Can new principles drive money into sustainable fishing?
With a growing list of adopters and endorsers, Environmental Defense Fund, Meloy Fund and Encourage Capital launched new guidelines for investing in global fisheries to drive needed capital into scaling sustainably managed fisheries and restoring our oceans to abundance.
Although billions of public and private dollars are invested in fisheries every year, more often than not, sustainability is neither the driver nor the intended outcome of those investment dollars. That means we are missing a major opportunity to solve the global overfishing and food security problem, which requires significantly more and better-aligned investment from a variety of capital providers.
The announcement was made last week at the World Ocean Summit 2018 in Riviera Maya, Mexico.
The Principles for Investment in Sustainable Fisheries are designed to do just that: to move new and sidelined capital into fishery investments, align that capital with responsible management and give investors confidence that building environmental and social sustainability into fisheries also will yield a return on their investments. The principles also train a spotlight on human rights for investors, especially when it comes to bringing new capital to small-scale fisheries and coastal communities. They already have been endorsed or adopted by more than 15 foundations, investment funds, project developers and non-profit organizations.
Momentum is building for the guidelines. The three major fisheries impact funds — Meloy Fund, Encourage Capital and Althelia Ecosphere — have agreed to adopt the principles as founding adopters and apply them in investment decisions.
"Rare and the Meloy Fund decided to join forces with EDF and Encourage to co-author and become a founding adopter to these principles because we are committed to establishing a sustainable wild-caught fisheries investment sector that prioritizes the best outcomes for ocean resources and fishing communities. We need to help define a common ground for the impact investing field and we are already applying these principles routinely as part of our due diligence and supervision processes," said Manuel Bueno, fund director at Meloy Fund.
The principles apply globally to all debt and equity investment products deployed to finance a project or company, and where the project or company has or is expected to have an impact on wild-caught fisheries and their associated ecosystems and communities. Modeled after the Equator Principles, they complement existing guidelines and frameworks governing environmentally and socially responsible investment.
"Althelia is a founding adopter of these principles because we wholeheartedly believe that sustainable fisheries investing can bring about the best possible environmental and social outcomes: healthy oceans; nutritious food; good jobs," said Simon Dent, director of new ventures at Althelia Ecosphere. "We look forward to applying these principles to support the Sustainable Ocean Fund’s investment activity and decisions."
The principles are expected to be endorsed by non-investor institutions such as non-profit organizations, project developers, philanthropic foundations and other public and private stakeholders interested in promoting the sustainable management of fisheries through investment.
An up-to-date list of adopters and endorsers can be found at www.fisheriesprinciples.org.
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