Working together
for thriving oceans
The MSC Annual Report 2018 – 19

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MSC Annual Report 2018-19

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Contents

Contents

Cover image: MSC certified boats fish for brown shrimp in the North Sea © Saskia Lelieveld / MSC
Contents image: Dutch Harbor, Alaska. © Mark Meyer

Messages from our Chief Executive and Chair

4

Suspensions

27

Unsustainable fishing: the global challenge

6

Going South28

MSC: part of the solution

8

Pathway to sustainability

30

Sustainable fishing12

Sustainable consumption

33

Setting the Standard

14

MSC labelled products

34

Change on the water

18

Ocean leaders

36

MSC certified catch

20

Emerging markets

38

Tuna

22

Engaging consumers

40

Target species

24

Our funding and finances

42

Recertification

26

Our governance44

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MSC Annual Report 2018-19

Time to seize the moment
This is a vital time for the sustainable seafood
movement. The MSC’s mission of contributing to
the health of the world’s oceans by recognisingand rewarding sustainable fishing practices has
never been more important.
Every day, our planet has 200,000 new people to feed.
Seafood is a highly nutritious, renewable, low-carbon foodsource – but only if it’s managed sustainably. Unfortunately, thetrends continue to go in the wrong direction, with the latest UN
figures showing that a third of all fish stocks have been
overexploited. Overfishing – along with pollution, climatechange and other pressures – has pushed our oceans to crisis
point.
And yet this feels like a time for optimism – and a time forchange. The world has woken up to the crisis facing ouroceans. The UN Sustainable Development Goal to conserveand sustainably use the ocean and marine resources has
galvanised new partnerships and frameworks. We’re seeing
increasing political and corporate commitment, backed up by
unprecedented consumer concern sparked by programs likethe BBC’s Blue Planet II and Netflix’s Our Planet and growing
awareness of ocean plastics and the climate crisis.
The MSC is determined to be part of the solution. For over 20
years, thanks to the commitment, engagement and leadership ofour partners, we have demonstrated a concept that works – amarket-based system that recognises and rewards sustainablefishing. Our program enables companies and consumers to playtheir part in supporting change on the water, while certified
fisheries have made hundreds of documented improvements tosafeguard fish stocks and conserve marine environments.

Messages from our Chief Executive and Chair

Firm foundations

Today, 15% of the global marine catch is MSC certified, andthe value of the MSC certified sustainable seafood market isapproaching US$10 billion per year. This makes the MSC a powerfulengine for change – but we need to do more. Our goal is to have
20% of the global seafood catch engaged in the MSC program by
the end of next year, and 30% by 2030. We know this is ambitious– but it reflects the scale and urgency of the challenge ahead.

The MSC provides a globally accepted standard anda market mechanism that support the sustainable
management of life in our oceans. These are built
on the strong foundation of multi-stakeholder
governance, the energy and expertise embodied inour board, executive team and staff, and more than 20 years’ workwith experts in seafood and ocean conservation.

In particular, we want to catalyse change in the Global South,
where fishing is so vital for food and livelihood security. While
our market-based program remains a crucial part of this, we arealso looking beyond certification to see how we can use ourknowledge, experience and tools to build capacity and help
fisheries and governments chart a course towards sustainability.
With this in mind, a particular highlight for me last year was
launching our Ocean Stewardship Fund at the Our Ocean
conference in Bali in October. The fund will provide £1 million to
support sustainable fishing, particularly within the developingworld and small-scale fisheries.

All this has enabled us to make important contributions towards
securing seafood supplies and oceans teeming with life. But wecannot stand still. There are still many regions of the world,
particularly in the Global South, where fisheries are not wellmanaged and where we continue to see the “tragedy of thecommons” play out. We’re committed to doing what we can in thefight against overfishing in these regions.

Everyone involved in supporting sustainable seafood should bevery proud of what has been achieved over the last two decades.
But what happens next is even more important. We all need tostep up to deliver the change our oceans urgently need.

We know that we cannot simply expect the same things that haveworked elsewhere to translate into different contexts. It is notenough to encourage individual small-scale or developing world
fisheries to seek certification: much work needs to be done tostrengthen institutions and governance structures and create anenabling environment for sustainable fisheries management.
This is something we have been working on for some time, andwe have invested a lot into increasing our efforts and capacity in
the Global South and among small-scale fisheries – though weknow there is still more work to be done, including to bring in
more local voices and expertise.
As well as adapting to different contexts, we need to be capableof adapting to change. This is particularly relevant in the context

Rupert Howes,
Chief Executiveof climate change, which is already altering the nature of ouroceans. We must make sure we continue to accommodate thesechanging realities and the science and best practices whichdevelop from them.
This is one reason why the upcoming review of our Fisheries
Standard is so important, and we have spent a lot of energy overthe past year preparing for this. Charting the right course ischallenging: we need to ensure that our Standard is strong andcredible, but also achievable and capable of driving
improvements.
This is where our strong governance structure, which represents
the views of a broad range of sectors and perspectives, reallycomes into its own. Our new Stakeholder Advisory Council
advises the board on different stakeholders’ priorities andpossible solutions. Meanwhile the Technical Advisory Board
offers international expertise and knowledge on fisheries
management, marine science and supply chain traceability.
I am extremely grateful to everyone involved in the MSC andworking with us for the future of our oceans.

Werner Kiene,
Chair, MSC Board

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MSC Annual Report 2018-19

Unsustainable fishing: the global challenge

Unsustainable fishing:
the global challenge
For hundreds of millions of years, life has
thrived in Earth’s oceans. Throughout ourhistory, the sea has provided joy andwonder, kept our climate stable andsupplied us with a seemingly inexhaustible
source of healthy food.
But today our oceans are in crisis – andoverfishing is at the heart of the problem.
Last year’s State of the World’s Fisheries
and Aquaculture report from the United
Nations Food and Agriculture Organization(FAO) laid bare the urgency of the issue.
A third of the world’s fisheries have now
been exploited beyond sustainable limits– up from a tenth in 1974.
Overfishing devastates marine ecosystems
and threatens the food security andlivelihoods of millions of people. Reduced
ocean productivity also carries hugeeconomic costs – the UN estimates thatlosses could reach tens of billions of dollars
each year if current trends aren’t halted.

Yet the report also highlighted cause
for hope. In the US, the number ofoverexploited stocks is at a record low. Backin the early years of this century, over 70%
of fisheries in the north-east Atlantic were
overfished – today that’s dropped to around40%. Similar improvements have been seenin New Zealand, Australia and much ofnorthern Europe. Previously threatened
species like Patagonian toothfish havemade remarkable comebacks.
Unfortunately, the improvements taking
place in many industrialised nations are
not being matched in the Global South.
Developing countries supply over half of
the world’s seafood, and it’s a vital sourceof protein and income for hundreds ofmillions of people. But stocks continue todecline at an alarming rate.
The international community has promised
urgent action. In 2015, the nations of theworld signed up to the 17 Sustainable

Since 1961 the annual global growth in fish consumption has been twice
as high as population growth, demonstrating that the fisheries sector is
crucial in meeting FAO’s goal of a world without hunger and malnutrition.

Development Goals, one of which is
to conserve and sustainably use theoceans, seas and marine resources.
This commitment includes a target to
end overfishing, illegal, unregulated andunreported (IUU) fishing and destructive
fishing practices by 2020, and implement
science-based management plans inorder to restore fish stocks in the
shortest time possible.
While the timeframe is ambitious,
we know that sustainable fishing ispossible. For over 20 years, the MSC has
been a leading player in the sustainableseafood movement. We know that when
fisheries are well managed fish stocks
will regenerate and marine ecosystems
flourish. We know that companies andconsumers demanding sustainableseafood can be a powerful force forchange. And we know that huge numbersof people are ready and willing to playtheir part.

Read the FAO’s State of
The World Fisheries andAquaculture report

José Graziano da Silva, FAO Director-General©iStock/StreetFlash7

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MSC Annual Report 2018-19

MSC: part of the solution

9

MSC: part of the solution
We want future generations to be able to enjoy seafood and oceans full of life, forever. And we’redetermined to play our part in combating overfishing and safeguarding seafood supplies for this and future
generations. We’re doing this by:
Building consensus around whatsustainable fishing looks like (page 12)
To end overfishing, we need to knowwhat the alternative looks like. For two
decades, MSC has provided a blueprint
for fishing that’s both environmentallyand economically sustainable, based onUnited Nations FAO guidelines. We
regularly update our Standards andprocedures to ensure they remain fit for
purpose, while respecting the views ofmultiple stakeholders – turning potential
conflict into positive collaboration.

