Is Spain really as important as the GlobalSeafood Sustainability Movement believes?

Pedro Ferreiro VelascoBuyer Engagement Deputy Director

SeaWeb Seafood Summit. Barcelona, 19th June 2018

1. Spain context

2. Retailer; EROSKI

3. Supply Chain; Nueva Pescanova

4. NGO community; Client Earth

5. How and why is Spain important?

Presentation Outline

1. Spain context

2. Retailer; EROSKI

3. Supply Chain; Nueva Pescanova

4. NGO community; Client Earth

5. How & why is Spain important?

Presentation Outline

47 million people

42 kg per capita supply a year (FAO 2013 data)

18th largest fishing nation in the world (FAO 2014 data)

9.200 fishing boats - 11% of the EU, but 23% capacity

Seafood production over 1 million tonnes a year

Imports are close to 2 million tonnes a year

Exports over 1 million tonnes a year

More than 500 commercial species

1. Some facts

1. Capture productionGroup 2016 (t)

Tunas, bonitos, billfishes 306.661Cods, hakes, haddocks 177.443Miscellaneous pelagic fishes 121.958Herrings, sardines, anchovies 81.856Sharks, rays, chimaeras 70.136Miscellaneous demersal fishes 42.174Miscellaneous coastal fishes 37.239Squids, cuttlefishes, octopuses 28.245Others 26.889

Total 892.601

1. Seafood imports non fish

1. Seafood imports fresh or chilled fish

1. Seafood imports frozen fish

1. Seafood exports non fish

1. Seafood exports fresh or chilled fish

1. Seafood exports frozen fish

1. Spain context

2. Retailer; EROSKI

3. Supply Chain; Nueva Pescanova

4. NGO community; Client Earth

5. How & why is Spain important?

Presentation Outline

EROSKI’s fish mongerBarcelona 2018

Pág. 14

EROSKI: we are different, we are a cooperative

• First distribution group of the cooperative type in Spain

• A leading operator in the Northern regions

• Health and Sustainability are in the core of our strategy

• Our business model offers consumers the freedom to choose from a wide range of goods, specializes in fresh produce, opens up stores to local products

Pág.DEPARTAMENTO EROSKI

About EROSKISALES

million € turnover

5.505million € net sales (before VAT)

4.792million checkout sales

253 33.816

WORKERS

women in positions of responsability

70%

workers

CONSUMERS SUPPLIERS

of Client Partners who have EROSKI, CAPRABO and FORUM SPORT cards

>6 millionssuppliers, of which 97% are located in Spain

10.441of comercial suppliers are small local producers

>50

15

Pág.DEPARTAMENTO EROSKI 16

1.279 Supermarkets61 Hypermarkets19 Cash & Carry50 Petrol stations16 Opticians159 Travel agencies59 FORUM SPORT sportsequipment stores8 Online stores

500 EROSKI / city320 CAPRABO161 EROSKI / center140 ALIPROX78 FAMILIA73 ONDA7 RAPID

STORES

total establishments1.651

16

About EROSKI

Pág.DEPARTAMENTO EROSKI

10 commitments to health and sustainabilityWe reaffirm our aim to contribute to a more sustainable society with higher health and wellbeing rates by promoting healthy eating. The ten commandments made public in April 2018:

1. Engage in food safety2. Promote a balanced diet3. Prevent childhood obesity4. Meet specific nutritional needs 5. Encourage responsible consumption6. Offer more local products7. Help eating well at a reasonable price8. Act clearly and transparently9. Take good care of ourselves as workers10. Promote a healthier lifestyle

17

Pág.DEPARTAMENTO EROSKI

Our Sustainable Fishing Policy

Sustainable fishing techniquesand fisheries

1. Include sustainability of fisheries in the definition of our commercial offer2. Not sell products from illegal fishing3. Respect for minimum fish size and proactivity to set more restrictive minimum fish sizes4. Promote the use of sustainable fishing techniques within our suppliers5. Promote sustainable certified products for extractive fishing

Sustainability in the valuechain

6. Promote local fishermen close to our stores7. Reduce the environmental impact of the distribution activities8. Select suppliers who fulfill the requirements of ILO convention 188

Transparency and governance

9. Transparent labelling and communication10. Enhance collaboration and listening of groups of interest11. Education of consumers on sustainable fishing12. Develop an efficient governance system to control the fulfillment of this Policy

18

Pág. 19

Spanish Market

Consumers look for local product, as the nearest is the fresher.

