How The Task Force is Leading Thailand’s Seafood Supply Chain Towards a More Sustainable Pathway Progress Report following Membership review and planning meeting in Bangkok Aug 2016 2 Contents 1. Overview 2. The problem the Task Force is trying to solve 3. Unique approach to the problem 4. Current situation 5. Task Force pathways and what success looks like 6. June ‘16 Members meeting - Bangkok 7. Reaching out to the NGO and Civil Society community 8. Headline progress and next steps 9. The Task Force and its journey to the future 10. Abbreviations and acronyms. Purpose of this report It is two years since the Shrimp Sustainable Supply Chain Task Force (Task Force) was established. This Management Summary is written following the Membership’s review and strategy meeting held in Bangkok - June ‘16. 3 1 Overview What is the Task Force? Aims In June 2014, The Guardian published an investigation into the Thai The Task Force aim is to drive measurable social Shrimp supply chain. It alleged that Asian slave labour was contributing to and environmental change in the Thai seafood the production of shrimp for supermarkets in the US and the UK. Charoen industry through greater supply chain accountability, Pokphand Foods (CPF) and a number of its customers including Costco verification and transparency. were implicated. As a result of this investigation and the serious concerns it raised, CPF and Costco established the Shrimp Sustainable Supply Particular emphasis is being placed on feed for Chain Task Force (Task Force) in July 2014. farmed shrimp, tuna and other seafood products exported to the US and the EU. Since its inception, Task Force Membership has grown exponentially and now, in the words of leading NGO Humanity United, it represents ‘the most influential and diverse It is promoting the common interests of its Members coalition of stakeholders operating in Thailand on this issue’ with its own set of initiatives through the application of social, environmental to reform the seafood industry. and related standards within the seafood supply chain and it is doing this with considered strategies The Task Force describes itself as a leading international industry-led coalition to improve the livelihood and dignity of workers including major US and EU retailers, Thai manufacturers, proactive seafood companies, and the sustainability of Thailand’s fisheries for the importers, governments and NGOs. With current membership exceeding 20 commercial longer term. organizations, it’s a group of like-minded people with the desire to make things happen. And with estimated seafood purchases from Thailand* exceeding $7B US and $145M EU, the Task Force is a powerful force for change. * Source: Seafish Focus on Ethical Issues – Thailand Profile Task Force Current Membership List - Aug 2016 listed in alphabetical order Commercial Organizations NGO and Advisory Current Participating Organizations Aqua Star National Fish & Seafood Aquaculture Stewardship Council - ASC Asian Seafoods Nestle Purina Ethical Trade Initiative - ETI Beaver Street Foods Rubicon Resources Environmental Justice Foundation - EJF Charoen Pokphand Foods / CP Foods Seafresh Group Fishwise Costco Southeast Asian Packaging and Canning Co. Global Aquaculture Alliance - GAA Eastern Fish Company Sysco Corp IDH – The Sustainable Trade Initiative Grobest Tesco Satellite Applications Catapult Lyons Seafoods Thai Royal Frozen Food Sustainable Fish Partnership - SFP Marine Gold Thai Union Group UL Mars Petcare Walmart Verite Mazzetta WM Morrsons World Wildlife Fund - WWF 4 August 2016 Progress Report following Membership review and planning meeting in Bangkok Overview Governance and Terms of Reference During its review in October 2015, detailed consideration was given to the development of Governance and suitable Terms of Reference to meet the growing needs of the coalition and external stakeholder feedback. Particularly important was the need to address concerns regarding its original voluntary compliance structure. Formal structure, process, perspectives and priorities were fully drafted in Q1 of 2016. Also considered were the financial requirements, communications and how the Task Force should function as it continues to gain momentum. Task Force Board Members – June ‘16 Organisation listed in alphabetical order In June ‘16, the Task Force became fully registered as a non-profit corporation organized in the USA as a 501(c) Dave Martin Aquastar (6) trade association. With this registration, a formal Membership Agreement, fit-for-purpose Bylaws and Pitipong Dejjarukul Charoen Pokphand Foods Anti-Trust regulations have been introduced. Ken Kimble - Board Chairperson Costco The Membership Agreement requires all commercial Choopong Luesukprasert Marine Gold Members to pay annual