Purchases Assessment


Supplier Credibility and Raw Materials Traceability

We look beyond the sustainability of our own company and further examine the sustainability efforts of our suppliers. Our procurement team takes care of ensuring suppliers are able to consistently provide us with high-quality raw materials, compliant with government regulations and accredited by international organizations.

At the moment, we are able to trace the origins of our major raw materials such as fish, meat, milk powder, and coconut back to the fishing ground or farm each main raw material was sourced from.

This 2020, we are formalizing and institutionalizing a Supplier Code of Conduct and Ethics for all raw material suppliers and service providers that will include the systematic assessment of their social performance during the procurement process, among others. All legally binding agreements will require compliance with the set social standards. We will internally audit our business partners accordingly annually thereafter to monitor their compliance with our supply chain standards and to address social supply chain issues, if any. We will also engage with non-conforming suppliers to reach compliance as needed.

To keep abreast with changes in supply chain issues, we will engage with various stakeholders and amend our Supplier Code of Conduct and Ethics when necessary. Such stakeholders include our own employees who are able to elevate supply chain concerns through formal channels.

Also this 2020, the role of our Board’s Corporate Governance Committee will be expanded to include ESG matters, establishing board-level responsibility for supply chain management.


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Tuna Sardines Meat Milk Coconut
Summary of Raw Material Traceability

Tuna

We diligently comply with international regulations pertaining to conservation measures. As part of our commitment to sustainable sourcing, we are subject to various audits by accredited firms. We also work closely with a number of organizations such as:

  • Western and Central Pacific Fisheries Commission http://www.wcpfc.int seeks to address problems in the management of high seas fisheries resulting from unregulated fishing, over capitalization, excessive fleet capacity, vessel re-flagging to escape controls, insufficiently selective gear, unreliable databases and insufficient multilateral cooperation in respect to conservation and management of highly migratory fish stocks.
  • Bureau of Fisheries and Aquatic Resources http://www.bfar.da.gov.ph/ is the Government Agency responsible for the development, improvement, management and conversation of the Philippines' fisheries and aquatic resources.
  • World Wildlife Fund http://worldwildlife.org/ has been protecting the future of nature for 50 years now. The world's leading conservation organization, WWF works in 100 countries and is supported by 1.2million members in the United States and close to 5million members globally. WWF's unique way of working combines global reach with a foundation in science, involves action at every level from local to global, and ensures the delivery of innovative solutions that meet the needs of both people and nature.
  • International Seafood Sustainability Foundation  http://iss-foundation.org/ started in 2009 and is comprised of leading scientists, the tuna industry, and the World Wildlife Fund. The group promotes science-based initiatives for the long-term conservation and sustainable use of tuna stocks, reduction of by-catch, and promotion of ecosystem health. Today, its industry partners comprise nearly 75% of the world’s canned tuna processing capacity with well-known brands produced and sold in North America, South America, Europe, Africa, Oceania, the Pacific Islands and Asia. Participating companies work with the Foundation to advocate for improved fishery management, fund scientific advancements, and take direct action to encourage the adoption of responsible fishing practices.

    Century Pacific Food, Inc., through its wholly-owned subsidiary General Tuna Corporation, is the first among Philippine tuna companies to join the International Seafood Sustainability Foundation (ISSF). The company successfully completed an audit demonstrating its compliance with ISSF conservation measures, which include restrictions on purchase from Illegal, unreported and unregulated fishing and the credible tracing of tuna from capture to plate. All member companies are subject to ongoing inspection to ensure their continued compliance.

  • Marine Stewardship Council https://www.msc.org/ is an international non-profit organization established to address the problem of unsustainable fishing and safeguard seafood supplies for the future. The MSC works with scientists, fisheries, seafood producers and brands to promote sustainable fishing and safeguard seafood supplies for the future. 

     

  • Sedex https://www.sedexglobal.com/ is a global membership organisation that prides itself on making it simpler to do business that’s good for everyone. It’s home to one of the world’s largest collaborative platforms for sharing responsible sourcing data on supply chains, used by more than 50,000 members in over 150 countries. Tens of thousands of companies use Sedex to manage their performance around labour rights, health & safety, the environment and business ethics.


Buying Policy

Century Pacific Food, Inc:

