Annual Report. August Prepared by

Transcription

1 Annual Report August 2017 Prepared by

2 TABLE OF CONTENTS Table of Contents 1. Executive Summary 2. Infographics (one of a similar theme to page 7 of the last year s public report; maybe one new one for the sustainability policy measurable goals) Sea Delight Sustainability Highlights 4. Sea Delight Sustainable Seafood Policy 5. Sea Delight Traceability Policy Progress on Measurable Goals a. Sustainable Seafood Policy Goals b. Traceability Policy Goals Data Analysis a. Sea Delight U.S. Analyses b. Sea Delight Canada Analyses CONTENTS EXECUTIVE SUMMARY 1 ANNUAL HIGHLIGHTS INFOGRAPHIC SUSTAINABILITY HIGHLIGHTS 3 SUSTAINABLE SEAFOOD POLICY 5 PROGRESS TOWARD SUSTAINABLE SEAFOOD POLICY GOALS 7 TRACEABILITY POLICY 8 PROGRESS TOWARD TRACEABILITY POLICY COMMITMENTS DATA ANALYSIS 11 U.S. 12 CANADA 15

3 EXECUTIVE SUMMARY In 2011 Sea Delight Group (which refers to U.S. and Canadian operations for the purpose of this report) approached FishWise to discuss how the company could strengthen its commitment to sourcing sustainable seafood. In 2012, a partnership was created to support Sea Delight s newly developed sustainable seafood program, streamline communications with other members of the NGO community, and share the story behind Sea Delight s involvement with various fishery improvement efforts. The partnership has evolved over time to include data analysis and traceability components. During the partnership period, Sea Delight and FishWise agreed to transition away from the detailed documentation of company involvement in fisheries improvement projects (FIPs). The majority of FIPs supported by Sea Delight are now represented on FisheryProgress.org where improvements can be tracked in detail over time. Sea Delight s role as an official participant in seven FIPs - Mexico grouper, Guatemala mahi-mahi, Ecuador mahi-mahi, Peru mahi-mahi, Indonesia yellowfin tuna, Indonesia snapper and grouper, and Vietnam yellowfin tuna - remains integral to achieving the objectives and milestones outlined in the FIP work plans, and in some instances, moving towards Marine Stewardship Council (MSC) certification. Data analysis forms the backbone of the partnership. In-depth analyses are performed on annual sourcing data for both the U.S. and Canada companies to track sustainability over time. The data analyses also enable FishWise to measure progress towards Sea Delight s three public-facing measureable goals from their sustainable seafood policy. The sustainable seafood policy is used by Sea Delight to guide purchasing decisions, determine the appropriate level of involvement in various fishery improvement projects, and maintain the company s position as a leader in the sustainable seafood movement. The Sea Delight annual report is divided into three main sections: 1. Summary infographic and sustainability highlights; 2. Progress made towards achieving measurable goals and commitments within the Sea Delight sustainable seafood and traceability policies; and 3. Analysis of 2016 Sea Delight sourcing data for the U.S. and Canada companies. Lastly, this report has been designed to address elements from all six steps outlined in the Conservation Alliance for Seafood Solutions Common Vision document. 1

4 Annual Highlights Joined the Global Dialogue on Seafood Traceability Became part of the Sustainable Seafood Evaluation Advisory Panel for the David and Lucile Packard Foundation Maintained leadership role on the FisheryProgress.org Advisory Committee Publicly released company Traceability Policy, along with specific traceability and social responsibility commitments Participated on multiple high-level seafood sustainability panel discussions at Seafood Expo North America and SeaWeb Seafood Summit 4 years Taste of the Sea fundraising event entered into its fourth year Participated in three Sustainable Fisheries Partnership Supplier Roundtables: Americas Snapper and Grouper Eastern Pacific Ocean Large Pelagics Global Fresh and Frozen Yellowfin and Bigeye Tuna 2016 FIP Sourcing CeDePesca Mexico Grouper WWF Ecuador Mahi-mahi WWF Peru Mahi-mahi U.S. FIP Sourcing WWF Vietnam Yellowfin Tuna Hsin-Kang Taiwan Mahi-mahi WWF Indonesia Snapper & Grouper WWF Indonesia Tuna PT Intan Seafood Demersal Fish Luen Thai Tuna (Marshall Islands, Micronesia, Cook Islands) Canada FIP Sourcing 0% 53% 64% 67% 68% & % 43% 65% 67% 71%

