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Global Seafood Markets Strategy Evaluation Report

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Global Seafood Markets Strategy Evaluation Report Global Seafood Markets Strategy Evaluation Final Report June 30, 2020 Table of contents Slides I. Executive Summary 6-14 II. Introduction 15-21 III. GSM Strategy and Portfolio Overview 22-31 IV. Global Seafood Markets in Context 32-45 V. Sustainable Market Transformation Framework 46-51 VI. Overall GSM Strategy Evaluation Findings 52-80 VII. GSM Strategy Evaluation Recommendations 81-110 VIII. Annexes 111 • Annex 1: Evaluation Approach, Methods, and Data Sources 113-131 • Annex 2: GSM Strategy and Portfolio: Additional Materials 132-147 • Annex 3: Sustainable Market Transformation Framework: Additional Materials 148-155 • Annex 4: Deep Dive – Standards, Ratings, and Certifications 156-213 • Annex 5: Deep Dive – Buyer Commitments 214-273 • Annex 6: Deep Dive – Precompetitive Collaborations 274-330 • Annex 7: Shallow Dive – Fishery Improvement Projects 331-361 • Annex 8: Shallow Dive – Social Responsibility 362-385 • Annex 9: Shallow Dive – Traceability and Transparency 386-421 • Annex 10: Shallow Dive – Trade Policy and Import Controls 422-444 2 Table of Contents Reflections on this evaluation and a few disclaimers It is the evaluation team’s sincere hope that this draft Global Seafood Markets (GSM) strategy evaluation report sparks and supports important and timely discussions at the David and Lucile Packard Foundation (Packard) and the Walton Family Foundation (WFF), and among key partners and grantees in the GSM movement, and serves to advance the field. DISCLAIMERS • This report was prepared by Ross Strategic, Global Impact Advisors, and Elizabeth O’Neill Impact Consulting. Any errors and omissions are our own. • Primary data collection for this evaluation occurred before the scope and extent of the COVID-19 pandemic was known. Although the pandemic is referenced in the report, the recommendations do not fully consider the potential implications of the pandemic for seafood markets and the sustainable seafood movement. 3 Reflections and Disclaimers Acknowledgments • The GSM evaluation team would like to acknowledge the NGO, government, industry, and experts who provided valuable insights that informed this report. In particular, we would like to acknowledge: • Members of the evaluation’s Technical Working Group: • Jacqueline Berman, International Center for Migration Policy Development • Carl Folke, Stockholm Resilience Center • Glenn Hurowitz, Mighty Earth • Meredith Lopuch, Tavura, Ltd. • Cathy Roheim, University of Idaho • Huw Thomas, The Cornish Shellfish Company Ltd. • Aaron Zazueta, Independent Evaluator • CEA Consulting, which shared perspectives and authored many key data sources we used • We also thank the foundations’ GSM program officers and monitoring & evaluation leads for their review: • Meghan Chartres, George Dallas, Sarah Hogan, Madeleine McKinnon, and Meredith Blair Pearlman, David and Lucile Packard Foundation • Teresa Ish and Kara Stevens, Walton Family Foundation • The evaluation team included: • Tim Larson, Jennifer Tice, Melissa Bañales, Andy Chinn, and Darcy Peth, Ross Strategic • Amy Adelberger, Katherine Abraham, and Maggie Niu, Global Impact Advisors • Elizabeth O’Neill, Elizabeth O’Neill Impact Consulting • For more information on the GSM Strategy Evaluation or to provide input, please contact: • Tim Larson ([email protected]) • Amy Adelberger ([email protected]) 4 Acknowledgments Acronyms and Abbreviations AIP aquaculture improvement project MEL monitoring, evaluation, and learning ASC Aquaculture Stewardship Council MSC Marine Stewardship Council BC buyer commitment NGO nongovernmental organization C&R certification and ratings OSF Ocean Strategic Framework COFI Committee on Fisheries of the Food and Agriculture Packard David and Lucile Packard Foundation Organization PCC precompetitive collaboration Conservation Conservation Alliance for Seafood Solutions RFMO regional fisheries management organization Alliance SALT Seafood Alliance for Legality and Traceability FAO United Nations Food and Agriculture Organization SeaBOS Seafood Business for Ocean Stewardship FIP fishery improvement project SIMP United States Seafood Import Monitoring Program GDST Global Dialogue on Seafood Traceability SOFIA State of the World Fisheries and Aquaculture GSM global seafood markets SSC Sustainable Seafood Coalition (UK) ICP United Nations Informal Consultative Process on Oceans and the Law of the Sea TOC theory of change IUU illegal, unreported, and unregulated TWG Technical Working Group KI key informant WFF Walton Family Foundation MBA Monterey Bay Aquarium WWF World Wildlife Fund 5 Acronyms and Abbreviations I. Executive Summary • Summary findings and recommendations • Summary responses to evaluation questions Executive summary (1 of 3) • Over the past 20 years, Packard and WFF have played instrumental roles in supporting changes to global seafood markets as a key strategy for advancing responsible practices and sustainability in fisheries and aquaculture operations. • GSM strategies seek to contribute directly to broader ocean conservation and environment program goals. • GSM strategies’ theory of change posits that creating business demand for sustainable seafood, coupled with engagement from the supply chain, motivates and enables seafood producers and partners to improve practices and the management of fisheries to enable seafood supply to meet this demand. • GSM strategies also focus on mobilizing changes in policies and governance to drive responsible practices and sustainability in seafood markets and to prevent illegal, unreported, and unregulated (IUU) fishing, in part by engaging market actors to support such changes. • The evaluation found that the theories of change and strategies pursued by Packard and WFF are generally consistent and complementary, and that grant portfolios targeted important elements of the theories of change to advance the outcomes and goals established by the foundations' respective GSM strategies. • The evaluation team believes that a market transformation framework (adapted from Lucas Simons) is useful to understand and assess progress and future directions for GSM strategies, given that the state of market evolution drives the specific needs that require support at different phases. 7 I. Executive Summary Executive summary (2 of 3) • The evaluation found substantial evidence of GSM strategy progress in the demand markets that the foundations targeted (North America, Europe, and Japan), including over the last five years. Progress included: • Sustainable sourcing commitments made by many major US, European, and Japanese seafood buyers • Development and implementation of GSM tactics and tools such as standards, ratings, and certifications programs to support supply to meet this demand (more than 43% of wild capture seafood in N America and Europe is certified1), and new tools developed to support issues such as traceability • Development of improvement mechanisms, such as fishery improvement projects (FIPs), to move more fisheries towards sustainability standards, seeking to further incentivize improvements on the water • Rapid growth and evolution of diverse platforms to enable industry and NGO collective action to address market challenges across seafood commodities and GSM areas of intervention (e.g., precompetitive collaborations) • The foundations have also made substantial progress towards outcomes and targets established in their current GSM strategies. • Despite this progress, the evaluation suggests that investments and strategies have been insufficient to meet most of the foundations’ near term goals; shifts in focus and approach are needed to accelerate market transformation to attain the foundations' existing goals targeting the markets of North America, EU, and Japan - and possibly expand to broader global impact. • Key challenges constrain substantial future progress on market transformation, including: (1) fragmented tools and initiatives; (2) fragmented industry leadership and ownership; (3) lack of accountability for results; (4) information gaps (e.g., traceability, ratings coverage, human rights and labor performance); (5) cost and business models issues; and (6) weak governance and enabling conditions. Source: (1) Certification and Ratings Collaboration, Seafood Data Tool, accessed May 2020 8 I. Executive Summary Executive summary (3 of 3) • Seafood market trends also pose challenges; rapid growth of seafood consumption in Asia, Latin America, and Oceania, combined with China’s growing clout in seafood import markets, is weakening the influence of North American and European markets; climate change and other issues also raise key uncertainties and risks. • The evaluation team believes two strategic focus areas are needed to fully realize durable impacts of GSM strategies and to transition seafood markets towards sustainability: 1. Improve the efficiency and effectiveness of market-based tactics deployed in North America, Europe, and Japan to create demand, enable sustainable supply to support those demand markets, and mobilize market-focused policy changes through a range of priority actions in each of these areas • Priority actions emphasize clarifying priorities and targets, enhancing industry ownership and collective action, strengthening connections between markets and governance, and strengthening transparency and accountability, among other areas. 2. Increase the leverage of market-based tactics by expanding the sphere of influence, which could be accomplished by: • Analyzing country-specific market opportunities based on
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