Verification of sustainability claims
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1 How can certification provide verification of sustainability claims? Guro Meldre Pedersen, DNV Global Seafood Coordinator
2 Agenda 1. DNV - a certification body 2. through certification The principles of certification The claim The chain of custody 3. Summary 2
3 DNV - a certification body Vision: Global impact for a safe and sustainable future Purpose: Safeguarding life, property and the environment DNV - Independent foundation established in Food and beverage: Help producers and operators manage risks in their own operations and along the supply chain - Certification - Assessment - Training - Consultancy services - Seafood commitment; trusted partner for safe and sustainable seafood - Fisheries - Aquaculture - Processing - Feed 3
4 Highly skilled people across the world 300 Top 3 offices DNV is among the world s top three certification companies 70, More countries than 70,000 management system certificates under more than 80 accreditations 8,600 5,000 employees, More than 5,000 of which food 82% companies have university certified by degree DNV 4
5 through certification Verification of traceability solution / chain of custody Verifyable information supporting sustainability claims attached to a product 5
6 What is 3 rd party certification? Certification = verification of compliance with a standard Example: The MSC operates a 3 rd party certification program. Assessment conducted by an independent organization Standards established by experts in consultation with stakeholders. The highest level of assurance and means the outcome is unbiased. 3 rd party Independent organization 1 st party Producer 2 nd party Buyer 6
7 Why certification? Increasingly recognized as a tool in the marketplace. Tool to manage and communicate different types of risk between stakeholders in the supply chain. Communication to? - B2B: Demonstrating / directing supplier behavior - B2C: Communication of practices to consumers and society - Society at large frame conditions Communication of? 7
8 The Claim Standards relevant for sustainable aquaculture production Standard Organization Intended use Stated focus Global Aquaculture Alliance ISRTA Tilapia aquaculture dialogue Trade organization B2B / B2C Environmentally and socially responsible aquaculture To be owned by ASC, funded by WWF and the Dutch Sustainable Trade Initiative (IDH) B2C Responsible aquaculture; improve environmental and social performance GLOBALG.A.P IFA Aquaculture Private sector; retail and producers B2B Good aquacultural practices Friend of the Sea NGO B2C Conserve marine habitat Naturland NGO / Farmer association, ecological production B2C Promote ecological production Whole Foods Market Retail, internal purchasing policy Own supply chain Natural and organic grocery 8
9 Overall comparison to FAO guideline Mainly management system based Management requirements Descriptive Value-based Mainly descriptive Environmental Social Animal health and welfare Food safety and quality Drugs and chemicals Evaluation and mitigation of impacts Energy Feed Environmental impact assessments Identify and manage impacts Practices Restoration Environmental Monitoring criteria and record keeping Seed sourcing Escape Native/exotic species GMO Waste Water extraction and effluents Carbon footprint* Rural development Access to resources* Gender and age Labor laws, child labor SHE* Wage and welfare Social Certification criteria of small-scale farmers Costs for small-scale farmers Financing of small-scale farmers participation CR in engaging small-scale farmers and stakeholders Socio-economic issues Market access Discharge of drugs Disease treatment Legislation Pathogen transfer Pathogen Movement Healthy culture environment free Polyculture Reduce stress at all stages Training Location Contamination bivalve molluscs Record keeping and traceability Veterinary drugs and chemicals Feed Farm produced feed Hygiene practice Training Broodstock and seed sourcing Water quality Animal health & welfare criteria Food safety & quality criteria GAA ISRTA GlobalGAP Friend of the Sea Naturland Whole Foods 9
10 How can certification provide verification of sustainability claims? The MSC example. MSC Fishery Verification of sustainability claims MSC CoC Verification of chain of custody Verifyable information supporting sustainability claims attached to the product 10
11 MSC Fisheries certification the standard Principle 1: Sustainable fish stocks - The fishing activity must be at a level which is sustainable for the fish population. Principle 2: Minimizing environmental impact - Fishing operations should be managed to maintain the structure, productivity, function and diversity of the ecosystem on which the fishery depends. Principle 3: Effective management of the fishery - Must meet all local, national and international laws - Must have a management system in place to respond to changing circumstances and maintain sustainability. 11
12 MSC Fisheries certification the process 12
13 MSC Chain of Custody the standard MSC Fishery MSC CoC purpose: Make sure that the MSC eco-label is only displayed on seafood from an MSC certified sustainable fishery. MSC CoC How: - MSC and non-msc products are separated in time or space. - Clear administration that allows mass balance calculations of MSC product through supply chain 13
14 The MSC CoC certification process keep living up to requirements! Pre-study, Implementation (internal) Status analysis (optional) Initial audit Follow up nonconformities Certificate Certificate validity: 3 years Surveillance audit Surveillance audit Follow up nonconformities Follow up nonconformities Intervals based on risk analysis months Recertification Follow up nonconformities Certificate Certificate validity: 3 years 14
15 Risk analysis frequency of surveillance audits Risk factor Max score 1. Activity: Trading, transport, storage, wholesale, harvest, packing, processing, retail Handling of products: Ownership, use of subcontractors 8 3. Species handled: Simultaneous handling of certified / non-certified species Other credible 3rd party traceability requiring standard certifications held by company for the last 12 months 5. Company s performance at last MSC CoC audit 1major non-conformance found (or certification suspended last 12 months) Enhanced # minor non-conformances found 6. Information from other audits and regulatory bodies Prosecuted for failure to meet regulatory requirements Enhanced Major non-conformances standards / regulations Number of staff involved in applying label or making label application decisions 3 8. Country of operation ranking on Transparency International s latest corruption perception index 28 Ref: Table 1, Appendix A, Chain of custody certification methodology 15
16 Risk analysis frequency of surveillance audits Risk assessment score 50 Frequency of surveillance audit Enhanced surveillance (onsite each 6 months) Standard surveillance (onsite each 12 months) Reduced surveillance (onsite each months) 15 Remote reduced surveillance (desktop each months) Overlapping ranges: Where this occurs (i.e. a score of or 50-55) CBs shall make the decision on which surveillance type to use, and shall record their reasons for the decision. 16
17 Test of traceability system and mass balance on batch level Input Subcontractors Production By-products (ex fish oil) Output Documentation - Invoices - Catch certificates - Custom inspection documents - Etc. Test on batch level Flavors Documentation Waste - List of MSC cert products handled - Processing records for traceability of lot/batch - Registration of offals - Conversion rates from tables - Test of conversion rates, yields - Etc 17 Inaccurate/missing yield calculations Record keeping for 3 years Documentation - Invoices - Bill of lading - Lot/batch no - Etc. Complexity of processing
18 Summary Certification can be a tool for verification of sustainability claims The claim: - What is the scope of the standard? - Descriptive or management system focused? - Intended use - The standard scheme - Accreditation - 3 rd party - Auditor competence - etc The chain of custody: - Keeping fish with sustainability claim attached apart from other fish - How is information transferred? Traceability basis for transparency 18
19 Safeguarding life, property and the environment 19
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