglement. As such evidence indicates that oyster rafts are not a causal factor for the stranding of finless porpoise.

Habitat

Oyster culture and marine habitat

Commonly Encountered Benthic habitat characteristics

For suspended culture, the scoring of Principle 2 habitat PIs should clearly focus on the benthic impacts of bio-deposition and organic enrichment (GSB 3.1.3.1).

The average depth of Hiroshima Bay is 26 m with muddy sediment plain with fine-flat solitary sedimentary/sessile epifauna. The basic geological feature in Hiroshima Bay is granite and the rocky shoreline continues underwater and is then buried under a sandy-muddy bottom. In the coastal shallower waters up to 6 m, there are some eelgrass ( Zostera spp .) beds observed on sandy-muddy bottom (Yoshida et al., 2013). There is not much exposed bedrock in Hiroshima Bay and cobbles at various sizes are piled forming the base for brown seaweed such as Phaeophiceae spp. The sandy- muddy bottom is also preferred by seaweed species such as Salgassum spp. The seagrasses were found up to 14m in depth. Beyond this depth the bottom sediment is sandy-muddy bottom without any significant seagrasses (Terawaki et al., 2001). The benthic habitat beneath the oyster raft culture sites in Hiroshima and Hiro Bays are mainly muddy (clay composition higher than 70%), (Ministry of Environment, Government of Japan), and fish species were not observed between the end of oyster Rens to the bottom, except for some species that prefer rocky habitat and have been observed to

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 39 SCS Global Services Report

accumulate near the oyster culture materials on the bottom (Sakai et al., 2013). In general, the sediment in Hiroshima Bay sees high levels of primary production-origin organic matters with high water content ratio forming floating mud. Conversely, in the river delta area (mouth of Ohta River), organic origin mud is at the advanced decomposition phase through repetitive water mixture (Imagawa et al., 2009).

Vulnerable Marine Ecosystem (VME) In the Seto Inland Sea there are 55 ‘Ecologically or Biologically Significant Marine Areas’ (ESMA) identified by Ministry of Environment of Japan ( http://www.env.go.jp/nature/biodic/kaiyo- hozen/kaiiki/engan/index.html ). There are 10 ESMAs falling in Hiroshima Prefecture and 6 fall in Hiroshima Bay and Hiro Bay (Figure 19).

Several of these ESMAs overlap with oyster production. In order to ensure that the UoA meets the MSC requirements for VMEs, more information is needed about the designation of these sites, and how necessary management measures are determined, including decision-making on whether fisheries such as oyster production can occur.

Figure 19: Ecologically or Biologically Significant Areas in Hiroshima Bay and Hiro Bay, Seto Inland Sea.

13608; The mouth of Kurose River (3 km 2 including 0.2 km 2 tidal plane and 0.132 km 2 seaweed habitat) Characteristics: Habitat of a sub-threatened species 1 Gymnogobius cylindricus. Shigeta

1 Note: According to the unified classification on the red List by Ministry of Environment of Japan for Hiroshima prefecture:

Threatened species I: facing extinction Threatened species group II: Increasing risk of extinction Sub-threatened species: Low actual risk of extinction but possibility of being classified as threatened species depending on the changes in habitat conditions

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 40 SCS Global Services Report

(2008) mentioned that this species inhabit in a tunnel of sand shrimp ( Crangon spp.). Oyster culture occurs in this area.

13701: eastern coastal zone of Kurahashi Island; 18 km 2 including 0.8 km 2 tidal plane, 0.8 km 2 seaweed habitat, natural shoreline 22.9 km (43.8% of total shore line). Characteristics: Chosen based on EBSA criteria. Oyster culture occurs in this area.

13702: Mouth of Ohta River and Yawata River (27 km 2 with 0.148 km 2 tidal plane, 0.3 km 2 seaweed habitat, natural shore line 1.1km (3.6% of total shore line). Characteristics: Habitat of sub- threatened 2 species Oncorhynchus masou . Oyster culture occurs in this area.

13703: Miyajima (37 km 2 including 1.4 km 2 tidal plane, 1.4 km 2 seaweed habitat, natural shore line 57.4 km (79.3% of total shore line). Characteristics: Habitat of threatened species Dragon fly (Orthetrum poecilops miyajimaense). Miyajima dragon fly protection and management liaison Council (2008) described effort in protection of the species and positive results obtained. Oyster culture occurs in this area.

13704: Mouth of Nishiki River (32km 2, tidal plane 2.3 km 2, seaweed habitat 1.9 km 2, Natural shore line 0.1 km (0.8% of total shore line). Characteristics: Habitat of sub-threatened 2 species: Gymnogobius scrobiculatus, and sub-threatened species Oncorhynchus masou and Leucopsarion petersii. No oyster culture occurs in this area .

13705: Eastern shore of Suoh Oshima (236 km 2, tidal plane 0.142 km 2, seaweed habitat 3.5 km 2, natural shore line 189.6 km (61.3% of total shore line). Characteristics: Pronounced seaweed habitat with high biological diversity. No oyster culture occurs in this area.

Characteristics and Impacts of Oyster Culture

The impacts of the oyster culture on benthic habitat have been considered at each respective stage of culture.

Spat collectors

Spat collectors (scallop shells) are deployed by using the same raft for final hanging culture and these rafts are installed quasi-permanently. The physical installation of raft is likely to have only limited impacts on habitats because the rafts and related gears employed are static and once deployed the anchors and main supporting rope systems are left in place unless repairs or other remedial action is required such as avoiding damage by a typhoon.

Spat collectors are hauled when spat reaches approximately 15 mm in shell size. As the oysters are small, the total biomass of oyster spats is unlikely to create substantial quantities of faecal or pseudo-faecal material. Therefore, the risk of spat collection causing negative impacts on benthic habitats is low.

Strengthening (Hardening) Hanging

Once the required quantity of spat are collected on the scallop shells, scallop shells are rearranged by inserting a spacer between shells and put through a stronger wire so that whole full grown oysters can be handled later. The newly rearranged oyster shells are then put in the intertidal zone

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 41 SCS Global Services Report

to strengthening process. As the straightening process is exclusively done in intertidal zone, feeding and excretion are slowed down by limiting during the period when the hanged oysters are under the water. Hirata (2014) described the strengthening site as tideland that is always maintained aerobic environment, which prevent the fishery/habitat environment from deterioration.

Raft hanging cultivation

The final stage of oyster cultivation takes place on the same substratum used for spat collection i.e. scallop shells hung under the rafts. In this final stage there are some possible impacts of oyster raft hanging culture to the marine habitat: 1) physical setting of rafts in the sea (anchoring system), 2) falling inorganic matter such as oyster hanging wire strings, bamboo rods, plastic spacers etc. and 3) falling organic matter including oyster itself from the raft. Impacts concerns are greater at this stage relative to other stages because the oysters are of higher biomass and producing greater waste volume.

As in the anchoring for spat collection, the physical impact of anchors and other raft fixation materials on the benthic habitats is likely to be negligible as the surface occupied by the system is negligible and once it is fixed the raft will be moved only for emergency (avoiding typhoon and red tide and other environmental problems).

As noted above, there are two types of fallen matter with different impacts: decomposable matters such as the faeces and pseudo-faeces as well as live oysters (when dead) and non-decomposable matter such as oyster shells and raft system materials such as scallop shell, plastic pipes, bamboo rods, hanging wires. The former may cause biochemical change of the bottom habitat including total phosphate, total nitrate, total sulfur, total dissolved oxygen, chemical oxygen demand, and biological oxygen demand. The latter may result in physical modification of the bottom structure.

This organic matter- the faeces and pseudo-faeces produced by growing oysters fall onto the sea bed beneath the hanging rafts together with fallen oysters from the cultivation substratum- presents the most serious risk to the bottom environment. The accumulation of faeces and pseudo-faeces on the bottom of cultivation area could potentially accelerate the disintegration of the bottom environment depending on other environmental conditions, particularly the current strength. In a weak current area, the accumulation of organic material results in eutrophication, low oxygen levels and low diversity of benthic community. Hiroshima Bay, where the oyster hanging culture concentrates, is a relatively closed environment with relatively weak currents. This makes the bottom habitat environment extremely vulnerable to such degradation of the benthic habitat. Some authors have also raised concerns regarding the removal of large quantities of phytoplankton (Chapelle et al, 2000; Newell, 2004) and the increase in sedimentation and subsequent degradation of bottom habitat. Finally, fallen oyster, dead or alive, will be accumulated on the sea bed beneath the hanging rafts together with cultivation materials such as wire strings, plastic spacers, ropes, scallop shells. Sakai et al. (2013) reported based on the SCUBA diving observations report the accumulation of fallen oyster shells and cultivation materials on the bottom up to 1m in height.

Monitoring and Information on Habitat Impacts Sulfide Levels

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 42 SCS Global Services Report

Hargrave et al. (2008) suggested that ‘impacts to benthic biodiversity resulting from increased S2- concentrations can be significant and occur even at low S2-levels. The transition from normal to hypoxic conditions has been identified as occurring at 1,500 μM S2-. This threshold represents a transition from “moderate” to “reduced” macrobenthic sulfide concentration and changes in the benthic macrofauna community structure. Anoxic sediments are characterized by S2-concentrations >6,000 μM. A transition within the hypoxic class of sediments at 3,000 μM has been identified where less S-tolerant taxa disappear but more tolerant opportunistic species have not yet increased in abundance. S2-levels above 3,000 μM represent a condition that exerts severe hypoxic stress on benthic community structure and characterize a polluted sediment condition that poses a high risk to benthic habitat’.

In Hiroshima Bay, the bottom sulfide level is monitored but is expressed as mg/g of dried sediment. As no appropriate method of conversion between two values are found, the CAB decided to use the measurement of sulfide material (Acid Volatile Sulfide (AVS)) in the sediment expressed mg/g of dried sediment, as this is commonly used for benthic environmental assessment in the Japanese waters, together with other associated observations such as benthic fauna. Contrary to Hargarve et al. (2008) there are no detailed criteria available to determine the levels of degradation of benthic environment when using these measures. Although there is no legal authority, Japan Fisheries Resource Conservation Association (2017) published the water quality criteria for fisheries for maintenance of desirable habitat environment for aquatic animals, which are used for fisheries related environmental indices in Japan. For sediment quality criterion, AVS value is set at 0.2 mg/g of dried sediment or less. No further justification about setting this criterion was found.

According to the request for approval of ’aquaculture ground improvement program plan’ prepared by Hiroshima Fisheries Cooperative Association (August 1, 2013) for a period covering 2013-2018, the target water quality criteria was set at 3.0ml/L or 4.3 mg/L of DO and AVS level at less than 0.4mg/g of dried sediment. No scientific basis of setting these values nor any explanation for more relaxed levels of limits compared to the proposed levels by Japan Fisheries Resource Protection Association (DO minimum of 3.0 ml/L vs minimum of 6.0 ml/L , AVS maximum of 0.4mg/g vs 0.2 mg/g) was provided. The results of bi-annual measurement of DO, the majority of measured values are above the limit. There is no AVS value available. Regarding the benthic community, no explicit criteria was proposed i.e. some polychaetes and similar species existent on the bottom.

In terms of the number of raft, this proposal says the total number at 11,954 or less for entire Hiroshima prefecture. There is no explanation for this target raft number.

Monitoring of AVS values is conducted primarily by the Ministry of Land, Infrastructure and Transport (MLIT) at prefixed stations around Japanese shore. There are 6 prefixed stations fall in Hiroshima Bay area. There are also some independent studies on the quality of bottom sediment at different sampling stations than the prefixed station by MLIT which are not annually recurring sampling.

Three different series of bottom sediment condition measurements have been obtained (Ministry of Land, Infrastructure and Transport (MLIT database, 2017), and independent researchers (Yamamoto, 2008, and Ushiroda (2016)). Yamamoto et al. (2008) measured AVS at 11 stations in northern

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 43 SCS Global Services Report

Hiroshima Bay 4 times a year between 1996 and 2000 and concluded that AVS level change significantly depending on the season (Figure 21). The average AVS fluctuates around the proposed threshold value for the maintenance of desirable aquatic habitat for fisheries (AVS= 0.2 mg/g) by Japan Fisheries Resource Conservation Association (2017); however, there is significant variability in the ranges a tendency for higher AVS levels in the Northern part of Hiroshima Bay. However, Hiroshima oyster ‘aquaculture ground improvement program plan’ for 2013-2018 set the upper limit of AVS at 0.4 mg S/g of dried sediment, the level twice as high as the value suggested by JFRCA.

Figure 20. AVS sampling station in Hiroshima Bay by different authors. (Ushiroda et al. 2016 yellow circle; Yamamoto 2008 (X); MLIT (Blue square); HFMC (red open circle: benthic fauna, temperature and DO).

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 44 SCS Global Services Report

Figure 21. Left: Seasonal sediment quality between Hiroshima Bay (shaded) and Suo Nada (open) with average (column) with standard deviation (bars). Right: Spatial variation of sediment quality parameter (AVS). From Yamamoto, 2008.

The Ministry of Land, Infrastructure and Transport (MLIT) has been conducting quarterly water quality monitoring at fixed stations in Seto Inland Sea as well as bottom characteristics annually at the same stations. The database provides historic of information at six fixed stations in Hiroshima Bay. The average AVS (mg/g of dried sediment) over 8 years of data (2000, 2005, 2010 and 2012- 2017; Table 8) showed that the average value exceeded the value for the maintenance of desirable aquatic habitat (AVS= 0.2 mg/g) for only one station (HS01), which is mainly due to exceptionally high AVS value measured in 2017 (at 0.96 mg/g dr.).

Table 8 Average AVS (mg/ dried sediment) level at fixed station in Hiroshima Bay (MILT, 2017).