The biggest market share is in traditional fish mongers hands.

Our market it's fresh fish business, which means that logistics are very tied.

The profitability of fish mongers is really low, so we don't have much to invest

Spanish consumer has little chance to compete in price with others like for example Japan or Northern Europe

Pág. 20

We are a strong fishing country and some parts of the chain have historically understood sustainability like a threat to their jobs, because they relate it to reductions in quota and fishing boats number.

The Spanish industry is not looking at the local market in terms of sustainability, most changes are done to increase exporting opportunities.

So, we have a lack of local products and a high number of certification logos (MSC, ASC, global gap, friends of the sea, Iceland certified, eco labels, .....) that are not well known.

Spanish Market

Pág. 21

In 2013 we did our first steps with MSC certified cod and hake on our fresh fish counters.

But our clients showed us a mild response. They liked it, but it wasn't a key factor to decide their purchasing.

In 2015 Basque fishermen got certified for anchovy first, and in 2016 for tuna.

Sustainability in Eroski

Pág. 22

This gave us the opportunity to build a solid commercial strategy for sustainability.

Now we have tuna, cod, lobster and anchovy on our fresh counters, as well as surimi, salted cod, canned tuna and frozen fish as clams, pangasius (ASC) and hake.

Sustainability in Eroski

Pág.23

But we have to admit that until now we have taken advantage of what others have build before. Which is small as our range of products it's much wider than the European standard.

So what about other main products like squid, octopus, hake, mussels, clams, horse mackerel, ... Will we be able to move this fisheries into a sustainable management?

Next steps

Pág. 24

We buy al around the world, but seafood sustainability seems to have two different speeds

Pág. 25

We still have to do strong campaigns to inform consumers about the need of having a sustainable fishing policy.

So they buy sustainable products, and therefore we can maintain our purchasing policy which eventually could lead to a progressive certification of new origins.

Next steps

Pág. 26

Next steps

THANKS!!!!

1. Spain context

2. Retailer; EROSKI

3. Supply Chain; Nueva Pescanova

4. NGO community; Client Earth

5. How & why is Spain important?

Presentation Outline

O U R F I S H E R I E S S U S TA I N A B I L I T Y S T R AT E G Y– C H A L L E N G E S a n d O P P O R T U N I T I E S

M A Y 2 0 1 8

Nuno Cosmencosme@nuevapescanova.comwww.nuevapescanova.com

The Nueva Pescanova Group is a Spanish multinational company engaged in fishing, farming, processing and trade of seafood products

WE FISHWith 72 own vessels

In the best fishing grounds in the Southern Hemisphere

WE FARMIn our own farms with a farming area of 7,000 ha

Producing 45,000 MT

WE PROCESSIn 16 processing plants

Producing 75,000 MT

We sell in 80 countries

in 5 continents

€1.081 billionSales

(in 2017)

One of the top shrimp producers

in the World

+11,000Employees

in 4 continents

Together we work to be the best food company in the market by bringing the freshness of the sea to the consumer’s table

We rely on our brand and innovation to fish, farm, select and processthe best product wherever it may be

We believe our first responsibility is the sustainability of natural resources and of our partner communities, whose trust we build and maintain by acting ethically and creating value

OUR DNA

ARGENTINA

WE FISH

ARGENTINA: Argentinean Prawn, Toothfish, Hake and Illex Squid

URUGUAY: Hake, Gurnard and Illex Squid

ANGOLA: Red and White Shrimp

MOZAMBIQUE: Prawns

NAMIBIA & SOUTH AFRICA : Hake, Kingklip and Monk Fish

72 vessels in the Southern HemisphereIn the best fishing grounds in the Southern Hemisphere, targeting and catching the best species

WE FARM

VANNAMEI SHRIMP IN LATIN AMERICA

TURBOT IN SPAIN

TILAPIA IN BRAZIL

AQUACULTURE

7,500 hectares of AquacultureWe rely on sound Aquaculture practices to guarantee the sustainability of marine resources

WE PROCESS16 processing plants distributed over 9 countriesWe are committed to Quality

