Grieg Seafood: WWF, Storebrand, Norwegian Institute for Nature Research and Grieg Seafood launch case study to tackle nature-related risks in aquaculture
As companies and financial institutions await the results of the Working Group’s framework on nature-related financial disclosures for nature-related risks, this study demonstrates that it is already possible for aquaculture companies to report on factors that could pose a nature risk to the business itself. and its financiers.
Most businesses depend on nature for their operation and, at the same time, impact nature through their operations. Increasingly, businesses and financial institutions recognize that the loss of nature and biodiversity is a source of so-called nature-related risks, i.e. when changes in the environment, as well as relevant changes in regulations, policies, markets and society in general can impact businesses. It is therefore crucial that companies improve their understanding of nature-related risks and begin to reduce their negative impacts on nature and ecosystems.
Based on a real-life exercise, WWF, Storebrand Asset Management, the Norwegian Institute for Nature Research and Grieg Seafood explored how currently available information on salmon farming can be used to inform investors in the seafood industry. the sea on the main nature-related risks, such as the impact on biodiversity or water quality. The project also identified areas for improvement, such as the lack of comparable quantitative measures, definitions, and a framework for objective reporting on addictions.
However, the study shows that it is possible to obtain an indication of a salmon farming company’s exposure to natural hazards as well as the mitigation efforts made.
The methodological approach that was explored has the potential to encompass all aquaculture species globally, including the most common species such as shrimp, tilapia and salmon.
Andreas Kvame, CEO of Grieg Seafood ASA, said:
“We believe food from the ocean can be part of the solution, but only if we do it right and responsibly. We recognize that we depend on ecosystem services to function, and also that our production impacts nature. This case study was a learning experience on how nature-related risks are relevant to us. Grieg Seafood remains committed to reducing our footprint and improving fish welfare through improved operations. and developing new agricultural technologies. Understanding and mitigating nature’s risks is key to achieving these goals, and with this case study and our engagement with TNFD, we have begun that journey.”
Jan Erik Saugestad, CEO of Storebrand Asset Management, said:
“The global economy depends on the services provided by nature. Businesses and financial institutions need to fully understand natural risks to make good business decisions. This pilot project shows how companies can provide meaningful data on their impacts and dependencies on nature. As an investor, this type of reporting helps us assess risks and opportunities and channel our investments into the most sustainable companies.”
Karoline Andaur, CEO of WWF Norway, comments:
“Our economy has a huge impact on nature and, at the same time, is highly dependent on healthy ecosystems. Nature risk is a concept that is gaining traction in the world of business and finance. However, few d concrete actions are still being taken.While assessing nature-related risks is a complex issue, this pilot project demonstrates that it is already possible for a company to start communicating meaningful information about its nature-related risks.With this report, we want to inspire more businesses and financial institutions to start taking steps to assess their dependencies and impacts on nature.
Norunn Myklebust, CEO of the Norwegian Institute for Nature Research says:
The concept of nature risk represents an interesting, yet complex and challenging approach to assessing the risks or threats to businesses due to nature and the risks to nature due to businesses. This pilot project can be seen as an important first step against the development of a more general natural hazard assessment system, which could be highly relevant and useful for a range of stakeholders.
The case study is available here.