5 SUSTAINABILITY HIGHLIGHTS Responsible Seafood Sourcing In 2016 Sea Delight U.S. sourced 68% of its seafood, by volume, from FIPs In 2016 Sea Delight Canada sourced 67% of its seafood, by volume, from FIPs Presentations and Speaking Engagements Sea Delight representatives participated on multiple panels to speak about various sustainability topics, including: Market Trends for Sustainable Seafood and FIPs as Access to Market. Organized by Comunidad y Biodiversidad (COBI). Mexico City, Mexico (October, 2016) The Better Onboard Handling Program. WWF Vietnam Tuna FIP Annual Meeting. Nha Trang, Vietnam (October, 2016) International Experiences: Investing in Responsible Fishing as a Good Business Practice. Organized by the Environmental Defense Fund (EDF) of Mexico. Mexico City, Mexico (November, 2016) Investing in Traceability for Tomorrow, Today. Seafood Expo North America. Boston, MA (March, 2017) Sea Delight s Approach to FIPs in Latin America. Sustainable Fisheries Partnerships (SFP) Americas Fisheries Forum. San Jose, Costa Rica (April, 2017) Traceability and Product Differentiation Linking to the Vietnam Tuna FIP. Global Dialogue on Seafood Traceability, 1st Annual ASEAN Workshop. Bangkok, Thailand (May, 2017) Protecting Key Fishery Ecosystems, Lessons Learned in the Luwuk Banggai Bottomfish FIP. WWF Annual Conference. Manado, Indonesia (May, 2017) Integrity of FIP Supply Chains: Why Traceability Matters and What Solutions Exist. SeaWeb Seafood Summit. Seattle, WA (June, 2017) Controlling IUU Fishing in the Asia Pacific: A Seafood Industry Perspective. Coral Triangle Fishers Forum III, Sustainable Coastal Fisheries through Local Innovation: Scaling Up Effective Models for IUU Reduction, Catch Documentation and Traceability in Support of Sustainable Local Fisheries Production. Iloilo City, Philippines (July, 2017) Traceability Publicly released its Traceability Policy in November 2016, along with specific traceability and social responsibility commitments Joined the Global Dialogue on Seafood Traceability Collaborated with WWF Peru and Ecuador on a traceability pilot project by offering key insights on how complex supply chains function in the region Developed the FIP traceability code for yellowfin tuna with VINATUNA (Vietnam Tuna Association) Reform and Advocacy Participated in three Sustainable Fisheries Partnership (SFP) Supplier Roundtables (SR): Americas Snapper and Grouper SR Eastern Pacific Ocean Large Pelagics SR Global Fresh and Frozen Yellowfin and Bigeye Tuna SR Maintained leadership role on the FisheryProgress.org Advisory Committee to support day-to-day website operations Became part of the Sustainable Seafood Evaluation Advisory Panel for the David and Lucile Packard Foundation Marketing and Consumer Outreach Sea Delight Ocean Fund s Taste of the Sea fundraising event entered into its fourth year and has been modified to incorporate smaller and more intimate events in the greater Miami, FL area, including: 3

6 A culinary and conservation event at Artopia (March, 2017) The donation of tuna for the Helping Autistic and Pancreatic Patients Internationally (HAPPI) event (March, 2017) A World Ocean s Day culinary and conservation event at the Tortuga Music Festival (June, 2017) Sea Delight presents regular sustainability updates to its customers through a monthly e-newsletter and the Sea Delight Ocean Fund website 4