Ushiroda et al. (2016) has also conducted studies measuring AVS in the northern Hiroshima Bay. The AVS value varied depending on the sampling station. The AVS value varied between 0.17 and 0.67 mg S/g for three sampling periods (April, August and February) which exceeded the water quality criterion for AVS level at 0.2 mg/g.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 45 SCS Global Services Report

Figure 22. Seasonal (April, August and February) measurement of sediment AVS in different sampling stations in Hiroshima Bay (Ushiroda et al., 2016).

Figure 23. AVS in bottom sediment (mg/ g ds) distribution in Hiroshima Bay (Okada, 2006). Data source not specified.

Available sediment AVS data showed that its values fluctuates seasonally with high variation. The measurements by MLIT are much lower than Yamamoto et al. (2008) and Ushioda et al. (2016). This is possibly because the majority of sampling stations are distributed in the southern Hiroshima Bay compared to the stations set by Yamamoto et al. and Ushiroda et al. Geographic distribution of AVS in Hiroshima Bay by Yamamoto et al (2008) corroborate with that presented by Okada (2006): showing high AVS level in north-western part of Hiroshima Bay and northern towards south-western band on the border line.

Considering the UoA 19 raft hanging sites (excluding strengthening and spat collection sites, which have negligible impact on the quality of bottom habitat) and the AVC distribution map by Okada (2006), out of 19 sites 7 sites fall in the area with higher than the desirable AVS value, 2 in the area on border line and 10 South of the AVS border line.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 46 SCS Global Services Report

Phytoplankton

Hirata and Akashige (2004) hypothesized that dense cultured oyster biomass caused local depletion of phytoplankton which created favourable conditions for H. circularisquama to increase and cause red tide. Under low DO levels, excess of organic matter results in an anoxic condition with high sulfide level in the sediment. They suggested decreasing the oyster biomass in culture grounds in order to halt this negative trend. One of the most effective methods to achieve this is to shorten a culture period. In other words, it would be optimal to culture oyster only by the 2-year culture method rather than combine with the 3-year process.

Figure 24. The “vicious spiral oyster” culture in Hiroshima Bay (from Hirata and Akashige, 2004).

Hirata (2014) summarized the pros and cons of oyster raft hanging culture in Hiroshima Bay as follows: The oyster culture contributes to filter out excess of nutrient from the water column, which indirectly prevents the occurrence of red tide. Filtered nutrients accumulated on the bottom result in biological productivity in the surrounding area. Oyster culture also provides settlement base and shelter to many species including micro-organisms to the seabirds. On the other hand, when the balanced energy flow is disturbed, such as excess of biochemical nutrients (e.g. nitrate, phosphate) that cannot be filtered by oysters, these can accumulate on the ocean bottom and result in anoxic conditions due to their decomposition. When this process advances, the benthic animals with less mobility start to die and anaerobic bacteria start to produce free sulfide through consumption decomposition of organic matters.

Each oyster culture site has its depuration capacity and once oyster biomass exceeds a certain threshold, fallen oysters, feces and pseudofeces on the ocean bottom beneath the raft hanging site increases degradation activity of organic matter. This author suggested applying an oyster culture model to estimate the optimal level of oyster culture e.g. based on total raft number, ren length, etc. Ocean current

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 47 SCS Global Services Report

Mutsuda et al. (2011) evaluated impacts of oyster raft placement on tidal current and sea water exchange in Etajima Bay based on coastal circulation model incorporating the drag force of the oyster raft in Etajima Bay. They concluded that it is desirable to reduce the current total number of oyster rafts by 40% in order to reduce the organic matter load from the oyster culture which is the main cause of sediment over enrichment and oxygen deficiency in the bottom environment. Etajima Bay is the most closed environment in Hiroshima Bay and many studies showed the degradation of the benthic habitat mostly caused by oyster culture together with the morphological characteristics of the bay. Importantly, no UoA sites are located in this Bay.

Benthic Community

Hiroshima Fishery Management Council (HFMC) has been monitoring benthic fauna beneath oyster hanging rafts at 5 fixed stations located mainly in the northern Hiroshima Bay since 2013 by using benthos sampler (collection surface at 0.05 m 2) and counting the benthic animals for 0.1 m 2. They also have been monitoring dissolved oxygen and water temperature at the surface and bottom, but no AVS measure was available. The results since 2013 showed that except for station 5 (Matsugahana, Etajima Bay where maximum of 2 individuals were found during 5 years of monitoring with benthic sediment smelled sulfuric odour), 20-100 individuals belonging to four groups (mollusc, annelida, crustacea, echinodermata ,flatworm) were found at each sampling site.

This suggests that the benthic environment in Etajima Bay is at a very critical stage. This finding is also supported by DO level on the ocean bottom of less than 0.43 ml/L. Etajima Bay is closed environment within relatively closed northern Hiroshima Bay and many researchers pointed out the advanced stage of benthic enrichment caused by dense oyster hanging culture activities (Yamamoto et al., 2010). None of the UoA client sites occur in Etajima Bay.

For other sites it is difficult to draw any conclusion as there is no clear criteria, target or threshold for used by management.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 48 SCS Global Services Report

Figure 25. Results of benthic fauna monitoring at 5 different stations in Hiroshima Bay.

Zostera zone and tidal plane habitat loss

Yoshida et al. (2003) mentioned that Hiroshima Bay has lost significant surface of both Zostera zone (eelgrass inhabiting zone) and tidal plane due to reclaimed land, pollution and possibly trawl net fishing during the period of high economic growth in Japan in the 1960’s. The total surface used to encompass 22,000 ha, and is now decreased to 6,000 ha. In the Seto Inland Sea, the importance of the Zostera zone and tidal plane were finally recognized in the 1970s, and the development of reclaimed land and harvesting sea sand and gravels were slowed down considerably. The surface of Zostera zone and reclaimed land have been maintained since 1977 and 1967, respectively, in Hiroshima Bay, although an additional land reclamation of 344 ha was done in 1996 (Okada, 2006). In addition, there is a Zostera zone restoration movement has started in neighboring prefecture (Omoto et al., 2005). Hiroshima city and prefecture are targeting zostera zone and reclaimed land improvements of up to 17 ha by 2020 (Hiroshima Prefecture, 2010). According to the Ministry of Environment of Japan, there is an increase of Zostera zone and tidal plane by 17% and 5%, respectively, compared to levels in 1990, in Hiroshima Bay. In general, the environmental condition in the southern Hiroshima Bay shows healthier conditions compared to the northern Hiroshima Bay (Okada, 2006).

The oyster fishery has not been considered a cause for this habitat loss.

Management and Remediation of Habitat Impacts

Several initiatives have been taken to protect the ocean bottom from degradation. Yamaji and Maekawa (2006) reported that bottom cleaning by means of bottom trawl provides a positive impact by removing accumulated oyster shells, fallen oyster (which are harvested live) and raft culture materials. This removal has positive impacts on Chemical Oxygen Demand (COD) and total sulfur level. However, the COD and total sulfide levels rapidly returned to the original level, and therefore the authors suggested that trawl once per year is not sufficient to maintain good habitat

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 49 SCS Global Services Report

environment. During the onsite meeting it was reported that bottom cleaning in the UoA occurs during the high oyster culture season (H. Okami, pers comm). The assessment team did not receive a full explanation of how the operation is conducted without removal of the rafts, but understand that trawling takes place between the hanging ‘Rens’.

The Agriculture and Fishery section in Hatsukaichi-City has been conducting beach cleaning, ocean bottom cleaning by means of trawl net and underwater cultivator 2 for ocean bottom quality improvement ( www.city.hatsukaichi.hiroshima.jp/soshinki /29/12448.html ). It is not clear with what frequency these are occurring, or if there is any monitoring of impacts. Hiroshima Prefectural Fisheries Cooperative is also conducting an annually recurring beach cleaning by gathering 39-48 associations with total manpower of 3,300 – 3,400 peoples. Beach cleaning in an intertidal strengthening area may help with impacts of physical fallen matter that occurs during the strengthening operation, though likely minor.

As previously noted, a primary means to manage habitat impacts is through effort control, with the number of rafts one plausible and simple means for regulation. Previously mentioned was the 2007 study by Hashimoto et al that found that 10,000 rafts was an appropriate limit. There have since been multiple modelling attempts to estimate the optimal raft number for Hiroshima Bay. Hashimoto et al. (2011) mentioned that the 10,000 limit is scientifically justifiable. Kawaguchi & Yamamoto (2011) also confirmed that the optimal sustainable raft number can be estimated for Hiroshima oyster hanging culture. Mutsuda et al. (2011) also proposed a model using current (water exchange) parameter to estimate the optimal raft number. Hirata (2005) mentioned that Hiroshima Prefectural Fisheries Experimental station (now called Hiroshima Fisheries and Marine Technology Center) developed a model to estimate optimal oyster production model. I could not find the original publication of this model.

Ecosystem

Role of oyster culture towards the preservation of environment

Based on a numerical ecosystem model in the northern Hiroshima Bay where oyster culture has been prosperous, Mitsushio et al. (2002) found that when no oyster is cultured, the concentrations of chlorophyll-a, dissolved organic phosphorus and detritus increases in the upper layer, and the dissolved oxygen decreases in the lower layer, concluding that oyster culture plays a positive and important role for preservation of the environment.

2 The assessment team was not provided detail on the underwater cultivator structure or operation but understands it is a vessel-operated dredge or trawl gear.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 50 SCS Global Services Report

Positive impacts of raft oyster hanging culture

Sakai et al. (2013) reported the positive impact for the fish community inhabiting beneath the oyster hanging structures. The black porgy ( Acanthopagrus schlegelii ) in particular seems to use the oyster hanging culture structure throughout its life cycle, and has an extremely high productivity in Hiroshima Bay (Umino, 2010), signalling an example of the positive effect of the oyster culture to the fish community. In terms of observed number of fish species, studies from SCUBA diving under the oyster hanging rafts suggest that the oyster hanging rafts structure provide for a greater diversity of fish species comparable to the natural coastal environment (Sakai et al., 2013).

Songsangjinda et al. (2000) concluded that suspended oyster culture system could act as an efficient biological tool to harvest material from the coastal ecosystem to the land. The ecological advantage is that oyster culture is a better tool for removing nutrients back to the land compared with other fishery techniques. Hence, the optimum standing biomass of the cultured oysters should be considered in order to beneficially regulate the role of the oyster in cycling and removal of Nitrogen from Hiroshima Bay. Tarutani (2007) also described the role of the oyster culture, and that the removal rate through oyster harvesting is five times higher than that by fishing activities, thus oyster culture plays a significant role on the recycling of nitrogen from Hiroshima Bay to the land.

Mitsushio et al. (2012) mentioned that micro and macro-seaweed species attached to the oyster raft culture systems absorb nutrients and filter the suspended organic matter. Matsuda and Yamamoto (cited from Yamamoto et al. 2007) estimated that the current amount of natural seaweed in Hiroshima Bay is equal to those attached to the oyster raft culture sites. Thus oyster rafts are playing an important role in the ecosystem by providing substrate for seaweed.

Mistushio et al. (2012) concluded that oyster culture plays an important role in preserving the marine environment of Hiroshima Bay. However, it is also important to note that in this area, land- based activities have had a strong impact on marine ecosystem health, primarily via impacts of run- off. The production of oyster culture was highest when the concentration of chrorophyll-a in the upper layer was at 7 µg L-1 and the Total Phosphate (TP) load from Ohta river was 0.5 ton day-1. The study suggested that TP load from Ohta river has to be maintained at 0.5 ton day-1 for the successful oyster culture in Hiroshima Bay.

Competition for (planktonic) food with other marine organisms.

The scoring of ecosystem PIs should focus on issues relating to carrying capacity and the trophic effects of bivalve filtration/feeding (GB3.1.3.1). In Hiroshima Bay and the surrounding area, no study has indicated the competition between cultured oysters and other marine organisms.

Historically, the Seto Inland Sea suffered from eutrophication from land-based activities (land use and dredging) resulting in the frequent incidence of red tide. Severe measures were taken to reduce eutrophication by reducing phosphorus discharge which was very effective and reduced the number of red tides from about 300 cases per year at their peak in 1976 to the recent level of about 100 cases per year, indicating the improvement of seawater quality. However, the hastiness of the measures taken to reduce phosphorous seems to have led to a depletion of dissolved inorganic phosphorus that is an essential nutrient for the growth of phytoplankton.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 51 SCS Global Services Report

Fishery production has also decreased with the reduction of phosphorus, resulting in lowered phytoplankton primary production. The water quality in the Seto Inland Sea is classified as oligotrophication. Numerous dam constructions could be one of the cause of oligotrophication (Yamamoto, 2003; Yamamoto et al., 2008). However, no study suggests that oyster culture in Hiroshima Bay is the possible cause of oligotrophication.

3.5 Principle Three: Management system background

Over-arching Management Framework

The primary law that regulates Japanese fisheries is the Fishery Act (1949, revised in 1962), which deals with several kinds of fishing rights and licensing structures, and is the basis of Japanese fisheries (Makino 2013). The Law is administered by the Ministry of Agriculture, Forestry and Fisheries (MAFF) in cooperation with the prefecture governments for practical enforcement, as much of Japanese coastal waters are administrated by their respective adjacent prefectures.

The Fisheries Cooperative Association Law (1948 with consecutive amendments) forms the basis of the legal framework for local Fisheries Cooperative Associations (FCAs) to act as the institutions that carry out resource management at an operational level. Therefore, this law and the Fisheries Law mentioned above are the two most important legal frameworks for Japanese fisheries management (Makino 2013). The area administrated by a FCA varies depending on local context. The responsibility of a local FCA is the management of particular geographical area and the governance is based on the membership of fishers operating within the area. An FCA develops its own regulations within national legislative frameworks; however, some of the regulations may be created by the FCA uniquely for the fishery/ies operating under control of the FCA. The everyday operations are essentially self-managed by the FCAs or federations of FCAs.

