Seafood for Future Generations the MSC Annual Report 2017 - 18 2 MSC Annual Report 2017-18

Seafood for future generations The MSC Annual Report 2017 - 18 2 MSC Annual Report 2017-18

Our ocean is in trouble. We urgently need to scale workable solutions to deliver sustainable fisheries and resilient marine ecosystems. The attainment of SDG14’s targets is essential to the ocean’s future well-being. I welcome MSC’s latest initiative to engage with and help fisheries in the global south, and to invest in new scientific research that could benefit many fisheries around the world. Peter Thomson, the UN Secretary General’s Special Envoy for the Ocean and Co-Chair of the Friends of Ocean Action

Cover image: European Lobster © Tony Fitzsimmons Contents image: Maldives pole and line tuna fishing © David Loftus Contents 3

Contents

Messages from our Chief Executive and Chair 5 Chain of Custody 26 Overview 7 2020 Leaders for a Living Ocean 28 Growth in the MSC program 9 Sustainable seafood getting big in Japan 30 Making an impact 10 MSC labeled products 32 Current work in the developing world 12 20th anniversary campaign 34 Tuna stakes 14 Partner campaigns across the world 36 Newly certified fisheries 16 Consumer insights and education 38 Continued commitment 18 Upholding our Standards 40 Fishery firsts 20 Our funding and finances 42 Suspensions 22 The MSC’s governance 44 A pathway to sustainability 24 4 MSC Annual Report 2017-18 A message from our Chief Executive

Last year, millions of people marvelled Over the last 20 years, the MSC has shown that it can be We want to see more such impacts in more fisheries – at the wonders of the BBC’s Blue a part of the solution. We have demonstrated a concept particularly in developing countries, where fisheries are Planet – and the ocean was on the that works: catalysing change on the water by building a vital to food security and livelihoods but certification can political agenda like never before. market for sustainable seafood, certified to a robust and be challenging. At the same time, we will never take our eye credible standard. off the ball in ensuring that our Standard remains robust and The first ever UN Ocean Conference rigorous, and that it provides value for our partners. took place in June 2017, bringing As a result, the MSC has become a prominent voice in the together more than 4,000 participants and drawing over conversation on ocean conservation, and I was privileged The stories contained in this year’s Annual Report show 1,400 commitments from governments, business and to be part of last year’s ocean conferences. At Our Ocean some of the progress that the MSC and our partners have civil society toward protecting and restoring the ocean. 2017, we announced our goal to engage 20% of the global made as we work toward our shared goals. I would like to This was followed in November by the Our Ocean conference, marine catch in our program by 2020 – and, excitingly, congratulate everyone who has contributed to these hosted by the EU in Malta, which brought a further 433 27 leading companies in the seafood supply chain made achievements, and to thank you all for your continued tangible commitments, including financial pledges worth their own commitments on how they would contribute to support. Together, we can safeguard seafood supplies €7.2 billion. this. These “2020 Leaders for a Living Ocean” personify and ensure a healthy future for our ocean. the way that our partners are taking the MSC concept and These high-level events showcased the widespread making things happen. determination to deliver Sustainable Development Goal 14, on conserving and sustainably using the oceans, seas and Reaching 20% of the global marine catch by 2020, and 30% marine resources for sustainable development. by 2030, is an ambitious aim, but it reflects the scale of the challenge we face. We unashamedly want to scale the MSC At the heart of this is addressing unsustainable fishing. program – not for its own sake, but because MSC certification, This is an urgent challenge at a time when a growing global through the engagement and leadership of our partners, is Rupert Howes, population needs sustainable, low-carbon protein more a driver and an indicator of positive change. Our ever-growing Chief Executive than ever – yet a third of fish stocks are overexploited, body of evidence, documented in our Global Impacts Report, and the ocean faces unprecedented threats from global contains more than 1,200 examples of positive impacts warming, acidification and plastic pollution. that certification has brought. Messages from our Chief Executive and Chair 5 A message from our Chair

Over the last 20 years, the MSC has Standard has strengthened requirements which encompass The Board remains tremendously grateful for the time, effort proved that it is a force for the good of impacts on other species and the wider marine environment, and expertise that all our stakeholders have put into the MSC the ocean. The demand for certified and begun to address social and labour-related concerns. over the years. You have made the MSC what it is today, and sustainable seafood has led to real We are also focusing increasingly on the global south, we rely on you to ensure it remains a powerful force for the improvements in the way fisheries where fisheries governance and science tend to be weaker, good of the ocean tomorrow. are managed, in the populations of presenting significant new challenges. target species, to ocean research, and to marine ecosystems. And we are determined to continue Taking on board the inputs and balancing the sometimes to play our part in ensuring the survival of the world’s oceans competing demands of all our stakeholders is inevitably a and the fish stocks that provide food and livelihoods for slow, lengthy process. Running a rigorous and robust so many people. certification system that different stakeholders can buy into Werner Kiene, requires us to adhere to many rules and procedures, and to Chair of MSC Board of Trustees The MSC has always been a multistakeholder organisation. secure agreements at every step. This can be frustrating at It is our stakeholders – from the catch sector, from along times, but has proven beneficial in the long run. the seafood value chain, from environmental NGOs, from the world of science – who set our agenda. This is, I believe, We have overcome many difficulties during our first 20 years, our greatest strength. But it is also a constant challenge. and we are stronger for having worked through them together. Following a review of our governance processes, All of us connected to the MSC share the same vision – of this year we put together a new Stakeholder Advisory oceans teeming with life and seafood supplies safeguarded Council (STAC) to replace our existing Stakeholder Council. for this and future generations. But there are, of course, As a smaller, more streamlined body the STAC will interact differing views about how best to achieve this. more closely and proactively with our Board. At the same time, they will be able to interact with a much broader As the scope of what we do has increased, the issues we group of stakeholders by setting up diverse working groups. face have become increasingly complex. From certifying This will enable stakeholders to participate more fully in the sustainable management of specific fish stocks, our our decision-making. 6 MSC Annual Report 2017-18 Looking back, looking forward

We want future generations to be able to we can transform markets and incentivise enjoy seafood and oceans full of life, forever. even more fisheries to improve.

In 2017, we celebrated our 20th anniversary. This year, once again, we’ve seen major It was a time to look back on how the MSC fisheries achieve certification for the first has progressed from a bold idea to a proven time and seen new species become concept driving positive change across the certified. Importantly, we’ve also seen oceans. But it was also a time to look many fisheries demonstrate their continued forward, as we launched our new strategic commitment and improvement by plan outlining how we plan to build on what successfully becoming recertified to our we’ve achieved so far. updated Standard.

Our goal is to have 20% of the global marine An important part of our strategic plan is to Our vision is of the world’s oceans catch coming from fisheries that are MSC double the number of engaged fisheries in the certified or closely engaged with the MSC global south – which currently make up less teeming with life, and seafood supplies program by 2020. Being closely engaged than 10% of the total volume of MSC certified safeguarded for this and future with our program means being either in the seafood catch. This year, we’ve been supporting process of being assessed, or using our tools various projects to improve research and generations. Our mission is to use our to work toward meeting the MSC Standard. fisheries management from Mexico to ecolabel and fishery certification Beyond that, our aspiration for 2030 is to Madagascar and Senegal to Indonesia. have 30% of the global marine catch either program to contribute to the health of certified or engaged in the MSC program. Another priority is to build public the world’s oceans by recognising and awareness and support for sustainable By engaging more fisheries, we can catalyse seafood – and we used our 20th rewarding sustainable fishing practices, further improvements in the way our oceans anniversary to do just that. Running our influencing the choices people make are managed, supporting resilience, food biggest ever global marketing campaign, security and people’s livelihoods. And as launching a new website and working with when buying seafood and working with more retailers, restaurants, brands and a huge range of partners, we reached more our partners to transform the seafood consumers commit to sustainable seafood, seafood lovers than ever before. market to a sustainable basis. Overview 7

Our ambition: Proportion of the global marine catch which is MSC certified or engaged in the MSC program