Location Species

Paterna Cod

Catarroja Cephalopods

Arteixo Vannamei shrimp

Porriño Pre-cooked products

Xove Turbot

Chapela Surimi

Country / Location Species

Ireland (Cork) Coldwater shrimp

India Cephalopods

Ecuador Vannamei shrimp

Francia (Saint Laurent du Var) Vannamei shrimp

Francia (Boulogne) Vannamei shrimp

Guatemala Vannamei shrimp

Argentina Argentinean prawn

Nicaragua Vannamei shrimp

Peru Mahi-mahi & cephalopods

Namibia (Lüderitz) Hake

Namibia (Walvis Bay) Hake

We have own sales offices in:

WE SELLIn 80 countries and we are market leaders in Spain and Portugal

AUCHAN: Spain, France, Italy and Portugal

CARREFOUR: Spain, France, Italy and Portugal

CONTINENTE: Portugal

COOP: Italy

DIA: Spain, France, Italy and Portugal

E.LECLERC: Spain and France

ESSELUNGA: Italy

INTERMARCHE: France

LIDL: Europe

MERCADONA: Spain

PINGO DOCE: Portugal

WE MARKETSome of our key clients in Europe

The Nueva Pescanova Groupmarkets more than 70 types of fish and shellfish

SHRIMPS AND PRAWNS

HAKE SURIMI CEPHALOPODSCOD TURBOT

A WIDE RANGE OF SEAFOOD PRODUCTSFrozen, chilled, and ready-to-eat and easy-to-prepare meals

The Nueva Pescanova Group is committed to the preservation of aquatic ecosystems and the marine environment, by rationalizing its fishing and farming activities.

The Nueva Pescanova Group is aware of the need for appropriate legal and biological regulations for the management of sea resources as the only way to ensure sustainable and stable catches, and complies with the principles of the FAO’s Code of Conduct for Responsible Fisheries.

All our vessels, farms and factories are equipped to achieve the upmost respect for the environment, pursuing the sustainability of our fishing, farming and industrial activities to guarantee the availability of resources in the future.

SUSTAINABLE SOURCING

PLANET

sustainable management of resources, respect for

natural ecosystems and the environment, in order to

ensure their availability for future generations, guarantees the future and the operational

success of our group

PEOPLE

respect for diversity, safety, professional growth and the

pride of feeling part of the group are the basis for our success and

the maintenance of trustful relationships with suppliers, customers, consumers and

communities

PRODUCT

we facilitate access to nutritious, healthy, tasty,

innovative and responsibly produced seafood markets

COMMUNITIES

aware of the value of seafood, we strive for the development of

more prosperous communities generating wealth, job opportunities and training where we are

present

ETHICS, INTEGRITY AND REGULATORY COMPLIANCE

VALUE

CSR STRATEGYFOUR PILLARS – Aligned with the UN Sustainable Development Goals

Five PRINCIPLES:

It is the operational response of theNueva Pescanova Group

to the positioning of its CSR guiding principles

Integrated Plan of Initiatives designed to conductand document responsible actions and the

sustainable use of natural resources

PLANET · PEOPLE · PRODUCT · COMMUNITIES

‘Pescanova Blue’ sustainability programmeCSR Strategy

‘Pescanova Blue’

FIP

Our scheme for the recognition of sustainability evidences

Evidence of Certification of Fisheries or Aquaculture Sustainability – Certification schemes recognized by the Global Sustainable Seafood Initiative (GSSI):

• Marine Stewardship Council (MSC)• Alaska Responsible Fisheries Management (ARFM)• Iceland Responsible Fisheries Management (IRFM)• Best Aquaculture Practices (BAP)• GLOBALG.A.P.

Evidence of other Certifications of Fisheries or Aquaculture Sustainability recognized by the 'Pescanova Blue' programme:

• Aquaculture Stewardship Council (ASC)

Evidence of commitment to complementary actions towardsFisheries or Aquaculture Sustainability – origin under a fisheryimprovement project (FIP) or aquaculture’s (AIP)

Evidence of sustainable origin based on a FishSource profile

CHALLENGESAiming at sustainable sources

Lack of certified stocks

Limited engagement in FIPs

Outdated or not available FishSource profiles

Limited availability or transparency of stocks management data

Scientific data not available on pertinent stocks

Unsustainable artisanal fisheries (harmful practices, species, closures)

Bycatch important for food security

Sourcing Certification Sustainability

Issues

Implication

Local scaleRegional scale

from FisheryProgress.orgactive, comprehensivetrawl fisheriesFIPs

modified from fisheries.msc.orgbottom trawl fisheries

from sustainablefish.orgbottom trawl fisheries

OPPORTUNITIESCurrent focus and Needs

OPPORTUNITIESAiming at sustainable sources

Documenting sustainable sources towards our CSR strategy and

Sustainability Programme

The partnership and collaboration with SFP

Collaborating with and promoting the Target 75 Initiative

Evidences of work towards sustainability

More data/profiles/FIPs on African stocks

“Sustainable or Improving”

1. Spain context

2. Retailer; EROSKI

3. Supply Chain; Nueva Pescanova

4. NGO community; Client Earth

5. How & why is Spain important?

Presentation Outline

Is Spain really as important as the global seafood sustainability

movement believes?

