Earlier this summer, President Obama announced an ambitious new policy to combat illegal fishing with tougher requirements on seafood entering US markets. At present, 20%-30% of seafood is thought to be caught through illegal, unreported or unregulated fishing – and half may be mislabeled. At the same time, recent investigative reports from the Guardian have uncovered slave-like conditions on Thai fishing boats, raising a wellspring of concern from activist consumers, as well as multinational retailers accused of sourcing from supply chains that use slave labor.
Seafood businesses face more consumer mistrust, disgust at labor conditions, and worry over fisheries collapse and ecological catastrophe than ever before. They are at a crossroads: they can wait to change their practices until increasingly stringent regulations force them to do so, or can embrace new policies now, investing in traceability and monitoring technology, and committing to sustainable sourcing from independent, near-shore fishing communities.
Companies that act early stand to earn consumer loyalty and gain a competitive advantage. That should be a big draw in an industry where competition can be fierce.
On the other hand, the seafood industry has a lot to lose if it continues unsustainable practices, including the loss of its very business.
Today, overfishing leads to dwindling fish stocks, while climate change, acidifying oceans, and pollution further imperil the industry’s future. Ignoring marine ecosystem health and alarming labor practices result in significant risks for companies, including brand and reputational exposure, as well as loss of market share, supply, and profit over time.
Some companies taking action, but not enough
The good news is that some big actors in the seafood industry – representing fishing, processing, exporting and retail enterprises, among others – already recognize this and are voluntarily working to address long-term sustainability concerns.
Industry groups such as the National Fisheries Institute Crab Council, for instance, have pooled resources to institute measures toward ensuring the long-term sustainability of blue swimming crab production in Thailand, Vietnam and Indonesia. Retailers such as Costco, Darden Restaurants, Ahold, McDonald’s and Whole Foods have made ambitious commitments to source sustainable seafood, and are putting pressure on their suppliers to demonstrate that they are using sustainable practices.
Because of these and other efforts, more than 10% of global seafood is now independently certified as compliant with Marine Stewardship Council sustainability standards, representing more than 20,000 seafood products.
But 10% just isn’t enough. While laudable, these measures pale relative to the magnitude of the problem and the complexities of solving it.
Large-scale sustainability means reaching small fishers
To drive system-wide change, an important step would be to establish sector-wide – not just company-wide – sustainability commitments. Companies, working together, have an opportunity to proactively make commitments now, before consumer advocacy puts retail companies further on the defense. By taking sustainability on as an industry, it can exercise the necessary pressure for change within the supply chain. It also levels the playing field so one company won’t get a competitive advantage by not participating.
However, commitments alone won’t solve all of the problems. For one thing, well-intentioned sustainability commitmentsare often thwarted by a lack of enough supply to meet consumer demand. As it is, without precarious fishing methods such as fishing aggregating devices and purse seine nets, it is unlikely that the tuna industry could meet global demand.
One reason for the low supply of certified seafood is that sustainability measures largely apply to industrial fisheries, but don’t reach independent fishers, who typically have smaller boats and stay closer to shore.
These independent fishers represent 90% of the world’s fishers and catch half of the world’s fish, but because their operations are small, they are usually unable to tap into new market opportunities and benefit from the price premiums that certified sustainable seafood can command. The reasons are two-fold: costs to get certified typically outweigh the benefits unless they are able to sell larger quantities. Two, buyers of sustainable seafood would rather buy in larger quantities rather than deal with a multitude of independent fishers.
Retailers can play a key role in changing this. In fact, some seafood retailers and suppliers – such as Safeway and Kroger – are already working with NGOs like the MSC, the World Wildlife Fund, the Sustainable Fisheries Partnership and others to improve fisheries management practices. These efforts are currently underway, not just in northern industrial fisheries but also in low- and middle-income countries, and some are engaging independent fishers.
Growing supplies sustainably
If most of the industry (retailers and buyers alike) agrees to source responsibly, that will pressure those buying illegal fish to change their ways. Responsible sourcing, of course, goes well beyond environmental considerations: it also means that those catching and processing fish are paid fairly and treated well.
After the news about the Thai fishing boats, many global retailers, such as Walmart, Tesco, and Costco, are elevating social concerns with their suppliers and increasing the scrutiny of their supply chains. This, too, is a great start. But again, greater adoption of ethical production standards is needed. Such standards could become part of the calculation that determines whether or not they get certified by the MSC.
Certifying and buying from new suppliers would also go a long way towards addressing both environmental and labor concerns. Direct sourcing from fishing communities, independent fishers or local cooperatives would expand supply options, while also contributing to inclusive economic development in what are often impoverished villages and helping to preserve traditional fishing culture.
Meanwhile, retailers will have a better chance of meeting their sustainability pledges if they invest in sourcing initiatives that involve independent fishers and can deliver the volume and range of seafood products that consumers demand. Sourcing directly also would lower their risk of human rights abuses in their supply chain – and the reputational damage that comes with it.
With so much attention on the industry at this moment, there has never been a better time for bold, collective action that will build a future in which profits derived from a precious natural resource – fish – are more equitably and responsibly earned and shared today. Companies should seize this opportunity to build their businesses and protect the industry for tomorrow.
Cristina Rumbaitis del Rio is a senior associate director at The Rockefeller Foundation. Sissel Waage is the director of biodiversity and ecosystem services at Business for Social Responsibility.