Regarding fisheries based on aquaculture technique, The Law to Ensure Sustainable Aquaculture Production also applies. The Law to Ensure Sustainable Aquaculture Production (1999) seeks to prevent the self-induced environmental deterioration around fish farms. Pursuant to this law, the MAFF issued Basic Guidelines to Ensure Sustainable Aquaculture Production (1999) and the FCAs developed and implemented "Aquaculture Ground Improvement Programmes" 3, which can be developed individually by a single FCA or jointly by more than one FCA, and which must be approved by the prefectural authorities (translated by FAO 4). The Japan Fishery Act defines the Fishery rights (Article 6 (1)) as “In this Act, "a fishery right" refers to a fixed gear fishery right, a demarcated fishery right or a common fishery right.” The fishery under this assessment is discussed under demarcated fishery rights. There are three categories of demarcated fishery rights. 1. Class 1 demarcated fishery: An aquaculture operation at a certain area underlaid materials such as stone, roofing tiles, bamboos or wood. 2. Class 2 demarcated fishery: An aquaculture operation at a certain area enclosed by the materials such as soil, stone, bamboo or wood. 3. Class 3 demarcated fishery: An aquaculture operation at a certain area which do not fall into the above two categories.

3 The assessment team received a copy of a proposal for an AGIP from 2013, but not evidence of the formal acceptance of this document, or a programme for 2018-onwards. 4 http://www.fao.org/fishery/legalframework/nalo_japan/en

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 52 SCS Global Services Report

The oyster aquaculture operation under this assessment falls into Class 1 demarcated fishery right. The rights last for 5 years and the next renewal in Hiroshima area is in 2018.

Stock assessment conducted at National level includes 52 species with 84 stocks (MAFF). The Total Allowable Catch (TAC) is set on 7 particular species: Pacific saury, Walleye Pollock, Japanese jack mackerel, Japanese sardine, Chub mackerel and spotted chub mackerel, Japanese common squid and snow crab (MAFF). Oysters are not the subject of TAC or TAE at the national level.

Fishery Specific Management

As in many Japanese coastal fisheries, management is founded in a cooperative approach, with local Fishery Cooperative Associations responsible for the management of resources in a given region, based on demarcated or common fishery rights.

There are 57 Fishery Cooperative Associations (FCAs) in Hiroshima Prefecture. In 1950, the FCAs joined together to form a Federation of FCAs. The Federation FCA is now the main decision-making body, but the 57 FCAs remain independent organizations with the ability to develop additional regulations so long as they do not contradict those of the Federation. In reviewing the FCAs of the different client group members (who belong to several different FCAs), the team found that FCA- level management was quite consistent between FCAs with no differences that would indicate differential scoring outcomes.

At the Prefectural level there is also the Hiroshima Prefecture Department of Fisheries and Prefectural Environment Conservation Section. These institutions do not set any regulations but may offer advice. From information gathered at the onsite visit, there are no other research institutions or universities active in fisheries research at the UoA level. There does not appear to be any regular interaction or engagement with management institutions at the national level.

Decision-making Processes

The individual FCAs are comprised of the operators in the FCA waters, with leaders of the FCAs typically elected via voting. Heads of the local FCAs participate in the meetings of the Federation FCA, and decisions made in general meetings of the Federation FCA are binding upon the local FCAs who act as implementing bodies. The decision or opinion made by the individual FCAs’ boards are sent to the Federation. In return all the decisions and information from either national/prefectural government or the Federation are sent out to the lower FCAs.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 53 SCS Global Services Report

The general meeting

Directors Auditors

The Representative of Directors

Senior Managing Director

Secretaries

General Sales Divisions Coordination (FCAs and the Guidance Division Division branches)

Figure 26. Organizational Chart for the Hiroshima Federation of FCAs.

Access Rights

Demarcated fishery rights for oyster hanging operations are allocated (renewed) every 5 years based on the application made by individual operators to the Prefectural governor, and authority to issue the rights falls to the Federation FCA. The Federation FCA distributes rights to the local FCAs, and the allocation and distribution of the rights amongst individual operators is managed at the local FCA level.

Generally speaking, if an entity would like to seek a demarcated fishery right for oyster hanging operations, the entity needs to have 2 years or more of experience 5 in the industry and have home address in the local area: meaning the entity is a full member of Fishery Cooperative Association of the location.

Specific to the fishery under assessment:

 Dariyo has acquired 6 demarcated fishery area (No. 273 through 278; the total number of rafts is 103),

 Aya suisan has 4 (No. 199, 200, 203 and 223; 120),

 Amibun Kaisan has 10 (No. 78 through 82, 96, 99, 102,103 and 106; 58),

 Yoneda has 10 (No. 83, 84, 87, 88, 89, 90, 91, 99, 103 and 106; 108) and

5 The duration of experience varied up to five years depending on each Fishery Cooperative Association.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 54 SCS Global Services Report

 Kawasaki has 6 (No. 20 through 25; 28).

Spat collection activities also require area rights and each company has acquired a few areas. The map showing the area allocation can be found in the document No. P3-46 (Kukaku Gyogyoken Map). All rafts can be identified by a numbered tag attached to the rafts.

Consultations and Additional Stakeholder Organizations

Also, there are several organizations beside the federation and the associated regional branches. For example, Oyster Producers Measurement Council ( 牡蠣生産者対策協議会) meets once a year and collect certain amount of money per a raft to conduct water quality tests and conduct promotion of oyster. Hiroshima Oyster Producers Co-op ( 広島かき生産者共同組, private entity) mainly conduct research about quality of oysters. In addition to the above organizations, Hiroshima Oyster Council (広島カキ協議会) for things around processing and supplying oyster, Hiroshima Oyster Processing Co-op ( 広島カキ加工組合), Hiroshima Oyster Supply Co-op (広島県かき出荷組合) meet once every few months and exchange information and opinions. In this fishery, it can be said that opportunities to meet and discuss among stakeholders regularly are rich.

All meetings are open to wide range of stakeholders.

Compliance and Enforcement

Due to the nature of this fishery, the primary non-compliance area pertains to raft regulations. The nearshore operation of these rafts means that non-compliance is simple to monitor for everyone, minimizing the likelihood of illegal activity. Also each raft has its own identification tag and the ownership is very clear (if the rafts are washed away due to the strong wave etc, the owner has the responsibility to pull it back to the original position). Sanctions are specified in each demarcated fishery right use regulations （区画漁業権規則） at the local FCA level. In a full assessment, records of enforcement activities and any sanctions applied must be provided.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 55 SCS Global Services Report

4. Evaluation Procedure

4.1 Assessment methodologies used

This assessment utilized version 2.0 (April 2015) of the Certification Requirements and version 2.0 of the reporting template. The assessment team is as follows:

Dr. Mikio Moriyasu, Department of Fisheries and Oceans Canada, Principle 1, 2

Mr. Moriyasu is a research scientist specializing in fisheries and aquatic sciences. He has over 30 year experience in fishery science and assessment at federal and international levels and has held head of snow crab section for federal research institution in Canada and has considerable experience with issues of invertebrate species. He has particular expertise with snow crab population biology and stock assessment and has been involved in the development and implementation of harvest rules compliant with precautionary approach. He has over 20 publications in peer-reviewed scientific journals and over 100 project reports, technical reports, and papers in workshop and conference proceedings.

Dr. Reiko Omoto, Tottori University, Principle 3

Dr. Omoto is an Associate Professor at Tottori University, Tottori, Japan and conducting research specialized in resource management certification schemes including organic certification for shrimp in Vietnam and MSC and ASC certification in Japan. She has B.A. and M.A. in Policy Studies from Kwansei Gakuin University, Japan and PhD in Geography from University of Waterloo, Canada. She is the former Fisheries Manager of MSC Japan for 3.5 years until March 2013 responsible to fishery outreach, funding applications, and document translations from/to English to/from Japanese.

Mrs. Jennifer Humberstone- SCS Global Services, Quality Assurance

Jennifer Humberstone holds a Master of Environmental Science and Management degree from the Bren School at the University of California Santa Barbara, where she specialized in fisheries management and natural resource economics. Jennifer has designed spatial bio-economic models to facilitate management decisions and performed research for the National Center for Ecological Analysis and Synthesis. Mrs. Humberstone has cross-sectoral and international project management experiences working with diverse stakeholders including fishers, government, private industry, and NGOs. Jennifer is proficient in Spanish and has marine resource management field experience in both the Philippines and the Dominican Republic: where she spent years of combined field experience building initiatives in protected areas, ecotourism, and fisheries management.

Jennifer is an ISO 9001 and MSC lead auditor, and is also trained as an MSC CoC auditor. In her role at SCS, she is currently serving as a team leader, team member, and/or leading coordination of MSC pre-assessments, surveillances, and full assessments of fisheries worldwide, including SCS’ portfolio of projects in Japan.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 56 SCS Global Services Report

4.2 Summary of site visits and meetings held during pre-assessment

Dr. Reiko Omoto (fist day and second day) and Dr. Mikio Moriyasu (the second day through Skype) conducted an onsite visit on 27-28 June 2018 at Kurahashijima Kaisan Co., Ltd to meet the clients and other informants as listed below.

Table 9. The onsite attendees and their roles in the assessment.

Organization Name Role Roles June June28 June28 P1 P2 P3 27 AM PM Kurahashijima Mr. Hideto Okami The secretariat of Suisan MSC pre-assessment

（Director/Factory ✓ ✓ ✓ ✓ ✓ ✓ Manager ） Dairyo Mr. Setsuo Saitoh President and representative ✓ ✓ ✓ ✓ ✓ ✓ director Mr.Naoki Obama Chief Director ✓ ✓ ✓ ✓ ✓ ✓ Aya-Suisan Mr. Ryoji The representative

Yamamoto ✓ ✓ ✓ ✓ ✓ ✓ Amibun-Kaisan Mr. Ayasaki Muneo N/A ✓ ✓ ✓ ✓ ✓ ✓ Yoneda-Kaisan Mr. Reiichiro President and Yoneda representative ✓ ✓ ✓ ✓ ✓ ✓ director Kawasaki- Mr. Yohei N/A

Suisan Kawamura ✓ ✓ ✓ ✓ ✓ ✓ Related organizations Hiroshima Mr. Shoichi Senior director Prefecture Yokouchi

Department of ✓ ✓ Fisheries Prefectural Mr.Koichi Utsumi Engineer Environment

Conservation ✓ ✓ ✓ ✓ Section Hiroshima Mr. Yutaka Researcher (elder)

Prefectural Miyabayashi ✓ ✓ ✓ ✓ ✓ ✓ Technology Mr. YoshinoriNishii Chief Researcher Research

Institute ✓ ✓ ✓ ✓

Hirata Suisan Mr. Yasuhi Hirata Representative ✓ ✓ ✓ ✓ The section of Mr. Teruyoshi The head of Marine Industry of Okimoto Product Promotion ✓ ✓ ✓ ✓ Kure-City Observer MSC Mr. Makoto Japan Fisheries N/A Suzuki Manager ✓ ✓ ✓ Japan Mr. Matumoto Office head Consumers Tetsu N/A Cooperative ✓ ✓ ✓ Uniton

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 57 SCS Global Services Report

4.3 Stakeholders to be consulted during a full assessment

Based on the findings of the pre-assessment, it is not foreseen that use of the Risk Based Framework will be required. Therefore, the assessment is expected to be subject to standard stakeholder consultation requirements. A list of key of stakeholders are listed below based, with additional stakeholders to be notified of any full assessment process. Governmental offices ... Hiroshima Prefecture ... Fisheries Experimental Station Fisheries ... Hiroshima Prefectural Federation of Fisheries Co-operative Association ... Branches of each fisheries cooperatives NGOs ... MSC Japan ... WWF Japan ... Local organizations to be identified Research Institute and Universities ... Fisheries and Marine technology Center, Hiroshima Prefectural Technology and Research Institute ... Graduate School of Biosphere Science, Hiroshima University

4.4 Harmonisation with any overlapping MSC certified fisheries

The MSC requires harmonization with overlapping MSC fisheries. There can be overlap across one ore more Principles between two or more fisheries, depending on the scope of the fisheries involved. As there are no other MSC certified fisheries targeting the Hiroshima population of Pacific cupped oyster, or other fisheries in Hiroshima Bay or using the same gear in a nearby area certified, Principles 1 and 2 are not considered relevant to harmonization. Under Principle 3, other MSC certified Japanese fisheries are potentially relevant. The following are certified Japanese fisheries.

1) the Japan Sea Danish seine fishery for flathead flounder located offshore of Kyoto Prefecture (Suspended )

2) the Japanese scallop hanging and seabed enhanced fisheries in Hokkaido prefecture

3) the Japanese Pole and Line skipjack and albacore tuna fishery in Miyagi prefecture

There is also a Japanese pole and line skipjack and albacore tuna fishery undergoing MSC assessment, which is based in Yaizu, Shizuoka prefecture.

Of these, only the scallop fishery is considered similar enough in management context, as a nearshore enhanced fishery operation. Because it operates in a different region and the Japanese fishery management system places much autonomy on the local cooperative structure, scores may differ even at the overarching governance level (PIs 3.1.X). The remaining PIs focus on fishery-

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 58 SCS Global Services Report

specific management, and thus clearly focus on the Hiroshima Prefecture level, where there are no other certified fisheries.

Thus, the assessment team would take into account, but not necessarily align completely with, the following scores from the Japanese hanging scallop fishery:

Table 10. Alignment of Scores for Harmonization

Japanese scallop hanging seabed PI enhanced fisheries PI 3.1.1 90 PI 3.1.2 80 PI 3.1.3 100

5. Traceability (issues relevant to Chain of Custody certification)

5.1 Eligibility of fishery products to enter further Chains of Custody

In general, any product eligible to carry the MSC label must have traceability systems in place that can be verified to assure that product within the Unit of Certification is segregated and is not being mixed with product from outside the Unit of Certification, regardless of whether it comes from within the Unit of Assessment. This level of mixing would be a business concern to the client, who controls “who” (product from designated vessels) is allowed to use the MSC ecolabel. From the perspective of sustainability, any product from within the Unit of Assessment for a fishery holding a certificate, has had its impacts considered in scoring, and is therefore theoretically eligible to carry the label.

In full assessment the Expert team members will determine the point at which the chain of custody begins. Where transhipment, processing at sea, or any risk of mixing occurs on the water, chain of custody processes will need to demonstrate that quality systems are in place, and capable of controlling mixing risks that could occur at sea. Mixing risks that may occur on the water could include substitution of look-alike species where these occur, or risk of mixing of the target species between product caught by vessels within the UoC with product caught by vessels outside the UoC – and most significantly from vessels outside the UoA. If product from vessels outside the UoA enter chains destined for use of the label, the full impacts of the fishery, while potentially encompassed in overall scores for the P1 target species, would not be appropriately considered for Principle 2 scoring. Chain of custody to the vessel level is also required if vessels use multiple gears, where one gear type is pursuing certification and another is not, but both land the species defined as the UoC: this presents a level of risk that would require hold-level traceability systems.

The supply chain of raw oysters as provided to Kurahashijima Kaisan (acting as the secretariat of this pre-assessment) needs to be clear as the company is the buyer and processor for this client group. Kurahashijima Kaisan buys approximate 500 tons of fresh oyster and 800 tons of frozen oysters in a year. At this moment, the client expects that only oysters from client companies which go through Kurahashijima (processed as fried oysters and frozen raw oysters) will be eligible to use the MSC claim and ecolabel. The products are expected to be sold at Japan Consumers Cooperative Union (the representative participated in on-site assessment as an observer).

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 59 SCS Global Services Report

The proportion of oysters produced sold to Kurahasijima from each of the remaining client group members is as follows: Dairyo (100%), Aya Suisan (50%), Yoneta Suisan (20~30%), and Amibun (40 %). Kawasaki Suisan has not yet sold to Kurahashijima but has a plan to do so. The Companies also individually sell their oysters to Tsukiji Fish Market in Tokyo, other processors and directly to consumers. Eligibility for use of the ecolabel for each company will require some client internal coordination. In addition, although Dairyo is a subsidiary of Kurahashijima, they conduct their business via different legal entities and therefore the extent of chain of custody needs further consideration at full assessment.

The point at which the product is sold to Kurahashi also represents the point of transfer of ownership; however, the chain of custody may begin before this first sale if there is risk of mixing within the production sites.

The assessment team understands that multiple production methods are in use in these sites, but only hanging raft culture is intended for use of the ecolabel, and thus other methods (i.e. single seed box/net culture), have been excluded from assessment. With mixed production of assessed and un- assessed product at sea, Chain of Custody could be required at sea as this would be a first point of risk of mixing of certified and non-certified product. If impacts of these other means of production are similar or less than the hanging raft culture, the client may consider including these methods in the Unit of Assessment, to alleviate any requirement for auditing of segregation of the certified and non-certified production methods at sea.

If there is no risk of mixing of assessed/not assessed (certified and not-certified) product at sea (i.e. all production methods are included in the UoA), the assessment team preliminarily concludes that the certificate may extend to the point of sale to Kurahashi, at which point the eligible product would enter the chain of custody, requiring a chain of custody certificate to be eligible for the ecolabel.

6. Preliminary evaluation of the fishery

6.1 Applicability of the default assessment tree As previously described in Section 3.1, the UoA qualified as an in-scope enhanced fishery, to be evaluated as a Catch-and-Grow enhanced bivalve fishery using relevant requirements of FCRV2.0 Annex SB.

6.1.1 Expectations regarding use of the Risk-Based Framework (RBF)

Pre-assessment findings indicate the RBF will not be required.

6.2 Evaluation of the fishery

6.2.1 Other issues specific to this fishery

We refer the reader to the Executive Summary and Section 2.2-2.3 for key findings and scope considerations.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 60 SCS Global Services Report

6.3 Summary of likely PI scoring levels Table 11. Key to likely scoring level

Definition of scoring ranges for PI outcome Shading to be used estimates Information suggests fishery is not likely to meet the Pre-condition SG60 scoring issues. (<60) Information suggests fishery will reach SG60 but may Pass with Condition not meet all of the scoring issues at SG80. A condition (60-79) may therefore be needed. Information suggests fishery is likely to exceed SG80 Pass resulting in an unconditional pass for this PI. Fishery (≥80) may meet one or more scoring issues at SG100 level.

Version 2-0 (May 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 61 SCS Global Services Report

Table 12. Simplified Scoring Sheet

RBF Likely Performance Principle Component PI required? scoring Rationale/ Key points Indicator (y/n) level 1.1.1 Stock status NA NA The Hiroshima Bay Pacific cupped oyster raft hanging fishery Outcome 1.1.2 Stock rebuilding NA NA involves thee stages, spat collection, strengthening and raft hanging culture during which location changed but within very limited 1.2.1 Harvest Strategy NA NA distance in relatively small surface of Hiroshima Bay. There is no Harvest control known oyster disease occurring in a limited location in Hiroshima 1.2.2 NA NA rules and tools bay. Genetically Hiroshima Bay oysters belong to an independent 1 Management Information and sub-population and there is no impact of cultured oyster to the wild 1.2.3 NA NA monitoring population. As such we consider that Hiroshima Bay oyster raft Assessment of hanging fishery does not involve ‘translocation’ thus Principle 1 is 1.2.4 NA NA stock status not scored. Number of PIs less than 60 0/NA Uo A is solely based on spat collection therefore primary species 2.1.1 Outcome NA NA 2.1.1 & 2.1.2shall not be scored. NA Primary Species 2.1.2 Management NA NA NA 2.1.3 Information NA NA

2 2.2.1 Outcome NA NA Secondary species 2.2.1, 2.2.2, 2.2.3 shall not be scored.

Secondary NA 2.2.2 Management NA NA species NA 2.2.3 Information NA NA The only ETP species that may have an interaction with the oyster ETP species 2.3.1 Outcome N 80-100 raft hanging fishery in Hiroshima Bay is finless porpoise. Detailed

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 62 SCS Global Services Report

RBF Likely Performance Principle Component PI required? scoring Rationale/ Key points Indicator (y/n) level information about the species caught in spat collectors and occurring on cultivation equipment has been provided, which indicates that no ETP species are encountered by the fishery. Although there is no indication the fishery poses a threat to the finless porpoise, more information is needed on the monitoring program and management for finless porpoise to justify a conclusion that impacts by the fishery would be identified and acted upon. In 2.3.2 Management NA 60-79 the MSC Standard, it is also required that there is a review at least every 5 years of unwanted mortality by the fishery, with actions taken as needed.

Some quantitative information has been provided on finless porpoise in Seto Inland Sea. The recent aerial population assessment indicated a recovering trend of the species. During the pre- assessment meeting, it was also confirmed that there is no negative 2.3.3 Information NA 80-100 impact of the oyster raft hanging fishery on finless porpoise e.g. limitation of the habitat of the species by oyster rafts, collision with oyster fishery vessels. The information available is adequate to broadly understand the level of impact, and to support measures to manage impacts on ETP species. Annual monitoring of benthic environment has been conducted by Hiroshima Fishery Association Cooperative beneath the oyster culture raft sites. Based on the monitoring results, there are some sites (northern and northwestern Hiroshima Bay) showing the Pre- environmental characteristic above the acceptable threshold (AVS). Habitats 2.4.1 Outcome N conditio The remaining part of oyster hanging culture site seems to be below n the (JFRCA) threshold value of 0.2 mg/g . Further, the team did not have information regarding the impact represented by 0.2 mg/g in order to compare this to the MSC guidance, which is based on an alternative criteria measuring free sulphides in micro moles.

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 63 SCS Global Services Report

RBF Likely Performance Principle Component PI required? scoring Rationale/ Key points Indicator (y/n) level Because benthic observations suggest that benthic communities have not been irreversibly harmed by oyster production where the client sites are located, this may achieve the SG60. For VMEs, more information is needed on Ecologically or Biologically Significant Marine Areas’ (ESMAs) to understand whether consideration of potential impacts of oyster production in these areas have been considered.

There are measures in place that provide some production density control (i.e. raft configuration regulations), which is the key driver of benthic impact. However, these measures are not linked to any Pre- particular study to support confidence in their effectiveness. The 2.4.2 Management NA conditio study presented to the assessment team that did produce a n recommendation for a product density control in the recommend number of rafts, was not formally implemented and has not been attained. Monitoring in the region suggests that impacts are above recommended thresholds in certain regions. The nature, distribution and vulnerability of all main habitat types in the fishery area are known at a level of detail relevant to the scale and intensity of the fishery. The water characteristics and benthic community and sediment characteristics are available. The information gathered for Hiroshima Bay is of sufficient detail to 2.4.3 Information NA 80-100 quantify the impacts of this fishery on habitats, and to detect changes in habitat distributions over time. This information is not precisely matched geographically to clients’ cultivation sites; however it provides the basis of a broad understanding of the effects of this fishery on benthic habitats in Hiroshima Bay. Client site-specific monitoring would support higher scores. Apart from the negative impact on the bottom habitat environment, Ecosystem 2.5.1 Outcome N 80-100 the oyster raft hanging culture seems to provide many positive

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 64 SCS Global Services Report

RBF Likely Performance Principle Component PI required? scoring Rationale/ Key points Indicator (y/n) level impacts on ecosystem.

Due to the concerns over the potential impacts of oyster culture on the benthic habitat, and lack of evidence that management measures are formally tied to scientifically supported targets that 2.5.2 Management NA 60-79 align with the MSC standard for habitat impact management, it cannot be concluded that the measures/partial strategies in place (e.g. raft regulations and monitoring) are adequate. Excellent information is available on the ecosystem-based modelling on oyster raft hanging fishery by incorporating Chlorophyll-a, total 2.5.3 Information NA 80-100 phosphate, total nitrate. Any changes to fishing operations (such as their scale, location or nature of activity) would be detected immediately. Number of PIs less than 60: 2 3.1.1 Legal and There is a national legal fishery licensing system and fishery customary management system based on fisheries cooperatives, which enable framework NA 80-100 cooperation with other parties as outlined in national legislation and implemented via the National and Prefectural governments and local fishery cooperatives (FCAs). 3.1.2 Consultation, Roles and responsibilities are well understood between the local roles and FCAs and Federation of FCAs, which are the main bodies regulating Governance & 3 responsibilities the fishery. There are consultation processes with regulary policy NA 80-100 meetings at the local FCA and Federation FCA levels. More evidence is needed to demonstrate that non-fishery stakeholders have opportunity to participate in consultations. 3.1.3 Long term There are some market and production scale related long term objectives objective. However those do not include the objected related to NA 60-79 environmental sustainability of the industry. Currently there is not clear long term objectives written to guide decision making that are

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 65 SCS Global Services Report

RBF Likely Performance Principle Component PI required? scoring Rationale/ Key points Indicator (y/n) level consistent with MSC standards and incorporate the precautionary approach. 3.2.1 Fishery specific There are various documents that can be interpreted as fishery objectives specific objectives. However, they are not systematic nor integrated NA 60-79 into a single documents and are not explicit enough and measurable. 3.2.2 Decision making There are fishery specific decision making process and processes communication within the fishery seems active. However the decision making process does not clearly take into account best available information or use the precautionary approach. Lack of NA 60-79 clear precautionary and science based decision making on effort limitations provides cause for concern regarding the application of Fishery specific the precautionary principle. More evidence is needed to support the management SG80. system 3.2.3 Compliance and The nature of the fishery makes any of violation of regulation enforcement difficult (the density of the rafts can be observed from everyone). NA 80-100 The sanction is specified in each demarcated fishery right use regulations 3.2.4 Management Monitoring and evaluation are conducted with regards to the performance aquaculture improvement programme. More detailed information evaluation on the content of monitoring and evaluation and examples of the NA 60-79 evaluation reports will be needed. With the information provided, it can only be stated that this review can likely be concluded to evaluate some parts of the management system. Number of PIs less than 60: 0

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 66 SCS Global Services Report

References

Anonymous, 2013- 2017 Report on the environmental investigation, Benthic species, Hiroshima oyster fishing ground improvement plan.

Arakawa, Y. 1973. Aspects of eutrophication in Hiroshima Bay viewed from transition of cultured oyster production and succession of marine biotic communities. La Mer 11(2): 43-48

Chapelle, A., Ménesguen, A., Deslous-Paoli, J-M., Souchu, P., Mazouni, N., Vaquer, A., & Millet, B., 2000. Modelling nitrogen, primary production and oxygen in a Mediterranean lagoon. Impact of oysters farming and inputs from the watershed. Ecological Modelling. 127. pp 161-181.

Ha, T.T.T., Morishita, K., Murakami, T., Akashige, S., Kajihara, T., Umino, T., Nishibori, M., Nakayama, I., and Takaba, M., 2006. Genetic characteristics of cultured and wild Japanese oyster Crassostrea gigas in Hiroshima Bay as inferred by microsatellite DNA markers. Genetics ad Breeding Science, 35: 43-47 Hargrave et al., 2008. Towards a classification of organic enrichment in marine sediments based on biogeochemical indicators. Marine Pollution Bulletin 56: 810-824

Hargrave, B.T., Holmer, M. and Newcomb, C.P. , 2008. Towards a classification of organic enrichment in marine sediments based on biochemical indicators. Marine Pollution Bulletin 56:810-824.

Hashimoto, T., Aono, Y., Yamamoto, T., 2007. Conservation and management of ecosystem in Hiroshima Bay. In: Yamamoto, T., Yurutani, K. (eds.), Regeneration of environment in closed marine area. Fisheries Science series edited by Japanese society of Fisheries Science. Koseisya-Koseikaku, 163pp.

Hirata, K., 2008. Biological production around oyster culture in Hiroshima Bay. Hiroshima Bay revitalisation Symposium. Presentation slides.

Hirata, K. , 2014. Oyster rafts as a tool for creating healthy oceans. Its various function and roles along the coastal area. The report shall include a list of all information sources used in the pre-assessment of this fishery. Healthy Ocean 33: 5-10

Hirata, K. and Akashige, S., 2004. The present situationand problems of oyster culture in Hiroshima Bay. Bull. Fish. Res. Agen. Suppl. 1:5-12.

Hiroshima Prefecture, 2000. Revitalisation action plan for new agricultural and fisheries industry and agricultural, forestry and fishery communities in Hiroshima prefecture. 1-76 p.

Hiroshima Prefecture, 2010. 2020 challenge plan for agriculture and fishery in Hiroshima Prefecture.88 p.

Imagawa, M., Komai, K., Hibino, T., Abe, T., and Nishida, Y., 2009. Charatceristics of distribution of organic mud at delta river mouth area. Marine Engineering, 53:1447-1452

IUCN (2001) IUCN Red List Categories and Criteria Version 3.1., IUCN Species Survival Commission, IUCN, Gland, Switzerland

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 67 SCS Global Services Report

Japan Fisheries Resource Conservation Association, 2017. Water quality criteria for fisheries.

Kasuya, T. and Kureha, K., 1979. The population of finless porpoise in the Inland Sea of Japan. Sci. Rep. Whales Res. Inst., 31: 1-44.

Kusunoki, Y. 1968. Settlement situation of blue mussel in Hiroshima Bay. The Aquaculture 16(1): 15-18

Liaison Council for Miyajima dragonfly protection and management, 2008. Restoration of Miyajima dragonfly habitat. TaKaRa Harmonist fund, Funded Research Report , 161-176.

Mitsushio, F., Yanagi, T., Hashimoto. T., 2002. Oyster culture and marine environment in Hiroshima Bay. Engineering Science Reports, Kyushu University. 24(2): 199-206.

Ministry of Environment, Government of Japan. The 4th benthic sediment quality distribution assessment. Setouchi Net. (publication year not specified). https://www.env.go.jp/water/heisa/heisa_net/setouchiNet/seto/g2/g2cat01/teishitsuodaku/odaku- index4.html#main

Ministry of Environment, Chyugoku-Shikoku regional environment office, (year not specified) “ Finless porpoise network. http://chushikoku.env.go.jp/to_2010/data/0702a_5.pdf

Mutsuda, H., Murakami, K., Doi, Y., Yamamoto, T., Kawaguchi, O., 2011. Seasonal change of oyster raft placement and seawater exchange in Etajima Bay. Society of Civil Engineering , Series B3 (Ocean Development), 67(2): 364-369

Nakagawa, K., Hamaguchi, M., Sasaki, M., Tawaratsumida, T., Nakamura, Y., 2010. Growth characteristics and subpopulation analysis by means of microsatellite DNA markers of Pacific cupped oysters ( Crassostrea gigas ) in Buzen Sea. Bull. Fukuoka Fisheries Mar. technol. Res. Cent. 20: 81-86.

National Museum of Nature and Science, Cetacean stranding data base (http://www.kahaku.go.jp/research/db/zoology/marmam/drift/detail.php?id=135 ).

NIES (National Institute for Environmental Studies), 2013. Deterioration of sedimentary environment and assessment of its impact on benthic fauna in coastal sewa close to urbanized area. NIES Research Project No. 106.

Newell, R. I. E., 1988. Ecological changes in Chesapeake Bay, are they the result of overharvesting the Eastern oyster ( Crassostrea virginica )? In: Lynch, M. P., & Krome, E. C., editors. Understanding the estuary, advances in Chesapeake Bay research. Gloucester Point, VA: Chesapeake Research Consortium Publication 129 (CBP/TRS 24/88). pp 536-546.

Ogawa, N., 2017. Distribution and population number of finless porpoise Neophocaena asiaeorientalis along the coast of Japan. PhD Thesis, Tokyo University of Marine Science,95 pp.

Okada, M., 2006. Hiroshima Bay current and towards future. Hiroshima Bay revitalisation Symposium presentation slides.

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 68 SCS Global Services Report

Omoto, S., Torii, M., Miura, S., Manabe, Y., Nishimura, K., Growth of an Artificial Eelgrass Bed on the Coast of Hinase−cho, Okayama Prefecture. Fisheries Engineering 42(1): 75-78.

Saito, H., Nakanishi, Y., Shigeta, T., Umino, T., Kawai, K., Imabayashi, H., 2008. Effect of predation of fishes on oyster spats in Hiroshima Bay. Nippon Suisan Gakkaishi, 74(5): 809-815.

Sakai, Y., Shimizu, N., Umino, T. (2013). Fish species found under the oyster hanging raft structure off Eda Island, Hiroshima Bay. Biosphere Sci. 52: 25-33.

Sekino, M., Hamaguchi, M., Araishi, F., Okoshi, K., 2003. Development of Novel Microsatellite DNA Markers from the Pacific Oyster Crassostrea gigas. Mar. Biotechnol. 5: 227-233. Songsangjinda, P., Matsuda, O., Yamamoto, T., Rajendran, N., Maeda, H., 2000. Role of suspended oyster culture on nitrogen cycle in Hiroshima Bay. Journal of Oceanography, 56:223-231.

Shigeta, T. 2008. Recent ecological problems of the fishes in the Seto Inland Sea, Japan. Nippon Suisan Gakkaishi, 74(5):868-872.

Suenaga,N, Tanaka, K., Masuda, K., Fujiwara, M., Sasaki, T., 2001. Research of the impact on juvenile transportation of sand eel by the change of bottom configuration caused by marine sand harvesting. Coastal engineering publication series, Japan Society of Civil Engineering. 48:1246-1250.

Terawaki, T., Yoshikawa, K., Yoshida, G., Uchimura, M. and Arai, S., 2001. Horizontal and vertical distribution patterns of macro-algae in Hiroshima Bay, Western Seto Inland Sea. Bull. Fish. Environ. Inland Sea, 3:73-81.

Tarutani, K. 2007. Impacts of oyster cultures on nitrogen budgets in Hiroshima Bay, the Seto Inland Sea of Japan. Bull. Fish. Res. Agen., 19: 35-40.

Umino, T., 2010. Biology of black porgy and study of fishing technique. Seizando (Publ.), Tokyo.

Ushiroda, T., Yamamoto, T., Terauchi, M, 2016. Characteristics of distribution of sediment quality in the northern Hiroshima Bay. Hiroshima Prefectural Technology Research Institute, Health and Environment Center 、 Reserch Report, 24 :43-50.

Yamaji, M., Maekawa, K., 2006. Efffect of trawling in oyster culture ground on improvement of bottom materials. Hiroshima Marine Technology Research Center, research report 1: 19-22.

Yamamoto, T. 2003. The Seto Inland Sea––eutrophic or oligotrophic? Marine Pollution Bulletin 47: 37– 42.

Yamamoto, T., Takeshita, K., Hiraga T., Hashimoto, T. 2008. An estimation of net ecosystem metabolism and net denitrification of the Seto Inland Sea Japan. Ecol. Model. 215: 55-68.

Yoshida, G., 2012. Relationship of seaweed/seagrass bed and fisheries production of the Seto Inland Sea. Fisheries Engineering 49(2):77-83.

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 69 SCS Global Services Report

Yoshida, G., Tanimoto, T., Aida, S., Mizutani, H., Omoto, S., Siato, K., Moriguchi, A., Hori, M., Hamaguchi, M. , Terawaki, T., 2013. Ecological traits and their diversities of five Zostera marina populations in and around Hiroshima Bay, the Seto Inland Sea, Japan. Biosphere Si. 52: 71-86.

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 70 SCS Global Services Report

1 Annex 1: Pre-assessment evaluation tables

1.1 Principle 1- Not Scored

The fishery was deemed to not undergo translocation, and the assessment team determined via initial evaluation that there was no evidenced the enhanced catch-and-grow (CAG) operation was impacting the parent stock (FCRV2.0 2.1.2). Therefore, Principle 1 was not scored (SB2.1.4). See Section 3.1 for more detail.

1.2 Principle 2

The fishery does not include a dredging operation for harvest, and therefore Primary and Secondary species PIs (2.1.X and 2.2.X) were not scored (SB 3.1.1). See Section 3.1 for more detail.

Component ETP species (outcome) PI 2.3.1 The UoA meets national and international requirements for the protection of ETP ETP species species outcome The UoA does not hinder recovery of ETP species Scoring issues SG60 SG80 SG100 (a) Where national and/or Where national and/or Where national and/or Effects of the international international requirements international requirements UoA on requirements set limits set limits for ETP species, set limits for ETP species, population/st for ETP species, the the combined effects of there is a high degree of ock within effects of the UoA on the MSC UoAs on the certainty that the national or the population/stock population/stock are combined effects of the international are known and likely to known and highly likely to MSC UoAs are within these limits, where be within these limits. be within these limits. limits. applicable (b) Known direct effects of Known direct effects of the There is a high degree of Direct effects the UoA are likely to not UoA are highly likely to not confidence that there are hinder recovery of ETP hinder recovery of ETP no significant detrimental species. species. direct effects of the UoA on ETP species. (c) Indirect effects have been There is a high degree of Indirect considered and are confidence that there are effects thought to be highly likely no significant detrimental to not create unacceptable indirect effects of the impacts. fishery on ETP species. Justification/Rationale

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 71 SCS Global Services Report

The only ETP species identified in the Pre-assessment that may have an interaction with the oyster raft hanging fishery in Hiroshima Bay is finless porpoise. There are no limits associated with the fishery and therefore scoring issue (a) is not applicable.

No detrimental effect of oyster raft structures on finless porpoise has been recorded through entire history of oyster culture in Hiroshima Prefecture. At the on-site meeting, nobody pointed out the experience of any such direct effect (vessel collision, entanglement with oyster raft materials, stranding). A recent aerial population assessment indicated a recovering trend of the species (Ogawa, 2017).

Finless porpoise preferred habitat in Seto Inland Sea is limited to the coastal zone shallower than 50 m in depth, within 2 km for the shore and sandy-muddy bottom (Shirakihara, K. 2003). There is a well- developed network on the sighting record of finless porpoise in Seto Inland Sea exists (Ministry of Environment, Chyugoku-Shikoku Regional Environment Office). Sighting records (Ministry of Environment) show the occurrence of finless porpoise around Itsukushima (north-eastern part of Hiroshima Bay), Hiro Bay where oyster culture rafts are placed but also around Yashiro Island (southern-most part of Hiroshima Bay) where oyster culture is not conducted. The cetacean stranding record database (National Museum of Nature and Science) recorded 2,657 stranding case of finless porpoise including similar species around islands of Japan (oldest record in 1886), with only 7 cases in Hiroshima Bay, among which 4 cases of stranding occurred in oyster culture region and 3 cases outside. No direct relationship between the oyster culture structure and stranding was mentioned. The only fishery-related threat for finless porpoise was a direct fishery on the species which ceased around the end of the 1960’s in Seto Inland Sea (Kasuya and Kureha, 1979). Any other cause of fishery-induced death (entanglement, collision with vessels etc…) has never been published.

There is no indication that the oyster production would have indirect impacts, such as removal of a key prey species (fish and cephalopods).

RBF Likely Scoring Level Required? X (pass/pass with Pass (//) condition/fail)

Component ETP species (management) PI 2.3.2 The UoA has in place precautionary management strategies designed to: ETP species  meet national and international requirements; management  ensure the UoA does not hinder recovery of ETP species. strategy

Also, the UoA regularly reviews and implements Scoring issues SG60 SG80 SG100

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 72 SCS Global Services Report

(a) There are measures in There is a strategy in place There is a comprehensive Management place that minimise the for managing the UoA’s strategy in place for strategy in UoA-related mortality impact on ETP species, managing the UoA’s impact place of ETP species, and are including measures to on ETP species, including (national and expected to be highly minimise mortality, which measures to minimise international likely to achieve is designed to be highly mortality, which is requirements) national and likely to achieve national designed to achieve above international and international national and international requirements for the requirements for the requirements for the protection of ETP protection of ETP species. protection of ETP species. species. (b) There are measures in There is a strategy in place There is a comprehensive Management place that are expected that is expected to ensure strategy in place for strategy in to ensure the UoA does the UoA does not hinder managing ETP species, to place not hinder the recovery the recovery of ETP ensure the UoA does not (alternative) of ETP species. species. hinder the recovery of ETP species (c) The measures are There is an objective bas is The Management considered likely to for confidence that the strategy/comprehensive strategy work, based on measures/strategy will strategy is mainly based on evaluation plausible argument work, based on information directly about (e.g. , general information directly about the fishery and/or species experience, theory or the fishery and/or the involved, and a comparison with similar species involved. quantitative analysis fisheries/species). supports high confidence that the strategy will work. (d) There is some evidence There is clear evidence Management that the measures/strategy that the strategy is being implemented strategy/comprehensive implementati successfully. strategy is being on implemented successfully and is achieving its objective as set out in scoring issue (a) or (b). (e) There is a review of the There is a regular review of There is a biennial review Review of potential effectiveness the potential effectiveness of the potential alternative and practicality of and practicality of effectiveness and measures to alternative measures to alternative measures to practicality of alternative minimize minimise UoA-related minimise UoA-related measures to minimise UoA- mortality of mortality of ETP species. mortality of ETP species related mortality ETP ETP species and they are implemented species, and they are as appropriate. implemented, as appropriate. Justification/Rationale

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 73 SCS Global Services Report

As there are no national or international limits in place relative to identified ETP species, scoring issue a is not scored (SA 3.11.2).