Driving change on the water (page 18)
MSC certification recognises and rewards
those who fish sustainably, encouraging
fisheries to make improvements in order
to meet and maintain MSC certification.
From reducing bycatch to mapping
seabed habitats, certified fisheries havemade hundreds of positive changes inorder to secure healthy fish stocks,
minimise their environmental impact andstrengthen the way they are managed.
And others are making significant steps
on their journey towards certification,
particularly in the Global South.

Building demand in the marketplaceand society (page 32)
Our blue ecolabel makes it easy for
consumers to do their bit against
overfishing by choosing seafood thatcan be traced back to a sustainablefishery. And an ever-growing numberof retailers, restaurants, seafood
brands and supply chain companies
all over the world are demonstrating
their commitment to certified
sustainable seafood – creating themarket incentives for more fisheries
to meet the MSC Standard.

But we can’t do any of this alone. Our collective impact depends on the efforts and commitment of all our partners – from the fishers
themselves, through to the companies and consumers choosing sustainable seafood, and the scientists and NGOs sharing their expertise.
It’s only by working together that we can secure the future of our ocean and the seafood it supplies.

Processing salmon on the Annette Islands, Alaska

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MSC Annual Report 2018-19

MSC: part of the solution

11

More than acertification scheme
While the MSC Standards and ecolabel are at thecore of our mission, we’re more than a certification
scheme.
Contributing to sustainable development

The global indicator produced through the MSC’s
monitoring and evaluation is a valuable tool forunderstanding progress towards sustainable fisheries.

The MSC program contributes to several of the UN’s Sustainable
Development Goals. MSC certification is used by countries andorganisations as an integral part of their voluntary commitments
towards delivering SDG14 on Life Below Water. This includes
targets to end overfishing, restore fish stocks, protect marine
ecosystems and eliminate IUU fishing.

United Nations Environment World Conservation Monitoring Centre

Our work also helps efforts to strengthen food security (SDG2),
promote sustainable economic growth (SDG8), promote sustainableconsumption and production (SDG12), and strengthen global
partnerships for sustainable development (SDG17).

It’s not only certified fisheries that look to the MSC Fisheries
Standard. Governments, fishery improvement projects and otherfisheries can use the Standards as a tool to assess theirsustainability and see what improvements need to be made –irrespective of whether they pursue certification.

Tracking progress on biodiversity
MSC data is used to track progress against international
biodiversity goals. In 2010, international governments set
20 targets under the UN Convention on Biological Diversity, known
as the Aichi targets. As an official Biodiversity Indicator Partner,
the MSC supplies data to help assess progress towards Aichi
targets 6 (sustainable management of all fish and invertebrate
stocks) and 4 (sustainable production and consumption).
MSC data is also used by the Global Initiative Against
Transnational Organized Crime as an indicator in its IUU FishingIndex, developed to support SDG14’s ambition to eliminate
IUU fishing by 2020.

Providing a benchmark

Convening partners, galvanising action
Ending overfishing and restoring our oceans can only happen
if everyone pulls together – from fishing communities and theindustry, through to governments, NGOs, scientists andconsumers. We bring diverse stakeholders together throughevents like the Seafood Futures Forum at the annual Seafood Expo
Global in Brussels. And we catalyse the urgent action needed by
supporting partners like the 2020 Leaders for a Living Ocean – 27
major companies and organisations in the seafood sector who
have made major commitments towards transforming fisheries
and achieving the Sustainable Development Goals.

Sustainable Seas
The MSC was recognised as“the market leader and themost rigorous certification in theseafood sector” in a report by the
UK government’s Environmental
Audit Committee, released in
January 2019. The Sustainable
Seas inquiry included an examinationof the MSC, which concluded that“alternative labelling and certification
systems… are not nearly as rigorous
or stringent.”

Having received evidence from a wide
range of stakeholders, the committee
recognised that the MSC program has
been effective in improving fishingpractices and sustaining fish stocks,
adding that “fisheries companies
using certification standards suchas those provided by the MSC andretailers stocking products withfisheries ecolabels are playing key
roles in tackling the challenge ofunsustainable fishing.”

The Sustainable Seas report
recommended that the MSC’s ongoing
Fisheries Standard Review should
address specific concerns aroundthe Unit of Assessment, the holistic
assessment of fisheries, carbon
emissions from fishing boats, sharkfinning, and barriers to entry forsmall-scale fisheries. With the
exception of carbon emissions, all ofthese subjects are being addressedin the Fisheries Standard Review or
separate consultations.

© iStock/Bank_ZM

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MSC Annual Report 2018-19

Sustainable fishing

Sustainable fishing
For 20 years, the MSC has provided the most widely
recognised science-based certification and labelling
program for sustainable fishing. The MSC Fisheries
Standard is based on the FAO’s Code of Conduct
for Responsible Fisheries. Through a rigorous
assessment process, MSC certification provides
assurance that fish stocks are being harvested
at a sustainable level, that impacts on marine
ecosystems are minimised, and that fisheries arewell managed. By engaging with a diverse range ofstakeholders, we aim to ensure that our Standard
reflects new scientific understanding and accepted
best practice that is widely adopted by management
agencies, while still remaining relevant andachievable for fisheries of all shapes and sizes.

Caption ©fishing
ImageoncreditToothfishboard the CFL Hunter © Tony Fitzsimmons

SUPPLYOne of the greatest contributions of the MSC to the broader
field has been actively defining what responsible fisheries
management looks like. MSC’s Standard is now generally
regarded as the gold standard for certification by the field,
and a benchmark that other initiatives like fishery improvement
projects use to measure their own progress. MSC has madeenormous contributions to the field of marine conservation in
the last 20 years and will continue to do so in the next 20.

The MSC occupies that at times
uncomfortable middle ground. Extreme
views are helpful for framing the debate but
the real progress happens when the
opposing sides recognise that compromiseis that happy place where no one gets what
they want but everyone is better off! So it iswith the MSC.

Matthew Elliott, Principal, CEA Consulting

David Carter, Austral Fisheries Ltd.

For MSC, the bar for sustainability is not
positioned to benefit a specific subset ofstakeholders, but is positioned based ona multi-stakeholder model to further
international progress towards global
fisheries sustainability.
Simon Jennings, Chair of the Science Committee at theInternational Council for the Exploration of the Seas (ICES)
and chair of the MSC Technical Advisory Board

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MSC Annual Report 2018-19

Setting the Standard
The MSC Fisheries
Standard seeks toprovide a benchmark forsustainable fishing. While
there are diverse views
as to where ‘the bar’ should be set,
MSC seeks to build consensus throughits multi-stakeholder processes andgovernance and in line with new scienceand best practice management.
Marine science and fisheries management
have moved on since our Standard
was first articulated over 20 years ago.
As required by the UN FAO guidelines
for credible marine certification andecolabelling programs, the MSC, alongwith all other FAO-based schemes
recognised by the Global Sustainable
Seafood Initiative (GSSI), conducts
periodic reviews of our Standards toensure our requirements continue toreflect widely adopted science and bestpractices. We aim to do this at a pace thatallows certified fisheries to adapt to new
ways of working, bringing about ongoing
improvement.
Stakeholder input is extremely importantto this process. We talk with people. We
find out what can be improved to reflect
the latest science and best practices,and to reduce complexity and barriers
to certification for fisheries. And we
adapt our Fisheries Standard and otherprocesses and protocols accordingly.
Any changes to requirements are
introduced over appropriate timeframes.

Salmon fishing in Alaska

The past year brought two particularly
significant developments. As part ofour commitment to contribute towards
global efforts to tackle forced and childlabour in the seafood industry, all MSC
Chain of Custody certificate holders incountries where there’s a higher risk ofthis occurring will be required to undergo
an independent labour audit.
In addition, we made some significant
changes to our fisheries assessment
process. The new process requires
greater information gathering in the earlystages of the assessment, including
earlier stakeholder consultation. Thesearrangements should enable any potential
issues to be identified earlier in the process.
We’ve also begun the process ofreviewing our Fisheries Standard. Overthe next two years, teams of experts
will look at how we might address
recent developments covering a wide
range of topics – including endangered,threatened and protected species andghost gear.
The MSC Standard now sets thesustainability bar for more than 15% of
the world’s marine fisheries by volume,
so we have a responsibility to get it right.
We need to maintain a standard thatincorporates widely agreed scientificunderstanding and best practices, which
fisheries are also able to implement.
While finding the right balance is hard,
it’s essential that we keep faith with all

our stakeholders – because our approach
can only work if fisheries, NGOs, retailers,
consumers and others all buy into it.
Encouragingly, we continue to seethat happening. More consumers andcompanies are demanding sustainableseafood, more fisheries want to get
certified, and we see meaningfulimprovements when they do. That’s agood indication that we’re getting thebalance right.