2018 ��%

2020 ��%

2030 ��%

The view from the bridge during another stormy day on the Southern Atlantic. © Tony Fitzsimmons 8 MSC Annual Report 2017-18 The MSC in �� -�8

Driving change on the water Growing the market for This year, 33 fisheries achieved MSC sustainable seafood certification, 55 were recertified, and The blue MSC ecolabel can be found 45 entered into full assessment. MSC on 28,520 products in 107 countries, certified fisheries now catch more than with 3,795 new lines added this year. 10 million tonnes of seafood, comprising The global market for MSC certified of 141 different species. This represents sustainable seafood is worth 13% of total global marine catch and US$8.4 billion. this rises to 14% of total global marine catch when fisheries in assessment are Raising our profile added in. Certified fisheries have made Our 20th anniversary campaign reached over 1,200 documented improvements well over 100 million people across in order to maintain MSC certification. the world, including a TV and cinema advert viewed over 6 million times. Improving traceability Understanding of the blue MSC label A total of 4,212 businesses in 44,259 has increased by an average of 5% locations in 100 countries hold MSC across MSC markets in the past 2 years. Chain of Custody certification, giving assurance that certified sustainable seafood can be traced from ocean to plate. They range from processors, traders, brands, retailers and caterers to restaurants, hotels, universities and cruise ships.

Greenlip Abalone diver in Western Australia © Matt Watson Growth in the MSC program 9 Growth in MSC certified ��.� million catch �� -�8 tonnes certified catch Volume of MSC certified catch (tonnes)

12,000,000

10,000,000 ��% of global marine catch

8,000,000 8 certified fisheries in fisheries* assessment 6,000,000 �% of global marine catch is from 4,000,000 fisheries in MSC assessment 2,000,000 �8 0 countries with 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 certified fisheries Data correct as of 31 March for each year

* Includes 16 fisheries for which MSC certification is currently suspended 10 MSC Annual Report 2017-18 Making an impact

Making an impact Fisheries achieving recertification tend to fishing, and fisheries have also modified control rules and update stock assessments. MSC certification doesn’t simply to score higher than they did in their the gear they use and introduced new Groundfish stocks are now more recognise fisheries with a good record on original assessment, reflecting the protocols to help protect marine abundant than ever, while a NOAA report sustainability. It also drives real improvements they have made. ecosystems. in 2017 showed that the total number improvements on the water, from reducing of overfished stocks in the US is at an impacts on other species to improving Protecting habitats Rebuilding fish stocks all-time low. protection for marine habitats. Many uncertainties still remain in the Fishing at sustainable levels is one of science around the impacts of fishing on the key principles of MSC certification Minimising bycatch Many fisheries take steps to improve marine habitats – we know more about – and independent data confirms that Bycatch – the unwanted capture of different their management and practices before the surface of the moon than the depths the populations of target species in MSC species of fish and other creatures – can seeking certification, often after carrying of the ocean! But certified fisheries are certified fisheries are at healthy levels, deplete fish stocks, threaten endangered out a voluntary pre-assessment. For helping to fill this knowledge gap. with the biomass of the stock having species and damage marine ecosystems. example, the Chilean squat lobster and increased since MSC certification in many Certified fisheries strive to ensure that nylon shrimp fishery switched to modern To meet certification requirements, since regions. This isn’t necessarily the case bycatch is not having a detrimental impact nets that significantly reduced bycatch 2000, fisheries have supported more than for non-certified fisheries in the same on any species. For example, a recent analysis and minimised damage to the seafloor 60 research initiatives on marine habitats, region – while fisheries that haven’t of data showed that between 2007 and 2013, before entering full assessment. Even ranging from standalone research projects been formally assessed are even more 60 certified fisheries made improvements so, analysis shows that around half the to ongoing data collection. This research likely to be overfished. to reduce or eliminate bycatch through gear fisheries that undertake a pre-assessment can have far-reaching results. In the Arctic, modifications, better monitoring and changes don’t go on to enter full assessment for example, a collaboration between One striking success story is the groundfish to management practices. within a year, recognising that there are the Sustainable Fisheries Greenland cold fishery on the west coast of the US. The further improvements to be made. water prawn fishery and the Zoological once abundant fishery was declared a These have included measures to reduce Society of London led to the creation this federal disaster in 2000 after stocks bycatch of birds, sharks and rays, whales When fisheries do become certified, they year of a new 1,900km2 marine protected collapsed. But a new management strategy, and dolphins, seals and sea lions, turtles, are often required to take steps to area to conserve a unique seabed habitat prepared in collaboration with environmental squids and octopus, and sea stars and strengthen or further monitor their practices for cold water corals and sponges. organisations and the National Oceanic urchins, as well as other fish species. For in order to maintain their certification. and Atmospheric Administration (NOAA), example, the South African hake trawl and Between 2000 and 2015, 94% of MSC More than 30 fisheries have also made enabled fish populations to recover. In 2014, toothfish fisheries in the Southern Ocean certified fisheries have been required to technical changes to reduce their fisheries targeting 13 species achieved MSC have effectively eliminated albatross bycatch make at least one improvement, adding potential impact on habitats. Many of certification – with the condition that and the Australian rock lobster fishery has up to 1,238 positive changes. these include closing specific areas off they will continue to evaluate harvest reduced sea lion mortality to zero.

Handling a whitefish trawl net at Peterhead Harbour, UK © Eleanor Church Making an impact 11

There can be no question that the MSC has been one of the most effective frameworks for mobilising advances in fisheries management in diverse jurisdictions over the last two decades. I know of no greater tool for individually incremental, but collectively profound, fisheries reform. Dr Sian Morgan, SCS Global Services

A 2018 analysis of 27 fisheries that were recertified to the same version of the MSC Fisheries Standard showed that average scores increased across all three principles between their initial assessment and their reassessment.

Reassessment Initial Principle 3: ��.�� Effective management ��.�� Principle 2: ��.�� Ecosystem impacts ��.�� Principle 1: ��.�� Sustainability of stock ��.�� 12 MSC Annual Report 2017-18 Making a splash in the developing world

To achieve our vision of oceans teeming and extending sustainable fishing into the Fiji Fishing Industry Association (FFIA), mapping the trade flows of octopus with life, we’re aiming to double the high seas. 60% of Fijians are coastal dwellers Suva, Fiji. from small scale fisheries in East Africa. number of developing countries' fisheries so the health of the oceans is critical for We’re also looking beyond the certification This research will complement an MSC involved in the MSC by 2020. This year, five livelihoods and food security. of individual fisheries to promote wider initiative launched in March 2017, to map fisheries in the developing world became MSC improvements in research, data the sustainability of octopus fishing certified and another 13 entered assessment. “By certifying our fishing practices to the collection and fisheries management in across the Western Indian Ocean. The Fiji, co-host of the first United Nations requirements of the MSC, Fiji is establishing a the developing world. The MSC funded second scholarship went to Timothy Ocean Conference, pledged to get 75% of its promising momentum as a forward-thinking two scholarships that will further Munyikana Kakai from Pwani University longline vessels MSC certified. This year its nation, determined to deliver traceable, research in Kenya and East Africa. Lily in Kenya to trial the use of LED lights on first certified longline fishery was recertified, sustainable seafood.” Zhao from the University of Washington nets to reduce turtle bycatch in Kenyan adding yellowfin tuna as a certified species Anare Raiwalui, Executive Officer of the and the Stockholm Resilience Centre is artisanal fisheries.

Fishermen retrieving fishing boat, Fish Hoek, South Africa © iStock/thegift777 Current work in the developing world 13

Fish for Good wider improvements in fishing practices their supply chains need to have MSC At least 25 fisheries in Indonesia, Mexico and ocean stewardship. Chain of Custody certification. Local and South Africa will receive support to foundation MDPI Indonesia and partners move towards sustainability, thanks to a Global Fisheries Sustainability Fund carried out traceability audit trials to €1.75 million grant from the Dutch Gaps in scientific knowledge and a lack of support fisheries, supply chain companies Postcode Lottery. The Fish for Good project resources or expertise, can prevent fisheries and local NGOs to track MSC-certified which was launched last year, has stepped in the developing world from operating seafood. The Indonesian government up our engagement with fisheries in these sustainably. Our Global Fisheries is now carrying out further supply chain three key emerging economies. The first Sustainability Fund (GFSF) was set up to assessments. phase of the project involves mapping address this. the fisheries operating in each country, Octopus data collection in Madagascar: and working with stakeholders including The Fund operated for two years and, out NGO Blue Ventures is supporting small- researchers, NGO’s, fishery managers and of more than 75 applications, £400,000 scale octopus fishers in Madagascar to businesses to develop individual profiles has been allocated to 11 projects in 10 work toward MSC certification. As part for fisheries. Following this, advisory groups, countries. With matched funding and in-kind of this, it’s developed a smartphone app comprising country expert representatives support from our partners, the total funding that helps fishers collect data. will select fisheries interested in carrying exceeds £1 million. out preassessments to identify the gaps Capacity building in the Coral Triangle: Madagascar octopus fisher underwater © Garth Cripps / Blue Ventures they would need to address to meet the To maximise this investment, GFSF projects In the rich tropical seas between the MSC Fisheries Standard. Action plans needed to have an impact beyond an Philippines, Indonesia and the Solomon will then be developed in collaboration individual fishery, and a plan in place Islands, WWF’s Coral Triangle Programme with other stakeholders that will put them for transferring their knowledge and is training local assessors on the MSC on the pathway to certification. As well as learning to others. By sharing knowledge Fisheries Standard and other tools to supporting improvements in individual and developing solutions that can be help fisheries work toward sustainability. fisheries, Fish for Good is helping to replicated, we can support wider change for Having more local assessors can reduce raise awareness of sustainable fishing small-scale and developing world certification costs. practices and MSC certification. fisheries. GFSF-funded projects already under way include: The latest award recipients include projects Through capacity building and collaboration focusing on crayfish in China, artisanal with governments, supply chain partners, Supply chain traceability in Indonesia: stone crab fisheries in Chile, tuna baitfish in fisheries and NGOs, we hope to drive For fisheries to benefit from certification, Indonesia and India, and octopus in Senegal. Processing tuna in Indonesia © Titia Sjenitzer / MSC 14 MSC Annual Report 2017-18 Tuna stakes

From steaks to sushi to sandwiches, tuna is the MSC Fisheries Standard. As of 31st tuna following strong advocacy from the members are trained to release any turtles one of the world’s most popular seafoods. March 2018, there were 18 certified tuna MSC certified tuna fishery in the Maldives accidentally caught. Fiji’s Polynesian It’s also one of the most economically fisheries, with another 9 in assessment. along with a number of retailers, brands neighbours – the eight countries that make valuable, a multi-billion dollar industry and NGOs. Along with our partners, the up the Parties to the Nauru Agreement (PNA) that provides livelihoods for hundreds New Zealand’s skipjack purse seine MSC is pushing for stronger action from – also achieved recertification this year. of thousands of people and vital revenue fishery, operated by Talley’s Group Limited, other RFMOs. The PNA skipjack tuna fishery is the largest for many developing countries. achieved certification for the first time in MSC certified tuna fishery in the world, and 2017, becoming the second certified tuna Also newly certified this year was the being able to sell their product with the Over the last few decades the global tuna fishery in the country. While the skipjack Mexico’s yellowfin and skipjack tuna purse MSC ecolabel has given these small island catch has risen astronomically – from stock the fishery targets is currently seine fishery, operated by the Pacific states a significant economic boost. 0.6 million tonnes in 1950 to more than healthy, maintaining certification will Alliance for Sustainable Tuna. This follows 6 million tonnes today (UN FAO). So it’s depend on science-based harvest control 30 years of hard work to improve tuna The certified fishery uses purse seine nets hardly surprising that tuna stocks are under rules being introduced at a regional level. fishing practices in the region, particularly on free-swimming schools of tuna, which increasing pressure: 57% of commercial to prevent dolphin mortalities. While results in very little bycatch of other species tuna stocks are considered healthy, while This is the responsibility of the Western MSC certification is a significant milestone, or juvenile tuna. 13% are classified as overfished (ISSF). Central Pacific Fisheries Commission, the it isn’t the end of the journey: as a condition Tuna fishing can also result in bycatch of regional fisheries management organisation of certification the fishery has adopted a With the majority of the global tuna catch other species, including marine mammals, (RFMO) which oversees these highly comprehensive sustainability action plan, caught using FADs, the fishing industry and turtles, sharks and rays. migratory species. In the past, RFMOs which includes further measures to protect NGOs in PNA and elsewhere are working have often been slow to address declines dolphins, sharks and rays. to reduce the impacts of this fishing Sustainable management of tuna fisheries in tuna stocks, because their decisions technique. The MSC itself is currently is an urgent priority – and the MSC is require consensus among all member Meanwhile, Fiji’s longline albacore tuna supporting two significant tuna fishery determined to be part of the solution. states. Agreeing precautionary measures fishery was recertified, and its yellowfin improvement programs in Spain and By building demand for certified sustainable in advance means they can react much more tuna received certification for the first Ecuador that involve FADs. tuna, we can drive improvements not just quickly to prevent overfishing – not just time. Using lines with baited hooks, it in certified fisheries, but in tuna governance within certified fisheries, but across the was the first fishery of its kind to receive While fishing methods and challenges more generally. whole region. certification, demonstrating that this vary across the world’s oceans, we’re method of tuna fishing can be sustainable committed to ensuring the MSC provides With several fisheries passing their The Indian Ocean Tuna Commission recently when carefully managed. Bycatch of a credible Standard for sustainable assessments this year, around 22% of showed the way forward, agreeing ground- seabirds and turtles – a potential impact tuna, and an incentive for tuna fisheries the global tuna catch is now certified to breaking harvest control rules for skipjack of longline fishing – is very low, and crew to continue to improve.

By gaining MSC certification for our skipjack fishery we have not only gained a competitive edge in the market, for which the MSC label is in high demand, but we have also shown that we are fishing responsibly and sustainably. In doing so we are providing the assurance to the public at large, and to our local fishing communities in particular, that we are committed to maintaining our fishery resources in a healthy state for future generations. Andy Smith, Talley’s purse seine skipjack fishery, New Zealand 16 MSC Annual Report 2017-18

Newly certified Norwegian cod fishery in Lofoten © Ulf Berglund fisheries

Greenland halibut first and second Norway reaches 69% The first Greenland halibut fishery achieved sustainability MSC certification this year – and was soon Norway is showing itself as a world followed by a second. leader in sustainable fisheries, with more than two-thirds of the country’s In May 2017, the Greenland halibut fishery marine catch now MSC certified. operating in the offshore waters of West Greenland was certified as sustainable. The certification of the Norwegian ling, In October, they were joined by fishers from tusk and lumpfish fishery in October Iceland – part of the Icelandic Sustainable 2017 means 69% of all Norwegian fish Fisheries group. And three more Greenland landed by volume meets the MSC halibut fisheries are now entering Fisheries Standard. It follows assessment, showing the ripple effect that increased demand from customers for can happen when a new species becomes MSC certified products – particularly certified. Greenland halibut – which for lumpfish, which is mainly sold in belongs to a different genus from Atlantic Sweden for its roe and caviar. and Pacific halibut – is a cold-water flatfish, which is commercially very valuable. Much As a condition of certification, the of the catch is exported to China and Japan fisheries will put in place clearly defined for fillets, sushi and sashimi. harvest control rules and a strategy to manage impacts on endangered, “Greenland halibut is an important fishery threatened and protected species. for the Greenlandic economy. We have received queries from our customers about “We are pleased to have this sustainability certification. We hope and certification in place – the project was a believe this MSC certification will be well response to a strong push from some of received by our overseas customers both our key markets, and we are now pleased in Europe and especially in Asia.” to be able to provide them with the Lisbeth Due Shoeneman-Paul, Corporate desired documentation.” Sustainability Manager, Royal Greenland Tor B. Larsen, Environmental Advisor, Halibut fish steaks © iStock.com/vlad_karavaev and chair of Sustainable Fisheries Greenland Norwegian Fishermen’s Association Newly certified fisheries 17 Good news for cod and chips

Cod and chips is an iconic dish in the UK carried out for the MSC, almost three in – and now consumers can once again eat ten people surveyed in the UK (28%) it with confidence with the certification thought cod was not sustainable and of the North Sea cod fishery. that people should actively avoid eating it, but the same number believed the Just over a decade ago, the once-abundant opposite – while 35% just didn’t know. North Sea cod stocks were on the brink of collapse. From a high of 270,000 tonnes MSC certification was an important in the 1970s, stocks fell to just 44,000 milestone for the fishery, but it’s not the tonnes in 2006 – even though UK end of the story. To remain certified the consumers eat some 70,000 tonnes of cod fishery has committed to ongoing each year. improvements, including measures to further rebuild and monitor cod stocks. Bringing the fishery back to a sustainable level is the result of an enormous effort “This is brilliant news for both the industry by a coalition of Scottish and English and consumers, and Seafish is delighted fishing organisations with support from to see North Sea cod awarded MSC supermarkets, seafood brands and NGOs. certification. It is our mission to support The industry worked with the Scottish a profitable, sustainable and socially government and EU Fisheries Council on responsible seafood industry, and this is a ‘Cod Recovery Plan’ to nurse the stock a shining example of how industry and back to health. science can work together for a profoundly positive outcome.” Measures included reducing catch levels, Marcus Coleman, Chief Executive of closing large spawning areas to fishing, fishing industry organisation, Seafish introducing new nets, and remote monitoring using on-board CCTV cameras. North Sea cod can now join neighbouring cod fisheries in the Barents Sea and Iceland in bearing the MSC ecolabel, ending confusion for consumers. In a survey © iStock.com/raphotography 18 MSC Annual Report 2017-18 Continued commitment

After five years, a fishery needs to reapply banana, tiger and endeavour prawns, was for MSC certification, and will be reassessed first certified in 2012. Since then, it’s made to check it still meets the standard and a number of improvements to ensure has made any improvements that were sustainability, including investing in required. Recertification is something research and data collection to better As Aussies, we take pride in our beautiful oceans to celebrate, as it shows both that the understand the possible impacts on marine fishery is operating sustainably over a habitats and ecosystems. and coastlines, abundant with delicious seafood. long period, and that those involved see The forethought and commitment of our certified continued value in being certified. Five thousand kilometres to the south, Australia’s Heard Island and McDonald fisheries ensures we can have seafood and healthy Australian milestones Islands (HIMI) toothfish fishery was oceans for the next generation. Three major recertifications this year also recertified this year. Once threatened Anne Gabriel, Program Director, MSC Oceania showed the ongoing commitment of the by illegal overfishing, stocks of tooth Australian fishing industry to sustainability. fish (also called Chilean sea bass) are now recovering. Around 60% of the Back in 2000, the Western Australian rock global catch is MSC certified, and strong lobster fishery – one of the most management and collaboration between economically valuable in the country – certified fisheries has largely stamped was the first ever fishery to achieve MSC out illegal fishing. certification. And in June 2017, it became the first in the world to be certified for a The HIMI fishery has made a number fourth time. of improvements to ensure that stocks continue to be managed sustainably, The leadership and commitment of the and to understand more about the rock lobster fishers has paved the way for possible impacts on marine ecosystems. other fisheries in Western Australia, The remote volcanic islands are close where over 90% of fisheries by value are to one of the largest marine protected now engaged in the MSC program. In the areas in the world, covering over 65,000 north, the Australian Northern Prawn square kilometres, and the fishery has Fishery – which covers 771,000 square a number of environmental measures kilometres of tropical waters – achieved in places, such as seasonal closures and recertification. Australia’s largest and most bird-scaring lines that prevent accidental The Australian Northern Prawn Fishery launch their MSC certification Western Australia Rock Lobster harvested by James Paratore valuable prawn fishery, which catches bycatch of seabirds. at Taronga Zoo © Charlotte Connell / MSC © Western Rock Lobster Council Inc. Continued commitment 19

All in for Alaska salmon Sound unit should be put on hold. The entire Alaska salmon industry is This was to enable a full analysis of a now MSC certified once again, after long-term study into the impacts of fishing activities in Prince William salmon hatcheries on populations of Sound were independently assessed wild salmon and herring in the area. as sustainable. The results suggest that there is little Alaska’s iconic salmon first achieved risk of hatched salmon having a certification in 2007. But when it was negative impact on wild populations, reassessed in 2013, the third-party meaning that all salmon from Alaska certification team decided that now meets the MSC Standard. certification for the Prince William

The Alaska salmon fishery management program and its participants are committed to sustainable use of the ocean’s natural resources, a key component of our business. We are proud to have the MSC process again recognize the sustainability of Prince William Sound and all Alaska salmon. Lenn Reed, President, Pacific Seafood Processors Association

Alaska salmon fishing © Fish Tales 20 MSC Annual Report 2017-18 Fishery firsts

An amazing 141 species are now MSC certified. the Baltic Sea. Most is packed in brine or oil When new types of fisheries become MSC for the European market. Strong management certified, it promotes sustainable ocean means Baltic sprat stocks are healthy. governance in new areas, as well as increasing Following the Latvian’s lead, the Finnish sprat choice for sustainable seafood lovers. Some fishery also entered MSC assessment, achieving highlights this year include: certification in June 2018.

Russian red king crab “The MSC sprat certificate will open doors to Reaching weights of 10-15kg, red king crabs are new markets that were previously closed to one of the largest edible crab-type species Latvian fishermen. The certification also comes in the world. Native to the Okhotsk and Japan with some new responsibilities for the fishermen. seas, the Bering Sea and the northern Pacific Our organisation will monitor the process and Ocean, they were introduced to the Barents collect data on catches and MSC certified Sea by Soviet fishery scientists in the 1960s. sprat export. We think this certification will Now, Russian fishers in the Barents Sea have bring many new advantages in the future.” become the first to demonstrate that their king Inarijs Voits, Chairman, Latvian Fishermen’s crab fishery is sustainable – and we hope others Producers Organization will follow their example. Canada redfish “The work on this project has helped us to The certification of Canada’s first redfish fishery, improve the management systems both inside focused on the Grand Banks off Newfoundland, our organization and in our fisheries. Through marks an impressive turnaround. Following the process of becoming MSC certified, we now years of overfishing by various international better understand the environmental impacts fleets, a moratorium was declared on redfish of our activities.” fishing in 1998 – and it wasn’t until 2010 that Sergey Nesvetov, Executive Director, North the fishery was reopened. But careful West Fishing Consortium management – including cautious quotas, gear specifications, restrictions on areas and times Baltic Sea sprat of fishing, and protection of sensitive areas – In May 2017, Latvia’s sprat fishery became the has paid off for Ocean Choice International, first in the Baltic to achieve MSC certification. the main harvester, with the fishery achieving Its 22 trawlers landed 16,437 tonnes of sprat MSC certification in May 2017. Most Canadian in 2016, about 8% of the EU quota for sprat in redfish is frozen at sea for Asian markets. Fishery firsts 21

North Sea brown shrimp Australian pearls The North Sea brown shrimp fishery comprising You might not expect to find the blue MSC of around 400 boats from Germany, Denmark ecolabel on a pair of earrings – but that and the Netherlands, achieved MSC certification could soon be the case after the Australian in December 2017. During two years of Pearl Producers Association became the first collaboration between fishermen, conservation wild pearl fishery in the world to achieve NGOs, government bodies and scientists, a MSC certification. number of improvements were made to improve the management of the fishery. A science-based Pearl oysters have been fished off Western harvest control rule was developed to ensure Australia for more than 150 years, and the the stable and healthy growth of shrimp stock, fishery is one of the country’s most along with larger-mesh nets to reduce bycatch. economically valuable. The oyster meat, A group of environmental NGOs will continue to highly prized in Asian markets, can now be work with fishers to monitor the effectiveness of sold with the MSC label – and certified pearls these and other improvements. and mother-of-pearl products are set to follow soon. “The shrimp fishery certification shows that the MSC program works: the fishermen have joined “More and more consumers are looking for forces and put everything in place to scientifically sustainability credentials from their favourite understand and minimise the impact of shrimp brands, whether it’s clothing, food or fishing on the environment. All of this effort was jewellery. MSC allows producers to display aimed at obtaining MSC certification for their sustainability credentials through sustainable fishing. I take my hat off to all those third party certification.” who have united for this purpose.” Guy Leyland, MSC Project Hans Nieuwenhuis, MSC Program Coordinator, Western Australia Fishing Director, Benelux Industry Council

Lowering the outriggers and preparing the nets on a Dutch brown shrimp boat © Saskia Lelieveld / MSC 22 MSC Annual Report 2017-18 Suspensions

Snow crab suspension drives Auditors investigated and decided the fishery action to protect whales no longer met the MSC Fisheries Standard MSC certification is hard won and hard related to protecting endangered, threatened kept. Around half of the fisheries that enter and protected species. As a result, snow crab We have been working pre-assessment don’t progress to full from this area could no longer be sold as with Fisheries and Oceans assessment within the same year. And MSC certified. equally, sometimes fisheries can have their Canada and all the fishers’ certificates suspended if the independent The fishery quickly responded by launching associations in the certifier deems they no longer meet the a corrective action plan which aims to ensure requirements of the MSC Fisheries snow crab fishing doesn’t cause negative Southern Gulf of Standard. As of March 2018, 13 fisheries impacts on whales and other threatened St. Lawrence to address had certificates suspended: the suspension species. Mitigation measures the fishery process is an important part of the rigour of is exploring include gear modifications, the tragic events of summer the MSC program. implementing closures of high-risk areas and 2017. There is a collective using technology to detect and record whales. In March 2018, the snow crab fishery operating will to make sure this is in the Southern Gulf of St. Lawrence in Canada If future audits judge these actions to be never repeated again and was suspended from the MSC program after successful, then the suspension will be lifted a report into the deaths of 12 right whales and snow crab caught in the Southern Gulf we are strongly advocating during the 2017 season. of St. Lawrence can once again be sold with for effective solutions. We the MSC label. Snow crab stocks are at very healthy levels: are committed to returning so much so that quotas reached record The MSC Fisheries Standard is designed the fishery back to the levels in 2017, meaning a longer fishing to keep fisheries engaged with the program, season and more gear in the water. At the so we can continue to work with them to position where it meets the same time, unprecedented numbers of influence and drive improvements. In MSC Standard once again. endangered North Atlantic right whales 2012, for example, the suspension of seven were recorded in the Gulf of St. Lawrence. mackerel fisheries helped launch an Peter Norsworthy, Affiliation of Seafood This resulted in 12 right whales dying in the unprecedented international partnership Producers Association of Nova Scotia area, including two mortalities attributed to improve the management of the whole to crab fishing gear. Atlantic mackerel industry. Suspensions 23

Canadian snow crab in crates on a fishing boat © iStock.com/Chefmd 24 MSC Annual Report 2017-18 Pathways to sustainability

The 2018 State of World Fisheries and increasingly to supply export markets, as Often, however, a lack of knowledge, Aquaculture (SOFIA) report from the UN well as providing a vital source of protein structure and formal management of Food and Agriculture Organization for hundreds of millions of people in these fishing fleets presents a barrier, (FAO) shows fisheries in the developed countries. But the number of sustainable especially for small-scale fisheries and world are becoming more sustainable. fish stocks is decreasing while only around those in the developing world. For the In the US, 74% of stocks were assessed 10% of MSC certified fish by volume comes last 20 years the MSC has been playing as sustainable in 2015, up from 53% in from developing countries. Overfishing, its part in trying to address this threat. 2005, while in Australia the proportion rising seas, pollution, coral bleaching and The MSC Fisheries Standard provides a jumped to 69% from 27%. The number acidification are all threatening the oceans benchmark that can be used by fisheries of MSC certified fisheries in both and the lives and livelihoods of those who worldwide to assess their sustainability countries increased significantly over depend on them. While there is plenty of and better understand gaps in the same period. research into the impact of these management, data and governance and challenges, significant solutions for the what improvements they need to make. In the developing world, however, it’s most part are still a long way off. But this a different story. Nearly three-quarters is not the case with overfishing. We know The MSC has been working to build (73%) of the world’s seafood is now how to fix it, yet sadly it continues, year capacity, creating tools and guidance, caught in developing countries, after year. funding research and reaching out to A pathway to sustainability 25

Two small boats in the Ashtamudi short-necked clam fishery, Kerala, India. Bart van Olphen trip © David Loftus

vulnerable fisheries to help those who This means consolidating our own have difficulty accessing our program efforts so that our program is easier develop the skills to get started on the to work with, and also working together For too long, we as a sector journey to sustainability. And there with other NGOs, governments, retailers have not paid sufficient have been many successes, like the and funders to create a pathway to Vietnamese Ben Tre Clam fishery or t sustainability with numerous entry attention to the sustainability he Suriname seabob fishery. points for all fisheries. of fisheries in the ‘global

However as the ocean crisis deepens, we If there’s one thing that being at the south,’ but if we are serious need to move faster to ensure that all forefront of fisheries development for about ending overfishing, fishing worldwide becomes sustainable. more than two decades has taught us, The MSC cannot solve overfishing alone. it’s that collaboration is key.Knowledge- this is a challenge we can To deliver on SDG 14 and achieve our vision sharing and communication to deliver no longer ignore. of oceans teeming with life and seafood lasting change at scale must begin Oluyemisi Oloruntuyi, Head of the supplies safeguarded for this and future immediately. Together, we can make Developing World and Accessibility generations, we need urgent, large-scale sure that all fisheries globally are on Program, MSC action from across the seafood industry and the pathway to sustainability, but only improve the accessibility of our program. if we act now. The clock is ticking. 26 MSC Annual Report 2017-18 Chain of Custody

From the ocean to your plate, fish and so the MSC Chain of Custody certification seafood products pass through many implemented on our vessels is a natural stages of complex supply chains. The step towards advancing our sustainable MSC Chain of Custody Standard is an development work. In the future, we essential ingredient of the MSC’s intend to get MSC certification for all of offering to supply chain partners - and our ships operating on the Baltic Sea.” a clear reassurance to consumers of Marika Nöjd, Communications Director, the rigour behind the MSC blue label. Tallink Silja Every company that takes ownership of MSC certified seafood and sells it as Amy’s Choice: sustainable cod certified, is independently audited and The first MSC certified independent certified against the MSC Chain of restaurant in China launched this year, Custody Standard. The Standard ensures giving Chinese diners the opportunity to an unbroken chain where certified seafood try various cod dishes that can be traced is identifiable, segregated and traceable. back to a sustainable fishery. Amy’s Choice received MSC Chain of Custody Tallink Silja cruises ahead certification in November 2017, just three The world’s first MSC certified cruise months after it opened. The restaurant is ships set sail on the Baltic this year. owned by Qingdao Spring Seafoods, Five ships belonging to Estonian company known in China as “Ai Chi Yu”, which has Tallink Silja obtained MSC Chain of more than 20 years of experience in the Custody certification for the seafood they whitefish trade. serve. Passengers can now tuck into shrimp and herring with the blue MSC “In the last five years, MSC has received label, knowing that what’s on their plate tremendous support from Chinese can be traced back to a sustainable fishery. stakeholders, including major retailers, hotels and industry. Amy’s Choice, as the “Tallink Silja strives to source sustainably first certified restaurant in China, will and to guide its customers towards encourage more Chinese industry and making the right choices. The MSC is food services to introduce sustainable the world’s most credible environmental seafood programs.” certificate for sustainably caught seafood, An Yan, China Country Director, MSC Chain of Custody 27

Premier Inn comes first for sustainable seafood

An extra three million portions of certified sustainable fish and chips were served in Premier Inn outlets across the UK last year, after all Premier Inn restaurants became MSC certified.