  • Will not source nor transact business with any seafood company and fishing vessels that have been identified or blacklisted for engaging in IUU (Illegal, Unreported, Unregulated) fishing by a Regional Fisheries Management Organization, National Authority and leading Non-Government Organizations.
  • Will not transact business with any seafood company and fishing vessels that are not Dolphin Safe accredited
  • Commits not to source nor purchase any seafood from proposed marine reserves identified by a Regional Fisheries Management Organization, such as Coral Triangle, Pockets 2, 3 and 4
  • Commits not to source nor purchase tuna from fishing companies that use longlines or driftnets
  • Will continue to encourage and support the initiative of fishing companies to reduce by-catch such as bigeye tuna, seabirds and turtles through Non-Entangling FAD (Fish Aggregating Device) Free School fishing
  • Will continue to encourage fishing companies to have an active online transmitter (Vessel Monitoring System device) and original license on board
  • Will continue to encourage fishing companies to support RFMO CMM (Regional Fishery Management Organization Conservation and Management Measures) on catch retention policy to reduce discarding of dead unwanted fish
  • We support DOLE DO 156-16 and encourage all fishing companies to comply with the rules and regulations governing the working and living conditions of fishers on board fishing vessels engaged in commercial fishing operations. Thus, we will not engage business with fishing companies who are reportedly involved with labor abuses on fishing boats that do not conform with national and international laws on fair working conditions at seas.
    Read more here.
  • As a participating company in ISSF (International Seafood Sustainability Foundation), Century Pacific Food, Inc: Adheres and support all conversation measures or programs set by ISSF specially on tuna sustainability. ISSF has been doing a lot of work on tuna sustainability and this is the way the company will proceed moving forward

Dolphin Safe Tuna:

  • As a member of Earth Island Institute, Century Pacific Food, Inc. complies with its grassroots campaigns.
    • The Dolphin Safe logo is visible on all our accredited tuna product lines.
    • Century Pacific Food, Inc. only buys tuna products from Dolphin Safe accredited tuna companies.
    • All tuna products of Century Pacific Food, Inc. are Dolphin Safe.

Anti-Finning Policy:

  • Century Pacific Food, Inc. denounces the practice of shark finning. Century Pacific Food, Inc. will not transact business with any vessel that has been identified by a Regional Fisheries Management Organization, National Authority or leading NGOs to have practiced shark finning.

Constant Change, Continuous Improvement for a better future

  • Century Pacific Food, Inc.will continue to learn and seek new ways on how to improve sourcing practices in order to improve the entire product supply chain for the better.
  • Century Pacific Food, Inc. will continue to improve our systems and buying policies to strengthen our commitment to support a sustainable supply chain.
  • Century Pacific Food, Inc. is in the process of modifying packaging materials used for seafood products by indicating method and area of catch and species.
  • Century Pacific Food, Inc. intends to source from 100% sustainable fisheries.


Fish Purchases for the Year 2019

Fish Source Categories
MSC Certified Fisheries eligible to use the MSC label 1%
Comprehensive FIPs listed on FIsheryProgress.org scoring 0%
A, B, C or in their initial listing on Fisheryprogress.org
 
Comprehensive FIPs listed on FIsheryProgress.org scoring 0%
D or E
None of the above 99%
Total 100%
Supplier Source Categories
ISFF Participating Companies 5%
Data Check Companies 0%
Direct from Vessels 34%
None of the above 61%
Total 100%
We, through our subsidiary General Tuna Corporation, will continue to explore and expand qualified supply sources to decrease purchases from "none of the above."


Fish Guide:

  • Skipjack TUNA:

    • Scientific Name: Katsuwonus Pelamis
    • Method of Catch: Purse Seine
    • Where caught: Western Pacific Ocean (FAO 71)
    • Brand: Century Tuna, 555 Tuna
    • Products: Flaked Light, Chunk Light , Solid Light

    Yellowfin TUNA:

    • Scientific Name: Thunnus Albacares
    • Method of Catch: Handline
    • Where caught: Philippines (FAO 71)
    • Brand: Century Tuna
    • Product: Chunks in Olive Oil

    SARDINES:

    • Scientific Name: Sardinella Lemura
    • Method of Catch: Purse Seine
    • Where caught: South of Philippines (FAO 71)
    • Brand: 555 Sardines
    • Products: In Tomato Sauce, In Natural Oil

    MACKEREL:

    • Scientific Name: Scomber Australasicus, Scomber Japonicus
    • Method of Catch: Purse Seine
    • Where caught: New Zealand (FAO 81), Japan (FAO 61)
    • Brand: 555 Mackerel
    • Products: In Tomato Sauce, In Natural Oil

    MILKFISH:

    • Catch Method: Farmed/Marine Cultured
    • Where caught: South of Philippines (FAO 71)
    • Brand: Century Bangus
    • Product: In Oil

For fish, our traceability system is audited by the Bureau of Fisheries and Aquatic Resources and other international audit firms such as:



CNPF is a member of the ISSF and sits on the ISSF board through General Tuna Corporation, its wholly-owned subsidiary. The ISSF engages MRAG Americas to conduct annual audits, evaluating strict compliance with all its conservation measures and commitments made since 2015. Based on the 2019 audit results, we are fully compliant with all 21 applicable ISSF conservation measures which include the following:

