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IR/PS CSR Case # 07-02

Sustainable Seafood Labeling:
An Analysis of the Marine Stewardship Council

By: Matthew C. Owens
GRADUATE SCHOOL OF INTERNATIONAL RELATIONS AND PACIFIC STUDIESUNIVERSITY OF CALIFORNIA, SAN DIEGO
Prepared for Professor Peter Gourevitch
Edited by Jennifer Cheng, MPIA 2008
Corporate Social Responsibility
Winter 2007

Abstract:
Public response to the crisis of over fishing and the resulting collapse of global fish stocks has
led to the development of a consumer directed approach to sustainable fisheriesi management.
Many consumers, when educated about the source of a seafood product, will make purchases
based on confidence that the seafood is safe to eat and comes from a sustainable source. The
Marine Stewardship Council (MSC) promotes and responds to consumer awareness by
supporting sustainable and responsible fishing practices through certifying fishermen andseafood companies. MSC certification is based on established principles and criteria forsustainable fisheries, and certified products have the right to use the MSC blue label. To
demonstrate causes for consumer interest and confidence in the MSC label this report firstprovides a brief background on the seafood industry and the sustainable seafood movement
before investigating MSC’s organizational structure, certification process, and monitoring andevaluation tools. Relevant case studies will be applied in support of credibility arguments, but
shortfalls of the organization and certification, such as the lack of developing world fisheries
involvement, will also be addressed.

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Table of Contents
I. Background............................................................................................................................3
II. Seafood Eco-labeling and Sustainable Seafood Awareness Campaigns ............................5
III. The Marine Stewardship Council (MSC): Identity and Structure..................................7
IV. MSC Market Share.............................................................................................................9
V. MSC Principles and Criteria .............................................................................................11
VI. Certification Overview and the Pre-Assessment Process ................................................14
A. The Full Assessment Process ............................................................................................17
B. Peer Review......................................................................................................................19
C. Objections Procedure .......................................................................................................21
D. Chain of Custody Certification ........................................................................................23
VII. Monitoring via annual audits.........................................................................................25
VIII. Monitoring via re-assessment and the case of the New Zealand Hoki Fishery ...........27
IX. Critiques of MSC Certification ........................................................................................29
X. Conclusion ..........................................................................................................................32
XI. Discussion Questions.........................................................................................................35
XII. Appendix..........................................................................................................................36
XIII. References ......................................................................................................................45

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I. Background

Seafood is the only naturally occurring food resource still hunted for consumption on a majorinternational scale. A continuous increase in demand in conjunction with rapid population
growth has resulted in extremely lucrative returns for the fishing industry. Unfortunately, thedesire to maximize profits has overridden sustainable practices in most cases. Over fishing is nota recent phenomenon as demonstrated by well known examples of fisheries becoming
economically unviable due to overexploitation, such as the Pacific Sardine and Atlantic Cod.
However, the response to decreasing stocks has been increasing competition using improved
technology to target dwindling resources with greater efficiency, as well as the transfer ofpressure to species formerly considered unpalatable.

The results of over fishing are drastic and experts have concluded that as of 2003 29% of open
sea fisheries were in a state of collapse and if current practices continue we will experience a
total global collapse of international marine fisheries by 2050.ii
Furthermore, the UNFAO published startling statistics that 52% of the world’s fish stocks are
fully exploited (which means that they are being fished at their maximum biological capacity),
24% are over exploited, depleted, or recovering from depletion, 21% are moderately exploited,and only 3% are underexploited.iii

These figures pose serious concern for a multitude of stakeholders including consumers,companies and individuals along the supply chain, and the fishermen themselves. In 2000 the
global fish catch was valued at US$81 billion, international fish trade was worth US$55 billion,

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and an estimated 200 million people earned all or part of their income from fishing or related
activities.iv Due to the obvious importance of marine resources for a significant portion of the
population, political institutions have attempted to manage fisheries in a more sustainable
manner on national and international levels. However, legislation is notoriously difficult toestablish with the variety of conflicting interests involved and has usually been in response to,rather in anticipation of, stock declines.

The UNFAO has made significant headway in establishing international standards for fisheries
management such as the UN Law of the Sea Convention (1985) that established the global
framework for the governance of capture fisheries, the Code of Conduct for Responsible
Fisheries (1995) which provides a foundation for promoting sustainable fisheries, and theConservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks(1995) for dealing with transnational issues. A more recent example of their efforts was the
March 12, 2007 agreement in Rome of 131 countries to start a process leading to the adoption ofa legally binding international agreement establishing control measures in ports where fish islanded, transshipped, or processed, in order to combat illegal fishing.v

Also, the UNFAO

committee on fisheries (COFI) has also established the ‘Guidelines for the ecolabeling of fish
and fishery products from marine capture fisheries’ which are adhered to by the MSC.

The fundamental problem with such UN policies is that responsibility for enforcement lies underthe voluntary actions of national governments and participating institutions and groups. For
most of the world’s fisheries, particularly those in poorer nations who often sell fishing rights toforeign interests, the capacity and desire to adhere to the guidelines is lacking. Furthermore, the5Copyright 2007. No quotation or citation without attribution.
innate characteristics of the industry make enforcement incredibly difficult because many species
targeted, like tuna, are highly migratory between international and national waters. Also, fishingfleets are often away from port for considerable periods, may fish several different species in one
trip, and may transship and/or transform products for different markets at sea.vi

Due largely to the failure of regulation by conventional politics to reverse the collapse ofinternational marine fisheries, market based strategies have gained momentum. An informal
alliance of conservation organizations, aquariums, fishermen, seafood processing anddistribution companies, retailers, consumer groups, restaurant chains, and gourmet chefs haveapproached the problem from the demand side. Their strategy is that developing education andawareness about seafood sources through clear, science-based information will result inincreased purchasing of sustainable products. This will then create increased demand for suchproducts and producers will respond by sourcing them.vii Ecolabeling has become the marketbased economic instrument to direct consumers’ purchasing behavior in this regard and its
application to seafood products is growing rapidly.

II. Seafood Eco-labeling and Sustainable Seafood Awareness Campaigns

In response to the global fisheries crisis outlined above, several sustainable seafood advocacy
and labeling efforts have emerged. In terms of consumer awareness, wallet cards to educate
consumers on what fish are most sustainable and therefore best to buy have been popularized by
the Monterey Bay Aquarium’s Seafood Watch program. The Smithsonian Institution published6

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a cookbook on sustainable seafood dishes, and advocacy groups such as Seafood Choices
Alliance, The Blue Ocean Institute, and the Environmental Defense Fund have gained increased
publicity.

Eco-labeling has become one of the primary tools in consumer awareness campaigns and is
exemplified by mainstream examples such as fair trade, certified organic, or dolphin safe. Froma policy perspective, an eco-label aims to educate consumers about the environmental and social
effects of a products’ production and consumption in order to catalyze change in purchasing
behavior and ultimately reduce negative environmental and social impacts. From a businessperspective, companies are induced to use environmentally and socially preferred production,
distinguished by an eco-label, with the expectations of gaining a greater market share and higher
profits.viii

FishWise uses a labeling system of green (sustainable), yellow (somewhat sustainable), and red(not sustainable) similar to that of the Seafood Watch guide and has gained significant market
share in natural foods markets of the San Francisco Bay Area. They are poised to expand via
chain stores to a broader geographical range. In Europe, arguably the most aware consumer
market, the regions’ largest natural foods retailer, Natureland, has begun its own sustainableseafood labeling campaign. Ecofish, an independent American firm, labels their salmon andshrimp products as sustainable and targets domestic whole foods markets. However, each ofthese labels is limited in geographical scope and many don’t have an obvious strategy foraddressing broader, mainstream markets, giving them little impact on overall consumer behavior.

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The exception to this is the Marine Stewardship Council (MSC) whose blue label signifies thatthe seafood product is from a sustainable source. The organization is the only sustainableseafood certification body that is truly global in scope and thus poses the greatest chance to havea noticeable impact on the overall shape of international fisheries management by consumer
driven devices.