Rohan Currey,
MSC Chief Science and Standards Officer

Find out more about ourFisheries Standard Review

Setting the Standard

15

How we’re strengthening
our Standard
Tackling forced and child labour

Streamlined certification

As of 28 September 2019, MSC Chain of Custody certificate
holders will be required to undergo an independent labour
audit, unless they can demonstrate there’s a lower riskof forced or child labour based on their activities and in
the countries where they operate. Both new and existingcertificate holders will be given a one-year grace period
following their next MSC audit to complete the labour audit.
Certified companies will need to address any non-compliances
identified within 30 days or risk suspension of their MSC
Chain of Custody certificate. This also applies to companies
handling farmed seafood products certified to standards
set by the Aquaculture Stewardship Council (ASC), whichshares our Chain of Custody Standard. The new requirements
follow earlier action in August 2018, when all MSC certified
fisheries and off-shore supply chains were given a year to
submit a statement outlining the measures they have inplace to ensure the absence of forced or child labour.

Our new Fisheries Certification Process – which contains therequirements that need to be followed when certification bodies
assess fisheries against the MSC Fisheries Standard – came into
effect this March. Under our previous system, the first opportunity
stakeholders had to review assessment documents was late in theprocess, after a full assessment report had been issued. We’ve
now turned this around so they have the opportunity to comment
on a draft report when a fishery assessment is announced. Thismeans concerns can be raised and hopefully resolved early inthe assessment process. The updated process also introduces
an additional consultation phase when objections are raised to a
recommendation to certify a fishery. Following successful pilots,
we think the new process will add rigour while being more user
friendly for both fisheries and stakeholders.

Around the world, more than 150 million children
and 25 million adults are involved in forced labour.
We recognise the urgency in addressing forced andchild labour violations and are working withleading social standards to provide greater
assurances on this issue in the supply chain forcertified seafood.
Yemi Oloruntuyi, Head of Accessibility, MSC

Reviewing our Standard
We carry out a formal review of our Fisheries Standard every
five years. Following input from our stakeholders, staff andgovernance bodies, we’ve identified several topics that will be
reviewed during the next stage of the process, including:• Endangered, threatened and protected (ETP) species• Ghost gear
• Key low trophic level species requirements• Shark finning• Accessibility to squid, crab and octopus fisheries• A risk-based framework to ensure accessibility fordata-limited fisheries• Dynamic fisheries where stock levels fluctuate considerably.
Once the review has been completed, the MSC Board will decide
what revisions need to be made.

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MSC Annual Report 2018-19

Setting the Standard

Listening and learning

Solid science

A commitment to active stakeholder engagement and dialogue is at
the heart of the MSC program. Listening to the views of others is ofparamount importance.

The MSC Fisheries Standard isunderpinned by solid science. Our
team of researchers and data analysts
maintain our scientific foundation throughtheir own research, collaborating withresearchers and supporting fisheries toimprove knowledge and understanding.

One important part of this is the work of our Stakeholder Advisory
Council. The 17 members of the council include representatives
from the seafood industry, conservation community, market sector
and academia. They bring a range of perspectives and expertise
which are vital in reviewing our standards and processes.
In addition to this, we carry out public consultations where revision
is needed to reflect changing best practices. Consultations held
over the last year gathered stakeholder feedback on the best way
to ensure shark finning does not occur in MSC certified fisheries.
We also asked stakeholders their thoughts on fisheries that haveboth certified and uncertified fishing operations on the same trip.
While some object to the idea that the same boat can carry bothcertified and uncertified catch (even if they’re kept separate),others argue that not allowing a fishery to certify part of its
operations will act as a disincentive to certification and will limit
access to the MSC program for small-scale fisheries and those in
the Global South.
A further three consultations aimed at strengthening our assurance
processes. These explored options for improving the way certifiersset, evaluate and close conditions that fisheries need to meet tomaintain certification, improving the way stakeholders’ comments
on a fishery assessment are recorded, and incorporating new
information into the late stages of a fishery’s assessment when achange in circumstances may affect the recommendation to certify
the fishery.
We also bring stakeholders together to share and discuss different
perspectives through events. In April 2018 our annual Seafood
Futures Forum attracted more than 400 delegates from the fishingindustry, seafood supply chain companies and NGOs. In November
2018, we partnered with GlobeScan and Nomad Foods to host an
SDG Leadership Forum for Goal 14: Life Below Water. More than 225
participants from 31 countries shared their perspectives on how todrive change on the water.

Shining a light onto the seafloor

MSC’s Alex Webb meets sustainability leaders and partners at an SDG panel discussion in Sydney.
© Carla Orsatti/Banksia Foundation

Find and comment on ourcurrent consultations

The MSC has one of the most comprehensive
verification systems not only in comparison tovoluntary systems but even in comparison tosectoral leaders. Perhaps no other system offersa similar level of transparency and means forstakeholder engagement.

Protecting marine habitats is a core partof the MSC Standard. A fishery cannot
be certified if it causes significant or
long-term damage to seafloor habitats orother vulnerable marine ecosystems. But
relatively little is known about the seafloor
and the mysterious habitats and species
found deep below the surface. To maintain
MSC certification, a number of fisheries arecarrying out important research projects todiscover more about seafloor habitats andthe impacts fishing can have upon them.
We’re working with researchers from Bangor
University to develop a software tool thatwill help fisheries understand and manage
their impacts on the seafloor in a consistentway. It looks at where and how often boats
fish, how different gear types affect theseafloor, what seafloor habitats are foundwithin the fishery’s footprint, and how longthese habitat types take to recover fromdisturbance. While a lot of informationis still needed for certain habitat types,
we’re hopeful the tool will help fisheries
and assessment bodies to ensure fishingactivities don’t harm deep-water corals,
sponges and the many other important
ecosystems found in the ocean depths.

Sonke Fischer, Assurance Services International

Marine scientist, Francis Neat

Supporting student research
The MSC Scholarship Research Program
annually awards scholarships to support
students around the world studying
fisheries science or supply chain
traceability. Since the program’s launch
in 2012, we’ve awarded over £70,000 to
support the research of 19 students in
14 countries. This year’s recipients are:•	Laurissa Christie from the Universityof Windsor in Canada, who is studying
how sea ice influences the dynamics
of deepwater food webs in the Arctic•	Ahmad Catur Widyatmoko from the
University of Basque Country in Spainand MER Consortium, who is researching
the use of fish aggregating devices (FADs)
in small-scale Indonesian tuna fisheries•	Zelin Chen from the University ofWashington, USA, who is researchingquota-based management strategies
for China’s red swimming crab fishery•	Catherine Seguel from the Universidad
Austral de Chile, who is mapping thevalue chain of the Chilean marmola
crab fishery•	Matthew Coleman from Heriot-Watt
University, UK, who is trialling a new
way of monitoring stocks of European
lobster off the coast of Scotland.

Find out more about ourscience and research

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MSC Annual Report 2018-19

Contents

Change on the water

19

Change on
the water
The MSC isn’t just a seal of approval for those who are already fishingsustainably. Many fisheries will make improvements before they enter
assessment for MSC certification – something we’re supporting many
to do, particularly in small-scale fisheries and in the Global South. And
fisheries continue to strengthen their performance even after they
become certified. In fact, 92% of certified fisheries have been required
to make specific improvements as a condition of certification.
Between 2016 and 2018, certified fisheries completed 288
improvements as conditions of MSC certification, including changes tofishing practices, scientific research and better monitoring. Half ofthese were aimed at minimising environmental impacts. Improvements
often have multiple positive impacts – for example, closing an area tofishing can protect several different species and habitats at once.

The MSC Standard creates the right incentives for
all kinds of fishery, small or large scale, to transformtowards best practice. Such examples can now befound almost everywhere in the world.
Christopher Zimmermann, Thünen Institute of Baltic Sea Fisheries

MSC certification of Arctic cod in the Norwegian Sea
has led this fishery to improve the recording system of
its retained catches and to improve its fishing practiceby minimising the impacts on sea bottom habitats andany interaction with endangered species.
Andres Uriate, AZTIRead our 2019 analysis offisheries improvements

In the last two years
MSC certified fisheries
have made 288
improvements to ensure
best practice, including:

16 improvements
benefitted marine
mammals���

to minimise theirenvironmental impact

33 improvements
benefitted sharks
and rays��to ensure the sustainabilityof fish stocks

9 improvements
benefitted
marine reptiles

��to strengthen
fisheries management

44 improvements
benefitted habitats

36 improvements
benefitted
seabirds

Scientists from the Polar Institute on a trip in Kongsfjorden bay outside Ny-Ålesund, Svalbard. © MSC / James Morgan20

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MSC Annual Report 2018-19

Mapping sustainable fisheries

21

MSC certified catch

Volume of MSC certified catch

Proportion of major fishing area catch that is MSC certified*(tonnes)
12,000,000

0%

0-25%

25-50%

50-75%

75-100%10,000,000

109

361

Approximate location of MSC certified fishing activity
8,000,000

fisheries inassessment

certified
fisheries*

6,000,000

4,000,000

2,000,000

0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Data correct as of 31 March for each year
*Includes 13 fisheries for which MSC certification is currently suspended*MSC certified catch and fishery data as of 31 March 2019, compared with total catch for UN FAO Major Fishing Areas in 2016.

��.8

��%

�%

��

million tonnes
certified catchof global
marine catchof global marine catch
is from fisheries in
MSC assessment

countries withcertified fisheries

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MSC Annual Report 2018-19

Tuna

Indian Ocean

This year brought more progress in strengthening
the sustainability of the world’s tuna fisheries.
Western Pacific
The Western Pacific Sustainable Tuna Alliance (WPSTA) skipjack
and yellowfin purse seine fishery was granted certification in June
2018. This fishery is mostly located within the exclusive economic
zones (EEZs) of Parties of the Nauru Agreement (PNA) countries,
with some high seas areas, and is fished by vessels from multiple
countries, including the USA, the Chinese mainland and Taiwan.
The Pacific provides half the world’s skipjack tuna, so it’s criticalfor future food security that fisheries like this one are operating
sustainably.
“Tuna is an important source of protein for many nations,and as a highly migratory species management can often
be a challenge. The certification demonstrates positive
collaboration between leading fishing nations and acommitment to the sustainability of this ocean resource.”
Bill Holden, MSC Senior Fisheries Manager, Oceania andSouth East Asia

��%
�%
�.��
© Shutterstock/Alexius Sutandio

Tuna

global tuna catchby volume is now
MSC certified
global tuna catchby volume is in
MSC assessment
million tonnesof MSC certified
tuna in 2018-19

French Polynesia
The French Polynesia albacore and yellowfin longline fisheryachieved MSC certification in July 2018. Eighty percent of theharvest is used domestically, while the other 20% is exported,
mostly to the US.
“We chose to pursue MSC certification as it was the best labelthat met our aspirations for sustainable fishing. Our fishery
has embodied sustainability for many years and to have thisrecognised by MSC certification reinforces our commitment tosustainability for future generations.”
Teva Rohfritsch, Vice President and Blue Economy Minister,French Polynesia
Indonesia
November 2018 saw the PT Citraraja Ampat Canning (PT CRAC)
Sorong pole and line skipjack and yellowfin tuna fishery become
the first fishery in Indonesia to achieve MSC certification. It’s asignificant milestone, as Indonesia is the world’s largest tunaproducer, and the second largest seafood producer overall.
The 35 vessels that make up the fishery employ 750 local fishers,
who use tethered fish aggregating devices (FADs) to attract thetuna, taking about 3,000 tonnes each year. Six conditions ofcertification must be met over the next five years.
“We hope this certification will inspire other Indonesian
one-by-one tuna fisheries to follow up with sustainable fishingand certification. This will help ensure that the fish and a healthy
ocean will be there for future generations.”
Pak Ali Wibisono, CEO, PT CRAC

Read our Sustainable
Tuna Handbook

In November 2018, the Echebastar Indian
Ocean purse seine skipjack fishery became
the first tuna fishery using drifting FADs toachieve MSC certification. The Basque-owned
fishery comprises five vessels which land
their catch in the Seychelles.
Prior to assessment, a lot of work went
into reducing bycatch through the useof non-entangling FADs and the rapid
return of unwanted catch back to the sea.
Transparency has been maintained anddata collection strengthened with 100%
observer coverage in the fishery since2014. To remain certified, Echebastar
has committed to work with the Indian
Ocean Tuna Commission and Seychelles
authorities to deliver eight further
improvements in the next five years.
These include greater focus on ETP species,
strategies to reduce impacts on coral reefs
and other ecosystems, and expanded local
stakeholder consultations.
“The certification of our fishery against the
MSC Standard is recognition of the success
we have achieved in our efforts to promotesustainable fishing for tuna in the Indian
Ocean. We continue working towards
sustainability and a well-managed fisheryfor Echebastar. We are committed tofurther improvements.”
Kepa Echevarria, Echebastar
Micronesia
Bigeye tuna received its first evercertification in March 2019 within the SZLCCSFC & FZLC FSM EEZ longline yellowfin
and bigeye tuna fishery. The fishery is run
by three Chinese companies that fish in
the waters of the Federated States ofMicronesia in the Western Pacific. As withall tuna stocks managed by the Western
Central Pacific Fisheries Commission(WCPFC), certification is conditional upon
all WCPFC member states adopting harvest
strategies, including harvest control rules,
by 2021. These measures would ensure a

rapid response to any potential future
declines in the health of the bigeye stock.
As a result, this certification could
influence the sustainability of bigeye
fishing across the entire Western Central
Pacific Ocean.
PNA
The eight PNA countries – Kiribati,
Marshall Islands, Micronesia, Nauru, Palau,
Papua New Guinea, Solomon Islands andTuvalu – collectively control over a quarterof the world’s tuna stocks. The PNA
Western and Central Pacific skipjack andyellowfin tuna fishery was recertified at
the end of March 2018.
Since it was first MSC certified in 2012, thefishery has worked closely with the WCPFC todevelop a work plan to adopt harvest control
rules. It is also working with other tunafishing bodies and experts to improve the23

use of FADs. Independent observers join
every fishing trip, helping to ensure thatfishing meets both government and MSC
requirements. Data collected by theseobservers has shown a significant decline inshark finning in the region following aneffective ban on shark finning since 2010.
Of nearly 10,000 sets observed in 2017, justfive incidents of shark finning were recorded,
down from 608 in 2013 – a reduction of 99%.
This is a tremendous success story against
the backdrop of the tens of millions of shark
fins that are traded globally each year.
To become MSC certified, fisheries must
follow global best practice on sharkfinning, and verifiably demonstrate thelikelihood that it does not take place.
These requirements are currently being
reviewed as part of the evolution of ourFisheries Certification Process andFisheries Standard.

Bluefin
After being overfished to the point of commercial extinction, some bluefin tunastocks are showing signs of recovery, particularly in the Eastern Atlantic. In 2018,
for the first time, two bluefin tuna fisheries catching Eastern Atlantic bluefin
entered MSC assessment. The first, in the north-east Atlantic, is focused on asingle longline vessel, the Dai-ichi Shofuku-maru, owned by family firm Usufuku
Honten. The vessel targets bluefin tuna in October and November, catching around
50 tonnes per year. The second is a French artisanal longline and handline fisherythat operates within Mediterranean French waters, mainly in the Gulf of Lyon andUpper Corsica, from April to December. Most of 2017’s catch of 246 tonnes went tohigh-end restaurants and local markets. As these fisheries remain in assessment,
we won’t know if they meet the MSC’s requirements for some time. However, their
willingness to enter the voluntary assessment process is a positive signal for theongoing drive for sustainability of bluefin in the Eastern Atlantic.

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MSC Annual Report 2018-19

Target species

25

Target species
While demand is growing for all types of
MSC certified seafood, some groups ofspecies are particularly important when it
comes to conserving our seas and seafood
supplies. Our strategy targets some of themost important species by volume andvalue – like whitefish, tuna and small
pelagic fish – as well as species with highmarket demand and ecological importancethat are currently under-represented in the
MSC program – including crab, squid andoctopus, and seaweed.
Crab
The Russian red king crab fishery in the
Barents Sea became the first king crab
fishery in the world to achieve MSC
certification in February 2018. Red king crab
is one of the largest edible crab species in
the world, with a leg span of up to 1.8m andreaching weights of 10-15kg.
The certified fishery, which consists of 11
vessels using traps partly made frombiodegradable material, holds the entire
quota for commercial red king crab in the
Barents Sea. To become certified, it needed
to demonstrate strong management andscience-based harvest control rules. The
total catch in 2018 was 9,880 tonnes.

supplements – but could one day be used
to produce jet fuel.
This is just one of the exciting potential
uses of seaweed and algae – from cheap
superfood, to biodegradable plastic, tocattle feed that reduces methane
emissions. While seaweed has long been a
popular part of Asian cuisine, the industry
is now expanding rapidly, with the global
market expected to grow from US$4.1
billion in 2017 to US$9.1 billion by 2024¹.
Although most seaweed is grown on farms,
more than a million tonnes is harvested
from the wild every year.
With demand growing rapidly, it’s vital that
seaweed – and the marine life that
depends on it – is protected for current andfuture generations. We’ve worked hardwith the ASC to develop a shared standard
that can help ensure the industry’s
long-term sustainability, and we’re looking
forward to seeing more producers follow inEuglena’s footsteps.
Whitefish

SeaweedThe Faroe Islands ling and tusk fishery wascertified in November 2018, marking
another milestone in the sustainable
management of these species after thecertification of fisheries in Iceland andNorway. The fishery lands around 5,500
tonnes of ling and 2,500 tonnes of tuskeach year, most of which is sold as salt fishin southern European markets.

