Investing in troubled waters

The report identifies significant ESG risks in the aquaculture industry, specifically high fish mortality and the use of wild-caught fish in feed, which threaten long-term profitability and food security. It finds that most investors lack robust policies to mitigate these risks and warns that some 'green bonds' in the sector may be used for greenwashing. The document recommends that investors require investees to disclose supply chains, reduce mortality rates, and eliminate wild-caught fish in feed by 2025.

• High fish mortality rates represent a significant financial risk, as poor fish health can reduce a company's market value by 20%. In the four main salmon-producing countries (Canada, Chile, Norway, and Scotland), fish mortalities cost $15.5 billion over seven years.
• Mortality rates in salmon farming are high, reaching 15% in Norway in 2019 and averaging 24.2% on Scottish salmon farms between 2012 and 2017. However, some companies like Wester Ross Fisheries have achieved monthly mortality rates below 10%.
• The aquaculture industry's dependence on wild-caught fish for feed is a systemic economic threat because feed accounts for 50–70% of business expenditure. The World Bank projects that limits on wild-caught fish supply will drive fishmeal prices up by 90% and fish oil prices up by 70% between 2010 and 2030.
• Investors and financial institutions are largely ignoring these material risks; none of the 23 surveyed require investees to report on fish mortalities or have robust policies to reduce them. Additionally, 65% fail to ensure their portfolios are free from illegal, unreported and unregulated fishing.
• Green bonds in the aquaculture sector, totaling €689 million from Mowi, Grieg Seafood, and SalMar, are susceptible to greenwashing. Specifically, Mowi's €200 million bond is criticized for relying on certification schemes rather than measurable reductions in mortality or wild-caught fish use.
• Industrial aquaculture undermines Sustainable Development Goals 2 (Zero Hunger) and 14 (Life Below Water). For example, over half a million tonnes of fish are extracted annually from West African coasts for fishmeal and fish oil, which could otherwise feed 33 million people in that food-insecure region.

APA

Changing Markets Foundation (2021). Investing in troubled waters. https://changingmarkets.org/wp-content/uploads/2023/10/EXEC-SUMMARY-Investing-in-Troubled-Waters_FINAL.pdf

Chicago

Changing Markets Foundation. Investing in troubled waters. 2021. https://changingmarkets.org/wp-content/uploads/2023/10/EXEC-SUMMARY-Investing-in-Troubled-Waters_FINAL.pdf.

Wikipedia

{{cite report |author=Changing Markets Foundation |title=Investing in troubled waters |date=July 2021 |url=https://changingmarkets.org/wp-content/uploads/2023/10/EXEC-SUMMARY-Investing-in-Troubled-Waters_FINAL.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{changingmarketsfoundation2021investing, author = {{Changing Markets Foundation}}, title = {{Investing in troubled waters}}, institution = {Changing Markets Foundation}, year = {2021}, month = jul, url = {https://changingmarkets.org/wp-content/uploads/2023/10/EXEC-SUMMARY-Investing-in-Troubled-Waters_FINAL.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }