Uniting Sustainable Seafood Farming with Financial Backing: A Necessity

As seafood lovers indulge in dishes of shrimp, salmon, or tilapia, many remain unaware of the vital movement aimed at enhancing the responsibility and sustainability of seafood farming. Increasingly, investors are becoming attuned to this shift, indicating a blossoming convergence between ethical seafood practices and financial investments.

We recently spoke with Ray Dhirani, Head of Capital Markets Outreach at the Aquaculture Stewardship Council (ASC), to explore how intelligent investments are gravitating toward sustainable seafood options, underscoring the importance of certifications like ASC in today’s market.

The Current State of Ocean Investments

Reflecting on his experiences at significant gatherings such as the United Nations Ocean Conference and the Blue Economy & Finance Forum, Ray notes a mixture of apprehension and optimism. While some prominent commitments fell short, innovative financial models, particularly in developing regions, reveal a prospect of new opportunities.

Financial Pledges: The Challenge of Adequate Funding

At the recent United Nations Ocean Conference held in Nice, France, global leaders announced approximately $10 billion in new capital directed toward ocean protection. Although this figure may seem substantial, it pales compared to the estimated $175 billion required annually to safeguard marine ecosystems and support sustainable development.

But why is access to these funds still so limited? “Investors want to fund sustainable ocean projects,” Ray explains, “but they need clear rules and credible standards to minimize risks associated with those investments.”

The lack of robust regulations and trustworthy data deters private financing from flowing into marine initiatives. According to Oliver Withers, Head of Nature at Standard Chartered, the difficulty in governing open waters remains a significant barrier: “The high seas don’t belong to any single nation, complicating the enforcement of effective protective measures.”

Growing Demand for Sustainable Seafood

While consumers might scrutinize labels when purchasing fish, banks and investment firms do the same—on a far more substantial scale. “Frameworks like ASC enable investors to discern whether a seafood enterprise genuinely prioritizes sustainability,” Ray shares.

The ASC certification serves as a reassurance for investors and consumers alike, signaling commitment to environmental and social responsibility. For institutional investors, sustainability certification occupies a central position in risk assessment. Ray emphasizes that frameworks such as ASC are increasingly acknowledged in influential global policy initiatives, like the Taskforce on Nature-related Financial Disclosures (TNFD). These frameworks highlight verifiable sustainability metrics, assisting investors in evaluating social and environmental risks within global aquaculture portfolios.

Financial Risks Associated with Neglecting Sustainability

As environmental regulations tighten, seafood farming operations that neglect sustainability may expose themselves to serious financial risks. Companies that fail to comply may not only face regulatory actions but could also miss out on capital tied to verified environmental and social impact.

Ray notes, “Sustainability is increasingly becoming vital for a business’s ‘license to operate.’ Companies that incorporate sustainability into their model are more resilient to market shocks.” With financial institutions scouting for verified impacts aligned with scientific data, integrating sustainability within business practices will be crucial for long-term viability.

Pathways for Companies Not Yet Certified

While several seafood farms are not certified by ASC yet, they are actively working towards improvement. This is where the Improver Programme by ASC becomes pivotal.

Ray mentions, “Impact investors recognize that some farms may not be ready for certification; however, if they interact with the Improver Programme and credibly exhibit their journey toward sustainability, they may align with certain investors’ impact criteria.”

Innovative Solutions Ahead

As the financial landscape shifts towards nature-positive, climate-aligned investing, certifications like ASC are emerging as essential connectors between sustainability and finance. Whether through full certification or participation in improvement programs, aquaculture enterprises can leverage current trends towards responsible investment.

“There remains much to achieve, but it’s encouraging to see innovations emerging—especially at events like UNOC and BEFF, where leading financiers showcased blended financial models, particularly aimed at developing nations,” Ray concludes.