In January 2019, a farm on Ishigaki island
in Okinawa, Japan became the first everseaweed producer to be certified against
the joint ASC-MSC Seaweed Standard.
Euglena Co. grows a type of microalgae
which is currently used in nutritional

For the first time ever, MSC certified calamari
is on the menu with the world’s first certified
squid fishery. The US northeastern longfin
inshore squid fishery, which targets longfin
or loligo squid from the Gulf of Maine to Cape

Following the certification of the red kingcrab fishery, a pre-assessment of the
Barents Sea snow crab fishery is now
under way.

¹ Allied Market Research (2018)

Squid

Hatteras in North Carolina, achieved
certification in May 2018. The two companies
that led the certification also successfully
achieved certification for northern shortfin
squid, a commercially important species
whose range extends between the Sea ofLabrador and the Florida Straits.
Squid is one of the few species that could
benefit from climate change as rising sea
temperatures increase their range. It’s
likely people are going to be eating more of
it in the future, so it’s important to ensuresquid fisheries are put on a sustainablefooting today.

Global whitefish catchin the MSC program

����

���8

��% 6�%“This certification demonstrates that ourdomestic fisheries management system isworking to sustainably manage our major
squid fishery to the benefit of the resource,
fishing communities, and calamari lovers
everywhere.”
Wayne Reichle, President of Lund’s
Fisheries
Small pelagics
In December 2018, the South Australia
sardine fishery became the first sardine
fishery in the southern hemisphere to be
MSC certified. With annual catches of
27,500-42,000 tonnes, the fishery is thelargest by volume in Australia. It means that
38% of Australia’s wild marine catch is now
MSC certified.
Eight vessels use purse seine nets totarget schools of sardines located by sonar,
usually at night. Operations are very
selective, with sardines making up over
99% of the total catch. Assessors found
the fishery to be well managed withhealthy stocks monitored through effective
research programs.
Cod drying in Lofoten, Norway ©Ulf Berglund26

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MSC Annual Report 2018-19

Recertification

Recertification and suspensions

27

Suspensions
Fisheries are assessed using the best data available at the time.
Sometimes though, new information becomes available after
certification which may change the fishery’s scores against the MSC
Standard. For example, stock level data is revised following fresh
monitoring, evidence emerges of previously undetected ecosystemdamage, or new stock assessment models are introduced.

Pollock fishing in the Sea of Okhotsk ©PCA

The MSC journey doesn’t stop when afishery achieves certification. Fisheries arereassessed every five years to ensure they
continue to meet the latest version of the
MSC Standard. Recertification is goodnews all round. It’s a sign that MSC
certification is working for the fishery. It
also provides confirmation that any
improvements required when the fishery
was previously certified have beensuccessfully completed.
Meeting conditions:
Sea of Okhotsk pollock fishery
Russia’s largest MSC certified fishery– which lands around 770,000 metrictonnes of pollock per year – was recertified
in 2018. It’s a great example of how
recertification conditions continue to drive
significant improvements in fisheries thatare already performing well.

When the Pollock Catchers Association(PCA) first obtained certification for thisfishery in 2013 it was given eight
conditions to address – and all weresuccessfully closed over the next five
years. Three conditions focused on
improving the scientific basis for stock
assessment and management, anotherthree focused on minimising the impact offishing on the Sea of Okhotsk ecosystem,and the last two increased transparency
and stakeholder involvement in the
management process. WWF-Russia andscientists from the TINRO-Centre worked
with the fishery to identify areas of
improvement and conduct research.

“With the support of the Russian Federal
Fisheries Agency and fishery research
institutes, we were able to obtain a much
deeper understanding of the impacts
the fishery may have on the ecosystem.
The PCA also funded unique researchon modelling of the trophic network of
the Sea of Okhotsk ecosystem, and an
at-sea survey of sea birds’ and mammals’interaction with fishing gear.”“After initial certification in 2013, PCA
developed and implemented a large-scaleaction plan for certification conditions,”
explains PCA President Alexey Buglak.

“All the above resulted in a smoothrecertification process, and the goodscores the fishery has been awarded,”says Buglak.

The PCA also significantly increased
the number of scientific observers
from fishery research institutes, who
now collect four times more data. Last
year, one in five PCA vessels carriedscientific observers.

If these changes could significantly affect a fishery’s MSC
assessment scores, they need to be reviewed, outside the usual
annual audit cycle. In some cases this means suspending thecertification of the fishery in question until improvements havebeen made or fisheries regrettably withdraw from the MSC program.
Only when these improvements have been delivered can the fishery
start using the blue tick on its products again – providing an extra
impetus to fix emerging problems swiftly and effectively.
In the last year several fisheries have had their MSC
certifications suspended following new monitoring data which
resulted in a drop in their scoring. We’re working with them todrive improvements in response, so they can become recertified
as soon as possible.
One example is the French and Spanish sardine fisheries in the
Bay of Biscay which had their certification suspended in
February 2019, following updated advice from ICES. Although thestock itself is still healthy, it’s now feared that current levels offishing effort are above what would achieve maximum
sustainable yield. For short-lived species like sardines this could
lead to a swift fall in population size. While there areuncertainties in the scientific stock assessment model,
scientists have taken a precautionary approach, advising a
reduction in fishing effort.
To address the reasons for suspension, the fisheries haveworked together to develop a joint corrective action plan.
They will collaborate closely with scientists to improve thereliability of the stock assessment, and keep working todevelop harvest control rules compatible with the maximum
sustainable yield approach.

Sardine processing in Brittany“This news is extremely disappointing for the French andSpanish sardine fishers who have worked hard together over
the years to manage their fishing effort and their fisheries’
sustainability. This new scientific advice changes the game,
but the efforts the fisheries have made so far are not in vain.
On the contrary, the sardine stock remains healthy, and I
strongly encourage fisheries to continue efforts to adapt tothese new circumstances and, I hope, to recover theircertification in the future. The endorsement of their joint
corrective action plan is already a positive step in this direction.”
Edouard le Bart, MSC Regional Director for Southern
Europe and AMESA

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MSC Annual Report 2018-19

Going SouthLast year’s FAO report on
the state of the world’s
fisheries highlighted that,while fisheries in the
Global North are showing
signs of recovery, those in the Global
South are in decline. This is a challengethat the MSC is committed to addressing.
Fisheries in the Global South provide
nearly three-quarters of the world’s
seafood, but they are under-represented
in the MSC program. Many of thesefisheries lack the resources and thecapacity to achieve MSC certification– yet they are exactly the places where weneed to be engaging. As well as being
vital for food security and people’s
livelihoods, fisheries in the Global Southoverlap with some of the most importantmarine biodiversity hotspots.
Over the last couple of years, we’ve
stepped up our engagement with fisheries
in the Global South, especially in the
pre-certification phase. Throughinitiatives like our Fish for Good project,

we’ve brought together various partners
and developed tools to help assess thesustainability of fisheries, identify where
improvements need to be made, design
fishery improvement projects anddevelop action plans. And we’resupporting fisheries on the pathway
towards certification with our newly
launched Ocean Stewardship Fund, which
will provide support for small-scale
fisheries and those in the Global South.
In addition, our capacity-building programaims to develop the knowledge andexpertise of fisheries managers,
governments, NGOs and others in the
Global South, drawing on our 20 years ofexperience in sustainable fisheries andextensive database of good practices.
It aims to support not just those who areinterested in implementing the MSC
Fisheries Standard, but also auditors andfishery improvement project managers.
We’ve also invested in our own staff
capacity in the Global South: we now have
MSC teams working on the ground inIndonesia and India, and are building on

Find out more about ourwork with developing worldand small scale fisheries
our existing presence in South Africa and
Mexico. This work is beginning to bear
fruit, with the number of fisheries in the
Global South engaging with the MSC
program more than doubling between
March 2017 and March 2019. While this isan encouraging start, we know we cando more.
If our mission is to be successful, thenwe need to make our market-based
system work as powerfully in the Global
South as it has done in the Global North.
Market demand is one of the reasonsthat fish stocks are in decline, so theyneed to be part of the solution too. While
this is a big challenge, I believe it’s also
a big opportunity.