III. The Marine Stewardship Council (MSC): Identity and Structure
The Marine Stewardship Council (MSC) is an independent, global, non-profit organization with offices in London,
UK, Seattle, USA and Sydney, Australia. In a bid to reverse the continued decline in the world's fisheries, the MSC
is seeking to harness consumer purchasing power to generate change and promote environmentally responsible
stewardship of the world's most important renewable food source. The MSC has developed an environmental
standard for sustainable and well-managed fisheries. It uses a product label to reward environmentally responsible
fishery management and practices. Consumers, concerned about over fishing and its environmental and social
consequences will increasingly be able to choose seafood products which have been independently assessed against
the MSC Standard and labeled to prove it. This will assure them that the product has not contributed to theenvironmental problem of over fishing.
www.msc.org

The MSC was spawned from an interesting partnership, that of the World Wildlife Fund (WWF),a major international non-profit environmental organization, and Unilever, a multinational
corporation who is one of the world’s largest buyers of fish (supplying about 25% of the frozen
fish in Europe and the United States).ix An initiative was developed by the two organizations in
1997 which aimed to address the rapid depletion of fisheries resources via the creation of asustainable seafood label. This was heralded by the organizations as a pioneering example of

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green-business partnership. In 1999, Unilever and WWF withdrew from all management of the
new entity and it became an independently run non-profit organization.
Since its inception the MSC has grown rapidly and solidified its approach to promoting
sustainable fisheries through establishing concrete principles and criteria for fisheries assessmentand endorsing approved products as being sustainable via a label. In order to build credibility
the organization is completely consistent with the ‘UNFAO guidelines for the ecolabeling of fish
and fishery products from marine capture fisheries’ (See Appendix A). The role of MSC islargely that of a facilitator and accreditor whereby they provide the framework and guidelines ofwhat a sustainable fishery is, the assessment requirements for each phase of production, and thelabel. They do not involve themselves in the physical process of certifying fisheries, but rather
endorse a list of Accreditation Services International (ASI; www.accreditation-services.com)
accredited companies deemed capable of completing the process. Those seeking certificationmust use a Certification Body (CB) from this list. The CB is the primary assessor while the
MSC Board of Trustees and MSC Objections Panel make final decisions about endorsement andaccess to the MSC logo.

In 2003 MSC had a full time staff of 18 in 3 international offices. The organization is headed by
the Chief Executive, Rupert Howes, who reports to the 15 member Board of Trustees. The board
is comprised of global fisheries experts from the private, public, and non-profit sectors who
approve plans, targets, strategies, financial accountability, and appoint chief board andcommittee members. Other MSC institutional branches include an independent group offisheries experts who make up the Technical Advisory Board which advises the Board of

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Trustees on MSC standard recommendations and other technical matters. There is also theApprovals Committee who ratifies accreditation decisions, the Stakeholder Council who
discusses MSC strategy and executive activities, as well as National and Regional Working
Groups focusing on networking and outreach opportunities. Sub-committees are ad hoc except
for the Finance Committee.x (See Appendix B for governance structure and www.msc.org forlists of board and committee members.)

The MSC is a non-profit organization and their financial records are available for public view intheir annual report. They are primarily dependent on donations from charitable trusts for theiractivities (75% of the budget) and do not derive income from the fisheries certified orundergoing certification for their operational costs. Concern that stakeholder companies provide
significant contributions and therefore may seek special treatment may have some grounds as 9%of their £2,283,894 of donor funding in 2006 came from corporate sources including Unilever,Whole Foods (Vice President of Governmental and Public Affairs for Whole Foods is also on the
Board of Trustees), and Oceanaire Seafood. The organization is audited by Sobell Rhodes,
Registered Auditors and Chartered Accountants. The majority of their budget is used forcommercial and fisheries outreach (44%), policy and maintenance of standards (26%), andeducation and awareness (13%).xi

IV. MSC Market Share

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By March of 2006, MSC labeled products numbered 332 and were available in 25 countries,
making the MSC the world’s largest sustainable seafood label. More than 50 fisheries are MSC
certified or undergoing the process, more than 3 million tones of seafood comes from fisheries
engaged in the program, and the global retail value of MSC-labeled seafood for 2005/2006 wasapproximately US$235,661,285. About 6% of the worlds total edible wild capture fisheries are
now engaged in the program.xii

Several major retail chains and distributors in the United States now supply MSC labeled
seafood products including Whole Foods, Wal-mart, Safeway, Wildcatch, Trident, Ocean
Beauty, and Fishery Products International. Internationally, there are over 200 businesses
trading MSC-labeled seafood products. In terms of the US market, Wal-Mart Stores Inc. has
become the largest retailer of MSC labeled products and announced in August, 2006 that it had
set a goal to procure all wild-caught seafood for North America from fisheries certified by the
MSC within the next three to five years. xiii This is a major development for MSC and thefisheries certified or undergoing certification.

Peter Redmond, vice president of Wal-mart Seafood and Deli was quoted as saying “thisinitiative is part of Wal-Mart’s continued commitment to offering sustainable products ataffordable prices to our customers.”xiv Although this move can be seen as part of Wal-Mart’s
ongoing efforts to create a more socially responsible corporate image, it can be argued that it issimply a logical business decision. This step provides Wal-Mart with a secure and consistentsource of a valuable, profitable product to offer its customers into an assumable infinite futurethus assuring the sustainability of their business. As global fish stocks collapse over the coming

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decades other retailers may struggle to obtain seafood products from dwindling supplies
providing a distinct advantage to Wal-Mart and its secure source of sustainable caught seafood.

As the MSC breaks the former trend of sustainable seafood only reaching specialty whole foods
markets by entering mainstream retail chains, the benefits of MSC certification become more
apparent to the suppliers. This is vital because the fishery incurs the costs of certification andtherefore must envision returns on their investment (see certification process below). Given
MSC’s significant and growing markets we can expect a greater number of fisheries to seek
certification in order to access and profit from them. However, new questions are then raised
regarding MSC credibility. Is it possible to meet the volume demands of larger markets with
MSC labeled products or will the integrity of the label be compromised by rapid growth, thereby
damaging consumer confidence? Also, given this scenario of MSC labeled products having
access to new markets and presumably higher prices, why are there only 18 fisheries out of thethousands around the world undergoing the process of certification?

The following sections of this report will address these issues by first looking at the standards
themselves and how they are applied.

V. MSC Principles and Criteria

The main focus of MSC has been developing guidelines for what a sustainable fishery is. To
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extensive, international consultative process. Expert fisheries scientists’ recommendations inaddition to the views of stakeholders in the fisheries industry from around the world weregathered and molded into a framework for appropriate standards. The three core components of
MSC’s Principles and Criteria for Sustainable Fishing are:
1. A fishery must be conducted in a manner that does not lead to over-fishing or depletion of the exploited
populations and, for those populations that are depleted, the fishery must be conducted in a manner that
demonstrably leads to their recovery.
2. Fishing operations should allow for the maintenance of the structure, productivity, function and diversity of theecosystem (including habitat and associated dependent and ecologically related species) on which the fisherydepends.
3. The fishery is subject to an effective management system that respects local, national and international laws andstandards and incorporates institutional and operational frameworks that require use of the resource to be
responsible and sustainable.xv

Each principle has an attached statement of intent and list of criteria. An example of this for the
first principle is the intent of not sacrificing the productive capacity of a fish stock in favor ofshort term interests, and associated criteria being that fishing is conducted in a manner that does
not alter the age or genetic structure or sex composition to a degree that impairs reproductive
capacity. This is only one small example of the requirements placed on a fishery that wishes tobecome certified (see Appendix C for a full list of criteria) It is the responsibility of thecertification body to cite the scientific evidence and corresponding suitable fishing practices that
ensure the principles are met.

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These guidelines are extensive and are a solid basis for determining if a fishery is sustainable andshould receive MSC certification and access to the logo. This is reinforced when we see how
they are applied later in this report.

However, these guiding principles have not gone without scrutiny or modification. The MSC
recognizes that the certification principles and process require refinement via practicalexperience and must be dynamic. As a result, systems, procedures, and approaches have been
continuously updated. One of the contributors to the initial set principles underlying the work of
the MSC, Tony Pitcher, Director and Professor of Fisheries at the University of British
Columbia’s (UBC) Fisheries Center, publicly criticized the MSC following a call by theorganization for feedback regarding its governance in late 2000. He went as far as requestingthat the name of the Fisheries Center be removed from the list of MSC supporters.

Mr. Pitcher stated that the MSC scoring process, part of the principles and criteria, lacked
transparency because the UBC Fisheries Center had been unable to obtain scorings for the
Alaskan salmon or Australian rock lobster fisheries. He also was critical of the blanket of
approval of all species, localities, and gear types for Alaskan salmon in that it raised issues about
the scoring system and how compliance would be monitored. Furthermore, Mr. Pitcher notedthat comments by the independent reviews of each scoring process were not openly published.xvi

The position of the UBC Fisheries Center has not been reversed for reasons that will be
discussed later in this paper. However, the MSC addressed the concerns posed, and in 2002 it
was required that fishery assessment reports must reveal the scores and weights assigned by the

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certification body. It is now possible for stakeholders, clients, and interested parties to voice
concerns about the assessment hierarchy proposed which allows them greater input into theprocess. All preliminary documents, assessment reports, and audits are available for public viewand scrutiny on the MSC website. The MSC also notes that blanket approval as applied to the
Alaskan salmon fishery was a test case since the fishery was assessed in the early days of the
MSC program, and has since been modified to encompasses greater specificity.xvii

These actions exemplify the responsive and flexible nature of the organization and add to thecredibility of the logo. However, the scope of these modifications goes beyond the principles
and criteria, reflecting the processes of how they are applied through the certification process.
This process comprises the core of the MSC and is the means in which consumers can derive realconfidence in the MSC label. We will take a detailed look at each aspect of certification here.

