Social Responsibility and Traceability in Fisheries A Retailers Perspective

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1 Social Responsibility and Traceability in Fisheries A Retailers Perspective Ally Dingwall Aquaculture and Fisheries Manager 5 th International Coastal Tuna Business Forum Bali, 20 th May 2016 Image credit - WWF 1

2 Who are Sainsbury s Our Value Chain 18,000+ Farmers&Growers 2,000+ Suppliers 24 Depots 1,300+ Stores 12,000 Own Brand Products 165,000 Colleagues 26 Million Customers 26 billion sales 16.7% market share > 500 million fish sales 21% market share

3 Our Values A great place to work Living Healthier Lives Making a positive difference to our community Our values make us different Sourcing with integrity Respect for our environment

4 Developing a Sustainable Business Customers Securing supply Reputation, recognition & regulation

5 Developing a Sustainable Business Delivering the Triple Bottom Line Social / Ethical Environmental Economic

6 Sainsbury s Sustainability Plan - Fish Image credit - WWF

7 Defining Sustainable Wild Caught Fish Illegal Unregulated Unreported Legal Responsible Sustainable

8 Sainsbury s Tuna Pole and Line caught 94% of canned tuna sales 78% MSC certified 20% from Indonesia Pole and Line caught 6% of canned tuna sales 100% MSC certified Chilled Yellowfin Tuna Line caught Just over 1% of total fish sales 0% MSC certified 8

9 Recognition Sainsbury's no 1 UK retailer for sustainable seafood January 16 9

10 Recognition Sainsbury's Top #JustTuna brand - other brands need to follow their lead 100% pole-and-line caught tuna with strong sustainability policies Tuna is sourced fairly meaning local workers and communities are protected 10

11 Economic Sustainability Critical to developing a fully sustainable business Ensuring we are delivering sustainable solutions for Own Operations Customers Value Chain Members Total value chain Vessel to customer Underpinned by relationships Data capture Improving efficiency Innovative business models Benchmarking and sharing best practice Understanding opportunities Pre-competitive collaborations vs IP Reduce waste Create value 11

12 Social Responsibility in Fisheries Increasing focus on social conditions in fisheries Driven initially by press activity in Thailand 12

13 UK Legislation Came into force in October 2015 for business with > 36 million turnover Transparency in Supply Chains Clause within Act Due diligence approach across the whole business and beyond the first tier of our supply chain First Annual Statement in

14 Demonstration of Responsibility Business-to-business global standard auditing compliance on board fishing vessels, including safety & welfare Complements existing standards in the fisheries and seafood supply chain New governance compliant with ISO17065 Vessel Improvement Programme 14

15 RFS Standard Safety, Health and Welfare Core Principle 1: Reduce accidents and fatalities. Promote decent working conditions, respect & integrity Core Principle 5: behave responsibly, respecting the environment Care for the Environment The Vessel and its mission Core Principle 2: demonstrate due diligence; seek to apply best practice Core Principle 4: improve skills, knowledge & understanding; raise standards & open up new opportunities Training, Professional development Care of the Catch Core Principle 3: Focus on supply of safe, high quality, wholesome product with known provenance

16 RFS Clauses Entitlement to Work Life on Board Human Rights Welfare Crew Discrimination Living Remuneration Working Hours

17 Traceability - the Demand for Transparency A CRITICAL requirement like Food Safety Increasing Scrutiny from CUSTOMERS and Other StakeholderseNGOs, Investors and Media Demonstrating Avoidance of IUU Avoiding Slavery and Labour Abuses in our Supply Chains 17

18 Traceability - the Demand for Transparency Farm name on pack label 18

19 Traceability - the Demand for Transparency European legislation requires catch area and catch method to be detailed on pack Detail to sub-area for NE Atlantic (FAO 27) 19

20 Traceability Providing Assurance MSC Chain of Custody Effective VMS and enforcement EC IUU regulation compliance 20

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22 Delivering Transparency Efficiently Data Capture via Mobile, Production Line, Internal Solution Farm/Ocean Source Supply Chain Production Lines Retail Supply Chain MFG Retail Customer Origin Node Data Capture Raw Material Processing Data Capture Fresh and Processed Foods Consumer Packaged Goods Include social transparency Mobile Consumer Engagement Credit - Frequentz

23 Looking to the Future Collaboration and Communication are Critical Fisheries improvement Collaborative research Effective management and governance Independent certification environmental and social Transparency 23

24 Thank you 24