7 SUSTAINABLE SEAFOOD POLICY In 2015 Sea Delight was one of the first seafood distributors in North America to develop a comprehensive sustainability policy. The policy reflects Sea Delight s longstanding responsible seafood practices and provides a framework to maintain a high level of performance over time. Importantly, the policy outlines specific, measurable goals that Sea Delight can track progress against annually. The full version of Sea Delight s sustainability policy, as it appears on the Sea Delight website, is shown below. Sea Delight is committed to ensuring seafood remains a secure resource for future generations to enjoy. We use our buying power and position in the seafood industry to employ and promote responsible practices globally. Our own principles, including strategic sourcing and research, leverage positive change in our suppliers and customers. Our informed choices are strengthened by establishing transparency in our supply chains and collecting data so we can eliminate illegal, unreported and unregulated (IUU) seafood from our supply. We educate our employees, suppliers, and customers with this information to create a more conscious industry. We extend our commitment beyond our own practices and across commercial, governmental, and civil sectors. We engage in advocacy, education, and direct investment through the funding of and participation in fishery improvement projects (FIPs). These FIPs improve the environmental, economic, and social aspects of fisheries and communities across the world. Our sustainable seafood policy is the foundation for Sea Delight s future business and will send a ripple of positive change through the seafood industry. The following outlines how this policy is put into action: Sourcing Strategy Environmentally responsible seafood is fished or farmed in a way that safeguards future seafood supplies while minimizing impacts on surrounding ecosystems. Sea Delight preferentially sources and sells environmentally responsible seafood and aims to increase the percentage of products offered from fisheries and farms that improve environmental performance over time. Sea Delight relies on the following to assess seafood purchases: 1. Sustainability ratings of credible independent bodies such as Monterey Bay Aquarium Seafood Watch, Vancouver Aquarium Ocean Wise, and SeaChoice; and 2. Eco-certifications such as Marine Stewardship Council, Global Aquaculture Alliance Best Aquaculture Practices, and Aquaculture Stewardship Council. Sea Delight does not require products be eco-certified, but requires products to meet Sea Delight criteria for food safety and quality. If eco-certifications are available, all relevant certification information will be documented. Sea Delight also preferentially sources products from FIPs that meet the Conservation Alliance for Seafood Solutions FIP Guidelines when available. Data Collection, Assessment, and Reporting Sea Delight works closely with suppliers to collect detailed information needed to assess the sustainability of seafood products procured and sold by the company. Specific information collected includes, but is not limited to: Common and scientific names; Country of origin, FAO fishing area, and region of catch; Wild or farmed designation; Fishing gears or aquaculture production methods used; Producers and/or processors; Volume of product purchased; Eco-certification (MSC, BAP, ASC, etc.); and Supporting documentation for FIPs (e.g. work plan, timeline, budget, progress report, etc.). 5

8 Sea Delight has chosen to partner with FishWise, a non-profit sustainable seafood consultancy, to assess and monitor these data and to create an evaluation framework to track milestones and impacts over time. This analysis will identify species/products suitable for targeted improvement and/or promotion. Sea Delight is committed to providing customers with credible sustainability information regarding its seafood products and to providing a summary of the company s sustainability progress annually. Furthermore, Sea Delight continuously improves company systems to trace seafood back to its harvest location and to ensure the legality of seafood product. Fisheries Improvement Sea Delight is committed to supporting and improving its source fisheries through a variety of actions, including: Creation of FIPs for source fisheries; Direct implementation of FIP activities; Financial contribution to FIPs; Employing on-the-ground staff to coordinate FIP activities; and Working with Sea Delight suppliers to improve fishery practices and overall fishery performance. Reform and Advocacy Sea Delight believes that making internal improvements to its supply chains are an effective way to generate reform within the seafood industry. Improvement areas include data collection, traceability systems, reporting, and supplier engagement. Whenever possible, Sea Delight will advocate for legitimate efforts to strengthen fisheries policy and management to improve environmental outcomes in source fisheries and beyond. Education Sea Delight trains employees on seafood sustainability and fishery improvement efforts so staff may confidently assist customers in selecting environmentally responsible seafood. Sea Delight is committed to working with suppliers in its supply chain to improve fishing practices through trainings, workshops, and educational materials. Sea Delight increases public and industry awareness about seafood sustainability by hosting events through the Sea Delight Ocean Fund. Sea Delight Ocean Fund The Sea Delight Ocean Fund (SDOF) was created in 2012 to further Sea Delight s commitment to seafood sustainability and the well-being of fishermen in its supply chain. SDOF is a non-profit 501(c)(3) organization through which Sea Delight manages funding for its various seafood sustainability projects. The SDOC generates funding through a billback model that collects $ $0.05 per pound of seafood imported into the U.S. and Canada by Sea Delight and Sea Delight International, SL. The SDOF then allocates funds to each of its sustainability efforts, based upon the scope of work and level of company participation. Partnership Sea Delight actively engages all stakeholders to improve the sustainability of its seafood supply. Sea Delight partners with multiple NGOs to address different aspects of seafood sustainability. Sea Delight currently partners with World Wildlife Fund (WWF) and CeDePesca to work on-the-ground with suppliers for the improvement of source fisheries. Sea Delight also partners with FishWise to assist with data collection, assessment, and communication of the company s fisheries improvement work. Measureable Goals 1. Sea Delight (U.S. and Canada) will source 60% of its wild seafood, at minimum, from FIPs on an annual basis; 2. Sea Delight and the Sea Delight Ocean Fund will publicly support a minimum of 3 reform and advocacy activities on an annual basis; and 3. Sea Delight will provide a publicly available summary of the company s sustainability progress on an annual basis. 6