VI. Certification Overview and the Pre-Assessment Process

An MSC logo is placed on the seafood product the consumer sees at the retail level but also
symbolizes the certification of a named species, fishing method, stock source, vessel, andcompany. The certification process is broken into two tiers, the certification of the fishery andthe certification of the chain of custody. Evidence to support certification in both tiers is carriedout by independent, third party, certification bodies that are firms deemed competent and capableof the process by the MSC and Accreditation Services International (ASI).

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The cost of the certification process is incurred by the fishery itself. Costs vary depending on thecomplexity of the fishery and have ranged from US$35,000 to US$500,000.xviii The market
aspects previously discussed provide the incentive for the fishery to pay these costs, but a costbenefit analysis must be undertaken to determine if the presumed returns will outweigh theinvestments into certification. For example, Ruben Garcia of FEDECOOP (MSC client) notedthat although the Baja Mexico Red Rock Lobster Fishery invested considerable resources in
MSC certification, they have not seen matching returns since the market price in Ensenada isequivalent to, or greater than, the MSC labeled market price internationally. Furthermore, theUS market requires volumes at set size consistencies beyond the capabilities of the fishery.xix

For other fisheries there are obvious returns or incentives. Those undergoing re-certification
provide evidence that the fishery thinks the process is worthwhile. For others undergoing theprocess, like the Pacific Albacore, access to pre-identified new markets like those in Europe, isthe driving force behind undergoing certification.

Accredited certification bodies (CB’s) are independent third parties that conduct the actual
fishery assessments in accordance with the MSC’s Fisheries Certification Methodology, andmake certification decisions consistent with the MSC standard. CB’s are closely monitored by
the MSC and ASI through office visits and site visits while assessments are taking place. (For
Certification Methodology see www.msc.org/html/content_505.htm)

The first step toward certification is selecting a CB. This decision may be based on theirgeographical region of focus (if any), expertise with particular fisheries, record with timeliness,

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cost estimates, etc. It is also crucial to determine who exactly the client of the CB will be, suchas a fishing industry association (Association of Australian Rock Lobster Fishermen) or evengovernmental agency (Alaska Department of Fish and Wildlife). An example of this scenario is
the American Albacore Fishing Association (AAFA), Inc., a client who is currently undergoingcertification. A representative from the organization, Natalie Webster, noted that Moody Marine
was chosen as their CB due to their good record and willingness to do quality work within arelatively short timeline.xx

Once client and CB are established a pre-assessment becomes the first formal move toward
certification. A CB pre-assessment is prepared for the client in order to provide a brief
evaluation of the likelihood the fishery will meet the MSC standard based on the MSC’s
Principles and Criteria for Sustainable Fishing. The report will include identification of thestrengths and weaknesses of the fishery and recommend whether or not the client should pushforward to the full assessment stage with suggested modifications to practices if necessary. Jim
Humphreys, the Regional Director for the MSC in the Americas, remarked that the preassessment is a filtering tool and several fisheries seeking certification have dropped out of theprocess after receiving this assessment, though they could not be identified due to confidentiality
agreements.xxi (To see a list of the minimum pre-assessment requirements see Appendix D.)

To continue the certification process beyond pre-assessment, the client must undergo full
assessment by the CB which includes peer review of the CB’s findings and a final report withdetermination of whether or not the fishery meets the MSC standard. This then goes through an
objections procedure before a final decision on certification is made. If certification is granted,

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the chain of custody must then be assessed and certified before the MSC logo is allowed to be
used by the product from the certified fishery. The entire certification process averages around12-14 months, with the shortest having been 5 months and the longest 48 months. xxii

(See Appendix E for a certification flow-chart.)

A. The Full Assessment Process

The full assessment is a lengthy, detailed process with 17 steps (See Appendix F) involving
several meetings between the client, CB, MSC, and various other stakeholders. The MSC
maintains the role of liaison throughout the full assessment to ensure that the steps are
implemented accurately.

One of the primary components is the CB’s determination of performance indicators and scoring
guideposts. These form an “assessment tree” or assessment hierarchy which is specific to thefishery. The scoring guideposts for each performance indicator have score ranges from 60- theminimum acceptable mark in any given category, to 100- a theoretically ‘perfect’ fishery. The
aggregate score must be 80 or more.xxiii This core aspect of assessment is one of the primarypoints of contention with the UBC Fisheries Center. (Please see examples of performanceindicators and scoring guideposts in any MSC certified fishery Final Report at msc.org, such as
the N.Z. Hoki case used for section 7.2 of this report).

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The UBC Fisheries Center argues that “it was impossible to find information that had led to thescores for each factor considered by the MSC, and scoring issues and methods appeared, as far as
could be discerned, to follow a completely different scheme for each fishery.”xxiv The statementthat each fishery has a different scheme makes sense however. Nearly every certified MSC
fishery is in a different location with unique ecological traits and therefore scientific grounds for
maximum allowable catch and ecosystem impact will differ. Also, catch methods used for eachcertified fishery vary. As a result, performance indicators and scoring guidepost must be tailoredto each fishery in the context of the MSC principals and criteria. The fact that there is not a
constant scheme does not hinder the legitimacy of the grading process but rather allows it to be
more accurate for each specific scenario. The underlying standards still apply.

There has also been a response by the MSC to address this issue with the development of the
Quality and Consistency Project under the Technical Advisory Board. This project is aimed tocreate better quality standards in CB assessment through measures to improve consistency inscoring and other areas. This will help deal with concerns such as the variations across fisheries
and CB’s. Furthermore, the process is open to public input until April of this year when steps
toward implementation will occur.

In many cases conditions of certification with required improvements will be presented by the
CB with an appropriate timescale for each. It is then the responsibility of the client to determine
how to meet these conditions and agree to a timeline. However, and this one of my largest
concerns with the certification process, a CB may issue a certificate with conditions pending
under agreement that they will, eventually, be met. Furthermore, to date every fishery has been

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certified with conditions. This seems too lenient, but fears are dispelled by the fact that full
assessment must still undergo a peer review and objections process which may deem these
conditions too excessive. Even with conditions, the fishery must still receive passing scores on
assessment. Furthermore, annual audits are required that serve as a tool to determine if
conditions are met. The recertification process at the five year point also ensures conditionalities
have been handled appropriately.

B. Peer Review

The peer review process is an important confidence building tool that adds credibility to the CB
in their development of full assessments. Given that the CB holds the primary responsibility forthe assessment process, devices such as this are critical to faith in the process and thus thecertification and label. This takes place prior to the production of the final report which allows
the CB and client to respond to concerns expressed by the peer review. The Peer Reviewers areproposed by the CB based on their experience with the fishery under assessment and their fishery
management and ecology knowledge. The MSC then confirms or denies the suitability of thesepeer reviewers based on their credentials and the relevancy of these credentials to the fishery.
Although it may seem that there is cause for concern in the CB selecting its own peer reviewers,
the fact that the MSC must approve them allows some level of trust in the process.

In the case of the current assessment of the AAFA Pacific Albacore Tuna for MSC certification,Peer Reviewer Panayiota Apostolki exemplifies the credentials of those involved. She has

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significant experience with tuna biology and international tuna fisheries management, iscompletely independent of AAFA, Moody Marine, or the MSC, and a Fishery Scientist with theCenter for Environment, Fisheries and Aquaculture Science, UK. She was a contributor tovarious tuna stock assessments internationally and constructed the “Framework for the
Evaluation of Management Strategies” used as the evaluation process of the Blue Ocean
Institute’s seafood ranking scheme.xxv Most peer reviewers are of a similar mold being researchscientists/academics with extensive experience and credentials.

