Sustainable Fishing Conference

As some of you may know, I just finished my MBA in Sustainable Business from Marylhurst University in Oregon.  I wanted to share a personal story with all of you and notes from my recent attendance at a sustainable fishing conference..

April 3, 2012
I went to a sustainable fish conference at the Denver Zoo today. It's funny how exciting it was to me. I learned a ton!!!  I loved seeing how all the things I learned in school play out with the real world with real people and real careers.  I can't wait to get a job in a field I am so passionate about in so many ways.

I talked to the woman who heads the Seafood Watch at the Monterey Bay Aquarium in CA.  She was super nice, helpful, and enthusiastic about my degree. She said there is definitely a demand for sustainability people who are business minded. She said there are a lot of people who have the science side, but few that understand the business side, their needs, etc. She told me to monitor a lot of specific organizations websites, including seafood Watch to look for jobs. She also said look at big companies like Disney.

I also talked a woman from sustainable fish program in Florida and the Gulf Wild project organizers and actual fisherman of snapper and grouper in the Gulf. Very cool stuff and some interesting fisheries management technologies and improvements.



What all these organizations do is to monitor and track the fisheries management policies to make sure that we are not overfishing and pulling out fish at a faster rate than they can reproduce.  Seafood Watch has a phone app that you can download that shows you which fish are on the "red list", yellow or green.  It is pretty cool.  I am also going to do some Beta testing for a new computer program that chef's can use to decide which fish are the best to purchase, based on their current conditions.

Industrial Fishing Endangering Sea Turtles

Did you know that dozens of sea turtles can be accidentally caught with every catch from a fishing boat?  

 
image compliments of: http://magazine.ufl.edu/2010/10/a-final-blow/

According to the Sea Turtle Conservancy, "Each year, more than 250,000 sea turtles are accidentally captured, injured or killed by U.S. fishermen. Many of these injuries and deaths take place while turtles are migrating through fishing areas. The turtles, attracted to the bait, get caught on the hooks used to catch fish” (2011, para. 2).

"Turtles are air-breathing reptiles. When they are caught underwater in nets or on lines, they drown if they are unable to reach the surface for air," explains the Sea Turtle Conservancy (2011).

Fisheries that have good management practices limit the amount of turtles that are accidentally caught (i.e. trawls) and then if turtles still happen to get caught, they use techniques that put the live turtles safely back into the water.  "Sea turtles caught in trawl nets, hooked in longlines, or entangled in other gears, may be stressed," according to the FAO.  "Most are conscious and able to swim away after removal from the net, but some may be tired or appear lifeless. Turtles that appear lifeless are not necessarily dead. They may be comatose. Turtles returned to the water before they recover from a coma will drown. A turtle may recover on board your boat once its lungs have drained of water. This could take up to 24 hours" (FAO, 2009, p.64).

Well managed fisheries understand this.  Responsible fisheries will not only takes proactive approaches to reducing the number of turtles caught accidentally, but will also ensure that the turtles that are caught by accident have hooks removed, if necessary, and that they are returned safely at the proper time.

I also heard at a Sustainable Fish conference recently about if a turtle is turned on its back it has to be turned back over the same way, it interferes with their natural functions and it could kill them (I will post documentation on this when I find it). Well managed fisheries, such as those associated with Gulf Wild, are starting to mark the turtles to remember which way they need to turn them over, as to not harm them further.

So how can you help?

Of course you can donate money to the cause, which will help organizations to educate the fisheries and improve their management practices.  Also, if you eat fish, make sure you know where it comes from and only buy from fisheries that are responsible and have best practices in place. Go to Seafood Watch for a free pocket guide on the most sustainable seafood choices. Or download their FREE AP, available on Droid and iPhone.

References 

Gulf Wild. (2012). Welcome to gulf wild. Retrieved from http://mygulfwild.com/

Monterey Bay Aquarium. (2012). Select a seafood watch pocket guide. Retrieved from http://www.montereybayaquarium.org/cr/cr_seafoodwatch/download.aspx

Sea Turtle Conservancy. (2011). Sea turtle & U.S. fishery interactions. Retrieved from http://www.conserveturtles.org/seaturtleinformation.php?page=fisheries

FAO. (2009). Guideline to reduce sea turtle mortality in fishing operations. Retrieved from http://www.conserveturtles.org/pdf/documents/GuideToReducingSeaTurtleMortalityInFisheries.pdf

The Importance of a Management's Discussion and Analysis Report

Most companies and their executives do not include “emerging risk information into their strategic planning process” (Wyman, 2010, p. 4) and most have never heard of the Management's Discussion and Analysis of Financial Condition and Results of Operations Report (MD&A).  Why is this report neglected by executives and why is it rarely discussed on financial websites?  

