As financial institutions recognize the profound impact of climate change, inequality, and biodiversity loss, there is a growing consensus on the urgent need to address these systemic risks. Recently, a joint statement from prominent asset management firms—BNP Paribas Asset Management, Federated Hermes Limited, Mirova, Robeco, and Storebrand Asset Management—highlighted the critical need for better ocean-related data to make informed investment decisions.
The ocean, covering 71% of the Earth's surface and home to an estimated one to two million species, holds an annual economic value of USD 2.5 trillion and supports millions of jobs. However, its health is under severe threat from human activities, necessitating immediate and informed action. The Kunming-Montreal Agreement of 2022 and the 2023 international accord on marine biodiversity emphasize the importance of protecting 30% of the planet's marine areas by 2030. These agreements underscore the critical role investors can play in halting and reversing biodiversity loss. The challenge now lies in transforming these commitments into concrete actions.
Meanwhile, the joint statement urges ESG data providers to enhance their offerings on ocean-related risks and opportunities. Investors are particularly interested in data that adheres to international standards, aiding in the implementation of the Kunming-Montreal Agreement. Hence the statement called for specific improvements in ESG data, such as:
Performance indicators that reflect real impacts using physical units (e.g., km² of sea use change).
Comprehensive supply chain data to track potential sourcing of endangered species.
Detailed asset-level locations (e.g., fishing vessels, shipping boats, aquaculture sites, ports, hotels).
Ownership data to trace links from fishing vessels to seafood processors and retailers.
Sector-specific estimates to tailor assessments to different industries.
These enhancements in data quality and availability are critical for embedding ocean-related information into investment analysis, highlighting risks and opportunities, engaging with investees on ocean-related topics, and improving ocean-related literacy within workforces.
The pursuit of better ocean biodiversity data has primarily focused on terrestrial ecosystems, but there is now a significant push to include ocean data. Despite challenges in obtaining precise and comprehensive information, major investors are seeking clear, tangible, and high-quality ocean data from ESG data providers.
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