Peer evaluations provide detailed feedback on the scientific evidence of sustainability, and thefunctional form of the report, such as format and clarity. The area of the report most closely
scrutinized is the performance indicators and scoring guideposts based off the MSC principles
and criteria. For example, in the case of the Baja California Red Rock Lobster Fishery, Peer
Reviewer Dr. Pablo Arenas commented that the rationale for scoring in Principle 2 of the report
was unclear and had inconsistencies with the references.xxvi The language of the final reportsubmitted was revised whereby it was stated clearly that “the scoring of this indicator was basedon the following considerations:” followed by a detailed description of those considerations.
Clarity between the rational for scoring, the scores themselves, and the references provided was
also improved.xxvii

These examples, and other peer review cases investigated, provide evidence that the peer reviews
are well based and constructive. The CB is responsive to the feedback and the necessary
measures for improvement by the fishery, CB, or both, are undertaken. This provides muchneeded confidence in the CB given the scope or their responsibility in the certification process.

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Once the peer review is completed, the CB and fishery make necessary revisions, and the CB
provides certification approval which takes into account stakeholder comments, a final report is
submitted to the MSC where it is subject to an objections procedure.

C. Objections Procedure

The objections procedure is a 21 day period during which parties who wish to lodge complaint
against the certification of a fishery may do so. If the there is no objection, the priordetermination of pass or fail becomes the final result. If there is a complaint submitted, theobjections procedure commences under the guidance of an independent Objections Panel whose
Chair, Michael Lodge, has an extensive marine law background.

No formal certificate or logo will be granted until this process has been completed anddetermination finalized. It is assumed that if objections are deemed relevant by the Panel and of
a level of concern high enough to require suspension of the certification approval, it would be up
to the CB and the fishery to make necessary corrections. Then the objector would remove theircomplaint if they are satisfied, or the Panel may deem the changes were sufficient for approvaleven if there is continued objection.

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The MSC Objections Procedure is set out in the MSC’s Fishery Certification Methodology anddemonstrated by a case of objection against the South Georgia Patagonian Toothfish Longline
Fishery filed in 2004. The common name of the fish targeted in this case is ‘Chilean Sea bass’,
an extremely popular consumer fish product. For example, a Whole Foods supermarket
associate mentioned that they do carry MSC labeled Chilean Sea bass but are regularly soldout.xxviii Due to this popularity the species has been seriously over fished. It is red listed by
Seafood Watch (see section 2) and Tobias Aguire of FishWise considers it an unsustainablefishery under any commercial pressure based on biological grounds.xxix

The Objection Panel noted that the objectors in the case (conservationist groups) raised serious,
important, and relevant issues and there were some errors in the judgment of the Assessment
Team and CB.

The panel also stated that the peer reviewers raised several legitimate questions

that were not dealt with accordingly in the final report. Furthermore, the panel judged that theCertification Body’s response to the Initial Objections was ‘terse’ and deprived the objectors offull appreciation.

One of the primary issues of concern was the CB’s assessment that the South Georgia toothfish
population is a reproductively isolated, genetically distinct stock. This is a serious point ofcontention because it relates to the overall health of the species. Because this aspect of theassessment was denied by the Objection Panel it disallowed the fishery to make management
decisions as if it were isolated, self-sustaining, and not connected to a larger ecosystem. A seriesof events stemmed from this resulting in extensive measures by the CB and fishery to rectify thesituation. The end result was a conditionality placed on the certification that studies must be

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carried out to indicate whether or not locally implemented management measures alone will be
sufficient to ensure the sustainability of the stock. This was completed within the year.xxx

In March, 2005, Moody Marine, the CB, released its Addendum to the Certification Report and it
was deemed to have sufficiently dealt with the issues raised. The fishery has been so heavily
utilized (by 17 countries, legally and illegally, with year 2000 catches likely exceeding 90,000
metric tones)xxxi in such a short period of time that the impacts are still pending. Although it isargued that commercial fishing of ‘Chilean Sea bass’ is unsustainable under any terms, thefishery in this particular area is attempting to act in a sustainable fashion and is the bestalternative for consumers. In continuing audits we will be able to monitor the state of the fisheryand assess its sustainability. This provides credence for the ongoing MSC certification issues
outlined here as this process of scrutiny would not likely take place otherwise.

The objections procedure is paramount to the ability of stakeholders outside the client, CB, MSC
triangle to have tangible influence in the certification process and adds further credibility tocertification.

Once the objections process has been completed and a pass decision made, the fishery is MSC
certified. However, the second tier of certification, one which is vital to consumer confidence is
the MSC label, must now be carried out.

D. Chain of Custody Certification

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Traceability of MSC labeled products is crucial to consumer confidence and has led to theestablishment of MSC Chain of Custody (CoC) Certification requirements. Seafood traders havean incentive to access lucrative, ‘eco-friendly’ markets through mislabeling. For example, tilapia
is considered eco-friendly by seafood awareness campaigns and the Whitefish Association of
Ecuador was found to be selling South Pacific Hake, often an unsustainable fishery, labeled astilapia as a result of market interests.xxxii

CoC certification ensures that the seafood product with the MSC logo at the retail level isactually from a MSC certified fishery. ‘Chain’ signifies the fact that there are multiple steps andbusinesses involved between the producer and the customer. ‘Custody’ reflects each business inthe chain has taken receipt of MSC seafood and is responsible for keeping it separate from anyother seafood product.

“Independent verification is carried out for every product bearing the MSC logo. This is toensure that the product has originated from a fishery that has been certified to the MSC Standard.
In order to achieve this, each relevant organization in the supply chain will be subject to a Chainof Custody (CoC) audit.”xxxiii

Any business wishing to produce, process, package, ship, and/or sell an MSC product must
contract an MSC and ASI accredited CB to assess their compliance with the MSC CoC Standard.
This standard is well based and detailed, including steps such as confirmation of inputs,

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separation and/or demarcation of certified and non-certified fish inputs, secure product labeling,
identification of certified outputs, and recordkeeping.xxxiv

The primary device of the CB is assessing CoC compliance is auditing. The audit requires theclient to demonstrate actions in line with the standards. As mentioned, these include systems toensure MSC fish is kept separate from other fish and that records show this is the case for every
batch of MSC fish received. If requirements are met in the audit, the CoC is certified andapplication for the MSC logo can proceed.

CoC certificates are granted for three years but regular annual surveillance audits must bescheduled to ensure ongoing compliance.

The CoC standards are sound and the third party audits seem sufficient to ensure compliance.
Given the amount of investment in certifying the fishery itself, there is a strong vested interest of
stakeholders to ensure the CoC standards are complied with. Incentives to ‘cheat’ in accessing
markets or price premiums by labeling non-MSC seafood as being MSC approved do not to
outweigh the risk involved in a negative audit. An audit demonstrating non-compliance would
result in the loss of certification for the entire fishery and supply chain.

VII. Monitoring via annual audits

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The certification process is intensive and grounded in scientific principles that assure sustainablefishing practices are undertaken by the fishery seeking initial or ongoing certification. However,there is concern that these sustainable practices may not be maintained after the fishery and its
supply chain are certified. Why wouldn’t they revert to unsustainable practices after they haveaccess to the logo so they can increase profits from catches beyond those set by the standards?

Annual audits are required by MSC and are carried out by an accredited CB. These audits ensure
the basis of certification is still in place and the fishery is meeting any conditional requirementsfrom the original certification. They are entirely transparent and available for public view on the
MSC website.

An example of this process is the Baja California, Mexico Spiny Lobster Fisheries’ second
annual audit in 2006 which recommended the continued use of the MSC certificate through tothe next annual surveillance audit. This was determined after office and site visits by the CB tothe producer where catch records and general practices were reviewed to ensure compliance withthe standards. It was noted that there were actually fewer vessels fishing and fewer traps used in2006 than 2005. xxxv

There is sufficient evidence from every MSC certified fishery that these audits are carried out.
Their content and transparency provide assurances that they are accurate.

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VIII. Monitoring via re-assessment and the case of the New Zealand Hoki Fishery
The MSC requires an in-depth recertification report from an accredited CB after 5 years ofcertification for certification to be renewed for an additional 5 years (annual audits continue).
This report mirrors that of the initial report with the same scope and depth, the same process ofpeer review, and same subjection to a 21 day objections procedure. It is a sound method giventhat the conditions of a fishery may change dramatically in a 5 year time frame due to a varietyof reasons, whether attributable to the certified fishery or not.

Recertification is of extreme importance to the legitimacy of the MSC label as it demonstrates
ongoing compliance and that the certification is benefiting the fishery (or they wouldn’t incur thecosts of another intensive assessment). It is also crucial to MSC credibility because several of
the fisheries certified early in the organization’s history that suffered skepticism (see section 5.2)
are now undergoing the recertification process. One key example of this is New Zealand Hoki.