Paloma Colmenarejo FernándezSeaweb Seafood SummitBarcelona19 June 2018

Discussion points• Introduction to ClientEarth• Spaniards: we love seafood!• What is needed from the seafood industry• Why is ClientEarth in Spain?• So, “Is Spain really as important as the

global seafood sustainability movement believes?”

Imag

e: @

Palo

maC

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Introduction to ClientEarth• ClientEarth is a non-profit environmental law organisation

• We use law, science and policy to tackle key environmental challenges

• We work on climate change, energy, environmental justice, forests, human health and biodiversity

www.sustainableseafoodcoalition.org

Spaniards: we love seafood! A Coruña

Vigo

Bilbao

CanaryIslands

Sevilla

ValenciaMadrid

Barcelona

BalearicIslands

Data source: mapama.es

Spanish catches around the world

36%9 %

15%

12%

4 %16%

26 May 2018 Fish Dependence Day for Spain

Imag

e: H

erná

n Pi

ñera

A typical consumer profile Im

age:

@Pa

lom

aCol

me

What is needed from the seafoodindustry - supermarkets

• Responsibility

• Prioritising sustainability

• Committing to sustainability

Why is ClientEarth in Spain?

• Supermarkets

• NGOs

• Legal

Plataforma por la sostenibilidad pesquera

“To be a leader in the sale of sustainable seafood products”

Our work with Supermarkets

Recommendations for how to source responsible seafood products

Our work with NGOsIm

age:

Kat

ieM

iller

• Common Organisations of the Markets (CMO)• Control Regulation• Illegal fishing (IUU Regulation)

Our legal research and analysis

¡Pues claro!

So, “Is Spain really as important as the global seafood sustainability movement believes?”

Imag

e: S

ebas

tian

Voor

tman

from

Pex

els

Thank you!

Paloma Colmenarejo FernándezSustainable Seafood Project Coordinator in Spain

pcolmenarejo@clientearth.orgwww.clientearth.org / www.es.clientearth.org/@ClientEarth / @OceansCE@PalomaColme

Gràcies! ¡Gracias!

1. Spain context

2. Retailer; EROSKI

3. Supply Chain; Nueva Pescanova

4. NGO community; Client Earth

5. How & why is Spain important?

Presentation Outline

5. How & why

Target 75:75% sustainable or improving by

end of 2020

T75 Scope; 36 % of Global Fish & Shellfish

5. How & why

5. How & why

6% 5,5% 10% 5,5% 7% 14%

5. How & why

• Key for Squid and Octopus

• Will add on Tuna, Whitefish and Large Shrimp

• Expand the movement into Southern EU Countries

• Precedent for similar scenarios (Korea or Japan)

• Expansion of policy and commitments from global retailers

5. How & why

But now…Let’s have a look at ourselves to see from another angle why Spain is also important.

5. How & why

5. How & why

5. How & why

• 1 fishery MSC certified – South Africa cape hakes

• 1 fishery in MSC assessment – Namibian hakes

• 6 FIPs in Africa

o 3 Comprehensive – OPAGAC, Gambian Sole and MoroccoSardine

o 1 Basic – Mauritanian small pelagics

o 2 Prospective – Mauritanian Octopus and MadagascarOctopus

5. Africa and The Movement

Region with deepest needs:• National development• Poverty reduction• Food security

5. Africa and The Movement

Corruption

5. Sub-Sahara Exports Seafood

5. Sub-Sahara Exports Fresh & Chilled Fish

5. Sub-Sahara Exports Frozen Fish

5. Sub-Sahara Exports Parts of Fish

5. Importers from Sub-Sahara

5. Spain & Sub-Sahara

To succeed there must be alignment from;• Southern EU retailers• Companies with fishing interest• Agencies; FAO, World Bank, UNDP…• ONGs• Philanthropic funding• National development agencies

5. Africa and The Movement