dues and its Bylaws outline the Huw Thomas Morrison’s scope of work and the principles and procedures by Nick Leonard Rubicon Resources which the organisation now operates. Nuntawan Rujiwong Thai Royal Frozen Foods A formal Board was elected from the membership in Scott Solar Thai Union June ‘16 and the Board has successfully elected a Chairperson, Treasurer and Secretariat. Jeff Lough Walmart The Secretariat is full-time and has been employed to co-ordinate and support Task Force activities as the needs of the organisation grow. To ensure global balance, the The Board Board is equally represented by US, EU and Thai entities. expects the To support the Board and the Secretariat, the National Fisheries Institute in the US (NFI) is providing independent book keeping and accounting services. ESA to be fully To ensure appropriate levels of independent verification and validation are met and to ensure overall credibility of the Task Force’s work, the new board is appointing twelve formed and individuals from the NGO community to serve as an External Stakeholder Advisory Group (ESA). established by Members of this ESA will consist of individuals bringing valuable technical expertise in the areas of social responsibility, environmental sustainability and traceability with two Dec ‘16. of these members serving as co-chairs. The Board expects the ESA to be fully formed and established by Dec ‘16. The Secretariat continues to receive healthy expressions of interest from US and EU retailers and Thai manufacturing organizations across the supply chain. Currently, there are over ten further organizations that have formally requested Terms of Reference and copies of the Membership Agreement for consideration. Task Force success is largely dependent on critical mass and achieving high penetration levels across each section of the seafood supply chain. It is currently considering a capacity model for optimum membership but, in the meantime, is accepting further Membership applications to gain this essential critical mass. Progress Report following Membership review and planning meeting in Bangkok August 2016 5 2 The Problem that the Task Force is trying to solve Leading Thailand’s seafood supply chain towards a more Information provided by this extensive NGO community has, amongst many other sustainable pathway requires attention to both the social things, informed the US Traffic in Persons (TIP) report and Thailand’s TIP rating. and environmental aspects of sustainability. Although its Tier 3 rating has been moved in 2016 to Tier 2 Watch List, which is a level between 2 and 3 due to recent recognized improvements, the NGOs and From a social aspect, Governments, the media and NGOs have Industry are understandably keeping a watchful eye. documented horrific cases of forced labour and human trafficking in Thailand’s seafood supply chain. Particularly disturbing are reports The environmental aspect relates to poor fisheries management leading of labour abuses in fisheries supplying tuna, feed for farmed shrimp, to overfishing. In April 2015, the European Commission put Thailand on and other seafood products exported to the US and the EU. formal notice (via a ‘Yellow Card’) for not taking sufficient measures in the international fight against illegal, unregulated and uncertified fishing (IUU) With a history of false promises and lack of action by the Thai - particularly in its fisheries monitoring, control and sanctioning systems Government to address these reported issues, there are now in (MCS). This ‘Yellow Card’ has now been extended to December ‘16 due to the excess of 120 different NGO organizations actively campaigning acknowledgment of progress made. However, a ‘Red Card’ is still an imminent for change in Thailand from either a social or environmental threat to Thailand’s business community and the Country’s ability to export perspective. product to the EU. The Task Force is taking a strategic approach with a combination of short, medium and long-term initiatives. 3 Unique Approach to the Problem 4 Current Situation The Task Force is taking a strategic approach with a combination The last two years have seen genuine signs of tangible of short, medium and long-term initiatives. improvement in Thailand and this has been recognized by a number of leading NGOs. These initiatives are realistic and planned with long-term sustainability in mind. With recent changes in the Thai Government, there is finally an It recognizes that the social issues related to human rights abuse and the acceptance that the country faces serious problems and that a environmental issues related to marine conservation are both closely linked to long-term strategy and short-term tactics are required. illegal, unreported and unregulated fishing (IUU) hence