New Zealand Hoki is the nation’s (N.Z.), and one of the worlds, most important fish species interms of yield and economic value. N.Z. Hoki fillets and fish sticks are marketed in every major
grocery store around the globe. Catch allowances were set at 100,000 tones a year in 2004 by
the New Zealand Ministry of Fisheries and the catch in 1998 valued USD$294 million.xxxvi
MSC certification was awarded in March 2001 and the reassessment procedures that commenced
in 2005 have still not been completed due to objections.

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Although it wasn’t verified, Jim Humphreys of MSC stated that he thought the principle objector
in this case is the Royal Forest and Bird Society. In the 305 page reassessment report by SGS,
significant concerns were raised about the bycatchxxxvii of seabirds and Southern Fir Seals,
lending support that this organization did in fact file the objection. The reassessment document
notes multiple objections by the World Wildlife Fund regarding this and other issues, andanother potential objector is Greenpeace due to their well publicized documentation of deep sea
habitat destruction from bottom trawling in New Zealandxxxviii (N.Z. Hoki is a mid-water andbottom trawl fishery).

For time and space considerations I will only make note of one (there are several, such as the
bycatch mentioned) fundamental flaw in the N.Z. Hoki fishery according to reports. Peerreviewer A stated that “the western stock (which is one of several this fishery targets) is assessed(2005) to be at or below the limit biomass reference point… While there have been reductions incatches of this stock in response to the decline, there is no explicit rebuilding plan in place…
Two out of four stock projections in the 2005 assessment show the western stock failing torecover to the target level by the end of the next certification period.”xxxix

This is in direct conflict with MSC principle #1 (see section 5.2) and the CB seemed to be inagreement with the conclusion drawn. However, the CB remarked:

The overall score for Principle 1 exceeds 80 even though the scores for two key Performance Indicators were below
80. This reflects the nature of the MSC assessment process which assigns scores to a variety of aspects including
knowledge, data collection and the assessment as well as outcomes. The MSC process does not permit any other29

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form of judgment to be applied to determine if the fishery passes or fails on any Principle. The assessment team isacutely aware of the overall role of the assessment model structure in determining the priori considerations in an
outcome, and all possible safeguards are taken in the assessment process to avoid bias, but recognizing that the
MSC process applies constraints that the assessment team is bound to work within. xl

The end result is that the validity of the current certificate has been extended until April 1, 2007
to cover an extended objections period. The case is still pending and represents the starkest
controversy in MSC labeling uncovered in this research. Scientific evidence backed by the CBshows that a substantial area of the fishery does not meet the required MSC standard for allowing
stock recovery in a depleted fishery, but the structure of scoring allowed other performanceindicators to balance out this shortfall.

This case represents non-compliance with the MSC standard. It also demonstrates that MSC
certification is effective in identifying such situations. The re-certification process is obviously
an important tool in legitimizing the MSC label and the N.Z. Hoki example provides animportant case study in analyzing how compliance is ensured. If the N.Z. Hoki Fishery
maintains certification without significant, short-term, binding conditionalities, confidence in the
MSC label will compromised.

IX. Critiques of MSC Certification

The ‘shadow of the state’ helps good, developed world fisheries get certified and bad 1st world
fisheries to stay in business through subsidiesxli. There is a ‘low hanging fruit’ concept at play in30

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this process. Fisheries that are already heavily regulated by effective national fisheries policies incountries that can afford to implement them are able to obtain certification much easier thanthose without heavily enforced regulations. Sometimes government agencies in richer nations
are even the client paying for the certification, as is the case with Alaskan salmon. This puts
poorer nations at a distinct disadvantage in obtaining certification.

Only two of the twenty two MSC certified fisheries are based in developing nations: the Baja
Mexico Red Rock Lobster and the Patagonian Scallop (Argentina). This proves an obvious pointthat the majority of the world’s fishermen (small-scale in developing nations) are not being
reached by the MSC program. Although there has been the recent establishment of the‘Developing World Fisheries Program’ by the MSC to address this issue through the goal ofincreasing developing countries’ stakeholder awareness and involvement, no concrete results
have yet surfaced.

This idea is related to the marketability of sustainable seafood outside of the United States andEurope. This is one of the most significant challenges for MSC: most of the world does notdiscriminate between products based on the environmental issues associated with them. Asia
consumes over two thirds of the world’s seafood, and most of the growth in demand for seafood
stems from Asia, Latin America, and Africa. None of these areas is currently very responsive to
eco-labeling.xlii

There are also organizational components that compromise confidence in the organization. The
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seafood, makes significant contributions to the organization raises some concern. Contributions
from Whole Foods and other companies with direct for profit interests in the organization also
cause concern. Although these are on theoretical grounds only, it does seem possible that they
could leverage their donations for decision making that would favor them.

Another questionable issue is the certification of bottom trawl fisheries, such as the Patagonian
Scallop, N.Z. Hoki (mid-water and bottom trawl), and South African Hake. Bottom trawling is avery destructive fishing method to sea bottom ecosystems, acting like a sort of bulldozer along
the bottomxliii. This may compromise the sustainability of the fishery targeted by disrupting thefood web it depends on. Trawling in general is also notorious for bycatch of unwanted species
resulting in significant kills of sea birds, sea mammals, sea turtles, and fish species important to
the health of the overall ecosystem that are not the target species. This reflects a single species
vs. ecosystem focus in determining sustainability which may be a flawed approach.

There is also a startling lack of addressing aquaculture with MSC certification. About 40 percentof the seafood imported into the United States is farm raised, mostly consisting of
salmon and shrimp. It is also a very important industry domestically with US produced
aquaculture products worth about $1 billion annually and estimates the Department ofCommerce for growth to $5 billion by 2025.xliv Aquaculture has been regarded as a very
important avenue toward reducing pressure on wild fish stocks, but recent health andenvironmental concerns have surfaced with its growing prevalence. This is particularly the casewith the two most popular aquaculture products: salmon and shrimp due to ecosystem and otherimpacts of large scale operations. Given the potential for aquaculture to help meet increasing

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consumer demand while reducing pressure on wild fisheries, it is surprising that the MSC has not
yet developed strategies to promote sustainable aquaculture practices.

Finally, there is a disturbing lack of publicly available evidence that MSC certified fisheries aremaking more money than they would had they not undergone the process. The same applies forthe environmental gains of MSC certification, there is little to no data that demonstrates that
MSC certification has improved a fishery or an ecosystem in an area of proximity with an MSC
fishery. Potential causes for these shortcomings are fairly obvious, like stakeholders not making
gains from the certification public to avoid additional competition. Also, in economic andenvironmental terms, the program is very young and therefore data collection is underway but
has not been analyzed. None-the-less, this is an area of great importance for greater justificationof MSC efforts.

X. Conclusion

Although there are several noteworthy criticisms of the organization, it is important to rememberthat the MSC is very young, having become an independent non-profit organization in 1999. In
eight years they have made amazing headway in addressing the international fisheries crisis
through a market based approach of ecolabeling sustainable seafood products (6% of the world’s
total edible seafood is now engaged in the program).

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The market response has been promising and the commitment of Wal-Mart to make all of its
wild caught seafood products MSC certified in the next five years demonstrates how successful
the sustainability movement can be in reaching a broad consumer base beyond boutique wholefoods markets. With this highly visible increase in marketability, producers and distributors areable to see the tangible benefits of the high cost involved in becoming certified. The fact thatevery MSC fishery faced with the required 5 year recertification has completed, or is undergoing
the process, is a testament to this.

The MSC organizational framework is large and well structured (see section 3), allowing it to
comfortably handle its growth. Standards are comprehensive and grounded in scientificprinciples that dictate what is required for a fishery to be sustainable. Very importantly, systems
are in place which allows the standards to be dynamic and respond to and accommodate newdevelopments in science, policy, and economics.

Standards, however, are meaningless without sound evidence of their implementation, and this iswhere much of the confidence in the MSC label can be derived. The comprehensive nature ofpre-certification, full certification including a peer review, an objections procedure, and supply
chain certification provides a clear indication that the certified fisheries and distributors meet theguidelines. ASI and the MSC accredit the third party certification bodies who are thenresponsible for the wide ranging assessments that ensure the fishery is sustainable and the supply
chain is free of false labeling.

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The CB is very important to the credibility of the label since there is the potential of corruption
between them and the fishery. This makes controls crucial. The effectiveness of the peer review
and objections processes as tools to ensure the CB is accurate in its work allows strong consumer
confidence that the label does in fact indicate sustainability. The annual audits and in-depth 5
year re-assessment process ensure that conditionalities are met and that the fishery continues tomeet the required standards over time.