9 In 2014 Sea Delight and FishWise developed a prototype set of measureable goals to track seafood sustainability progress over time. The original set of three measurable goals was publically released in February 2015 as part of the company s sustainable seafood policy. As recommended in the annual report, these goals have been reviewed and updated during the partnership period. Progress towards meeting the updated goals is outlined below. Progress Toward Sustainable Seafood Policy Measurable Goals Progress on Goal 1 In 2016 Sea Delight U.S. increased the overall percentage of FIP product procured from 64% to 68% compared to 2015 data. Specific factors contributing to the increase include a significant increase (46%) in yellowfin tuna products sourced from FIPs and and a slight decrease in volume of non-fip product (-4.5%). In 2016 Sea Delight Canada experienced a small decrease in the overall percentage of FIP product from 71% to 67% compared to 2015 data. Specific factors contributing to the decrease include a reduction in the volume of yellowfin tuna products sourced from FIPs (-21%), in addition to an overall reduction in the volume of wild seafood sourced from FIPs (-27%). Progress on Goal 2 During the reporting period Sea Delight and the Sea Delight Ocean Fund publicly supported five reform and advocacy activities. Regular participation in three Sustainable Fisheries Partnership (SFP) Supplier Roundtables (SR) - Americas Snapper and Grouper SR, Eastern Pacific Ocean Large Pelagics SR, and the Global Fresh and Frozen Yellowfin and Bigeye Tuna SR. Membership was retained on the FisheryProgress.org Advisory Committee to support the day-to-day operations of the website. Became part of the Sustainable Seafood Evaluation Advisory Panel for the David and Lucile Packard Foundation to provide industry perspective on the seafood sustainability movement. Progress on Goal 3 The August 2017 Sea Delight Annual Report has been created to be a publicly available summary of the company s sustainability progress. Through continued collaboration with seafood industry stakeholders, conservation groups, and certification bodies, Sea Delight remains committed to its sustainable seafood policy and to helping drive source fisheries towards a more sustainable future. 7

10 TRACEABILITY POLICY In 2016, Sea Delight and Fishwise, in consultation with World Wildlife Fund, publicly released an ambitious Traceability Policy as part of Sea Delight s continuous effort to improve the quality, integrity, and environmental responsibility of its products. The Traceability Policy reflects Sea Delight s commitment to improving traceability and transparency throughout its supply chains and the broader seafood industry. The traceability goals Sea Delight is workings towards further strengthen the company s Sustainable Seafood Policy adopted in The full version of the Traceability Policy, as it appears on the Sea Delight website, is shown below. Sea Delight recognizes the importance of traceability in seafood supply chains for verifying the legality, integrity, and quality of our products. We are dedicated to continually improving our traceability practices for more robust tracking of products from the source to our customers. We are also actively working with our suppliers to ensure they are part of traceable, transparent, and legal supply chains. Our suppliers must be able to share documentation to demonstrate legality and traceability to the source when requested. We are committed to transparency in our practices and will report publicly on our progress towards this policy annually. Sea Delight Traceability and Social Responsibility Commitments As part of the Traceability Policy, Sea Delight and Fishwise, in consultation with World Wildlife Fund, developed specific, time-bound commitments to track progress of traceability and social responsibility improvements over time. Traceability Commitment: Sea Delight will continue working towards industry best practices in traceability including: standardized data collection for seafood products, supply chain traceability demonstrations, and engagement in multi-stakeholder traceability dialogues and initiatives. We will publicly report on our annual progress regarding these efforts. Specific time-bound goals for Sea Delight include: 1. Improve data collection by building upon work underway with our snapper, grouper, tuna, mahi-mahi, and swordfish by August 31, 2017; 2. Work to ensure effective implementation of traceability measures in three fishery improvement project (FIP) supply chains that Sea Delight sources from to facilitate achieving MSC Chain of Custody certification and other benefits by December 31, 2017; 3. Encourage collaboration within the seafood industry to promote interoperability of traceability systems and aligned approaches that present suppliers with predictable and consistent demands for traceability and for fisheries-based information that relates to environmental sustainability by December 31, 2017; and 4. Actively track developments of important emerging topics related to traceability and anti-iuu measures on an ongoing basis. Social Responsibility Commitment: Sea Delight will continue to learn more about social responsibility within seafood supply chains and ways we can take action via discussions with experts. We will look for opportunities to engage with our suppliers on the topic and understand the efforts they are taking to address social responsibility. We will publicly report on our annual progress regarding these efforts. Specific goals for Sea Delight include: 1. Actively track developments of important emerging topics related to social responsibility on an ongoing basis. 8

11 In 2016, Sea Delight and FishWise, in consultation with World Wildlife Fund, developed a set of measurable goals to track the progress of traceability and social responsibility improvements over time. Progress towards meeting measurable goals is below. Progress Toward Traceability Policy Commitments Traceability Commitments Progress on Goal 1 Sea Delight has taken steps to improve data collection by engaging with suppliers and communicating regulatory requirements on data elements related to FIPs and seafood production. This effort included initiating a pilot with suppliers to collect the information required under the then proposed U.S. Seafood Import Monitoring Program (SIMP) ruling for target species. By working with suppliers before the regulation comes into effect, Sea Delight has been able to facilitate supplier adoption of the new data collection requirements. Progress on Goal 2 In the fall of 2016 and early 2017, Sea Delight and its suppliers participated in the development of a traceability pilot for Peruvian mahi-mahi, providing critical input to its design. In 2016, Sea Delight participated in the design and deployment of the Fit 4 FIP traceability pilot in the WWF yellowfin tuna FIP with their suppliers, piloting the tool to ensure the integrity of the yellowfin tuna FIP supply chain. Progress on Goal 3 In March 2017, Sea Delight participated in a meeting of the Global Dialogue on Seafood Traceability at the Seafood Expo North America. The Global Dialogue is a business-to-business initiative designed to produce standards for achieving industry-wide interoperable seafood traceability. In April 2017, Sea Delight registered as a member of the Global Dialogue on Seafood Traceability, committing to participate in every Working Group of the Dialogue. In March 2017, Sea Delight participated on a panel at the Seafood Expo North America that discussed considerations for companies implementing seafood traceability in an evolving landscape of regulatory requirements and advancing technologies. In June 2017, Sea Delight participated in two panels at the SeaWeb Seafood Summit with the first session focusing on FIP response to new market trends in Latin America. The second panel examined the challenges and opportunities of integrating traceability systems in FIP supply chains. Progress on Goal 4 With assistance from FishWise, Sea Delight has monitored new developments in seafood traceability. Specific topics tracked include: The final ruling of the SIMP. A comparison of the proposed and final key data elements (KDE) required under SIMP. The locations of SIMP and KDE related guidance documents published by NOAA and FAO. The launch of the Global Dialogue on Seafood Traceability Social Responsibility Commitments Progress on Goal 1 With assistance from FishWise, Sea Delight has monitored developments in social responsibility as they relate to the seafood industry. Specific topics tracked include: U.S. Custom and Border Protection s enforcement of the Trade Facilitation and Trade Enforcement Act of 2015 and the steps that can be taken to reduce the risk of human rights abuses in supply chains. The Associated Press investigation into Hawaiian seafood caught by foreign crews confined to fishing vessels. Updates on International Labor Organization investigation into forced labor in Thailand s fishing industry. The presidential Executive Order for Customs and Border Protection and the Department of Homeland Security to develop a strategy for combatting violations of trade and customs laws that expand beyond the seizure of goods. 9