Going South

29

Fisheries in the Global South
engaged with the MSC program

����

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stakeholders haveattended MSC capacity
building workshops
over the last two years

Yemi Oloruntuyi,
Head of Accessibility, MSC

The MSC is one of the few certification programs to have a globally recognised framework associated with itthat will increase volumes of sustainable fisheries. This framework enables a fishery to transition from a positionof not passing the standard, to delivering improvements in a transparent way to meet the standard and achievecertification. This process is known as a fishery improvement project and the concept forms an important part ofour commitments to operate as a responsible business and work with our suppliers and other partners.
Tracy Cambridge - Responsible Sourcing Director, Thai Union© iStock/Tarzan9280

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MSC Annual Report 2018-19

Pathways to sustainability

31

Pathway to sustainability
We’re collaborating with NGOs,
governments, retailers and funders toprovide a pathway for fisheries that want tobecome sustainable but face obstacles to
get there. These “Pathway Projects” aim to
identify fisheries that could successfully
become MSC certified, and provide tools
and action plans for fisheries worldwide.
While many are a long way from reaching
MSC certification, strong long-term
collaboration can make sustainability arealistic goal.
Our four-year Fish for Good project is
supporting fisheries in Indonesia, Mexicoand South Africa to improve their practices.
Working together with market partners,
government officials, scientists, the fishingindustry and fellow NGOs, the project
involves mapping fisheries in each region,
carrying out pre-assessments of possible
candidates for certification to identify areasthat need to be addressed, and developing
action plans to deliver the necessary
improvements. In Indonesia,
the project mapped 50 fisheries andidentified species for pre-assessment, while
9 fisheries have been pre-assessedin South Africa and 5 Mexican fisheries
are already implementing improvements.
But it’s not just in the Global South thatthese approaches can be effective. In theUK, major retailers and seafood players
have launched Project UK Fisheries
Improvements, which is using the MSC
Standard and tools to design fisheryimprovement projects for eight of the mostcommercially important small-scale
fisheries in the UK. In partnership with

WWF, our Medfish project is using the MSC
Standard to benchmark French andSpanish Mediterranean fisheries andidentify areas for improvement.
Ocean Stewardship FundWe upped our support for fisheries in the
Global South with the launch of our £1
million Ocean Stewardship Fund in October
2018. The fund will provide support tosmall-scale fisheries and those in thedeveloping world to make specificimprovements that will bring them closer tomeeting the requirements of the MSC
Standard. Funding will also be available forscience and research to support better
understanding of sustainable fishing.
Applications will open in October 2019, andthe first funds will be granted in March 2020.
First certification in the Mediterranean
Fishing provides a livelihood for 180,000
people in the Mediterranean, yet around
90% of fish stocks in the region are
overfished. Improvements are desperately
needed to improve fisheries management
and restore fish stocks.
A milestone was reached in July 2018 when
the Venetian wild harvested striped clam
fishery became the first Italian fishery andthe first in the Mediterranean basin toachieve MSC certification. The artisanal
fishery – operated by a cooperative of 111
boats, mostly crewed by two or threepeople – catches around 4,600 tonnes
annually: just over a quarter of national
production. Clams are extremely popular in
Italy and a main ingredient in traditional
recipes such as Pasta con le Vongole.

Find out more about the MSC’s
Pathway to sustainability

With around 15% of global
fisheries now MSC certified,the ‘easier’ options where good
governance already exists haveeffectively already been addressed.
MSC is the key driver of change in
the next tier of fisheries where
significant opportunities for
improvement exist. The real prize
surely over the next decade is ingetting the next 10-20% of fisheries
to improve to the degree that they
can attain the MSC Standard.
David McDiarmid, Corporate Relations
Director, Princes Limited

Indonesian pole and line tuna fishery, part of a fishery improvement projectworking with the MSC’s Fish for Good project. ©IPNLF, Green Renaissance, Warren Smart32

Contents

MSC Annual Report 2018-19

Sustainableconsumption
Ending overfishing and restoring the health of our oceans
isn’t just a job for the people who do the fishing: the MSC
program enables everyone to play a part. By demanding verified
sustainable seafood, consumers and companies around the world
can help drive change on the water. Delivering sustainableseafood that can be traced all the way from ocean to plate is ahuge collective effort, involving more than 45,000 sites globally,
including seafood processors, supermarket chains, fishmongers,
hotels and restaurants.
These companies are certified to our Chain of Custody Standard,
ensuring that MSC certified seafood is traceable and separated
from non-certified products. The range and quantity of products
bearing the blue MSC label is growing all the time, and expanding
into new markets – creating incentives for more fisheries tostrengthen their sustainability.

Sustainable consumption

33

��,���

*products on sale with the blue MSC label

�,���,���
tonnes of seafood sold toconsumers with the MSC label

Estimated

US$

�.�bn

**

spent by consumers on
seafood with the MSC label

MSC is one of the strongest
opportunities there is todemonstrate a fishery’s
sustainability across the
supply chain.
Cassie Leisk, New England Seafood International Ltd

MSC labelled fish fillets at Whole Foods Market, USA*Number of products defined as the global sum of products available in individual countries (stock keeping units, or SKUs)**Retail market value of consumer-facing MSC labelled products, calculated by adding a global average 40% retail mark-up to wholesale values©iStock / 97

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MSC Annual Report 2018-19

From catch to kitchen
Number of MSC labelled products available around the world

Germany

Switzerland

Netherlands

United States

United Kingdom

Belgium

FranceSpain

SwedenItaly

Denmark

Rest of the world

From catch to kitchen

35

Austria
40000

37,038For the second time, the blue MSC
label was ranked as one of the
top sustainable food labels in the
Netherlands. Out of almost 100
ecolabels included in the study for
the Dutch Ministry of Agriculture,
Nature and Food Quality, only
10 were awarded the title “topkeurmerk” (top ecolabel). The MSC
scored full marks for credibility
and transparency.

35000

28,51630000

24,70325000

21,08520000

14,78916,28318,14915000

Less than �%

10,964

DNA analysis of more than
1,400 MSC labelled products
found less than 1% weremislabelled – compared with areported average global seafood
mislabelling rate of 30%.

7,640

10000

4,723
5000

1,079
0

2008

2,387
2009

Figures correct as of 31 March for each year.

2010

2011

TOP ��

2012

2013

2014

2015

2016

2017

2018

2019
© iStock / Foxys_forest_manufacture36

Contents

MSC Annual Report 2018-19

Ocean leaders

37

Orkla’s ocean health supplements
Orkla Health, Norway’s leading cod liver oil producer, will display
the MSC’s blue fish label on all bottles of cod liver oil sold under its
internationally renowned Möller’s brand. More than 5 million
bottles bearing the blue MSC label will hit the market each year in
more than 20 countries. Orkla aims to source 100% of its raw
materials sustainably by 2025, providing health-conscious
consumers with a greater choice of sustainable supplements.

MSC certified herring, ALDI, Poland

Ocean leaders
The MSC’s mission is to use
its standard and ecolabel toreward and encouragesustainable fishing.
Becoming MSC certified
requires a lot of effort from fishers andfisheries managers, including paying for
certification and making improvements inorder to meet the Standard. They expectand deserve to be rewarded for that effort.
This is the beauty of the MSC’s
market-driven system. When companies
and, ultimately, consumers choose MSC
certified seafood, it provides a market
advantage for those who are striving to fish
sustainably – and an incentive for others to
improve. And as more certified sustainableseafood becomes available, the market
continues to grow.
One encouraging development over thelast year is the strong growth we’ve seen insouthern Europe and in Asia, Japanespecially. The growing interest in
sustainable seafood in these regions isreally encouraging, because these are thebiggest seafood markets in the world:

China and Japan are the two largest
seafood markets by value, while France,
Italy, Spain and Portugal consume almost
as much seafood as the United States.
People in these countries also tend to eat a
far greater diversity of species thanconsumers in northern Europe and North
America.
As more companies and consumers inthese regions demand sustainableseafood, they send a powerful market
signal to a whole new set of fisheries.
We’re already starting to see the impact of
this, with the first certified squid andoctopus fisheries, more hake and yellowfin
tuna coming into the program, and the firstcertification in the Mediterranean.
The MSC label also gives retailers andsupply chain companies the opportunity toplay their part in fighting overfishing andsafeguarding the future of our oceans. By
committing to sourcing MSC certified
seafood, companies can make acontribution to the Sustainable
Development Goals – especially Goal 14 on
Life Below Water.
Setting an inspiring example are the 2020

A by-product of Arctic cod, Möller’s cod liver oil has been sourced
from Norwegian cod fisheries in the Lofoten and Vesterålen
archipelago since 1854. First MSC certified in 2010, the Norway
North East Arctic cod fishery was recertified in 2015.
“The MSC plays an important role in contributing to sustainablefishing practices. Adding the blue MSC label to all bottles of
Möller’s gives us the opportunity to proudly tell the story ofsustainability and provenance of this 160-year old brand.”Hege Holter Brekke, CEO, Orkla Health