However, the MSC certification fails to address developing world fisheries, the Asian market, or
aquaculture. These and other shortcomings point to a fundamental issue that must be
understood: MSC certification is not for everyone. Some consumers will want stricter standards
while others might not care about sustainability and only want to pay the lowest price. Some
fisheries will find the process too difficult, time consuming and/or costly, while others may beable to undergo the process but choose not too because they don’t see it benefiting them.
Therefore, the MSC alone will not be able to solve the world’s fishery crisis and there is a needfor a combined approach that goes beyond solely consumer driven methods. None-the-less,relative to other eco labels, MSC is remarkably sound and provides one of the best available
choices for a seafood consumer concerned about sustainability.

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XI. Discussion Questions
1. Why is it difficult to establish international standards for fisheries management? How
effective are private industry regulation organizations like the Marine Stewardship Council inaddressing sustainable fisheries issues? Is private regulation more important than governmental
regulation? Why or why not?
2. Evaluate the pros and cons of a MCS’s “mainstream” blue label and FishWise andNatureland’s geographic labels in promoting sustainable fisheries management. Do you feelgeographic labels are more powerful than MCS’s blue label within a given location? Does
MCS’s national scope dilute or strengthen the power of its label? Are competing labels good forthe industry?
3. What about the Marine Stewardship’s Council’s history, organizational structure, financing,and purpose gives you confidence in its ability to address international marine fisheries issues?
Which do not? How transparent is this organization? What should it do to strengthen its
credibility and successfully establish itself as the predominant marine eco-label?
4. Evaluate MSC’s fishery and chain of custody certification processes. Are there areas where“cheating” might occur? If so, how does MSC address or fail to address these issues? Howshould we evaluate the different scoring schemes for fisheries? Are there are other industries
where different scoring schemes make sense?
5. How well-designed is the peer review process? The objections process procedures? How does
MCS assure that its fishery and supply chains won’t revert to unsustainable practices after they
have been certified? Are there any “best-practices” that can be applied to other industries’ private
monitoring organizations? If not, what can the MSC do to strengthen these processes?
6. The author outlines various challenges and criticisms facing the Marine Stewardship Council.
They include the difficulty of marketing sustainable seafood internationally, the problems ofcertifying bottom trawl fisheries, lack of strategies to promote sustainable aquaculture practices,and the lack evidence that MCS certification increases profits. Sketch out a strategy for MSC.
Which of these issues should the MCS address in the next 10 years? What should be its goal?

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XII. Appendix
Appendix A
GUIDELINES FOR THE ECOLABELLING OF FISH ANDFISHERY PRODUCTS FROM MARINE CAPTURE FISHERIES
SCOPE
1. These guidelines are applicable to ecolabelling schemes that aredesigned to certify and promote labels for products from well-managed
marine capture fisheries and focus on issues related to the sustainable use offisheries resources.
PRINCIPLES
2. The following principles should apply to ecolabelling schemes formarine capture fisheries:
2.1 Be consistent with the 1982 United Nations Convention
on the Law of the Sea and the Agreement for the
Implementation of the Provisions of the United Nations
Convention on the Law of the Sea of 10 December 1982
relating to the Conservation and Management ofStraddling Fish Stocks and Highly Migratory Fish Stocks,
the FAO Code of Conduct for Responsible Fisheries andthe World Trade Organization (WTO) rules and otherrelevant international intruments.
2.2 Recognize the sovereign rights of States and comply withall relevant laws and regulations.
2.3 Be of a voluntary nature and market-driven.
2.4 Be transparent, including balanced and fair participationby all interested parties.
2.5 Be non-discriminatory, do not create unnecessary
obstacles to trade1 and allow for fair trade andcompetition.2
2.6 Provide the opportunity to enter international markets.2
2.7 Establish clear accountability for the owners of schemes
and the certification bodies in conformity withinternational standards.
2.8 Incorporate reliable, independent auditing and verification
procedures.
2.9 Be considered equivalent if consistent with theseguidelines.
12

Consistent with the WTO Agreement on Technical Barriers to Trade.
See Code of Conduct for Responsible Fisheries para. 11.2.

2

2.10 Be based on the best scientific evidence available, also
taking into account traditional knowledge of the resources
provided that its validity can be objectively verified.
2.11 Be practical, viable and verifiable.
2.12 Ensure that labels communicate truthful information.
2.13 Provide for clarity.
2.14 Be based, at a minimum, on the minimum substantive
requirements, criteria and procedures outlined in these

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guidelines.
3. The principle of transparency should apply to all aspects of an
ecolabelling scheme including its organizational structure and financial
arrangements.
GENERAL CONSIDERATIONS
4. Ecolabelling schemes should take into account that principles,
minimum substantive requirements, criteria and procedures set out in thisdocument will apply equally for developed, transition and developing
countries.
5. Bearing in mind that ecolabelling schemes relate to fisheries
management, and rights and duties of States3, it is recognized that the
involvement of States in ecolabelling schemes is desirable and should be
encouraged. It is also recognized that States and, as appropriate, Regional
Fisheries Management Organizations (RFMOs) may develop ecolabelling
schemes in a manner consistent with these guidelines. Ecolabelling schemes
should give full consideration to the recommendations and advice by States,
and, as appropriate, RFMOs.
6. In accordance with Article 5 of the Code of Conduct for
Responsible Fisheries, and recognizing that all countries should have thesame opportunities, and in view of the special conditions applying todeveloping countries and countries in transition and their important
contribution to international fish trade, it is acknowledged that in order tobenefit from applying ecolabelling schemes, States, relevantintergovernmental and non-governmental organizations and financial
institutions should provide developing countries and countries in transition
with financial and technical assistance to develop and maintain appropriate
management arrangements that will allow them to participate in such
In these Guidelines, the reference to States includes the European Community in matterswithin its competence.
3

3

schemes. Such assistance should also consider direct support towards theoften high costs of accreditation and certification. Development agencies
and donor institutions are encouraged to support FAO in facilitating
financial and technical assistance to developing countries and countries intransition.

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Appendix C
MSC Principles and Criteria for Sustainable Fishing

At the centre of the MSC is a set of Principles and Criteria for Sustainable Fishing which are used as a standard in athird party, independent and voluntary certification programme. These were developed by means of an extensive,international consultative process through which the views of stakeholders in fisheries were gathered.
These Principles reflect a recognition that a sustainable fishery should be based upon:• The maintenance and re-establishment of healthy populations of targeted species;• The maintenance of the integrity of ecosystems;• The development and maintenance of effective fisheries management systems, taking into account all relevant
biological, technological, economic, social, environmental and commercial aspects; and• Compliance with relevant local and national local laws and standards and international understandings andagreements
The Principles and Criteria are further designed to recognise and emphasise that management efforts aremost likely to be successful in accomplishing the goals of conservation and sustainable use of marine
resources when there is full co-operation among the full range of fisheries stakeholders, including those
who are dependent on fishing for their food and livelihood.
On a voluntary basis, fisheries which conform to these Principles and Criteria will be eligible forcertification by independent MSC-accredited certifiers. Fish processors, traders and retailers will be
encouraged to make public commitments to purchase fish products only from certified sources. This willallow consumers to select fish products with the confidence that they come from sustainable, wellmanaged sources. It will also benefit the fishers and the fishing industry who depend on the abundance of39

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fish stocks, by providing market incentives to work towards sustainable practices. Fish processors,
traders and retailers who buy from certified sustainable sources will in turn benefit from the assurance ofcontinuity of future supply and hence sustainability of their own businesses.
The MSC promotes equal access to its certification programme irrespective of the scale of the fishing
operation. The implications of the size, scale, type, location and intensity of the fishery, the uniqueness of
the resources and the effects on other ecosystems will be considered in every certification.

The MSC further recognises the need to observe and respect the long-term interests of people
dependent on fishing for food and livelihood to the extent that it is consistent with ecologicalsustainability, and also the importance of fisheries management and operations being conductedin a manner consistent with established local, national, and international rules and standards aswell as in compliance with the MSC Principles and Criteria.
Preamble
The following Principles & Criteria are intended to guide the efforts of the Marine Stewardship Council towards thedevelopment of sustainable fisheries on a global basis. They were developed assuming that a sustainable fishery isdefined, for the purposes of MSC certification, as one that is conducted in such a way that:• it can be continued indefinitely at a reasonable level;• it maintains and seeks to maximise, ecological health and abundance,• it maintains the diversity, structure and function of the ecosystem on which it depends as well as the qualityof its habitat, minimising the adverse effects that it causes;• it is managed and operated in a responsible manner, in conformity with local, national and international laws
and regulations;• it maintains present and future economic and social options and benefits;• it is conducted in a socially and economically fair and responsible manner.
The Principles represent the overarching philosophical basis for this initiative in stewardship of marine resources:
the use of market forces to promote behaviour which helps achieve the goal of sustainable fisheries. They form thebasis for detailed Criteria which will be used to evaluate each fishery seeking certification under the MSC
programme. Although the primary focus is the ecological integrity of world fisheries, the principles also embrace thehuman and social elements of fisheries. Their successful implementation depends upon a system which is open, fair,based upon the best information available and which incorporates all relevant legal obligations. The certification
programme in which these principles will be applied is intended to give any fishery the opportunity to demonstrate
its commitment to sustainable fishing and ultimately benefit from this commitment in the market place.
Scope
The scope of the MSC Principles and Criteria relates to marine fisheries activities up to but not beyond
the point at which the fish are landed. However, MSC-accredited certifiers may be informed of serious
1
concerns associated with post-landing practices.
The MSC Principles and Criteria apply at this stage only to wildcapture fisheries (including, but not limited toshellfish, crustaceans and cephalopods). Aquaculture and the harvest of other species are not currently included.
Issues involving allocation of quotas and access to marine resources are considered to be beyond the scope of these
Principles and Criteria.
PRINCIPLE 1

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A fishery must be conducted in a manner that does not lead to over-fishing or depletion of the exploited
populations and, for those populations that are depleted, the fishery must be conducted in a manner that
demonstrably leads to their recovery 1:
Intent:
The intent of this principle is to ensure that the productive capacities of resources are maintained at high levels andare not sacrificed in favour of short term interests. Thus, exploited populations would be maintained at high levelsof abundance designed to retain their productivity, provide margins of safety for error and uncertainty, and restore
and retain their capacities for yields over the long term.
Criteria:
1.
2.
3.

The fishery shall be conducted at catch levels that continually maintain the high productivity of the target
population(s) and associated ecological community relative to its potential productivity.
Where the exploited populations are depleted, the fishery will be executed such that recovery andrebuilding is allowed to occur to a specified level consistent with the precautionary approach and the abilityof the populations to produce long-term potential yields within a specified time frame.
Fishing is conducted in a manner that does not alter the age or genetic structure or sex composition to adegree that impairs reproductive capacity.

PRINCIPLE 2:
Fishing operations should allow for the maintenance of the structure, productivity, function and diversity ofthe ecosystem (including habitat and associated dependent and ecologically related species) on which thefishery depends.
Intent:
The intent of this principle is to encourage the management of fisheries from an ecosystem perspective under asystem designed to assess and restrain the impacts of the fishery on the ecosystem.
Criteria:
1.

The fishery is conducted in a way that maintains natural functional relationships among species and should
not lead to trophic cascades or ecosystem state changes.

2.

The fishery is conducted in a manner that does not threaten biological diversity at the genetic, species orpopulation levels and avoids or minimises mortality of, or injuries to endangered, threatened or protected
species.

3.

Where exploited populations are depleted, the fishery will be executed such that recovery and rebuilding isallowed to occur to a specified level within specified time frames, consistent with the precautionary
approach and considering the ability of the population to produce long-term potential yields.

PRINCIPLE 3:
The fishery is subject to an effective management system that respects local, national andinternational laws and standards and incorporates institutional and operational frameworks that
require use of the resource to be responsible and sustainable.
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The intent of this principle is to ensure that there is an institutional and operational framework for implementing
Principles 1 and 2, appropriate to the size and scale of the fishery.
A. Management System Criteria:
1.

The fishery shall not be conducted under a controversial unilateral exemption to an international agreement.

The management system shall:
2.

demonstrate clear long-term objectives consistent with MSC Principles and Criteria and contain aconsultative process that is transparent and involves all interested and affected parties so as to consider all
relevant information, including local knowledge. The impact of fishery management decisions on all those
who depend on the fishery for their livelihoods, including, but not confined to subsistence, artisanal, andfishing-dependent communities shall be addressed as part of this process;3.

be appropriate to the cultural context, scale and intensity of the fishery – reflecting specific objectives,
incorporating operational criteria, containing procedures for implementation and a process for monitoringand evaluating performance and acting on findings;

4.

observe the legal and customary rights and long term interests of people dependent on fishing for food andlivelihood, in a manner consistent with ecological sustainability;

5.

incorporates an appropriate mechanism for the resolution of disputes arising within the system1;

6.

provide economic and social incentives that contribute to sustainable fishing and shall not operate withsubsidies that contribute to unsustainable fishing;7.

act in a timely and adaptive fashion on the basis of the best available information using a precautionary
approach particularly when dealing with scientific uncertainty;

8.

incorporate a research plan – appropriate to the scale and intensity of the fishery – that addresses theinformation needs of management and provides for the dissemination of research results to all interested
parties in a timely fashion;

9.

require that assessments of the biological status of the resource and impacts of the fishery have been andare periodically conducted;

10. specify measures and strategies that demonstrably control the degree of exploitation of the resource,
including, but not limited to:a) setting catch levels that will maintain the target population and ecological community’s highproductivity relative to its potential productivity, and account for the non-target species (or size, age,sex) captured and landed in association with, or as a consequence of, fishing for target species;b) identifying appropriate fishing methods that minimise adverse impacts on habitat, especially in criticalor sensitive zones such as spawning and nursery areas;c) providing for the recovery and rebuilding of depleted fish populations to specified levels within
specified time frames;d) mechanisms in place to limit or close fisheries when designated catch limits are reached;e) establishing no-take zones where appropriate;
11. contains appropriate procedures for effective compliance, monitoring, control, surveillance andenforcement which ensure that established limits to exploitation are not exceeded and specifies corrective
actions to be taken in the event that they are.

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B. Operational Criteria
Fishing operation shall:
12. make use of fishing gear and practices designed to avoid the capture of non-target species (and non-target
size, age, and/or sex of the target species); minimise mortality of this catch where it cannot be avoided, andreduce discards of what cannot be released alive;
13. implement appropriate fishing methods designed to minimise adverse impacts on habitat, especially in
critical or sensitive zones such as spawning and nursery areas;
14. not use destructive fishing practices such as fishing with poisons or explosives;
15. minimise operational waste such as lost fishing gear, oil spills, on-board spoilage of catch, etc.;
16. be conducted in compliance with the fishery management system and all legal and administrativerequirements; and17. assist and co-operate with management authorities in the collection of catch, discard, and other informationof importance to effective management of the resources and the fishery.

Appendix D
9. The first stage – pre-assessment
The pre-assessment is the first formal step performed by the certification body in the certification process. The
fishery client first retains the services of an MSC accredited certification body to provide a brief evaluation of thelikelihood of the fishery meeting the MSC standard: the MSC’s Principles and Criteria for Sustainable Fishing. The
certification body will identify the strengths and weaknesses of the fishery and recommend to you as the client
whether or not the fishery should progress to the full assessment stage. The actual conduct of a pre-assessment andits outcomes are confidential unless you choose to make them public.
The pre-assessment will result a report by the independent certification body. At a minimum a pre-assessment must
consist of:o A substantive meeting between the client and certification body.
o Decisions with respect to potential field visits.
o A preliminary assessment of the extent to which the fishery is consistent with the MSC’s Principles andCriteria for Sustainable Fishing.
o An evaluation of the clients’ state of preparedness for assessment of their fishery.
o A review of the availability of required data and information.
o Identification of stakeholder interests who should be consulted in a full assessment.
o A determination of the overall scope of the full assessment.
o A description or agreement of the unit of certification.
o A description of potential obstacles or problems that may be a barrier to certification.
o Quotes for the full assessment (if relevant)Appendix E43Copyright 2007. No quotation or citation without attribution.

Appendix F
10. The second stage – full assessment
The full assessment involves detailed evaluation and scoring of the fishery against the MSC standard. It is a public andopen process that will lead to a decision about whether or not the fishery meets the MSC’s Principles and Criteria for
Sustainable Fishing. In order to come to a decision, the certification body will consult widely with relevant
stakeholders (such as industry, government, scientific organisations and environmental groups). This stage also
includes a formal process for lodging objections.
Briefly, the process involves the following steps:
1. Public announcement and targeted stakeholder communications.
2. Assessment planning and team selection – sometimes certification bodies consult with stakeholders about themembers of the assessment team, however, this is not mandatory and is determined as much by the
relationships in the fishery under assessment as anything else.
3. Determining Performance Indicators and Scoring Guideposts and their weighting prior to the assessment
visit – these will form what is called an “assessment tree” or assessment hierarchy and are specific to the fisherybeing evaluated. Scoring Guideposts are produced for each of the Performance Indicators based on 60 – theminimum mark, 80 – as the unconditional ‘pass mark’ and 100 – upper boundary of scoring expected in atheoretically ‘perfect’ fishery.
4. Consultation with the client, MSC and stakeholders about the draft assessment tree – This is to obtain
feedback about whether the assessment hierarchy is appropriate to the size, scale, ecology, geography andtechnology of the fishery, as well as consistent with the MSC standard. Based on this review, the assessment
tree is finalised. See Box 1.
5. Assessment visits and information collection – at this stage client organisations must provide to thecertification body as much information and data on their fishery as possible. This is used by the assessment
team to inform the scoring process.
6. Stakeholder visits and opportunity to submit views in writing – this is the stakeholders’ opportunity toprovide input into the evaluation process, along with any verifiable evidence relevant to the assessment.