The MD&A analyzes the past and makes projections of the future.  Because the MD&A is projection-focused, this type of financial statement is an example of precise accounting, rather than simply accurate accounting.  At the surface a financial statement can look accurate, but it may contain errors of all kinds.  Even if the financial statement has all of the required elements, the statement may still not be precise.  For the financial statements to be precise they must be able to be analyzed and looked at year over year to show some predictability for the future of the company.  As Kevin Keene of Day Inc. explains, “In this economy more than ever, all businesses whether start-up or currently operating, live and die based on their ability to make accurate assumptions and projections of future revenues and expenses” (Corrente, n.d., para. 2).  Financial projections look at the product or service being supplied, selling price, assumptions of sales for coming year, monthly growth anticipation, and costs and expenses for the coming year.  Without understanding all of these elements the company has a weak business plan and is not in good place to make decisions – essentially “going in blind.”  Making precise financial projections can mean the difference between the survival and demise of a company. 

Sustainability is all about securing our future through our actions today, and the goal of MD&A report is just that.  Companies need to stop chasing their tails and simply sweeping their messes under the rug.  They instead need to plan ahead for the future, setting goals of how they will improve and contribute their goods and/or services to society in a responsible manner.

The MD&A is set up to ask questions that challenge executives to truly examine their business practices and future goals.  For example, one question in the report asks: “Describe any unusual or infrequent events or transactions or any significant economic changes that materially affected the amount of reported income from continuing operations and, in each case, indicate the extent to which income was so affected” (University of Cincinnati, 2011).  This requires a bit more thought than answering a question like, “what was the operation income in FY2010 as compared to FY2010?” Another outstanding question probed in the MD&A is: “Describe any known trends or uncertainties that have had or that the registrant reasonably expects will have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations” (University of Cincinnati, 2011).  

Although the MD&A does not ask any specific questions in regards to sustainable business practices, by completing the report the company is examining their risk and implementing a strategic plan for the future.  Less than 10% of executives surveyed in Wyman’s report consider environmental, social, or technology threats to their business.  Companies that understand that climate change, social sustainability issues, and other sustainability concerns are a legitimate threat are ahead of the game.  Integrating a strategic risk plan with an emphasis on sustainability will ensure that the company is better suited for success in the future.   

References

B. Accuracy vs. precision, and error, and uncertainty. (n.d.).. Retrieved from http://scidiv.bellevuecollege.edu/physics/measure&sigfigs/b-acc-prec-unc.html

Brigham, E. F., & Ehrhardt, M. C. (2011). Financial management: Theory and practice. Mason, OH: South-Western Cengage Learning.             

Corrente, W. (n.d.). Successful entrepreneur's know the importance of financial projections. Retrieved from http://willcorrente.com/successful-entrepreneur%E2%80%99s-know-the-importance-of-financial-projections 

 

Investopedia. (2011). Management decision and analysis – MD&A. Investopedia. Retrieved from http://www.investopedia.com/terms/m/mdanalysis.asp#axzz1aiSYCvyF

University of Cincinnati. (2011).Standard Instructions for Filing Forms under the Securities Act of 1933, Securities Exchange Act of 1934, and Energy Policy and Conservation Act of 1975: Regulation S-K:  Item 303 -- Management's Discussion and Analysis of Financial Condition and Results of Operations. Retrieved from http://taft.law.uc.edu/CCL/regS-K/SK303.html

University of Wisconsin. (2009).Course Description: BSAD 7110 Management Decision Analysis. Retrieved from http://www.uwplatt.edu/disted/courses/BSAD7110.html

Wyman, O. (2010, August).  Global emerging risks survey: steering the course, seizing the opportunity. Retrieved from http://www.oliverwyman.com/pdf_files/OW_EN_CR_PUBL_2010_EmergingRisks.pdf