Leaders for a Living Ocean. This group of
27 leading companies working in theseafood sector joined us at the time of the
Our Ocean conference in Malta in 2017 topledge their commitment to conserving theocean and safeguarding seafood supplies– including by supplying, sourcing andselling MSC certified seafood. They havepublished ambitious targets andcommitted to publicly reporting on theirprogress every year, and we’ve beendelighted to see the advances that havetaken place over the last year.
Of course, buying and selling MSC
certified seafood is not an end in itself: it isa means to promoting and incentivisingsustainable fishing and safeguarding
seafood supplies for current and future
generations. We’re grateful to all our many
partners whose commitment is helping to
make that a reality

Nicolas Guichoux,
MSC Chief Program Officer

Aldi tops the table in the UK
In 2018 Aldi was recognised for offering the largest proportion ofsustainable seafood of any UK supermarket, in our annual UK
Supermarket Sustainable Seafood League. In 2017 just under 80%of the discounter’s seafood range was sold with the MSC’s blue fishlabel, more than any other UK retailer that year.
Aldi is one of several retailers that has publicly committed tomaking its seafood range 100% sustainable over the next few years.
Also making impressive progress in 2018 was Sainsbury’s, whichstocks the most certified seafood products with over 200 in store,
making up over three-quarters of its wild seafood range. Next comeLidl, with just over 100 certified products covering 72% of its
seafood offer; Waitrose (67%, 118 products), Co-op (61%, 54
products) and Tesco (48%, 129 products).
The retailer that made the biggest changes in the UK this year was
Asda, which tripled the number of certified sustainable seafood
products in its range from 17 to 52, an increase of 38%.
Shangri-La: leader of the pack
The Shangri-La Group became the first hotel group in Asia to receive
full MSC Chain of Custody certification in June 2018. The
certification of 53 hotels across mainland China and Hong Kong
was part of Shangri-La Group’s sustainability commitment toprotect seafood supplies. The Group has since introduced the blue
MSC label on its restaurant menus. This initiative represents asignificant milestone for the hospitality and food-service industry
in China. It is hoped that more Chinese seafood suppliers will follow
the leadership shown by Shangri-La.
© Orkla38

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MSC Annual Report 2018-19

Emerging markets

39

Emerging markets
Japan

Italy

PolandChina is far and away the world’s largest seafood market andimporter – nowhere has a greater influence on the world’s
fisheries. We’ve seen encouraging growth in MSC certified
seafood over the last year, with sales of consumer-facing
products bearing the MSC label jumping by more than 150%.
The number of sustainable seafood products carrying the MSC
label grew to 501, a 75% increase, with the number of Chainof Custody certification holders increasing from 348 to 420.
More than 20 retail chains are working with MSC to promotesustainable seafood, with several having announced sustainableseafood commitments: Aeon China, for example, is aiming
to have 30% of its frozen seafood range MSC certified by 2020.
Other retailers demonstrating their commitment to the MSC
include Sam’s Club and CRV-Olé, part of the China Resources
Vanguard Group.

The market for sustainable seafood grew rapidly in Japan overthe last year. The number of Chain of Custody certificate holders
increased from 147 on 1 April 2018 to 218 on 31 March 2019.
Aeon, the country’s top retailer, rapidly increased its range of
MSC labelled products, in line with a commitment to have 20%of the seafood it sells MSC or ASC certified by 2020. Anotherleading retail group, Seven & i holdings, began stocking MSC
certified seafood for the first time - the group includes thecountry’s largest chain of convenience stores, Seven Eleven.
Another major retailer, COOP Japan, now uses the MSC label
on around a fifth of its private brand seafood products.
Meanwhile Sompo Japan Nipponkoa Insurance, Denso and
JXTG followed Panasonic’s lead in serving certified seafoodin their cafeterias. This has prompted several catering companies
in Japan to obtain Chain of Custody certification.

The countries of Southern Europe have historically been slower
than their northern counterparts to catch onto MSC certified
seafood – but that’s changing. The volume of MSC certified
seafood sold in Italy grew by a third during 2018/19. The country
now ranks fifth in the world for MSC products by turnover, andseventh by volume. Nearly half of Italian seafood consumers
recognise the MSC label. Top brands Findus and Bolton Rio Marehave led the way, but there’s been an encouraging growth in thenumber of small and medium-sized companies using the MSC
label too. Most importantly, this demand is starting to drive realchange on the water. The Venetian wild harvested striped clam
fishery this year became the first in the Mediterranean to achievecertification (see page 27), while the BluFish project, launched in
November 2018, is providing support and tools to help fisheries
in Southern Italy and the islands strengthen their sustainability
over the next three years.

Poland isn’t a country most people associate with seafood
production – but it’s one of Europe’s largest seafood processors,
producing around half a million tonnes each year, most of whichis exported to Western Europe. The number of MSC certified
suppliers has grown rapidly over recent years, with as manyas 115 companies with Chain of Custody certification.
Together these companies produce around 85,000 tonnesof MSC certified products annually, making Poland one of the
top five MSC producing countries in the world. The domestic
market has been growing rapidly too. There are more than 900
MSC labelled products on the market, and the total volumeof MSC products sold in 2018-19 was almost 25,000 tonnes –a 500% increase in three years.

Cooking demonstration for Sustainable Seafood Week, China

MSC certified mackerel promotion with Aeon

Street graffiti promoting the MSC in Milan

Advertising the MSC label in Warsaw for World Oceans Day 2018

China

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MSC Annual Report 2018-19

Contents

Engaging
consumers
Growing consumer awareness and understanding ofsustainable seafood and the blue MSC label is an essential
part of our work. By increasing market demand forsustainable seafood, we incentivise the industry to makechanges to safeguard our oceans. Our local marketing andcommunications teams are working with leading agencies,
seafood brands and influencers to share our message. Hereare just a few examples from 2018-19.

8�%of seafood consumers
globally agree that weneed to protect seafood
for future generations

��%of consumers
recognise the blue
MSC label��%of seafood consumers
want sustainability claims
in supermarkets to be
independently verified��%

Understanding of the
MSC label increased
from 32% in 2016 to
37% in 2018

Results from a consumer perceptions study by GlobeScan of 25,000
people in 22 markets between 12 January and 10 March 2018

© iStock/ljubaphoto

Engaging consumers

41

USA

FranceOctober is National Seafood Month in the US, and last year we used
this established event to launch a campaign encouraging seafood
consumers to make sustainable seafood choices. The campaign
used a variety of channels to target shoppers – from teaming up
with food influencers, which created hundreds of thousands ofviews and interactions on social media, to treating journalists to asurprise lunch of MSC certified McDonald’s Filet-o-Fish, to MSC
certified seafood featured in broadcast news cooking segments. We
also ran targeted advertising on public transportation in two cities.
In Seattle, “Good for you, me, and our SEA” adverts reached
two-thirds of the population; in follow-up surveys, one in fivepeople (and one in three aged 18-34) said they recalled thecampaign, and 90% of these had a high level of trust in the MSC.

Our award-winning Responsible Seafood Week organised with
ASC in February 2019 was the biggest yet, with 27 commercial
partners involved, including retailers, brands and food-service
companies. They helped drive more than 1.4 million viewers toour online campaign video and distribute 60 million copies of ourprinted materials. We also ran four educational conferences andpartnered with 21 institutions including aquariums and student
associations to spread the word on sustainable seafood. We also
ran events, online and off, around World Ocean Day on the themeof “listening to the ocean”. To launch the campaign with asplash, 27 journalists and influencers received a real message ina bottle outlining the threats to our ocean and what the MSC isdoing to help.

Whole Foods seafood team with WJLA TV host for National Seafood Month live cooking demo

Educating children about life in our oceans during Responsible Seafood Week in France

China

South Korea

Over 1,300 stores in more than 30 Chinese cities took part inSustainable Seafood Week in August 2018 – a massive increase on
the 180 that participated in 2017. Co-hosted with China Chain Storeand Franchise Association (CCFA), activities included in-store
promotions and special events, as well as adverts on the Beijing
metro, on e-commerce sites and at hotels. And our “Little Ocean
Hero” programme targeted children. MSC certified suppliers suchas Ocean Gala and SeaMix saw a big boost in sales during and after
the week as more Chinese consumers sought out sustainableseafood. According to consumer insights company GlobeScan, 8%
of Chinese shoppers now say they often see the MSC ecolabel.

South Korea is an important seafood market, but consumerawareness of sustainability is low. Over the last year,
we’ve been putting in place the foundations for building
demand for sustainable seafood. This has included forming
partnerships with the Korea International Ocean Film Festival
and the Busan Green Consumer Network, appointing popular
musician Tune as our first Korean ambassador, setting up a
network of university students to support MSC through social
media, co-hosting a sustainable fisheries and seafood workshop
with WWF-Korea, and talking to over 2,000 visitors at our boothat the Eco-marathon and festival.

