Investing in troubled waters

The report argues that the aquaculture industry faces significant systemic risks due to high fish mortality rates and a dependence on fishmeal and fish oil (FMFO) derived from wild-caught fish. It finds that most investors fail to integrate these material risks into their policies, often relying on inadequate certification schemes. The document highlights the economic cost of fish deaths, the threat to food security in regions like West Africa due to FMFO extraction, and the potential for 'greenwashing' through green bonds. It recommends that investors require full supply chain transparency, the elimination of wild-caught fish in feed by 2025, and the adoption of robust fish-welfare standards.

• High fish mortality rates represent a significant financial risk, with a 2021 analysis estimating that mortalities cost the four main salmon-producing countries (Canada, Chile, Norway, and Scotland) $15.5 billion over seven years.
• The aquaculture industry's dependence on wild-caught fish for feed is a systemic economic threat, as feed accounts for 50–70% of business expenditure and prices for fishmeal and fish oil are projected by the World Bank to rise by 90% and 70% respectively between 2010 and 2030.
• The extraction of pelagic fish for FMFO undermines food security in West Africa, diverting high-quality protein from local populations to feed farmed fish in Europe and Asia; in Mauritania, 1 in 5 children are chronically malnourished.
• A survey of 23 major investors reveals a widespread failure to address aquaculture risks: none require investees to report on fish mortalities, and no investors have criteria requiring a phase-out of wild-caught fish in feed.
• The report identifies 'greenwashing' in the aquaculture sector, specifically citing Mowi's €200 million green bond for relying on certification schemes rather than measurable reductions in fish mortality or the elimination of wild-caught fish in feed.
• Industry certification schemes (such as ASC, MSC, and MarinTrust) are deemed insufficient proxies for sustainability, as they often lack robust fish-welfare standards or fail to prevent illegal, unreported and unregulated (IUU) fishing.
• Land-based recirculating aquaculture systems (RAS) are presented as a potential solution but are criticized for high capital expenditure, poor return on investment, and high stocking densities that compromise fish welfare.

APA

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

Chicago

Changing Markets Foundation. Investing in troubled waters. 2021. https://changingmarkets.org/wp-content/uploads/2023/10/REPORT-Investing-in-Troubled-Waters_WEB-LIGHT.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/REPORT-Investing-in-Troubled-Waters_WEB-LIGHT.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/REPORT-Investing-in-Troubled-Waters_WEB-LIGHT.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }