The ocean covers the majority of our planet’s surface, holding 97% of all water and 80% of all life forms. Major ocean sectors such as tourism, shipping, fishing, aquaculture and marine renewable energy collectively contribute to a ‘blue’ economy, estimated by the Organisation for Economic Co-operation and Development (OECD) at a global gross value added of $1.5 trillion in 2010. This blue economy has been projected to increase to $3 trillion by 2030, with some ocean industries set to grow faster than the
global economy.

However, ocean health is under threat, faced with the triple crises of pollution, nature loss and climate change, leaving industries, businesses and livelihoods exposed. With existing financing still largely directed towards unsustainable sectors and activities, it is critical that all sectors of the blue economy are rapidly transitioned towards sustainable
pathways.

Banks, insurers and investors have a major role to play in financing this transition to a sustainable blue economy, helping to rebuild ocean prosperity and restore biodiversity to the ocean. Through their lending, underwriting and investment activities, as well as their client relationships, financial institutions have a major impact on ocean health and hold the power to accelerate and mainstream the sustainable transformation of
ocean-linked industries.

This seminal guidance is a market-first practical toolkit for financial institutions to pivot their activities towards financing a sustainable blue economy. It outlines how to avoid and mitigate environmental and social risks and impacts, as well as highlighting opportunities, when providing capital to companies or projects within the blue economy.

Leveraging best practice based on input from more than 50 pioneering institutions and experts, this guidance sets out pathways to sustainable growth across five key ocean sectors. It presents a detailed breakdown of which activities to seek out as best practice, which activities to challenge, and which activities to avoid financing completely due to their damaging nature.

This guidance provides financial decision-makers across banking, insurance and investment with a science-based and actionable toolkit, giving easy-to-follow recommendations on how to approach financial activity related to:

◾ Seafood, including both fisheries and aquaculture as well as their supply chains;

◾ Ports;

◾ Maritime transportation;

◾ Marine renewable energy, notably offshore wind; and

◾ Coastal and marine tourism, including cruising.

Accompanying the guidance is a set of easy-to-follow recommendations on how to approach financial activity in ocean sectors, allowing financial decision-makers to take immediate action. Combined, the guidance and recommendations provide a road map with a detailed breakdown of which client activities to seek out as best practice, which activities to challenge, and which activities to avoid completely due to their damaging nature.

Download the full report here.