A new report says that investors must do more to push seafood companies to adopt progressive policies that enhance the sustainability of fishing and fish farming and reduce the potential for environmental and human rights abuses.
Sustainable seafood and responsible investment by Aviva Investors and the Sustainable Fisheries Partnership argues that overfishing has significantly reduced stocks, while the demand for food production rises to cater for the world’s growing population. Given these dynamics, sustainable policies are critical to the long-term future of the seafood industry. It is also central to the financial success of individual companies because social and environmental risks can damage their profitability at any stage in the supply chain.
The report highlights ways in which investors can positively engage with companies and steer them towards more sustainable strategies to improve business performance and minimise environmental and social risks.
The report advocates the following action by investors:
- Laying early foundations for responsible policies: Investors should work with companies to formulate and adopt a responsible seafood policy from the outset of the association. This should demonstrate a commitment to continuous improvement and transparency, with ambitious targets for the future.
- Influencing the supply chain: Investors should encourage supply chain companies to ensure producers avoid fish that are illegally caught; support well-managed fisheries and fish farms that are certified to credible standards; support the responsible management of aquaculture resources across regions; and encourage fisheries that are trying to improve.
- Ask material questions: The report sets out questions investors should put to companies to gauge the level of responsibility and sustainability already built into their operations and to ascertain areas for development.
“During engagement, the business case for sustainable fisheries should be made from an environmental, social, governance and financial perspective,” said Abigail Herron, Head of Responsible Investment Engagement at Aviva Investors. “Bribery, corruption and a rabbit hole of shell companies often go hand in hand with illegal, unreported and unregulated fishing. Given the rapid and continual decline of fish stocks, many current fishery practices and management systems are simply not fit for purpose and need to be urgently addressed through engagement.”
