The Fish Tracker approach builds from two simultaneous work-streams:
- An assessment of the largest publicly listed companies engaged in fishing activity, throughout the supply chain, to clarify which of their activities are within, and which are without, the environmental limits and trajectories established by the Fish Tracker. This initial assessment will then be extended to additional publicly listed companies, companies raising capital privately or considering IPOs as well as the major providers of finance and financial services to these companies, and
- Establishment of a robust methodology to establish the environmental limits of all fishery activity, by geography, species, ecosystem and fishing method so that existing and planned future activity can be assessed as to whether it breaches these limits.
Interpretation of company assessments, within the context of this ‘environmental limits methodology’ will provide the analysis required to ensure that the risk premium associated with fisheries activity is correctly priced, identifying the companies, regions, and fisheries where banks and investors should exercise caution.
With completion of these work-streams we then aim to reach an initial set of target audiences to begin to redirect the flows of capital away from relevant publicly listed fisheries businesses. These include institutional investors in and the banks for the largest fisheries businesses that are breaching environmental limits as well as associated entities such as ratings agencies, stock exchanges and accountancy firms. A combination of our global analysis alongside focused research pieces related to individual companies, geographies and fishery stocks, animated through a comprehensive and targeted communications strategy, will ensure the right information gets into the hands of the right decision makers to begin the process of more rational capital allocation across the industry.
Subsequently, as stage two, we plan to extend the same process to a wider set of actors, prioritising fisheries companies in significant breach of environmental limits alongside related industry players with substantial roles in, and influence on, the sector, including the above-listed entities alongside investment advisers and multilateral agencies.
A third stage of activity will use the same methodology and extend it to analyse publicly listed companies, as well as fisheries practices, that are within environmental limits or that are environmentally beneficial, in order to stimulate flows of investment towards environmentally beneficial activity.
Throughout this initiative there will be a focus on developing tools to assist investors in pricing risk to make informed investment decisions.