Based upon the information regarding the location and nature of the oyster hanging culture farms, and the nature of the ETP species in the area, there is an objective basis for confidence that the risk to ETP species from oyster farms is extremely low. The absence of any reports of interactions between oyster farms and ETP species since the beginning of the farming history in more than 5 decades ago, and the absence of any concerns about such impacts from NGOs/public provides circumstantial evidence that this is the case.

As there is no indication that the oyster cultivation in Hiroshima Bay causes direct or indirect impacts to the finless porpoise, there are no explicit management measures in place to protect the species from this UoA’s impacts. The ongoing monitoring efforts including the Cetacean Stranding Database- which records sightings of the species from the public, shipping companies, NGOs as well as academics- provides useful information for better understanding of the geographic distribution of the species.

There are additional actions unrelated to this UoA that have been undertaken that have had a positive impact on the finless porpoise:

In 1930, a marine protected area was set for the species 1.5km around the southern tip of Awa Island (in the UoA) where finless porpoise aggregate. There have been a series of Seto Inland Sea rejuvenation efforts put in place in the past several decades, which seems to have had a positive impact on the marine habitat in Seto Inland Sea including Hiroshima Bay. These efforts are not associated with fishery impact or fishery management but may have provided for indirect positive impacts on the recovery of finless porpoise in Seto Inland Sea. Studies demonstrating that the finless porpoise is recovering (Ogawa, 2017) provide evidence that fishery and other anthropogenic impacts are not hindering recovery of the finless porpoise in the Seto Island Sea, including UoA waters (Ogawa, 2017).

Scoring issue e requires at least a regular (meaning every 5 years) review of mortality impact minimization for the fishery relative to ETP species impacts. While there is no evidence that the UoA is having any significant impact, there must be evidence of a mechanism to review the species status relative to fishery impacts. In addition, more information is needed on the monitoring systesm in place. Due to this, this PI is deemed to pass with a condition at this point.

RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pass with condition (//) condition/fail)

Component ETP species (information)

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 74 SCS Global Services Report

PI 2.3.3 Relevant information is collected to support the management of UoA impacts on ETP species ETP species, including: information  Information for the development of the management strategy;  Information to assess the effectiveness of the management strategy; and

Information to determine the outcome status of ETP species Scoring issues SG60 SG80 SG100 (a) Qualitative information Some quantitative Quantitative information is Information is adequate to estimate information is adequate to available to assess with a adequacy for the UoA related assess the UoA related high degree of certainty assessment of mortality on ETP mortality and impact and the magnitude of UoA- impacts species. to determine whether the related impacts, UoA may be a threat to mortalities and injuries protection and recovery of and the consequences for OR the ETP species. the status of ETP species.

If RBF is used to score PI OR 2.3.1 for the UoA:

If RBF is used to score PI Qualitative information 2.3.1 for the UoA: is adequate to estimate productivity and Some quantitative susceptibility attributes information is adequate to for ETP species. assess productivity and susceptibility attributes for ETP species. (b) Information is adequate Information is adequate to Information is adequate to Information to support measures to measure trends and support a comprehensive adequacy for manage the impacts on support a strategy to strategy to manage management ETP species. manage impacts on ETP impacts, minimize strategy species. mortality and injury of ETP species, and evaluate with a high degree of certainty whether a strategy is achieving its objectives. Justification/Rationale

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 75 SCS Global Services Report

Sufficient quantitative information is available on the finless porpoise in Seto Inland Sea to assess UoA related mortality and impact to determine whether the UoA presents a threat. There has been a recent aerial population assessment indicating a recovering trend. The distribution of the species and habitat preferences are well understood, as are key prey. There is a well-established network for sighting records of the species, and a longstanding database of recorded strandings.

The information available is adequate to broadly understand the level of impact, and to support measures to manage impacts on ETP species.

RBF Likely Scoring Level Required? X (pass/pass with Pass (//) condition/fail)

Component Habitats outcome PI 2.4.1 The UoA does not cause serious or irreversible harm to habitat structure and Outcome function, considered on the basis of the area(s) covered by the governance body(s) status responsible for fisheries management. Scoring issues SG60 SG80 SG100 (a) The UoA is unlikely to The UoA is highly unlikely There is evidence that the Commonly reduce structure and to reduce structure and UoA is highly unlikely to encountered function of the function of the commonly reduce structure and habitat status commonly encountered encountered habitats to a function of the commonly habitats to a point point where there would encountered habitats to a where there would be be serious or irreversible point where there would serious or irreversible harm. be serious or irreversible harm. harm. (b) The UoA is unlikely to The UoA is highly unlikely There is evidence that the VME habitat reduce structure and to reduce structure and UoA is highly unlikely to status function of the VME function of the VME reduce structure and habitats to a point habitats to a point where function of the VME where there would be there would be serious or habitats to a point where serious or irreversible irreversible harm. there would be serious or harm. irreversible harm.

(c) There is evidence that the Minor habitat UoA is highly unlikely to status reduce structure and function of the minor habitats to a point where there would be serious or irreversible harm. Justification/Rationale

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 76 SCS Global Services Report

Main habitats, those most commonly encountered through the cultivation operation, are characterized as: muddy sediment with high percentage of mud-silt composition plain with fine-flat solitary sedimentary/sessile epifauna at the depth shallower than 50m. The benthic habitat beneath the oyster raft culture sites in Hiroshima and Hiro Bays are mainly muddy (clay composition higher than 70%), (Ministry of Environment, Government of Japan), and fish species were not observed between the end of oyster rens to the bottom except for some rocky habitat preferred species around the accumulated oyster culture materials on the bottom (Sakai et al., 2013). In general, the sediment in Hiroshima Bay highly contains primary production origin organic matters with high water content ratio forming floating mud.

In the coastal shallower waters up to 6 m, there are some Zostera beds observed on sandy-muddy bottom (Yoshida et al., 2013). There is not much exposed bedrock in Hiroshima Bay and cobbles at various sizes are piled forming the base for brown seaweed such as Phaeophiceae spp. There are also sandy-muddy bottom preferred seaweed species such as Salgassum spp . The seagrasses were found up to 14m in depth deeper than that depth the bottom sediment is sundy-muddy bottom without any significant seagrasses (Terawaki et al., 2001).

More information on distribution of these seagrass habitats relative to the oyster culture sites will be needed to determine whether they are appropriately classified as Main for the MSC evaluation.

For enhanced fisheries, habitat impact evaluation must consider: the habitat impacts of bio- deposition and benthic organic enrichment and the ecosystem and carrying capacity impacts of localized phytoplankton depletion from bivalve filtration. ◙(SB3.1.3.1)

The main effect that mussel farms are likely to have on marine benthic habitats is through the accumulation of faecal and pseudofeacal material, the fallen live oysters and dead oyster shells as well as oyster culture system materials from the farm onto the seabed. The non-biological/physical material does not result in irreversible effect on benthic habitat. An annual bottom cleaning effort has been conducted in and around oyster culture sites at fishery cooperative association and/or city level in Hiroshima prefecture, which may be considered as a reasonable remedy for inorganic matters, although more frequent cleaning effort is desirable for organic matters and comprehensive information on the extent of geographic coverage of cleaning and its frequency is lacking.

For the biological material fallen from the hanging culture system, the faecal and pseudo-faecal material from oyster farms are known to decompose rapidly on the sea bottom. In the case of open sea with high current environment, there is minimal threat to the bottom environment. However, Hiroshima Bay is well known to be a highly closed ocean environment. As such, there is a risk that the fishery may reduce habitat structure to the point where there would be serious harm. The key driver for this is the intensity of effort, affected by the number of rafts and duration of outgrowth cultivation.

In closed marine environment such as Hiroshima Bay, overload of nitrate and phosphate increase the

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 77 SCS Global Services Report primary production. The majority of primary producers fall to the ocean bottom and are decomposed by benthic fauna and bacteria, which results in anoxic conditions on the ocean bottom. To a certain extent, hanging cultured oysters play important role in filtering and absorbing overloaded nitrate and phosphate (Mitsushio et al., 2013). NIES (2013) mentioned that benthic fauna especially polychaetes species actively feed on accumulated organic matter and biologically agitate the sediment by leading oxidation (making free S 2- into non-toxic state), (Kinoshita et al., 2008). However, when the biomass of cultured oysters exceeds certain level, cultured oysters produce high amount of organic matters (facea and pseudo-facea, and dead oysters) which fall onto the ocean bottom and accelerate anoxic state of the bottom habitat. In addition, anoxic conditions on the bottom result in activation of sulfate reduction bacteria that produce highly toxic free S2- and results in mass mortality of macro-benthic fauna. This also impacts prey species such as fish and crustaceans by interrupting energy flow to the animals at the higher level of food chain (NIES, 2013).

In a case where benthic fauna is seriously impacted, the risk of irreversibility of the benthic habitat environment would be high.

Decomposition of biological material results in anoxic seawater and is monitored locally based on AVS value in the surface of the sediment. AVS is relatively easy to measure and widely used to describe the marine sediment enrichment level in Japan. However, this value includes both free S2- and solid phase forms of S2-, which are not toxic to benthic fauna. NIES (2013) mentioned that free S2- occupies about 5-10% of AVS value. However, there is no criteria established with other biotic and abiotic parameters to classify the degree of enrichment of the marine sediment other than a threshold of 0.2 mg/g suggested naturally. An aquaculture grounds improvement program proposal by Hiroshima proposed a higher level, but in neither case has the assessment team seen a science-based rationale for the elected threshold.

Onsite participants also indicated that exceedance of AVS thresholds seems to occur in the northern and northwestern areas as well as Etashima Bay in Hiroshima Bay, where the AVS value exceeds the threshold set by Japan Fisheries Resource Conservation Association at 0.2 mg/g seasonally. In other parts of Hiroshima Bay and Hiro Bay, the value seems to be below the threshold. See Background Section 3.4 on Habitat for a detailed review of available studies on benthic habitat impacts.

MSC guidance provides a recommended metric for evaluating benthic impacts based on levels of free sulphides measured in micro moles. Hargave et al. (2008) measured dissolved sulfides (total free S 2- ) which can be used to classify organic enrichment impacts in marine sediments. The biogeochemical cycle of sulfur in the marine sediment result from stress due to oxygen deficiency (hypoxia and anoxia) and toxic effects of S2-. In combination with the total free S 2- within the microbenthic fauna community structure, the authors proposed criteria for sediment enrichment classification.

This type of measurement is not conducted in the study region, and the team was not able to identify a means to compare the AVS threshold of 0.2mg/g to the recommended thresholds presented in micro moles to ascertain whether the criteria used locally equates to the performance intent

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 78 SCS Global Services Report expressed in the MSC guidance.

There is evidence that local recommended values for the AVS measure are frequently exceeded the water quality criteria proposed by JFRPA in areas (comparing Figure 1 with Figure 22 and Figure 23) and some of the UoA sites are located in these areas (northern and north-western Hiroshima Bay). THere is not clear evidence to demonstrate that these values are equally or more conservative than the MSC guidance. Scientifically recommended raft numbers have not been updated for UoA or at least Hiroshima Bay, it is difficult to evaluate the current situation of the oyster hanging culture in UoA. However, the presence of various macro-benthos in the sediment in abundance i.e. 200 individuals/m 2 (Anonymous, 2013-2017) at 4 of 5 stations. Although this information is not quantitatively appreciable nor comparable with other studies, this may suggest that the benthic condition of UoA sites are not at ‘irreversible’ state. The station 5 (Matsugahana) is situated in Etajima Bay where the benthic conditions are deemed to be worst. None of 5 clients use Etajima Bay for spat collection or hanging culture site.

Where there is greater uncertainty, and due to the closed environment of Hiroshima Bay that exacerbates potential impact, the CAB elects to take a precautionary approach. More information on the thresholds and criteria used for monitoring and information on benthic community structure is needed to support a score of SG60 or higher.

VME Considerations:

The assessment team preliminarily classified Ecologically or Biologically Significant Marine Areas (ESMAs) as VMEs, and there are 6 in Hiroshima and Hiro Bays. ESMA designation in Japan does not necessarily imply that human activity in that area will be restricted. While ESMAs are intended to be used as basic information for marine biodiversity conservation measures such as establishing protected areas, an ESMA itself will not directly become the marine protected area that is associated with restrictions (Principle 3 of EBSA identified by Japan (Ministry of Environment of japan). Oyster culture occurs in several of these areas and the assessment team is not aware of any studies or procedures in place to ensure that culture activities are not detrimental to these specified areas. More information on ESMAs is needed in a future assessment.