In April 2017, Premier Inn announced that all its restaurant brands, including Beefeater, Brewer’s Fayre and Table Table, will feature the MSC blue tick on menus. That makes the company the world’s largest MSC certified national hotel chain, with a total of 635 locations now serving fish with the blue MSC label. © Rachel Dacre / MSC Dacre © Rachel

Tallink Silja ship out at sea © AS Tallink Grupp 28 MSC Annual Report 2017-18 �� Leaders for a Living Ocean

Corporate leaders pledged their support program by 2020, 27 companies and for a healthy ocean at the Our Ocean organisations in the seafood supply conference in Malta in October 2017. chain stepped up with their own As the MSC program announced its own commitments. They include supermarkets, “20 by 2020” goal to bring 20% of the food service companies, seafood brands global marine catch within the MSC and fishing associations.

By putting sustainability at the heart of their business strategy, these leaders are driving positive change. Their leadership is helping propel the global sustainable seafood movement, and fuel responsible consumption by empowering those who are seeking sustainable choices. Rupert Howes, Chief Executive, MSC Rupert Howes from the MSC with some of the Leaders for a Living Ocean at Our Oceans Conference 2017 © Lucy Erickson / MSC 2020 Leaders for a Living Ocean 29

These 2020 Leaders for a Living Ocean will be contributing to SDG14 by increasing the proportion of MSC certified seafood they sell, serve and supply. We’ll be supporting them in their journey to transform their business and act as agents for change within their sphere of influence: Retail Alibaba Group / TMall (China) Aeon Group (Japan) Aldi Group (International) Ahold Delhaize Group (International) Albert Heijn (Netherlands and Belgium) Carrefour (International) Coles (Australia) Colruyt Group (Belgium) El Corte Inglés (Spain) Eroski (Spain) Japanese Consumers' Co-operative Union (Japan) JUMBO (Netherlands) Kroger (USA) Sainsbury’s (UK)

Catch sector Danish Fishermen’s Producer Organisation Icelandic Sustainable Fisheries Parlevliet & Van der Plas (International) PNA (South Pacific) Western Australia Department of Primary Industries and Regional Development/Western Australian Fishing Industry Council

Food service and brands IKEA (International) McDonald's (International) Seafood brands FishTales (Netherlands) Isidro 1952, S.L. (Spain) Mars Petcare (International) Nomad Foods (International) ORKLA Foods Sverige AB (Sweden) Thai Union (International)

Japan is one of the world’s most valuable onigiri. The rice-ball snack is flavoured with and requesting its suppliers to get Chain of capacity for producing and selling certified seafood markets, and few countries salmon and pollock roe from sustainable Custody certification. fishery products. Meanwhile Ishihara consume more fish per capita. So it’s fisheries, and has initially been made Marine Products, which supplies fresh and encouraging to see the MSC label becoming available in around 1,400 outlets. Japan’s largest seafood companies are processed tuna to the Japanese market, increasingly visible across the country, with responding to this growing demand. has reacted to the growing appetite for several significant developments. The Japanese Consumers’ Co-operation Sustainability features prominently in sustainability by entering its pole-and-line Union (COOP) has been selling MSC the new range of products launched this skipjack and albacore tuna fisheries for Two long-time MSC supporters, Aeon and certified products since 2007 and year by Maruha Nichiro, one of the assessment against the MSC Fisheries the Japanese Consumers’ Co-operative achieved Chain of Custody certification biggest seafood processors in the world. Standard. The Ishihara company caught Union (COOP), both stepped up their in May 2018. Today 52 products (17% by MSC certified fish features in various 1,780 metric tonnes of skipjack and commitments through the 2020 Leaders for value of COOP’s private label seafood popular frozen household products, like albacore tuna in 2016. a Living Ocean initiative. Retail giant Aeon products) carry the MSC or ASC label, the new Ocean Blue white fish fillet and – the largest in Asia – committed to ensure and the group has announced that this tartar sauce which sources its pollock The increased availability of MSC certified that, by 2020, 20% of all seafood products range will be further increased to over from sustainable fisheries in Alaska. seafood will enable more consumers and sold at its outlets will be either MSC or ASC 20% by 2020. companies to make sustainable choices. certified. In addition, all its stores will Nippon Suisan (Nissui), the second largest Panasonic set an example this year by acquire MSC Chain of Custody certification The goal will entail work with domestic and marine product company in Japan, also announcing that it will offer MSC certified (except for small-scale shops with no overseas suppliers to help them improve offered new MSC- certified products this seafood in all its staff canteens by 2020, processing or packaging facilities). their production standards, as well as an year. These include canned mackerel, the starting with its headquarters in Osaka. awareness- raising program among COOP first ever MSC certified canned product With all of these major supporters of the Aeon has also broken new ground with the members. COOP Deli, the largest regional from a Japanese company. Nissui is working program, sustainable seafood in land of launch of the world’s first MSC-certified COOP, is also expanding its labelled range with its group companies to increase its the rising sun is definitely on the rise. Sustainable seafood getting big in Japan 31

��% ��% MSC ASC MSC or ASC labelled by 2020 labelled by 2020

Ishihara Suisan's boat Eisei-maru No. 8 © Eiseimaru 32 MSC Annual Report 2017-18

ProductNumber numbersof products �8,�� * with the MSC label products on sale with the blue MSC label

1079 2387 4723 7640 10964 14789 16283 18149 21085 24703 28516 30000

Germany 25000 ��,�� Netherlands United Kingdom tonnes of seafood sold to France consumers with the MSC label Sweden 20000 Denmark Austria Switzerland Estimated United States 15000 US$ Belgium ** Rest of the world �.�bn Spain spent by consumers on Italy 10000 seafood with the MSC label

*Number of products defined as the global sum of products available in individual Number of MSC labelled products available around the world 5000 countries (Stock Keeping Units, or SKUs)

**Retail market value of consumer-facing MSC ecolabelled products, calculated by adding a global average 40% retail mark-up 0 to wholesale values. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 MSC labeled products 33

Market uptake of seafood with the MSC label started in European countries where consumers were receptive to environmental issues. Today the blue fish label can be found in all major economies. In addition to frozen, fresh and canned seafood it appears on nutraceuticals, pet food, fish meal and maybe soon even wild pearls. Nicolas Guichoux, Global Commercial Director, MSC

Seafood products on shelf in Finland © Elina Manninen 34 MSC Annual Report 2017-18 ��th anniversary campaign: Keep it Wild

We used our 20th anniversary to launch our biggest ever consumer marketing campaign. Under the theme ‘Keep it Wild’, we worked with hundreds of partners to take our message to beaches, to cinemas, to supermarkets, to conferences, to canteens, to people’s homes �� countries and their smartphones. The campaign helped grow consumer understanding of our blue label, increase our social media following and strengthen our partnerships. Our campaign ran in 21 countries, and activities were tailored to each market. In Denmark, Sweden, Germany and China we took over the screens in public transport hubs, and in the UK and Italy we debuted on TV. In South Africa and the US we featured in ocean film festivals, while in Poland, Supply jpeg France, the UK, South Africa and Denmark we wowed cinema audiences, and in France and Australia we convened debates.

The MSC’s Keep it Wild video was shown extensively on TV, Cinema and Schleswig-Holstein Environment Minister Robert Habeck speaking at Our TV and cinema social media © MSC MSC Germany’s 20th Anniversary launch event © Jane Schubert / MSC advert was viewed � million over 6 million times.

+ In total our campaign �� activities reached well million over 100 million people. In store marketing at fresh fish counters in Finland © Alex Webb / MSC Supermarket sampling at Sustainable Seafood Week in China © Gao Rui/MSC ��th anniversary campaign 35

Online and social media We relaunched our consumer-facing website msc.org and produced videos and other online content telling some of the real-life stories behind the MSC label. Our ‘Wild One’ ambassadors – including fishers, chefs, food writers, scientists and surfers – helped take our message to new audiences and to grow our social media profile.

