SUSTAINABILITY PROGRAM UPDATE October 21, 2015

We’ve had a very busy year for the RFM Program and I’m going to tell you more about that, but first, I’d like to start by showing you a video that was produced this last year. RFM VIDEO

The seafood landscape & SUSTAINABILITY So, although the seafood landscape is always changing, one thing that remains consistent is the requirement for an independent, 3rd party certification to verify sustainability in order to sell our seafood into most markets. Our Customer Advisory Panel met in July and we heard them confirm what we already know…that sustainability is a market access requirement & consumers simply expect it. They recommended we continue to focus on the emotional connection to our brand and our sustainability story is part of that. – Although perhaps not one of the primary sales drivers, is still very important and an integral part of Alaska’s story. USE QUOTE: And, we heard from Larry/Claudia & Edelman about…..

Yes, taste, price and convenience are key drivers, but…

Seafood is a Product of its Environment …As we heard in the video, Ultimately, Seafood is a Product of its Environment….and….

Sustainability Delivers Brand Value Producers of the Purest Taste Experience on Earth Leaders in Fisheries Management Stewards of the Environment EMOTIONAL RATIONAL SOCIETAL Bottom line is Sustainability delivers brand value to the AK story … Ultimately, our marketing messaging focuses on our origin. It’s not about any label or certification program. One of Alaska’s best points of differentiation is the passion associated with the product, and we try to capitalize on that as much as possible. Our Sustainability message goes far beyond that of a constitutional mandate from the 1950’s…AND, it is much more comprehensive than just the RFM Program. Cert programs are just a small part of the messaging and really should be in the background of our primary messaging. Sustainability messaging helps us on multiple fronts, and It is woven into our consumer messaging…..AND we heard from our CAP that this shouldn’t change. As you can see from these examples, Sustainability does have a role in consumer messaging – it may be a secondary message, but it still plays an important role I’ve pulled some examples of this from different national publications……and how it messages across multiple elements of our messaging from Emotion…..to Rational…..to Societal “…one of the most environmentally-friendly seafood choices consumers can make.” “Alaska’s constitution mandates sustainability…science-based fishery management practices considered a model for the world.” “Alaskan seafood is highly sustainable…as a result, the Alaska salmon harvests have been abundant for more than three decades.”

RFM EVOLUTION OVER THE LAST YEAR So, I’d like to share with you some of the high-lights from the last year.

RFM Certified Fisheries Alaska Salmon Alaska Halibut Black Cod/Sablefish These are the RFM Certified Fisheries, and last year we said one of our major goals was to identify a client group for each one because ASMI cannot be both the Standard Owner and represent the fishery as the client….. Alaska Pollock BSAI King and Snow Crab Alaska Pacific Cod Alaska Flatfish

RFM Fishery Clients Alaska Salmon & Pacific Cod: Alaska Fisheries Development Foundation, Inc. Alaska Halibut & Black Cod: Fishing Vessels Owners Association (Eat on the Wild Side) Alaska Pollock: Alaska Fishery Client Group Pacific Seafood Processors Association, the At-sea Processors Association, Alaska Groundfish Data Bank Alaska Crab: Bering Sea Crab Client Group LLC Alaska Flatfish: Alaska Seafood Cooperative We now have all these client groups in place. This information is also listed on the ASMI website.

Origin Label vs. Certification Seal Allows ‘certification claim’ Chain of Custody Required / Traceability No Logo License Fee! Based on the other program’s presentations, we continue to have strong support and usage of the ASMI origin logo; however, for those that may not be aware, we do offer a ‘certification Seal’ as well When RFM launched we didn’t emphasize the use of the this logo; however, I want everyone to be aware that it is available and it can provide your customers options that the origin logo may not Similar to the MSC ecolabel, this RFM Seal allows customers to make a ‘certification claim’…and provides traceability. The RFM Program does have a CoC standard, and like MSC, a customer needs to have completed a CoC audit in order to use this label on consumer packaging.. What isn’t similar to MSC is that there is no logo license fee to use the Seal Again….we aren’t doing a full court press on the use of this; however, we should feel comfortable offering it as option for customers

RFM PROGRAM STRUCTURE Over the last year, we’ve focused a great deal of efforts on creating a more formal program structure – so I’d like to share some of these areas with you…..

RFM Program COMMITTEE SUPPORT ASMI Board – RFM Ownership & Oversight Mr. Barry Collier (Chair) RFM Committee – Strategy and Policy Mr. Larry Cotter (Chair) Professional Bios on ASMI website Terms of Reference (TOR) publicly available Conformance Criteria Committee & Technical Committee – Standards Oversight Dr. William Smoker & Hart Schwarzenbach (Chairs) Professional Bios on ASMI website TOR publicly available RFM Program has 3 advisory committees and the Program oversight and ownership is managed by the ASMI Board The RFM Committee handles program strategy and policy and recommends approval to the ASMI Board for work products; including those suggested by the Technical and Conformance Criteria Committees Standards Management is handled by 2 committees – CCC & Technical Although there was an original CCC back in 2011/12, this is primarily comprised of new committee members who were approved by the ASMI Board This committee lends a great deal of credibility to this program because it is a multi-stakeholder & global group of experts from state and federal management agencies, science institutions & NGOs TORs & Bios for all committee members are on the ASMI website

Introducing The RFM QUALITY MANAGEMENT SYSTEM (QMS) The RFM Quality Management System is one of the biggest accomplishments for the RFM Program in the last 12 months. It is the ‘bible’ and backbone for the program.

