Disclaimer

1. Disclaimer If any interpretive issues arise in relation to the issues covered in these presentations, the text of the English MSC Scheme Documents will prevail in all instances. The MSC is not responsible for any issues arising to any parties as a result of consulting these presentations. If you are unsure of any details on any of the subjects covered, please consult the relevant MSC scheme documents or contact the MSC at standards@msc.org. MSC Executive September 2011

2. Introduction to MSC Chain of Custody standard version 3

3. The MSC Standards Principles and Criteria for Sustainable Fishing Chain of Custody Standard

4. Sustainable Fishing: The 3 Principles • PRINCIPLE 1 A fishery must be conducted in a manner that does not lead to over-fishing or depletion of the exploited populations and, for thosepopulations that are depleted, the fishery must be conducted in a manner that demonstrably leads to their recovery • PRINCIPLE 2 Fishing operations should allowfor the maintenance of the structure, productivity, function and diversity of the ecosystem (including habitat and associated dependent and ecologically related species) on which the fishery depends • PRINCIPLE 3 The fishery is subject to an effective management system that respects local, national and international laws and standards and incorporates institutional and operational frameworks that require use of the resource to be responsible and sustainable

5. The sustainability of the stock Effective Management Ecosystem Impact

6. Chain of Custody standard

7. 1856 +31% in 1 year

8. Total of 1126 valid CoCcertificates in Europe1034 single site certificates89 group certificates Data as at 27/09/2011

9. Activity • In pairs see if you can guess the top 10 countries for CoC certificates • List on a sheet of paper

10. Top 10 countries for CoC Certificates(on 01/08/2011)

11. Learning Objectives • To know the recent changes to the MSC CoC standard and how they affect your clients • To know the content of Annex BD • To know the timeline for implementation • To enjoy the learning experience!

12. Agenda • Standard Development process • What’s new? • Discovering the new Standard • Discovering the new Annex BD? • Timeline for implementation

13. Standard development process • Based on ISEAL Code of Good Practice for Setting Standards MSC Standard Setting Procedure • MSC’s Board commissioned revision in August 2010 • Revision started in Sept 2010 • First public consultation in October 2010 • First draft presented for public consultation in April 2011 • MSC revised draft in May-June 2011 • MSC presented final draft to TAB and BOT in July 2011 • MSC BOT approved final draft in July 2011

15. What’s new? • Structure: • consistent with structure of the fisheries standard • allows ease of reading and logical flow of P’s & C’s • Standard gathers requirements applicable to all applicants and certificate holders • Specific requirements applicable to certain circumstances are gathered in Annex BD of CR

16. What is new? - Scope • “This international standard establishes a system for maintaining the chain of custody in the supply chain of products from fisheries certified to the MSC Principles and Criteria for Sustainable Fishing or to other standards as approved by the MSC“ • Allows management of ASC CoC certification or others

17. What is new? - Vocabulary • Taken from MSC vocabulary in CR • + additional terms not noted in CR • Helps users to understand terms without having to look at the CR

18. What is new? - Principles and criteria • Requirements now split into Ps & Cs • Matches Fishery Standard • Do you know the 4 principles?

19. Four Principles The organisation shall have a management system The organisation shall operate a traceability system There shall be no substitution of certified products with non-certified products There shall be a system to ensure all certified products are identified

20. Principles and criteria • Clearer • Simpler • Duplication and repetition have been removed • Guidance has been removed • Only 2 pages of actual requirements

21. P1- Management systems 1.1 Have a management system in place 1.1.1 Documentation depends on size and complexity of operation 1.2 Training requirements 1.3 Keep records (minimum of 3 years) 1.4 Manage your subcontractors

22. P2 - Traceability System 2.1 Records that allow product or batch to be traced and tracked 2.1.1 Confirmation of volumes of certified inputs and outputs 2.1.2 Records shall allow conversion rates for certified outputs from certified inputs (only for processing/re-packing) 2.2 Only sell products within scope

23. P3 - No substitution 3.1 Never mix certified with non-certified 3.1.1 However, non-certified ingredients may be used in accordance with annex BD 3.2 Ensure packaging with MSC ecolabel can’t be used for non-certified ingredients

24. P4 - Identification of products 4.1 Identify products at all stages 4.2 Only label products within scope of certification 4.3 Use of MSC trademarks is subject to MSCI rules and approval

25. Removed requirements • Keeping records of non-certified input and output (v2.1 section 3.2) • Description on how to obtain segregation of products (temporal or physical as it was guidance) • 2% flavouring rule – replaced by 5% rule in Annex BD

26. Review • What are the 4 principles? • In different pairs to the earlier exercise see how many of the criteria you can remember? • 10 minutes to do • Share answers afterwards

27. Additional requirements • Normative but only applicable to certain applicants and certificate holders and in certain situations only • Captured in Annex BD of Certification Requirements • Provides flexibility MSC requires to respond to market

28. CR 7.1.1.2 Any time that a copy of the MSC CoC Standard is distributed to any individual or organization, the CAB shall attach a copy of Annex BD. http://www.msc.org/about-us/standards/standards/chain-of-custody

30. BD1 – Reporting Changes • Companies to inform CB when • Add new sites (prior to using them) • Extend scope (prior to handling products) • List a new supplier (within 10 days of receiving its 1st delivery) • Previously in CoCCM v7

31. BD2 – Tracebacks • MSC regularly carries out traceback activities • A traceback exercise traces MSC labelled products back to the certified fishery of origin by seeking supporting documentary evidence through the supply chain • This section sets out the requirements certificate holders have to follow in case they are contacted by the MSC for a traceback • Allows MSC to contact CAB in case of lack of collaboration • Previously in TAB-D 25

32. BD3 – Under-MSC-Assessment-Fish • Define what applicants and certificate holders have to do to handle Under-MSC-Assessment-Fish • Previously in CoCCM v7

33. BD4 – Use of subcontractor(s) • Extension of criteria 1.4 (Principle 1) • Define what applicants and certificate holders have to do when subcontracting activities (including contract processing) • Previously in TAB-Directive 18

34. BD5 – Non certified ingredients • Non-certified seafood can be used up to 5% of total seafood content • MSCI makes ultimate decision • Calculation

35. BD 6 – group requirements • Refers to Annex BC

36. Standard and Annex BD Implementation timeline • Date of publication: 15/08/2011 • When it can be implemented: 15/08/2011 onwards • All applicants audited against v3 from 14/11/2011 • All certified companies must comply with v3 on 14/11/2012

37. Review • Write down 3 new things learnt about the new CoC standard and Annex BD in this session • Share your answers with another participant

38. Now it’s your turn! • Read, understand and adopt the Standard & Annex BD • Ask us any questions if something is not clear • Spread the word • Always provide the Standard with Annex BD!

39. Any questions? Thank you