(London): 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, according to a report issued today by Aviva Investors and the Sustainable Fisheries Partnership.
- Poor management of seafood resources threatens future of multi-billion dollar global industry
- Fish stocks have declined just as the need for increased food production is greatest
- Responsible and sustainable policies critical to maintaining and rebuilding supply and preventing further social and environmental abuses and economic loss
Launched to coincide with the United Nation’s World Oceans Day, 2016, the report 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.
There is much at stake. According to the United Nations1, the livelihoods of over three billion people depend on marine and coastal diversity, and 2.6 billion people count the oceans as their primary source of protein. The market value of the world’s marine and coastal resources is estimated at $3 trillion per year, or around five percent of global GDP.
Rapid and unchecked expansion has already proved disastrous for the Chilean farmed salmon industry. First gaining public attention in June 2007, Infectious Salmon Anaemia spread quickly through supplies, not helped by large concentrations of salmon pens that facilitated the transfer of the disease. New practices and legislation have been introduced, but this was too late for the farmers that lost billions of dollars in revenue following the contagion.
The Thai seafood industry has suffered reputational damage in recent years through extreme violations of basic human rights for workers on its fishing vessels. Consumer-facing brands in the US and Europe that buy Thai seafood have had to work hard to retain the confidence of customers that their productsare not associated with people trafficking and slavery.
1 United Nations statistics about global oceans can be found here
Sustainable strategies for environmental, social and economic benefits
The report highlights ways in which investors can positively engage with companies and steer them towards more sustainable strategies to improve business performance and minimize environmental and social risks.
UN supported investor group Principles for Responsible Investment (PRI) is lending further support to the aim through a collaborative engagement campaign with an initial 10 companies. Aviva Investors, Robeco, PGGM, BMO, Legal & General and Öhman are among the investors supporting the initiative.
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.
Abigail Herron, Head of Responsible Investment Engagement at Aviva Investors, said:
“During engagement, the business case for sustainable fisheries should be made from an environmental, social, governance and financial perspective. 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.”
Jim Cannon, CEO, Sustainable Fisheries Partnership, said:
“Working to achieve sustainable sourcing is an essential activity for any company that uses marine resources and an important indicator of responsible behaviour. Sustainable Fisheries Partnership is actively supporting transparency in the seafood industry as well as advising companies on creating, implementing and communicating sustainable sourcing policies.”
Fiona Reynolds, managing director of the PRI, said:
“A rising world population means that producing food in sustainable ways is absolutely vital. Investors can play an important role in engaging seafood companies on their environmental and human rights impacts, and, in so doing, help to ensure the sustainability of food production both now and for the benefit of future generations.”
- Ends -
Notes to Editors
The information and opinions contained in this document are for use by the financial press and media only, and do not purport to be full or complete. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice.
The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.
The press release is provided on the basis that Aviva Investors Global Services Limited is not causing the communication of a financial promotion under exemption of the Financial Promotion Order, as Aviva Investors Global Services Limited has no control over the way in which an article based on this press release is prepared and published by the financial press and media.
Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as at 23 May 2016.
Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £290 billion as at 31 March 2016.
‒ Aviva provides 29 million customers with insurance, savings and investment products.*
‒ We are one of the UK’s leading insurers and one of Europe’s leading providers of life and general insurance. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.
‒ We have operations in 16 countries and provide life, general and health insurance and asset management under our well recognised brand.
‒ We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.
‒ The Aviva media centre at www.aviva.com/media/ includes images, company and product information and a news release archive
‒ For broadcast-standard video, please visit http://www.aviva.com/media/video/
‒ Follow us on twitter: www.twitter.com/avivaplc/
* Figures based on Aviva plc Annual Report and Accounts 2014.
Founded in 2006, the Sustainable Fisheries Partnership Foundation – known as Sustainable Fisheries Partnership (SFP) – is a non-profit organization dedicated to rebuilding depleted fish stocks and reducing the environmental and social impacts of fishing and fish farming through engaging fishery stakeholders (communities, NGOs, government, etc.) and seafood businesses in every part of the supply chain. The organization works to improve fisheries through fishery improvement projects (FIPs) and aquaculture improvement projects (AIPs), which are multi-stakeholder bodies that seek to advance the sustainability of fishing and fish farming operations. SFP also supports Supply Chain Roundtables which allow seafood suppliers to work in a pre-competitive environment to promote improvement throughout the supply chain. Visit us at www.sustainablefish.org.
ABOUT THE PRI
The United Nations supported Principles for Responsible Investment (PRI) initiative is an international network of investors working together to put the six Principles for Responsible Investment into practice. Its goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into their investment decision making and ownership practices. In implementing the Principles, signatories contribute to the development of a more sustainable global financial system.
Issued by Aviva Investors Global Services Limited, registered in England No. 1151805.Registered Office: St. Helen’s, 1 Undershaft, London EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority and a member of the Investment Management Association.
Telephone calls may be recorded for training and monitoring purposes Contact us at Aviva Investors Global Services Limited, St. Helen’s, 1 Undershaft, London EC3P 3DQ. RA16/0371/30062016