  1. Tuna Regional Fisheries Management Organizations (RFMO) Authorized Vessel Record
  2. RFMO Participation
  3. Product Traceability
  4. Quarterly Data Submission to RFMO
  5. Shark-Finning Policy
  6. Prohibition of Transactions with Shark-Finning Vessels
  7. Prohibition of Transactions with Companies without a Public Policy Prohibiting Shark Finning
  8. Large-scale Pelagic Driftnets Prohibition
  9. Full Retention of Tunas
  10. Skippers Best Practices
  11. Transactions with Vessels that Use Only Non-Entangling Fish Aggregating Devices (FADs)
  1. Unique VesseI Identifiers (UVI)- International Maritime Organization (IMO)
  2. Purse Seine Unique Vessel Identifiers
  3. Observer Coverage
  4. Transshipments
  5. Illegal, Unreported and Unregulated (IUU) Fishing
  6. IUU Product Response
  7. Transaction Ban for Large-Scale Purse-Seine Vessels not Actively Fishing for Tuna as of December 31, 2012
  8. Purchases from Purse Seine Vessels in Fleets with Other Vessels Not in Compliance with ISSF Conservation Measures 6.1 and 6.2(a)
  9. Registration of Controlled Vessels
  10. Purchases from Proactive Vessel Register (PVR) Vessels
ISSF Final Compliance Reports
ISSF Feature

With our help, partner organization ISSF is giving two emerging marine scientists the opportunity to research their ideas for sustainable tuna fishing. Meet the winners of the ISSF Seafood Sustainability Contest: http://ow.ly/vzZi30qoHGB



Our commitment is further reflected in our participation in the Global Tuna Alliance, a market-led initiative to deliver sustainable tuna, which formed the Tuna Traceability Declaration 2020 in support of the U.N. Sustainable Development Goal 14: Life Below Water.

Read more in our signed Tuna 2020 Traceability Declaration

 

In 2020, we expressed our intent to adopt the Global Dialogue on Seafood Traceability standards. It has issued the first-ever global standards for end-to-end seafood traceability, providing guidance on which information to monitor beginning from point of origin all the way to point of sale, and which digital formats to adopt for information sharing. The establishment of these standards is a momentous step for the industry as it strives for high standards with regard to ethical sourcing and combats illegal fishing and unethical labor practices.

We also support the use of sustainable fishing methods. For our Century Tuna Handline product, we employ a sustainable fishing method that eliminates by-catch and juveniles, contributing to the conservation of marine life. This product is supported by WWF Philippines which encourages the development of small-scale tuna fishing sustainability programs. Apart from tuna, CNPF also offers Century Bangus (milkfish), a farm-cultured marine product which is a healthy seafood alternative that reduces the load on wild-caught fish stocks.


Sardines

To further enhance the competitiveness of our sardines business, we upgraded our guidelines, specifications, and standards to conform with international requirements. As a result, the Company has been able to comply with the Hazard Analysis and Critical Control Points (HACCP) and the British Retail Consortium (BRC).


Meat

All our meat inputs are purchased from accredited international sources who produce according to standards approved for export to the U.S. and European Union. Meat imported from the U.S. follows the Federal Meat Inspection Act and passes through mandatory federal inspection by the Food Safety Inspection Service of the U.S. Department of Agriculture, while meat from Europe are governed by the European Food Safety Authority. These have been in place since the beginning of our meat operations.


Milk

We have obtained the Food Safety System Certification (FSSC), as well as the USFDA certification to export to the U.S. We are also compliant with the standards of the Philippine Bureau of Food and Drug’s Hazard Analysis and Critical Control Points (HACCP) and the International Organization for Standardization (ISO).

Our raw material sourcing process is aligned with the latest developments and practices in the dairy industry, with heightened focus on quality and safety to include sustainability.


Coconut

We adhere to the following international standards: European Organic Standard (EOS), National Organic Program (NOP), Japan Agricultural Standard (JAS), and Korean Standard (KONKUK).

Our processes are aligned with the Sedex Members Ethical Trade Audit (SMETA) global standards for responsible and ethical sourcing, health, safety, and welfare of workers, as well as environment management. We likewise fulfill the requirements of the U.S. FDA Voluntary Qualified Importer Program in our raw material sourcing, and receive third-party certification from the Ecocert Group.

As we also produce organic products, we conform with stricter standards to ensure we are organic-certified, following international standards regarding farming practices and raw material storage. We provide incentives to our farmers and traders for their efforts in complying with the more stringent organic standards.


 

Summary of Raw Material Traceability Level

  ITEMS SUPPLIED LEVEL OF TRACEABILITY

Main Raw Materials

FISH
(Yellowfin, Skipjack, Tamban, Mackerel)
Back to fishing grounds
MEAT Back to farm
MILK POWDER
(Buttermilk Powder, Skim Milk, Fortified Milk)
Back to farm
COCONUT Back to farm

Other Raw Materials

Oil Back to country of origin
STRD Back to manufacturer
Tomato Paste Back to country of origin
Fructose Back to country of origin
Organic Sugar Back to country of origin
Ascorbic Acid Back to country of origin
Salt Back to country of origin
Non-Dairy Creamer (CS) Back to manufacturer
Palm Olein Back to manufacturer
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