Promoting MSC certified seafood during Sustainable Seafood Week in China

Consumer campaign in the Eco-marathon and festival42

Contents

MSC Annual Report 2018-19

Our funding and donors
We’re especially grateful for the significant
support we receive from a range of charitable
funders, including trusts, foundations andstatutory bodies, from across the globe. This
year has been no exception. We received
significant new and generous support fromthe A.G. Leventis Foundation for work in
Greece, the MAVA Fondation pour la Naturefor our work in the Mediterranean and West
Africa, the Walton Family Foundation forwork in Mexico, and the Kingfisher
Foundation for work on digital supply chains.

We would like to thank the following
organisations for their support:

We would also like to thank the Dutch
Postcode Lottery for its continued support of
the Fish For Good project in Indonesia,
Mexico and South Africa, as well as ongoingcore support; the Walton Family Foundation
for its continuing generous support aroundthe world; the Adessium Foundation forsupporting our work in the Mediterranean;
the David and Lucile Packard Foundation for
its generous support of our work in Japan, in
addition to core funding; and the GIZ for
help with our work in the Southwest Indian
Ocean region.

Remmer Family Foundation

Finally, we also continue to receive
generous core support from the Remmer
Family Foundation, Triad Foundation andHolzer Family Foundation.

US Foundations

Other European Foundations

Kingfisher Foundation

Adessium Foundation (Netherlands)

New Venture Fund

Dutch Postcode Lottery

David and Lucile Packard Foundation

MAVA Fondation Pour la Nature (Switzerland)

Holzer Family Foundation

The Swedish Institute (Sweden)

Our funding and finances

Our finances
���8 -��

Report by theTrustees on thesummarised
financial statements

Total
incomeTotal
expenditure£26,294,000£23,632,000

Triad Foundation
Walton Family Foundation

Statutory donors
DEG (Deutsche Investitions und
Entwicklungsgesellschaft mbH) (Germany)

UK Trusts and Foundations
A.G. Leventis Foundation
Cecil Pilkington Charitable Trust
Swire Charitable Trust

GIZ (Deutsche Gesellschaft für Internationale
Zusammenarbeit GmbH) (Germany)
European Maritime and Fisheries Fundin the United Kingdom and Finland

Where the money comes from

Where the money goes to

14.8% Donations and legacies

23%

3.6%

31.4% Education and awareness

Other trading activities

79.7% Income from charitable		
activities (logo licensing)
1.9%

Income from investments

Policy and maintenance of standards

	
36.7% Commercial and fisheries 		
servicing and outreach
6.7%

Resources Legacy Fund / Sustainable
Fisheries FundWWF-Sweden
WWF-US

The summarised financial information is
extracted from the full statutory trustees’
annual report and financial statements whichwere approved by the trustees and signed on
their behalf on 30 July 2019. An unqualified
audit report was issued in relation to the fullstatutory trustees’ annual report and financial
statements by our auditors Crowe U.K. LLP on
12 September 2019.
The auditors have confirmed to the trustees
that, in their opinion, the summarised
financial information is consistent with thefull financial statements for the year ended 31
March 2019. This summarised financial
information may not contain sufficient
information to gain a complete understandingof the financial affairs of the charity. The fullstatutory Trustees’ report, financial
statements and auditors’ report may beobtained in writing from Finance Director,
Marine Stewardship Council, 1 Snow Hill,
London, EC1A 2DH, United Kingdom.

Logo licensing

2.2% 	Expenditure on raising funds

NGOs

Signed, on behalf of the Trustees:

Corporate
Findus (Sweden)
Project UK (various)

43

Total funds at 31 March 2019: £32,082,000
Compared with total funds of £29,074,000 on 31 March 2018.
Other gains and losses in the year not shown under income or expenditure
amounted to a gain of £346,000

Werner Kiene,
Chair, MSC Board of Trustees
12 September 2019

44

Contents

MSC Annual Report 2018-19

Our governance

45

Governance ���8 -��
The MSC Boardof Trustees
The MSC Board of Trustees is the
MSC’s governing body. With advice
from the Technical Advisory Board andStakeholder Advisory Council, it sets
the strategic direction of the MSC,
monitors progress and ensures the
MSC meets its objectives.

Find out more about
our governance

Dr Werner Kiene
Chair
Mr Paul Uys
Chair of Marine
Stewardship Council
International Board
Dr Simon Jennings
Chair of the TechnicalAdvisory Board
Mr Peter Trott
Co-Chair, Stakeholder
Advisory Council
Ms Stefanie Moreland
Co-Chair, Stakeholder
Advisory Council

Mr Eric Barratt
Mr Jean-Jacques
MaguireWelcome to
new members:

Ms Lynne Hale

Ms Stefanie Moreland
Co-Chair, Stakeholder
Advisory Council

Mr Jim Leape

Mr David Lock

Mr David Mureithi

Mr Giles Bolton

Mr Felix Ratheb
Mr David Lock
Mr Giles Bolton

Thank you to
departing members:
Ms Christine Penney
Co-Chair, Stakeholder
Advisory Council

The TechnicalAdvisory Board
The Technical Advisory Board advises
the MSC Board of Trustees on technicaland scientific matters relating to the
MSC Standards, including developing
methodologies for fishery and supply
chain certification and accreditation
and reviewing the progress of fisheriescertifications.

Dr Simon Jennings(UK) Chair

Dr Tim Essington(USA)

Ms Michèle Stark(Switzerland)

Dr Christopher
Zimmermann(Germany)

Dr Victor Restrepo(USA)

Mr Jose Augusto
Pinto de Abreu(Brazil) (Co-opted
Member)

Dr Keith Sainsbury(Australia)
Mr Sergey Sennikov(Russia)
Mr Adam Swan(UK)
Ms Lucia Mayer
Massaroth(Germany)

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

Mr Paul Uys
MSCI Chair
Dr Werner Kiene
MSC Board ofTrustees Chair

Mr Alex Olsen(Denmark)
Dr K Sunil Mohamed(India)Dr Juan Carlos Seijo(Mexico)Dr Florian Baumann(Germany)

Dr Rebecca Lent
(USA) (Co-opted Member)
Welcome to new
co-opted members
Mr Jose Augusto
Pinto de Abreu(Brazil)Dr Rebecca Lent
(USA)

Mr Jeff Davis
Mr Rupert Howes
MSC Chief Executive

Mr Eric Barratt

Welcome to
new members:
Mr Jeff Davis

Ms Valentina Tripp

Ms Valentina Tripp

Membership of all bodies is correct as of 31 March 2019
Members of the MSC Board ofTrustees in 2019 ©Alex Orrow

46

Contents

MSC Annual Report 2018-19

The MSC Stakeholder
Advisory Council
The MSC’s Stakeholder Advisory Council
provides advice to the MSC Board ofTrustees and input into the MSC’s review
processes and provides a formal channel
through which stakeholders can provide
their views to the MSC. It includes
representatives from the seafood industry,
conservation community, market sector
and academia. The membership reflects
diverse experiences, geographies andinterests in relation to the work of the MSC.

Mr Peter Trott
Co-Chair, Fishlistic, Australia

Mr Ivan Lopez
Pesquera Ancora, Spain

Ms Stefanie Moreland
Co-Chair, Trident Seafoods, USA

Mr Marco Quesada
Conservation International, Costa Rica

Ms Christine Penney
Clearwater Seafoods, Canada

Mr Rory Crawford
Birdlife International/RSPB, UK

Ms Yumie Kawashima
Aeon, JapanMr Tor Larsen
Norwegian Fishermen’s Association,
NorwayMs Agathe Grossmith
Carrefour, France
Ms Heather Brayford
Government of Western Australia,
Department of Primary Industries andRegional Development, Australia
Ms Carmen Revenga
The Nature Conservancy, USA
Mr Johann Augustyn
SADSTIA, South Africa

Our governance47

Thank you to all our staff.
The MSC is supported by a network of exceptional staff
operating in more than 20 countries. Our staff bringa diversity of skills – from marine science and fisheries
management, through to consumer marketing, industry
outreach and corporate services. The MSC’s Board andexecutive team would like to extend a huge thank you toall our staff who have contributed to the continuing successand influence of the MSC in safeguarding our oceans andseafood supplies.
Rupert Howes, Chief Executive, MSC

Ms Amanda Nickson
The Pew Charitable Trusts, USA
Ms Darian McBain
Thai Union, Thailand
Ms Louise Heaps
WWF, UK
Thank you to departing members:
Mr Yorgos Stratoudakis

Membership is correct as of 31 March 2019
MSC’s communications and marketing staff
visit fisheries in Poole Harbour, UK

Contents

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All data in this report is correct as of 31 March 2019, unless otherwise stated.
The reporting year is 1 April 2018 to 31 March 2019.

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