RFM Quality Management System (QMS) Describes the RFM Governance, Controls, Policies and Procedures Provides the RFM Program a transparent & structured management system – serves 2 key purposes Maintains program consistency & credibility Information & training tool for staff & stakeholders of the RFM Program It legitimizes this program and provides information on how the program operates and is governed, It lays out key procedures and offers transparency in many of the areas that the program was criticized in the past – e.g.: governance, lack of clarity on who is involved in the program, how decisions are made, etc… We originally published the QMS in June and that was driven by the GSSI pilot audit. But, it’s important to understand that this is a ‘fluid’ document that changes as we further refine the program. So, although the the entire QMS is on the ASMI website, please know that further edits to the document are taking place, and will go to the ASMI Board for approval this Friday * Published on ASMI website http://certification.alaskaseafood.org/alaska-rfm-governance-structure

Program Milestones and Accomplishments EVENTS WHERE RFM HAD A PRESENCE Pacific Marine Expo FAO & Thai Dept. of Fisheries (workshop & panel) Boston Seafood Show Bering Sea Fisheries Conference (Panel) Conxemar & FAO Conference World Seafood Congress German Press Tour Conformance Criteria Committee Meeting GSSI Benchmark Tool Launched in Vigo, Spain Conformance Criteria V 1.3 to ASMI Board for approval Ocean Trust Conference Seafood Summit Comfish & Brussels Seafood Show OCT NOV DEC 2014 JAN 2015 FEB MAR APR MAY JUN JUL AUG SEP Conformance Criteria V 1.2 goes out for public comment Inaugural Meeting of the Conformance Criteria Committee (CCC) Chain of Custody Training session for Certification Bodies Spring RFM Program Quarterly Update sent out (1st edition) This slide gives you an idea where RFM has been over the last year, and some of our big Milestones. Last year the Board approved the RFM Strategic Plan, and we’ve had a busy year. Attended many conferences – small & large; including participation in workshops & panels Some things to call your attention to: Our fisheries criteria went out for public comment this year. First time ever… Inaugural meeting of our CCC & subsequent meeting in August – working towards a V2 of our FM Std GSSI Pilot Audit completed in June And recently…. Sponsorship at the World Seafood Congress Week of October 6th – Conxemar conference in Vigo Spain The tradeshow was followed by a 2 day conference, which celebrated the 20th anniversary of the FAO CCRF And…the formal launch of the GSSI Global Benchmark Tool NEXT SLIDE…. Board approved Conformance Criteria Committee and RFM Committee Board approved RFM Strategic Plan Signed MOU with American National Standards Institute (ANSI) MOUs signed with all new Fishery Clients RFM QMS Manual completed GSSI Pilot Audit Complete MILESTONES

Sustainability Speaks Out… I had the pleasure of speaking on a Sustainability/Certification panel at the conference in Vigo with John Sackton and John Connely of NFI, among other folks, and Q&A with all panelists was featured in the conference magazine.

The Importance of Benchmarking Pilot Audit Completed: June 2015 Final Benchmark Tool Launched: Oct 2015 Operational Audits Begin: Q4 2015/Q1 2016   GSSI PARTNERS Want to take a moment to dive a little deeper into GSSI…or the Global Sustainable Seafood Initiative because it is one of the most important things happening in the seafood certification landscape right now. I think everyone knows what this is, but for those who don’t, this is an initiative that started in 2011 and has been a global, multi-stakeholder initiative to develop a global tool that certification programs can be benchmarked against. This auditing criteria for this tool is directly based on the FAO Code of Conduct for Responsible Fisheries & Ecolabelling guidelines. ASMI has been very actively involved with GSSI from the beginning We completed the pilot audit (along with 6 other certification schemes) The final tool was just launch on October 8th in Vigo Spain as part of the Conxemar conference & the 20th Anniversary of the FAO Code of Conduct. Much of the efforts our program has undertaken over the last year has been to get to a place where we can be successfully benchmarked against this tool & be recognized by GSSI You can see here the diverse partners that have been involved in this process and the hope is that by having this tool, it will help retailers and food service customers cut through the fray & the chatter and recognize those schemes that are credible, thereby maximizing their procurement options Whether that will happen remains to be seen. The tool just launched and GAA is the first scheme to publicly announce their intention to move forward. ASMI will also be in the first round, and we plan to schedule our audit for early January

Ongoing Activities Completed thus far Focus for future on Continuing outreach and improved communication with specific sectors Refinement/development of website & materials to support education about RFM ASMI staff/contractors ASMI Operational Committees Alaska Industry Focus for future on NGOs Corporate social responsibility Procurement officers in foodservice and retail sectors Completed thus far Significant content updates to RFM Section of ASMI website RFM 101 Brochure Chain of Custody Info Sheet RFM Video Improved presentations Some of our ongoing activities include….. Continuing outreach and improved communication with specific sectors: ASMI staff/contractors ASMI Operational Committees Alaska Industry Focus for future on: - NGOs - corporate social responsibility procurement officers in foodservice and retail sectors 2) Refinement and development of website & materials to support education about RFM. Completed thus far: Significant content updates to RFM Section of ASMI website RFM 101 Brochure Chain of Custody Info Sheet RFM Video Improved presentations

Focus for the future Focus for the future? What’s in Store? Coming in 2015/2016?

RFM Program Objectives for 2015/16 Further QMS implementation for Full GSSI Recognition – January audit! Development of the new Version 2‘Conformance Criteria for Fisheries’ through the Conformance Criteria Committee Process Consultations on the Version 2 of the Conformance Criteria Standard and the RFM process to gain advocacy and greater market recognition Training and on-boarding of new Certification Bodies Training and on-boarding of new Accreditation Boards Certification cost reduction for Fishery Client Certification Improve Chain of Custody Standard & process Other items TBD as identified by the RFM Committee

THANK YOU

Organization – Governance Chart To put this into a visual for you…..