12 Through continued collaboration with seafood industry stakeholders, conservation groups, and fishery improvement projects, Sea Delight remains committed to its traceability policy and in its effort to continuously improve the verification of legality, integrity, and quality of its products. 10

13 2016 DATA ANALYSIS In this report, in-depth analyses have been conducted on the following data sets: 2016 Sea Delight U.S. sourcing data 2016 Sea Delight Canada sourcing data The analyses focus on the sustainability of and degree of FIP sourcing for Sea Delight s five species of importance: Yellowfin tuna Mahi-mahi Swordfish Grouper Snapper FishWise has assessed Sea Delight seafood products against the following environmental criteria: Monterey Bay Aquarium s Seafood Watch Ratings: The most widely recognized sustainable seafood rating system in the United States, the Seafood Watch program uses a traffic light system to indicate to buyers and consumers which seafood products are a Green rated Best Choice, Yellow rated Good Alternative, or Red rated Avoid. Conservation Alliance for Seafood Solutions FIP Guidelines: FIPs are multi-stakeholder projects to improve the environmental sustainability of a fishery. The scope of a FIP can either be comprehensive, addressing the full range of environmental challenges for a fishery to achieve a high level of sustainability, or basic, addressing specific environmental challenges. The results of the data analyses outlined in the Annual Report provide insight into the overall sustainability of Sea Delight s seafood inventory and the importance of FIP products to the U.S. and Canada companies. Supplemental to the analyses, FishWise created product lists (distributed separately from this report) based on 2016 sourcing data for both the U.S. and Canada, including the associated Seafood Watch color ratings and source FIPs - if applicable - for every product. The lists are a useful tool for Sea Delight staff to speak confidently about the sustainability of the seafood inventory and what the company is doing to actively support improvements in source fisheries actions that support Sea Delight s sustainability policy and company vision. 11

14 2016 U.S. Analyses Volume Breakdown Octopus 4% Tilapia 5% Swordfish 7% 2016 Volumes (%) Others Grouper 1% 2% Others Percent Snapper 0.81% Cod 0.24% Nile Perch 0.08% Mahi-mahi 12% Yellowfin Tuna 69% Jobfish 0.04% Salmon 0.04% Lobster 0.01% Corvina 0.01% Escolar <0.01% Yellowtail <0.01% Wild vs. Farmed 2016 Wild vs. Farmed Volumes (%) Farmed 4% Wild 96% 12

15 FIP vs. Non-FIP Non-FIP 32% FIP 68% Wild Seafood by FIP Luen Thai Tuna FIPs 5% WWF Ecuador Mahi-mahi FIP 6% CeDePesca Mexico Grouper FIP 3% 2016 FIP Volumes (%) Other FIPs 2% WWF Peru Mahi-mahi FIP 10% WWF Indonesia Tuna FIP 21% WWF Vietnam Yellowfin Tuna FIP 53% Other FIPs Percent (%) PT Intan Seafood Demersal Fish FIP 1.0% WWF Indonesia Snapper & Grouper FIP 0.5% Hsin-Kang Taiwan Mahi-mahi FIP 0.5% 13

