Putting fisheries investment risk in perspective

Now is the time for investment capital to accelerate the transition to sustainable fishing.

Three billion people depend on seafood for their survival, and hundreds of millions depend on the oceans directly for their livelihood. Compared to business as usual, a global transition to sustainable fishing practices would double the amount of fish in the ocean, safely increase catches enough to feed an additional half a billion people and generate an additional $50 billion in annual profits for fishermen and fishing communities by 2050. The amount of investment needed to finance these reforms is estimated at $200 billion.

Risk—how to identify it, characterize it, and mitigate it—is a key barrier for financial institutions and capital markets to get involved in wild fisheries investments. To address this EDF teamed up with Credit Suisse’s Virtual Volunteering program to design a risk assessment tool that is typical for how risk is assessed in established asset classes.

The tool catalogues risk factors that are unique to fisheries into a highly customizable, Excel-based decision guide. The tool identifies a range of fisheries investment risk factors and helps analysts understand the potential impact of those risks on an investment. Furthermore, the tool suggests a suite of risk mitigation options to help investors address risks that are above a target threshold.

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