44

Copyright 2007. No quotation or citation without attribution.
7. Scoring the fishery – the assessment team uses an analytical model designed to allow quantitative andqualitative evaluation of the fishery. For more information on this process contact the MSC or download the
document ‘Using AHP and Expert Choice to Support the MSC Fishery Assessment Process’ from the MSC’s
website.
8. Interpreting the scores – the fishery needs to obtain a score of 60 or more for each Performance Indicator andCriterion in order to be certified. If a fishery achieves a score of less than 60 on any Performance Indicator andCriterion certification will not be awarded. The fishery must have an aggregate score of 80 or more for each of
the three Principles in order to be certified. Any passing scores for individual Performance Indicators less than
80 mean that conditions will be set.
9. Conditions – the certification body is likely to have identified some areas for improvement within the fishery.
The certification body will specify an appropriate timescale for addressing each condition and should specify theoutcomes that will meet the standard. The certification body cannot tell you what to do to address a particular
problem, only the desired outcome, leaving the decision to you on how this is to be achieved. Before acertification body will issue a certificate, however, agreement must be reached between client and certificationbody that the conditions will be met and an indication of how they may be met. In some cases, themanagement agency may need to be consulted by the

Version 1 – 4 October 2005 11 GUIDANCE TO CLIENTS: THE MSC FISHERY ASSESSMENT &CERTIFICATION PROCESS
client and certification body if any conditions require their input or investment. To date every fishery
has been certified with conditions.
10. Consultation with the client, MSC and stakeholders about proposed peer reviewers.
11. Preliminary draft report produced – review by client.
12. Peer review draft report produced – reviewed by chosen experts.
13. Public Comment draft report produced – stakeholders’ review and comment period.
14. Final Report produced – once published on the website, anyone who has participated in theassessment process has 21 days in which to lodge a statement of intent to submit an objection. If noobjections are lodged during this period the Determination in the Final Report becomes thecertification decision.
15. Objections procedure (if required) – objection goes first to certification body then, if response notconsidered adequate, an objection can be directed to the MSC. If an objection is heard, additional
process steps follow.
16. Action plan (if appropriate) – a plan developed by you as the client outlining activities aimed atmeeting conditions of certification and time frames, submitted to certification body for approval.
17. Certificate issued (if appropriate) and Public Certification Report – produced by the certificationbody for the client and publication on the MSC website.

XIII. References

iFishery: This term is typically applied to a geographic region and species targeted eg. The Alaskan
Salmon Fishery. The term also encompasses the methods used, volumes caught, as well as the fishermen
and companies involved.
ii
Boris Worm, Edward B. Barbier, Nicola Beaumont, J. Emmett Duffy, Carl Folke, Benjamin S. Halpern,
Jeremy B. C. Jackson, Heike K. Lotze, Fiorenza Micheli, Stephen R. Palumbi, Enric Sala, Kimberley A.
Selkoe, John J. Stachowicz, and Reg Watson
Science 3 November 2006 314: 787-790 [DOI: 10.1126/science.1132294] (in Research Articles)iii

Report of the fourth Meeting of Regional Fishery Bodies. Rome, March 2005. United Nations Food andAgriculture Organization.
iv

Recent Trends in U.S. Fisheries and Seafood Consumption By Tom Damassa on Monday, February 12,
2007. World Resources Institute.
v

Countries agree to strengthen controls in ports to combat illegal fishingFirst steps taken toward binding international agreement
12 March 2007, Rome, George Kourous, Media Relations, FAO
http://www.fao.org/newsroom/en/news/2007/1000508/index.html
vi

Delgado CL, Wada N, RosegrantMW, Meijer S, Ahmed M. Outlook for Fish to 2020: Meeting Global
Demand. Washington DC: International Food Policy Research Institute & The World Fish Center; 2003.
vii
Aguire, Tobias. Sustainable Seafood and Corporate Social Responsibility. June, 2005.
viii

Phillips B, Ward T, Chaffee C. Eco-labelling in fisheries: what is it allabout? Oxford: Blackwell Publishing; 2003.

Jacquet, Jennifer L. The Rise of Seafood Awarness Campaings in an Era of Collapsing Fisheries.
ScienceDirect. August, 2006.
ix
http://www.eco-labels.org
x
www.msc.org
xi
MSC Annual Report 2005/06.
xii
Marine Stewardship Council Annual Report 2005/2006.
xiii
www.walmartfacts.com
xiv
ibid
xv
MSC Executive Summary, Principals and Guidelines. November, 2002.
xvi
University of British Columbia Fisheries Centre Newsletter. March/April 2001.
xvii
University of British Columbia Fisheries Centre Newsletter, November/December 2005
xviii
MSC Executive Statement. The MSC Fishery Assessment and Certification Process. Guidance toCleints, Information Sheet 4-Costs Explained. October, 2005
xix
Personal Interview with Ruben Garcia, FEDECOOP, Ensenada, 2/17/07.
xx
Telephone Interview with Natalie Webster of the AAFA, Bonita, CA, 3/6/07.
xxi
Telephone Interview with Jim Humphreys, MSC Regional Director, the Americas
xxii
Wellbelove, Alexia; Leadbitter, Duncan. Marine Stewardship Council Guidance to potential or actual
clients: The MSC Fishery Assessment and Certification Process. October, 2005
xxiii
Ibid.
xxiv
University of British Columbia Fisheries Centre Newsletter, November/December 2005
xxv
Moody Marine. MSC Certification: Main Assessment. November 6, 2006.
xxvi
Arenas, Pablo, Ph.D. An Assessment of the Red Rock Lobster Fishery, Peer Review. November 18,
2003
xxvii
Scientific Certification Systems, Inc. An MSC Assessment of the Red Rock Lobster Fishery Final
Report. April 27, 2004
xxviii
Personal Interview. Seafood counter attendant. Whole Foods Supermarket. February 28, 2007.
xxix
Personal Interview. Tobias Aguire. FishWise. February 21, 2007.
xxx
MSC Toothfish Objections Panel Summary Report and Decision. March 15, 2004.

xxxi

MSC New Release. Objections Panel Conclues Review of South Georgia Patagonian Toothfish
Assessment. March 2004.
xxxii
Jacquet, Jennifer L. The Rise of Seafood Awarness Campaings in an Era of Collapsing Fisheries.
ScienceDirect. August, 2006.
xxxiii
Chain of Custody Outline. www.msc.org. November 2004
xxxiv
MSC Chain of Custody Standard. August 2005
http://www.msc.org/assets/docs/Chain_of_custody/CoC_Standard_03_August_05_Version_2_Final.pdf
xxxv
Chaffee, Chet. Annual Surveillance Report, Baja California, Mexico, Red Spiny Lobster. Scientific
Certification Systems. April 25, 2006xxxvi
http://www.msc.org/html/content_487.htm
xxxvii
Bycatch refers to the incendental catch of non-target species. Bycatch is often significant in volume
and cast aside dead. There are numerous studies on fisheries bycatch, but I felt it beyond the scope of thiswork to analyze in great detail.
xxxviii
http://news.bbc.co.uk/2/hi/science/nature/6374971.stm. Pictures.
xxxix
SGS. MSC Re-assessment Report of the New Zealand Hoki Fishery. July 18, 2006.
http://www.msc.org/assets/docs/New_Zealand_Hoki/HFMC_ReAssRep_Final_RevisedJul2006.pdf
xl
ibid.
xli
xlii

Fildes, Jonathan. Call to halt deep sea ‘plunder’. BBC News. February, 19 2007.

Jacquet, Jennifer L. The Rise of Seafood Awarness Campaings in an Era of Collapsing Fisheries.
ScienceDirect. August, 2006.
xliii
See xliii
xliii
Marine Aquaculture Task Force. Sustainable Marine Aquaculture: Fulfilling the promise; managing
the risks. January 2007.