Nature-related risk reporting for investors. A case study of the aquaculture sector

This study shows that it is already possible for companies in the aquaculture sector to report on factors that could constitute nature-related risks for companies and funders. 

Most companies depend on nature for their operation and, at the same time, have an impact on nature through their operations. Increasingly, companies and financial institutions are recognizing that the loss of nature and biodiversity are a source of so-called nature-related risks, i.e. changes in the environment, as well as relevant changes in regulations, policies, markets and society at large can affect companies. It is therefore crucial that they increase their understanding of nature-related risks and start reducing their negative impacts on nature and ecosystems.

Based on a real-world exercise, WWF, Storebrand Asset Management, the Norwegian Institute for Nature Research and Grieg Seafood explored how currently available information on salmon aquaculture can be used to inform investors in the seafood sector about key nature-related risks, such as the impact on biodiversity or water quality. The project has also identified areas for improvement, such as the lack of comparable quantitative metrics, definitions, and a framework for objective reporting on dependencies.  

Still, the study shows that it is possible to get an indication of a salmon farming company's exposure to nature-related risks, as well as the mitigation efforts made.