16 Seafood Watch Ratings Breakdown Sustainability Ratings Breakdown (% Volume) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% All Products 34% 20% 39% 7% Yellowfin Tuna 50% 9% 41% Cod Tilapia Swordfish 77% 23% Mahi-mahi 30% 68% 2% Salmon Octopus Grouper Snapper Nile Perch Crimson Jobfish Lobster Corvina Escolar Yellowtail 11% 89% Green Yellow Red Unrated Responsibly Sourced Responsibly Sourced Product (% Volume) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% All Products 34% 20% 21% Yellowfin Tuna 50% 9% 16% Mahi-mahi 30% 55% Swordfish 77% Grouper Snapper 94% Green Yellow FIP Remainder In 2016, Sea Delight U.S. sourced 96% of its total seafood volume from wild fisheries. Of that, 68% was sourced from a total of 11 FIPs. Yellowfin tuna remains the greatest contributor by volume of FIP products to Sea Delight U.S. sourcing, contributing 79% of the total FIP volume for 2016 dataset. If new FIPs are developed for currently Red and Unrated source fisheries, Sea Delight may be able to increase the percentage of FIP product sourced over the next year. In total, 75% of 2016 Sea Delight U.S. sourcing (wild and farmed) meets the FishWise definition of Responsibly Sourced seafood: Seafood products that are rated as either Green Best Choices or Yellow Good Alternatives by the Monterey Bay Aquarium s Seafood Watch program, certified to an environmental standard equivalent to these ratings, or sourced from credible, time-bound improvement projects, including FIPs that meet the Conservation Alliance for Seafood Solutions FIP Guidelines. 14

17 2016 Canada Analyses Volume Breakdown Tilapia 5% 2016 Volumes (%) Marlin 3% Others 3% Swordfish 8% Others Percent Steelhead 11% Salmon 38% Octopus 1.52% Trout 1.07% Mahi-mahi 0.13% Grouper 0.06% Yellowtail 0.03% Tuna 32% Snapper 0.02% Wild vs. Farmed 2016 Wild vs Farmed Volumes (%) Wild 45% Farmed 55% 15

18 FIP vs. Non-FIP Non-FIP 33% FIP 67% Wild Seafood by FIP PT Permata Marindo Jaya Tuna & Large Pelagics FIP 3% 2016 FIP Volumes (%) Others 1% WWF Indonesia Tuna FIP 8% WWF Vietnam Yellowfin Tuna FIP 88% Other FIPs Percent (%) WWF Ecuador Mahi-mahi FIP 0.42% CeDePesca Mexico Grouper FIP 0.20% WWF Indonesia Snapper & Grouper FIP 0.05% PT Intan Seafood Demersal Fish FIP 0.02% 16

19 Seafood Watch Ratings Breakdown Sustainability Rating Breakdown (% Volume) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% All Products 27% 15% 39% 19% Tuna 83% 7% 6% 4% Swordfish Mahi-mahi Tilapia Salmon 98% 2% Steelhead Trout Marlin Octopus Grouper Snapper Yellowtail Responsibly Sourced Green Yellow Red Unrated Responsibly Sourced Product (% Volume) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1% All Products 27% 15% Tuna 83% 7% 3% Swordfish Mahi-mahi Grouper Snapper Green Yellow FIP Remainder In 2016, Sea Delight Canada sourced a majority of its total seafood volume (55%) from farmed sources. The remaining 45% of total volume was sourced from wild fisheries, of which 67% was sourced from a total of seven FIPs. Similar to U.S. company sourcing, yellowfin tuna remains the greatest contributor by volume of FIP products to Sea Delight Canada sourcing - accounting for 99% of total FIP volume for the 2016 dataset. If new FIPs are developed for Red and Unrated source fisheries, Sea Delight may be able to increase the percentage of FIP product sourced over the next year. In total, 43% of 2016 Sea Delight Canada sourcing (wild and farmed) meets the FishWise definition of Responsibly Sourced seafood: Seafood products that are rated as either Green Best Choices or Yellow Good Alternatives by the Monterey Bay Aquarium s Seafood Watch program, certified to an environmental standard equivalent to these ratings, or sourced from credible, time-bound improvement projects, including FIPs that meet the Conservation Alliance for Sea- 17

20 food Solutions FIP Guidelines. The high percentage of seafood products in Sea Delight Canada s sourcing that does not meet this definition primarily consists of Red rated farmed Atlantic salmon. 18

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