Food Safety
Product safety and quality are of paramount importance to us. Our fish processing plants are the first in China, and amongst the first in Asia, to achieve certification under the rigorous ISO 22000 international food safety system. This system has helped us unify our other existing quality and safety systems, such as ISO 9001, EFSIS-British Retailer Consortium (BRC) Global Standards and Hazard Analysis & Critical Control Points (HACCP). In addition to adhering to these standards, in 2003 we established China's first world-class independent food testing laboratory - Sino Analytica - with strong support from the UK-based Central Science Laboratory. With this laboratory, we are emphasizing the social, economic, and environmental importance of food safety and redefining safety standards in China's food processing industry.

Traceability & Supply Chain Integrity
We have clear internal guidelines in line with international control instruction standards to ensure that no supplies derived from illegal, unregulated, and unreported fishing activities enter our supply chain. Thus, we do not source from blacklisted, illegal, or suspicious vessels carrying flags of convenience identified by fisheries directorates or authoritative non-profit organizations. Our suppliers must provide written confirmation to us on their full legal, environmental and social compliance. We also regularly countercheck all benchmarking information against current market and research data. Since January 2006, our procurement processes have been independently reviewed on a quarterly basis by an international audit firm, which has verified that we have obtained all proper documentation, such as health certificates and certificates of origin, in every shipment that we receive.

Resource Usage Optimization
By basing our operations in China, we are able to design processes and facilities that allow us to achieve a higher product recovery rate. For instance, through manual filleting, we can achieve a significantly higher yield rate as compared to using automated methods. We have also installed fishmeal processing facilities in our new Hongdao processing complex, which allow normally discarded raw materials to be processed into highly marketable by-products. This means that more fish products can be derived from the same amount of fish harvested, thereby maximizing the use of regulated ocean resources.

Energy and Water Conservation
As an ISO 14000-certified company, we have incorporated energy and water conserving features in our new Hongdao processing complex in Qingdao. These features include a plant-wide adoption of energy-efficient equipment and cooling systems, a seawater treatment plant to conserve freshwater resources, and an onsite wastewater treatment plant - all aimed to improve resource utilization and environmental conservation.

Carbon Footprinting
Energy used in the production processes directly and indirectly generates greenhouse gas emissions which contribute to climate change. To better understand the emission levels of our processing operations, Pacific Andes started a carbon footprint exercise in mid-2007. Our cross-office teams work alongside external consultants, suppliers and shipping lines to compile the required data for determining the carbon footprint of our seafood processing operations - particularly in China. We hope that by leading through example, we can drive greater awareness amongst other China-based seafood processing companies. Over the longer term, we expect enhanced efficiency and a reduced carbon footprint per unit of fish harvested or produced.