RBF Likely Scoring Level Required? X (pass/pass with Pre-condition (//) condition/fail)

Component Habitats management strategy PI 2. 4.2 There is a strategy in place that is designed to ensure the UoA does not pose a risk Management of serious or irreversible harm to the habitats. strategy Scoring issues SG60 SG80 SG100

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 79 SCS Global Services Report

(a) There are measures in There is a partial strategy There is a strategy in place Management place, if necessary, that in place, if necessary, that for managing the impact of strategy in are expected to achieve is expected to achieve the all MSC UoAs/non-MSC place the Habitat Outcome 80 Habitat Outcome 80 level fisheries on habitats. level of performance. of performance or above. (b) The measures are There is some objective Testing supports high Management considered likely to basis for confidence that confidence that the partial strategy work, based on the measures/partial strategy/strategy will work, evaluation plausible argument (e.g. strategy will work, based based on information general experience, on information directly directly about the UoA theory or comparison about the UoA and/or and/or habitats involved. with similar habitats involved. UoAs/habitats). (c) There is some quantitative There is clear quantitative Management evidence that the evidence that the partial strategy measures/partial strategy strategy/strategy is being implementati is being implemented implemented successfully on successfully. and is achieving its objective, as outlined in scoring issue (a). (d) There is qualitative There is some quantitative There is clear quantitative Compliance evidence that the UoA evidence that the UoA evidence that the UoA with complies with its complies with both its complies with both its management management management requirements management requirements requirements requirements to protect and with protection and with protection and other VMEs. measures afforded to measures afforded to MSC VMEs by other MSC VMEs by other MSC UoAs’/non- UoAs/non-MSC fisheries, UoAs/non-MSC fisheries, MSC fisheries’ where relevant. where relevant. measures to protect VMEs Justification/Rationale

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 80 SCS Global Services Report

The primary risk to habitats from oyster production has been identified as excess production (and associated impacts of accumulated fallen organic matter) from the grow-out stage. Therefore, effort control is a key means for mitigating potential habitat impacts, and monitoring of indicators for impacts (e.g. free sulfides, benthic community structure).

The only regulations in place for the oyster hanging raft culture include the size of raft, the number of horizontal bamboo pole, the number of ‘Ren’ per a horizontal bamboo pole, the number of scallop collector per ‘Ren’ as well as the number of raft determined under Fishery Right Exercise Rule. These regulations may effectively limit production capacity, but it is not clear that these regulations have been designed on any scientific basis or with any environmental protection goal.

Scientific evidence based on ecological modelling has suggested a need to reduce the total number of hanging rafts to below 10,000 in Hiroshima Bay (excluding Hiro and Mitsu Bays). However, no regulation has been implemented based on this suggested limit. There was a separate regulatory decision to reduce the number of rafts in Hiroshima Bay by 30% in the late 1990’s, and enforcement resulted in a 10% reduction in the number of rafts. However, this approach has not been continuously monitored nor enforced because of a declining trend in oyster culture enterprises in Hiroshima prefecture. In 2017, the total number of raft is at 12,659 in Hiroshima prefecture.

The suggested limit of 10,000 rafts was evaluated using ecosystem modelling and site-specific information, and results showed that 10,000 rafts was an appropriate limit for Hiroshima Bay (Hashimoto et al., 2007), and the current total raft number is estimated at 12,659 for Hiroshima prefecture may not be far from the identified target for Hiroshima Bay. Therefore, implementation of the official optimal raft number may be realistic and attainable, while subsequent improvement of bottom habitat environment may take longer time.

In sum, there are measures in place that provide some production density control (i.e. raft configuration regulations), which is the key driver of benthic impact. However, these measures are not linked to any particular study to support confidence in their effectiveness. The study presented to the assessment team that did produce a recommendation for a product density control in the recommend number of rafts, was not formally implemented and has not been attained. Monitoring in the region suggests that impacts are above recommended thresholds in certain regions.

Therefore, we do not have sufficient evidence to say that there are measures that will meet the SG80 that are likely to work, because regulations in place are not providing an SG80 outcome and there is no evidence supporting the adequacy of the existing measures.

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 81 SCS Global Services Report

RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pre-condition (//) condition/fail)

Component Habitats information PI 2.4.3 Information is adequate to determine the risk posed to the habitat by the UoA and Information the effectiveness of the strategy to manage impacts on the habitat. monitoring Scoring issues SG60 SG80 SG100 (a) The types and The nature, distribution The distribution of all Information distribution of the main and vulnerability of the habitats is known over quality habitats are broadly main habitats in the UoA their range, with particular understood. area are known at a level attention to the occurrence of detail relevant to the of vulnerable habitats. scale and intensity of the OR UoA.

If CSA is used to score PI OR 2.4.1 for the UoA:

If CSA is used to score PI Qualitative information 2.4.1 for the UoA: is adequate to estimate the types and distribution of the main Some quantitative habitats. information is available and is adequate to estimate the types and distribution of the main habitats

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 82 SCS Global Services Report

(b) Information is adequate Information is adequate to The physical impacts of the Information to broadly understand allow for identification of gear on all habitats have adequacy for the nature of the main the main impacts of the been quantified fully. assessment of impacts of gear use on UoA on the main habitats, impacts the main habitats, and there is reliable including spatial overlap information on the spatial of habitat with fishing extent of interaction and gear. on the timing and location of use of the fishing gear. OR OR If CSA is used to score PI 2.4.1 for the UoA: If CSA is used to score PI 2.4.1 for the UoA: Qualitative information is adequate to estimate Some quantitative the consequence and information is available spatial attributes of the and is adequate to main habitats. estimate the consequence and spatial attributes of the main habitats (c) Adequate information Changes in habitat Monitoring continues to be collected distributions over time are to detect any increase in measured. risk to the main habitats. Justification/Rationale The nature, distribution and vulnerability of the main bottom habitats in the UoA area are known at a level of detail relevant to the scale and intensity of the UoA (see Background and PI 2.3.1). There have been several studies reviewing impacts of the fishery, there is ongoing monitoring, and modelling to recommend a limit on the number of rafts used in the region. Therefore, while there remains concerns regarding fishery impacts and adequacy of existing measures, there is information available and being collected in an ongoing manner to support a management partial strategy and detect an increase in risk.

RBF Likely Scoring Level Required? X (pass/pass with Pass (//) condition/fail)

Component Ecosystem outcome PI 2.5.1 The UoA does not cause serious or irreversible harm to the key elements of Outcome ecosystem structure and function.. status Scoring issues SG60 SG80 SG100

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 83 SCS Global Services Report

(a) The UoA is unlikely to The UoA is highly unlikely There is evidence that the Ecosystem disrupt the key to disrupt the key elements UoA is highly unlikely to status elements underlying underlying ecosystem disrupt the key elements ecosystem structure structure and function to a underlying ecosystem and function to a point point where there would structure and function to a where there would be a be a serious or irreversible point where there would serious or irreversible harm. be a serious or irreversible harm. harm. Justification/Rationale

Apart from the negative impact on the bottom habitat environment, the oyster raft hanging culture seems to provide many positive impacts on ecosystem. The oyster culture plays an important role in preserving the marine environment of Hiroshima Bay (Mitsushio et al., 2002). Also, oyster culture structure is used by many fish as their habitat. Black porgy in particular seem to use the oyster hanging culture structure throughout its life cycle and has extremely high productivity in Hiroshima Bay. This may be seen as an example of positive effect of the oyster culture to the fish community (Sakai et al., 2013). Micro and macro-sea weed species attached to the oyster raft culture systems absorb nutrient and filter the suspended organic matter, and there is an equal amount of seaweed attached to rafts as is naturally occurring in the Hiroshima Bay (Sangsongjinda et al., 2000).

Based on a quantitative ecosystem model in the northern Hiroshima Bay where oyster culture has been prosperous, it was concluded that if no oyster was cultured, the concentrations of chlorophyll-a, dissolved organic phosphorus and detritus would increase in the upper layer, and the dissolved oxygen would decrease in the lower layer. This study (Mitsushiro et al., 2002) concluded that oyster cultivation is playing an important role in preservation of the environment if the oyster biomass is kept at appropriate level.

Per PI 2.4.1, there are concerns as to whether oyster biomass is at appropriate levels. However, at an ecosystem structure and function level, harm may not be considered to be serious or irreversible. If further information on the impact on habitats demonstrates that harm is irreversible and far-reaching in the Hiroshima prefecture waters, this PI may merit a condition or pre-condition.

RBF Likely Scoring Level Required? X (pass/pass with Pass (//) condition/fail)

Component Ecosystem management strategy PI 2. 5.2 There are measures in place to ensure the UoA does not pose a risk of serious or Management irreversible harm to ecosystem structure and function strategy

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 84 SCS Global Services Report

Scoring issues SG60 SG80 SG100 (a) There are measures in There is a partial strategy There is a strategy that Management place, if necessary in place, if necessary, consists of a plan, in place strategy in which take into account which takes into account which contains measures place the potential impacts of available information and to address all main impacts the fishery on key is expected to restrain of the UoA on the elements of the impacts of the UoA on the ecosystem, and at least ecosystem. ecosystem so as to achieve some of these measures the Ecosystem Outcome 80 are in place. level of performance. (b) The measures are There is some objective Testing supports high Management considered likely to basis for confidence that confidence that the partial strategy work, based on the measures/partial strategy/strategy will work, evaluation plausible argument strategy will work, based based on information (e.g., general on some information directly about the UoA experience, theory or directly about the UoA and/or ecosystem involved comparison with similar and/or the ecosystem fisheries/ ecosystems). involved (c) There is some evidence There is clear evidence that Management that the measures/partial the partial strategy strategy is being strategy/strategy is being implementati implemented successfully. implemented successfully on and is achieving its objective as set out in scoring issue (a). Justification/Rationale

Component Ecosystem information PI 2.5.3 There is adequate knowledge of the impacts of the UoA on the ecosystem. Information monitoring

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 85 SCS Global Services Report

Scoring issues SG60 SG80 SG100 (a) Information is adequate Information is adequate to Information to identify the key broadly understand the key quality elements of the elements of the ecosystem. ecosystem. (b) Main impacts of the Main impacts of the UoA Main interactions between Investigation UoA on these key on these key ecosystem the UoA and these of UoA ecosystem elements can elements can be inferred ecosystem elements can be impacts be inferred from from existing information, inferred from existing existing information, and some have been information, and have but have not been investigated in detail. been investigated in detail. investigated in detail. (c) The main functions of the The impacts of the UoA on Understandin components (i.e., P1 target P1 target species, primary, g of species, primary, secondary secondary and ETP species component and ETP species and and Habitats are identified functions Habitats) in the ecosystem and the main functions of are known. these components in the ecosystem are understood. (d) Adequate information is Adequate information is Information available on the impacts of available on the impacts of relevance the UoA on these the UoA on the components to allow some components and elements of the main consequences to allow the main for the ecosystem to be consequences for the inferred. ecosystem to be inferred. (e) Adequate data continue to Information is adequate to Monitoring be collected to detect any support the development increase in risk level. of strategies to manage ecosystem impacts. Justification/Rationale Information is adequate to broadly understand the key elements of the ecosystem. Main impacts of the UoA on these key ecosystem elements are inferred from existing information and have been investigated in detail via modelling efforts to determine the optimal number of rafts (Hashimoto et al., 2007). The main functions of the components (Do, TN, TP, oyster biomass, current etc..) in the ecosystem are known, and the model explains and uses each key parameters such as chrorophyll-a, TP, current, and other oceanographic, chemical and biochemical elements. There is also information available on ETP species and benthic communities around the oyster rafts. Adequate information is available on the impacts of the UoA on these components to allow some of the main consequences for the ecosystem to be inferred. Adequate data and particularly benthic environmental parameters (e.g. TN, TP, DO, AVS, benthic community composition…) continue to be collected to detect any increase in risk level.

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 86 SCS Global Services Report

RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pass (//) condition/fail)

1.3 Principle 3

Component Governance and Policy PI 3.1.1 The management system exists within an appropriate legal and/or customary Legal and/or framework which ensures that it: customary framework  Is capable of delivering sustainability in the UoA(s); and  Observes the legal rights created explicitly or established by custom of people dependent on fishing for food or livelihood; and  Incorporates an appropriate dispute resolution framework. Scoring issues SG60 SG80 SG100

(a) There is an effective There is an effective There is an effective Compatibility national legal system national legal system and national legal system and of laws or and a framework for organised and effective binding procedures standards cooperation with other cooperation with other governing cooperation with effective parties, where parties, where necessary, with other parties which management necessary, to deliver to deliver management delivers management management outcomes outcomes consistent with outcomes consistent with consistent with MSC MSC Principles 1 and 2. MSC Principles 1 and 2. Principles 1 and 2 (b) The management The management system The management system Resolution of system incorporates or incorporates or is subject incorporates or is subject disputes is subject by law to a by law to a transparent by law to a transparent mechanism for the mechanism for the mechanism for the resolution of legal resolution of legal disputes resolution of legal disputes disputes arising within which is considered to be that is appropriate to the the system. effective in dealing with context of the fishery and most issues and that is has been tested and appropriate to the context proven to be effective . of the UoA.

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 87 SCS Global Services Report

(c) The management The management system The management system Respect for system has a has a mechanism to has a mechanism to rights mechanism to generally observe the legal rights formally commit to the respect the legal rights created explicitly or legal rights created created explicitly or established by custom of explicitly or established by established by custom people dependent on custom of people of people dependent on fishing for food or dependent on fishing for fishing for food or livelihood in a manner food and livelihood in a livelihood in a manner consistent with the manner consistent with the consistent with the objectives of MSC objectives of MSC objectives of MSC Principles 1 and 2. Principles 1 and 2. Principles 1 and 2. Justification/Rationale a) There is a national legal fishery licensing system and fishery management system based on fisheries cooperatives, which enable cooperation with other parties as outlined in national legislation and implemented via the National and Prefectural governments and local fishery cooperatives (FCAs). For oyster cultivation in Hiroshima Prefecture, there are 57 FCAs that have joined to form a single Federation. This provides for coherent management policy across the UoA and the many FCAs that exist in the region. Local FCA’s may develop regulations stricter than the Federation, but must implement all Federation and any prefectural or national level regulations. Area use rights are allocated to each operator by the local fishery cooperative, with access rights initiated at the Federation of FCA level.

(b) There is incorporated mechanism for the resolution of legal disputes at/within Hiroshima Fisheries Cooperative Association. The Fisheries Adjustment Commission consists of elected oyster operators and knowledgeable people and serves as a dispute resolution body for larger disputes.