��,�� ,�� Likes on Facebook followers on Twitter

MSC Denmark’s Keep it Wild campaign on the Copenhagen Metro © Magnus Klitten Fotografi 36 MSC Annual Report 2017-18 Partner campaigns across the world

Sam’s Club chooses sustainable fish oil Sam’s Club picked up our first US Ocean Champion award in October, recognising its commitment to sourcing 100% of its fish oil and krill oil from MSC certified fisheries. The members-only store, which has almost 600 outlets across the US and Puerto Rico, has run a number of campaigns to raise awareness of sustainable seafood, which have had a real impact on buying behaviour. In one test, certified and non-certified fish and krill oil products were sold side by side, with some simple messaging about their sustainability credentials. Even though the certified products cost slightly more, shoppers overwhelmingly chose the sustainable option.

Sainsbury’s brand walls Sainsbury’s has made a public commitment to source 100% certified sustainable seafood by 2020, and has won MSC’s UK retailer of the year five times. During 2017-18, MSC featured prominently on the company’s “brand walls” – large in-store displays promoting the Sainsbury’s core values, one of which is “sourcing with integrity”. A total of 440 supermarkets and 47 convenience stores installed brand walls, reaching 8 million customers each week. In-store messages were backed up by social media, press and online communications.

Australian Zoo delivers sustainable seafood message Taronga Zoo in Sydney has supported the MSC for many years by serving only MSC or ASC certified seafood at their food outlets, functions and events. This year, Taronga Zoo partnered with the MSC for Australia’s first ever Sustainable Seafood Week. MSC ambassador, marine scientist and model Laura Wells attended the iconic seal attraction and used the week to highlight the importance of choosing seafood from sustainable fisheries to minimise impacts to sea life such as Australian sea lions and seals. The MSC sustainability message is a permanent educational feature at the zoo’s daily seal show, which attracts up to 3,000 guests on a busy day.

McDonald’s sustainable fishing game In 2018, McDonald’s USA marks five years as the first and only global restaurant company to serve MSC certified fish at every U.S. location. To underscore their commitment to healthy oceans and fish for future generations, and make the topic accessible for children, McDonald’s, in partnership with the MSC, created “Reel It In!” – the only card game in the world that teaches the importance of sustainable fishing. The game, featuring colorful illustrations of Alaska pollock, is available to download online and helps raise awareness about McDonalds' status as a Marine Stewardship Council certified © J Sainsbury plc restaurant using social media channels. © McDonald’s

Consumers believe in ��% believe that to save the certified sustainable seafood oceans we need to consume sustainable seafood

Consumers worldwide increasingly want Most consumers (72%) agreed that in order claims that brands and supermarkets make independent verification that their seafood to save the oceans we need to consume (72% this year compared to 68% in 2016). ��% comes from sustainable sources – and seafood from sustainable sources. An In a climate of persistently low consumer of consumers recognise the more people than ever recognise and trust increasing number believe that people trust in business globally, trust in the blue the MSC to provide this. should be prepared to switch to another MSC label remains high at 69%. Awareness blue MSC label type of fish if it is more sustainable and understanding of the MSC label Those are some of the key findings from a (70% in 2018, up from 68% in 2016). have increased among the general public. comprehensive study that we commissioned Overall, 41% of consumers recognise the into seafood consumers globally, building In a change from 2016, consumers overall label (up from 37%) and 37% (up from on a similar survey carried out two years put price above sustainability considerations 32%) have a good understanding of what before. Leading research agency GlobeScan in their seafood purchasing decisions – it means. Younger people are even more surveyed more than 25,000 consumers in although women were more likely to place tuned in: almost half of 18-34 year olds 22 countries, of whom 18,909 were regular sustainability first. However, in a number (49%) recognise the label and 41% know ��% seafood consumers, to understand of countries where the MSC has a what it stands for. more about their concerns and seafood considerable market presence (Germany, trust the MSC’s claims buying habits. Austria, Spain, UK, Switzerland, Italy and Consumers of all ages are concerned Sweden), consumers still place about the future, with 83% agreeing that While pollution was identified as the sustainability above price, regardless of we need to protect fish and shellfish for biggest issue facing the ocean, overfishing their age or gender. future generations. And those who are GlobeScan surveyed 25,000 people in 22 markets: Australia, Austria, Belgium, Canada, was consistently seen as the next greatest aware of the MSC overwhelmingly believe China, Denmark, Finland, France, Germany, threat. Consumers were also concerned An increasing proportion of consumers we can help: 81% thought the MSC has Italy, Japan, Netherlands, New Zealand, about other issues, including illegal fishing, want to see independent verification of a key role to play in ensuring our children Norway, Poland, Singapore, South Africa, and bycatch of dolphins, sharks and turtles. the sustainability and environmental and grandchildren can enjoy seafood. Spain, Sweden, Switzerland, UK, USA Consumer insights and education 39

Educating the next generation maximum sustainable yield. In the UK We want to ensure healthy oceans and seafood it won a Highly Commended at the supplies for future generations – and educating Geographical Association publisher’s the next generation is an important part of this. awards 2018, which recognise resources In a world of increasing consumer that make a significant contribution to pessimism, people are looking for We’ve worked with schools before, including geography in schools and colleges. running education campaigns with messages of hope and reassurance. food-service partners who provide certified We’re excited about further developing We are happy to see that the theme seafood in school dinners. But this year we this area, and plan to use our partnerships stepped up our engagement by launching a with zoos and aquariums to introduce of protecting seafood for future new education program. new experiences for pupils. generations resonates strongly with Now live in France, the UK, Germany, the consumers in all 22 countries surveyed. Netherlands, Sweden and Spain, it includes We’re also seeing that, in a low trust curriculum linked resources and lesson plans for teachers of children aged 11+. “A professionally produced topical video environment, consumers are with some simple to use lesson plans increasingly looking to third parties A 15-minute film, My dad the fisherman, follows that ensures anyone (young or old) who a fisherman’s daughter as she explores why watches it begins to understand the to verify sustainability claims. our oceans are threatened and what ocean concept of ocean sustainability as well Abbie Curtis, Associate Director, GlobeScan sustainability means. The film introduces the as the roles of fishermen.” science behind sustainable fishing, using Geographical Association on the MSC’s creative animation to introduce concepts like My dad the fisherman

The MSC Fisheries Standard is a global We’re already seeing certified fisheries our certification system remains robust, benchmark for sustainable fishing, make further improvements in order to in August 2017 we formally established recognising well-managed fisheries that comply with the new Standard. Norway’s an independent Peer Review College to target healthy stocks and minimise impacts North East Arctic cod fishery, for example, strengthen oversight of fishery assessments. on marine ecosystems. But fisheries science has agreed to freeze its fishing footprint The college includes around 90 experts in is complex and evolving, and where the around Spitsbergen and extended a seabed marine science and fisheries management, bar for sustainability is set is often hotly mapping program to better understand providing additional assurance that debated. We’re constantly striving to ensure these habitats and the impacts of trawl fishery assessments undertaken by third our Standards and assurance system fisheries in the Barents Sea. party certification bodies are rigorous remain robust and credible, meeting the and credible. expectations of diverse stakeholders while Reviewing the Fisheries remaining practical, accessible and Certification Process science-based. The pilot for the new Fisheries Certification Process (FCP) closed this year after a round Fisheries Standard 2.0 of reviews and consultations beginning in The MSC Fisheries Standard is itself late 2015. The FCP contains the requirements continually improved to reflect widely that Conformity Assessment Bodies must accepted new science and best practices. follow when assessing fisheries against Since October 2017, all fisheries seeking the MSC Fisheries Standard. Consultations recertification have had to meet the more will continue through 2018 with the aim Record keeping while processing tuna in Indonesia © Titia Sjenitzer / MSC demanding requirements of Version 2.0 of of reducing complexity and uncertainty of our Fisheries Standard. Developed through a fishery assessment outcome, increasing extensive consultation, the new Standard effectiveness of stakeholder engagement requires stronger protection for seabed and maintaining credibility and robustness. habitats, including those considered Any changes resulting from this process particularly vulnerable ecosystems. It also will come into effect in early 2019. required fisheries to minimise unwanted catch and to address the cumulative effects Peer Review College of bycatch across certified fisheries A Standard is only as strong as the operating in the same area. system that supports it. To ensure that MSC Fisheries Standard certificate © Jane Schubert / MSC Upholding our Standards 41