(c) The management system is consistent with any of legal framework or rights for people depend on fisheries for food and livelihood, noting in particular the Japanese legislation supporting community based management via FCAs.

RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pass (//) condition/fail)

Component Governance and Policy PI 3.1.2 The management system has effective consultation processes that are open to Consultation, interested and affected parties. roles and The roles and responsibilities of organisations and individuals who are involved in responsibilitie the management process are clear and understood by all relevant parties s

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 88 SCS Global Services Report

Scoring issues SG60 SG80 SG100 (a) Organisations and Organisations and Organisations and Roles and individuals involved in individuals involved in the individuals involved in the responsibilitie the management management process have management process have s process have been been identified. Functions, been identified. Functions, identified. Functions, roles and responsibilities roles and responsibilities roles and are explicitly defined and are explicitly defined and responsibilities are well understood for key well understood for all generally understood . areas of responsibility and areas of responsibility and interaction. interaction. (b) The management The management system The management system Consultation system includes includes consultation includes consultation processes consultation processes processes that regularly processes that regularly that obtain relevant seek and accept relevant seek and accept relevant information from the information, including local information, including local main affected parties, knowledge. The knowledge. The including local management system management system knowledge, to inform demonstrates demonstrates the management consideration of the consideration of the system. information obtained. information and explains how it is used or not used . (c) The consultation process The consultation process Participation provides opportunity for provides opportunity and all interested and affected encouragement for all parties to be involved. interested and affected parties to be involved, and facilitates their effective engagement. Justification/Rationale

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 89 SCS Global Services Report

(a) Roles and responsibilities are well understood between the local FCAs and Federation of FCAs, which are the main bodies regulating the fishery. Hiroshima Prefecture Department of Fisheries and Prefectural Environment Conservation Section provide advisory input, but not regulatory controls. National management does not have significant interaction in the management of the oyster fishery. There are also several organizations beside Hiroshima Fisheries Cooperative Union whose roles have been defined depending on where their main activities locate in the oyster supply chain. For example, Oyster Producers Measurement Council ( 牡蠣生産者対策協議会) chaired by the Hiroshima Federation of FCAs, meets once a year and collect certain amount of money per a raft to conduct water quality test and promotion of oyster. Hiroshima Oyster Producers Co-op ( 広島かき生産者共同組, private entity) mainly conduct research about the quality of oysters. These are not regulatory bodies per se, but are endowed with authorities via the community-based management system and work in close collaboration and communication with the FCA institutions.

(b)There are consultation processes with regulary meetings at the local FCA and Federation FCA levels. All operators are required to be members of the local FCAs, thus are provided opportunity for regular consultation. In addition, the Hiroshima Oyster Council ( 広島カキ協議会) for processing and supplying oyster, Hiroshima Oyster Processing Co-op ( 広島カキ加工組合) , Hiroshima Oyster Supply Co-op( 広島県かき出荷組合) meet once in a few months and exchange information and opinions. These meetings are attended by FCA representatives. In this fishery, it can be said that opportunities to meet and discuss among stakeholders regularly are rich. **However, to achieve the SG80 or higher in a full assessment, meeting minutes will need to be provided to demonstrate that consultation processes “regularly seek and accept relevant information, including local knowledge and the management system demonstrates consideration of the information obtained.”

(c) At the above meetings, opportunities to participate are clearly provided to fishers. In a full assessment evidence would need to be provided to demonstrate that consultation opportunities are provided to non-industry members in addition to the industry members.

RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pass** (//) condition/fail)

Component Governance and Policy PI 3.1.3 Long The management policy has clear long-term objectives to guide decision-making term that are consistent with MSC fisheries standard, and incorporates the objectives precautionary approach. Scoring issues SG60 SG80 SG100

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 90 SCS Global Services Report

(a) Long-term objectives to Clear long-term objectives Clear long-term objectives Objectives guide decision-making, that guide decision-making, that guide decision-making, consistent with the MSC consistent with MSC consistent with MSC fisheries standard and fisheries standard and the fisheries standard and the the precautionary precautionary approach precautionary approach, approach, are implicit are explicit within are explicit within and within management management policy. required by management policy. policy. Justification/Rationale The objective of the Fisheries Law (1949, as revised in 1962) was to “establish the fundamental system relative to the fisheries production, to attain promotion of fisheries productivity and democratization of fishery by an overall exploitation of the waters through the function of fisheries adjustment organisations.” The purpose of the Fisheries Cooperative Association Law (1948, as amended) was to “the advancement of the national economy by increasing fisheries productivity and improving the economic and social status of fishermen and marine products processors through the development of fisheries cooperative association”.

The Law to Ensure Sustainable Aquaculture Production (1999) seeks to prevent the self-induced environmental deterioration around fish farms, and with this law MAFF issued Basic Guidelines to Ensure Sustainable Aquaculture Production” and FCAs developed "Aquaculture Ground Improvement Programmes". An AGIP may demonstrate the longterm objectives are in place, but the team did not receive evidence of an approved AGIP in place with longterm sustainability objectives aligned with the MSC Standard.

In “Hiroshima prefecture agriculture, forestry and fishery Challenge Plan toward 2020” (2020 広島県農林水産業チャレンジプラン published in 2015), there are some mid-term objectives including restructuring the oyster industry. However, this restructuring is focused on branding through supply chain restructuring, and is not specific to sustainability of the industry.

The above regulations and associated objectives, particularly the Law to Ensure Sustainable Aquaculture Production, provide implicit objective that can be said to be “consistent with the MSC fisheries standard and the precautionary approach.” With evidence that Hiroshima has adopted an Aquaculture Ground Improvement Programme and/or the Guidelines associated with the MAFF Law to Ensure Sustainable Aquaculture Production, SG80 may be reached.

RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pass with Condition (//) condition/fail)

Component Fishery Specific Management System

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 91 SCS Global Services Report

PI 3.2.1 The fishery-specific management system has clear, specific objectives designed to Fishery- achieve the outcomes expressed by MSC’s Principles 1 and 2. specific objectives Scoring issues SG60 SG80 SG100 (a) Objectives , which are Short and long -term Well defined and Objectives broadly consistent with objectives , which are measurable short and achieving the outcomes consistent with achieving long-term objectives , expressed by MSC’s the outcomes expressed by which are demonstrably Principles 1 and 2, are MSC’s Principles 1 and 2, consistent with achieving implicit within the are explicit within the the outcomes expressed by fishery-specific fishery-specific MSC’s Principles 1 and 2, management system. management system. are explicit within the fishery-specific management system. Justification/Rationale There are various documents that can be interpreted as fishery specific objectives, including the Hiroshima Prefecture Agriculture, Forestry and Fishery Challenge Plan Toward 2020. Such documents may mention sustainability, but do not state explicit short term objectives clearly aligned with the MSC Standard Principles 1 and 2.

As in PI 3.1.3, relevant objectives are stated in the Law to Ensure Sustainable Aquaculture Production, and this law implicitly applies to the UoA. As noted above, and AGIP may provide a fitting venue for short and longterm objectives.

RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pass with Condition (//) condition/fail)

Component Fishery Specific Management System PI 3.2.2 The fishery-specific management system includes effective decision-making Decision- processes that result in measures and strategies to achieve the objectives, and has making an appropriate approach to actual disputes in the fishery. processes Scoring issues SG60 SG80 SG100

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 92 SCS Global Services Report

(a) There are some There are established Decision- decision-making decision-making processes making processes in place that that result in measures and processes result in measures and strategies to achieve the strategies to achieve fishery-specific objectives. the fishery-specific objectives. (b) Decision-making Decision-making processes Decision-making processes Responsivene processes respond to respond to serious and respond to all issues ss of decision- serious issues identified other important issues identified in relevant making in relevant research, identified in relevant research, monitoring, processes monitoring, evaluation research, monitoring, evaluation and and consultation, in a evaluation and consultation, in a transparent, timely and consultation, in a transparent, timely and adaptive manner and transparent, timely and adaptive manner and take take some account of adaptive manner and take account of the wider the wider implications account of the wider implications of decisions. of decisions. implications of decisions. (c) Use of Decision-making processes precautionary use the precautionary approach approach and are based on best available information. (d) Some information on Information on the Formal reporting to all Accountability the fishery’s fishery’s performance and interested stakeholders and performance and management action is provides comprehensive transparency management action is available on request , and information on the of generally available on explanations are provided fishery’s performance and management request to stakeholders. for any actions or lack of management actions and system and action associated with describes how the decision- findings and relevant management system making recommendations responded to findings and process emerging from research, relevant recommendations monitoring, evaluation and emerging from research, review activity. monitoring, evaluation and review activity.

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 93 SCS Global Services Report

(e) Approach Although the The management system The management system to disputes management authority or fishery is attempting to or fishery acts proactively or fishery may be comply in a timely fashion to avoid legal disputes or subject to continuing with judicial decisions rapidly implements judicial court challenges, it is arising from any legal decisions arising from legal not indicating a challenges. challenges. disrespect or defiance of the law by repeatedly violating the same law or regulation necessary for the sustainability for the fishery. Justification/Rationale a) Decision making is primarily done at the general meeting of Federation of FCA. The background in principle 3 describes this decision making process. Decisions at the meeting are implemented at each FCA level and there are autonomous decision making process at FCA on how they comply with the decision. b) Because water quality issues directly influence the safeness of freshly consumed oysters, related decision making process has been established and precautionary to respond to serious water quality issues. In addition, in the early 2000s the management system responded to concerns due to a series of red tides, implementing a plan to reduce the number of oyster rafts. It does not appear this effort has been maintained under a clear target. c) However, there is not evidence that decision-making processes use the best available information or utilize the precautionary approach in decision-making. d) Information on the fishery’s performance and management action is said to be available on request, with explanations for any actions or lack of action associated with findings and relevant recommendations emerging from research, monitoring, evaluation and review activity. Note that there was no evidence provided in the pre-assessment. To achieve at least an SG80 in a full assessment clear evidence that this occurs must be provided, through records. e) There are no recent records of legal challenges.

RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pass with Condition (//) condition/fail)

Component Fishery Specific Management System PI 3.2.3 Monitoring, control and surveillance mechanisms ensure the management Compliance measures in the fishery are enforced and complied with. and enforcement Scoring issues SG60 SG80 SG100

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 94 SCS Global Services Report

(a) Monitoring, control and A monitoring, control and A comprehensive MCS surveillance surveillance system has monitoring, control and implementati mechanisms exist, and been implemented in the surveillance system has on are implemented in the fishery and has been implemented in the fishery and there is a demonstrated an ability to fishery and has reasonable expectation enforce relevant demonstrated a consistent that they are effective. management measures, ability to enforce relevant strategies and/or rules. management measures, strategies and/or rules. (b) Sanctions Sanctions to deal with Sanctions to deal with non- Sanctions to deal with non- non-compliance exist compliance exist, are compliance exist, are and there is some consistently applied and consistently applied and evidence that they are thought to provide demonstrably provide applied. effective deterrence. effective deterrence. (c) Fishers are generally Some evidence exists to There is a high degree of Compliance thought to comply with demonstrate fishers confidence that fishers the management comply with the comply with the system for the fishery management system under management system under under assessment, assessment, including, assessment, including, including, when when required, providing providing information of required, providing information of importance importance to the effective information of to the effective management of the importance to the management of the fishery. effective management fishery. of the fishery. (d) There is no evidence of Systematic systematic non- non- compliance. compliancepr ocess Justification/Rationale Due to the nature of this fishery, the primary non-compliance area pertains to raft regulations. The nearshore operation of these rafts means that non-compliance is simple to monitor for everyone, minimizing the likelihood of illegal activity. Also each raft has its own identification tag and the ownership is very clear (if the rafts are washed away due to the strong wave etc, the owner has the responsibility to pull it back to the original position). Sanctions are specified in each demarcated fishery right use regulations （区画漁業権規則） at the local FCA level.

**In a full assessment, more information about how compliance with regulations is monitored, and records of enforcement activities and any sanctions applied must be provided to support the score provided here. RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pass** (//) condition/fail)

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 95 SCS Global Services Report

Component Fishery Specific Management System PI 3.2.4 There is a system of monitoring and evaluating the performance of the fishery - Monitoring specific management system against its objectives. and There is effective and timely review of the fishery-specific management system. management performance evaluation Scoring issues SG60 SG80 SG100 (a) There are mechanisms There are mechanisms in There are mechanisms in Evaluation in place to evaluate place to evaluate key parts place to evaluate all parts coverage some parts of the of the fishery-specific of the fishery-specific fishery-specific management system management system. management system. (b) Internal The fishery-specific The fishery-specific The fishery-specific and/or management system is management system is management system is external subject to occasional subject to regular internal subject to regular internal review internal review. and occasional external and external review. review. Justification/Rationale

At the onsite it was stated that monitoring against the Fishery Ground Improvement Plan is conducted. Participation in the improvement program is necessary to be eligible to fraternal insurance for income (if the income is lower than the average, fishery can get insurance). Half of the insurance premium is covered by the central government if the fishery formulates the Plan). The monitoring result is evaluated annually by the fishery experimental station, Hiroshima Prefecture Fisheries Cooperative Union, Hiroshima Fishery Mutual Aid Association and Hiroshima Prefecture. Those organizations formed a council.

The assessment team was not made aware of any other processes in place that review aspects of the management system.

To be precise this monitoring and evaluation is half internal and half external. More detailed information on the content of monitoring and evaluation and examples of the evaluation reports will be needed. With the information provided, it can only be stated that this review can likely be concluded to evaluate some parts of the management system.

Version 2-0 (April 2016) | © SCS Global Services | MSC Pre-Assessment Reporting Template Page 96 SCS Global Services Report

RBF Likely Scoring Level Required?  RBF can’t be used (pass/pass with Pass with Condition (//) condition/fail)

1.4