We would like to thank the following Our funding organisations for their support: and donors US Foundations Other European Foundations Kingfisher Foundation Adessium Foundation (Netherlands) National Fish and Wildlife Foundation Daniel and Nina Carasso Foundation (France) The MSC continues to be extremely grateful for the long-term, generous New Venture Fund DEG (German Investment and support from our donors. Without their help, the MSC would not be able Development Corporation) to fulfil our mission of ensuring oceans teeming with life, and seafood David and Lucile Packard Foundation supplies safeguarded for this and future generations. As the MSC Remmer Family Foundation Dutch Postcode Lottery increasingly works to expand and strengthen our work globally, our Triad Foundation GIZ (German Society for International donors share our vision and they are there to support us. Development) Walton Family Foundation Mava Fondation Pour la Nature (Switzerland) In particular, we would like to highlight the impact of our four largest donors: the David and Lucile Packard Foundation, Dutch Postcode Nessling Foundation (Finland) UK Trusts and Foundations Lottery, the Mava Fondation pour la Nature, and the Walton Family Oak Foundation (Switzerland) Foundation: their incredible support has been essential to our growth Cecil Pilkington Charitable Trust Statutory European Fisheries Fund and success. In addition, many project funders have provided critical Swire Charitable Trust (Finland, United Kingdom) support MSC’s work across the world. The Swedish Institute (Sweden) Project grants from the Walton Family Foundation and Kingfisher NGOs Umweltbundesamt (Germany) Foundation have helped us research digital traceability in the supply Resources Legacy Fund / Sustainable chain, while the Adessium and Mava Foundations have expanded our work into the Mediterranean in France, Spain and Italy and western Fisheries Fund Corporate Africa. The Packard Foundation continues its support of our work in WWF-China Haikui Seafood (China) Japan and around data-limited modelling of fish stocks, while the WWF-Sweden Dutch Postcode Lottery has provided critical resources to support a Findus (Sweden) global project in South Africa, Indonesia and Mexico. Finally, we are grateful for the support from the German development agency, GiZ, for projects in South Africa, Madagascar and Mozambique. Our funding and finances 43 Our finances �� -�8

Report by the Trustees on the summarised financial statements

The summarised financial information is extracted from the full statutory Total Total trustees’ annual report and financial statements which were approved by the trustees and signed on their behalf on 26 July 2018. An unqualified income expenditure audit report was issued in relation to the full statutory trustees’ annual report £24,878,504 £20,232,207 and financial statements by our auditors Crowe U.K. LLP on 21 August 2018. The auditors have confirmed to the trustees that, in their opinion, the summarised financial information is consistent with the full financial statements for the year ended 31 March 2018. This summarised financial information may not contain sufficient information to gain a complete understanding of the financial affairs of the charity. The full statutory Trustees’ report, financial statements and auditors’ report may be obtained in writing from Finance Director, Marine Stewardship Council, 1 Snow Hill, Where the money comes from Where the money goes to London, EC1A 2DH, United Kingdom. 24% Donations and legacies 23% Policy and maintenance of Standard Signed, on behalf of the Trustees: 2% Other trading activities 32% Education and awareness 73% Income from charitable activities (logo licensing) 36% Commercial and fisheries servicing 1% Income from investments and outreach 7% Logo licensing 2% Expenditure on raising funds

Werner Kiene, Chair, MSC Board of Trustees Total funds at 31 March 2018: £29,074,165 21 August 2018 Compared with total funds of £24,892,780 on 31 March 2017.

Other gains and losses in the year not shown under income or expenditure amounted to a loss of £464,912 44 MSC Annual Report 2017-18 Governance �� -�8

The MSC Board of Trustees The Technical Advisory Board The MSC Board of Trustees is the MSC’s governing body. With advice from the Technical The Technical Advisory Board advises the MSC Board of Trustees on technical and Advisory Board and Stakeholder Council, it sets the strategic direction of the MSC, monitors scientific matters relating to the MSC Standards, including developing methodologies progress and ensures the MSC meets its objectives. for certification and accreditation and reviewing the progress of fisheries certifications.

Dr Werner Kiene Mr David Mureithi Dr Simon Jennings (UK) Chair Dr Juan Carlos Seijo (Mexico) Chair Mr Eric Barratt Dr Christopher Zimmermann (Germany) Dr Florian Baumann (Germany) Mr Paul Uys Mr Jean-Jacques Maguire Dr Keith Sainsbury (Australia) Ms Michèle Stark (Switzerland) Chair of MSCI Mr Felix Ratheb Mr Sergey Sennikov (Russia) Dr Simon Jennings Chair of the Technical Advisory Board Mr Jim Leape Mr Adam Swan (UK) Ms Christine Penney Ms Lucia Mayer Massaroth (Germany) Co Chair, Stakeholder Advisory Council Welcome to new members: Welcome to our new member: Dr Tim Essington (USA) Mr Peter Trott Ms Christine Penney and Dr Simon Jennings Mr Sergey Sennikov Dr Victor Restrepo (USA) Co Chair, Stakeholder Advisory Council Thank you to departing members: Mr Alex Olsen (Denmark) Thank you to departing members: Ms Lynne Hale Dr Christopher Zimmermann and Mr Jeff Davis Dr K Sunil Mohamed (India) Dr Tony Smith and Mr Stephen Parry

The Marine Stewardship Council International Board The Marine Stewardship Council International (MSCI) Board provides oversight of the MSC’s ecolabel licensing and fee structure.

Mr Paul Uys Mr Eric Barratt Thank you to departing member: MSCI Chair Mr Rupert Howes Mr Jeff Davis Dr Werner Kiene MSC Chief Executive Board of Trustees Chair The MSC’s governance 45

Panel debate at the MSC Seafood Futures Forum at the 2018 Seafood Expo in Brussels © Bart Vercammen / MSC 46 MSC Annual Report 2017-182017-18 The MSC Stakeholder Advisory Council

The MSC Stakeholder Advisory Council (STAC) has evolved from the previous Stakeholder Council entity, following an independent governance review in June 2017. The STAC provides advice to the MSC Board of Trustees and input into the MSC’s review processes and provides a formal channel through which stakeholders can provide their views to the MSC. It includes representatives from the seafood industry, conservation community, market sector and academia. The membership reflects diverse experiences, geographies and interests in relation to the work of the MSC.

Peter Trott Johann Augustyn Co-Chair, Fishlistic, Australia SADSTIA, South Africa Christine Penney Ivan Lopez Aditya Utama Surono Co-Chair, Clearwater Seafoods, Canada Pesquera Ancora, Spain MSC extends its condolences to the family Yumie Kawashima Marco Quesada and friends of Stakeholder Advisory Council Aeon, Japan Conservation International, Costa Rica member Aditya Utama Surono, who sadly passed away in August 2018. Aditya’s passion Louise Heaps Yorgos Stratoudakis for sustainability and contribution to the MSC WWF, UK IPMA, Portugal program will not be forgotten, and he will be Agathe Grossmith Rory Crawford greatly missed personally and professionally. Carrefour, France Birdlife International/RSPB, UK Heather Brayford Stefanie Moreland Government of Western Australia, Department of Trident Seafoods, USA Primary Industries and Regional Development, Australia Tor Larsen Carmen Revenga Norwegian Fishermen’s Association, Norway The Nature Conservancy, US Amanda Nickson Darian McBain The Pew Charitable Trusts, USA Thai Union, Thailand The MSC’s governance 47

The MSC is a steadily growing network of talented and inventive people with diverse skillsets working closely with our many stakeholders and partners. They, along with the partners that support the MSC’s mission, are the greatest asset we have. The Board and executive team value their passion and individual contributions and would like to thank them for another successful year of helping protect our oceans for future generations. Rupert Howes, Chief Executive, MSC 48 MSC Annual Report 2017-18

Share with friends and colleagues

Find out more:

Please consider the environment before printing [email protected]

All data in this report is correct as of 31 March 2018, unless otherwise stated. The reporting year is 1 April 2017 to 31 March 2018.