21 February 2024, London: Ocean 14 Capital Ltd., adviser to the Ocean 14 Capital Fund 1 SCSp (“O14C” or the “Fund”), a private equity impact investment fund focused on the United Nations’ Sustainable Development Goal 14 (SDG 14): Life Below Water, announces today that it has received Certified B Corporation™ (“B Corp™”) certification, joining a growing group of companies reinventing business by pursuing purpose as well as profit and further recognising its commitment to sustainable and regenerative ocean investments.

Ocean 14 Capital has been certified by B Lab, the not-for-profit behind the B Corp™ movement, as having met rigorous social and environmental standards which represent its commitment to goals outside of shareholder profit.

The B Corp™ certification addresses the entirety of a business’ operations and covers five key impact areas of Governance, Workers, Community, Environment and Customers.

The certification process is rigorous, with applicants required to reach a benchmark score of more than 80 while providing evidence of socially and environmentally responsible practices relating to energy supplies, waste and water use, worker compensation, diversity and corporate transparency. The company has legally embedded their commitment to purpose beyond profit in their company articles.

Ocean 14 Capital is now part of a community of 7,000 businesses globally who have certified as B Corps™. The B Corp™ community in the UK, representing a broad cross section of industries and sizes, comprises over 1,500 companies and include well-known brands such as Patagonia, TOMS, Kickstarter, Fairfone, and ecosia.

Recent attention on the blue economy, which is estimated to be worth more than $1.5 trillion per annum globally, provides more than 30 million jobs and supplies a vital source of protein to more than three billion people, makes Ocean 14 Capital’s B Corp™ certification a notable step and signals a shift towards greater accountability and transparency in the sector.

“We are delighted to welcome Ocean 14 Capital to the B Corp™ community. This is a movement of companies who are committed to changing how business operates and believe business really can be a force for good. We know that Ocean 14 Capital is going to be a fantastic addition to the community and will continue driving the conversation forward,” says Chris Turner, Executive Director of B Lab UK.

“We are pleased to have B Corps™ of all shapes and sizes as part of our community – from startups to multinationals and across many different industries. Business is a powerful force and B Corp™ demonstrates that you can do good in any sector. Welcoming Ocean 14 Capital is an exciting moment because they have an opportunity to lead the way within the blue economy impact investing industry. We and the rest of the B Corp™ community are really pleased to support Ocean 14 Capital in paving the way for a new way of doing things,” adds B Lab’s Turner.

“We are delighted to be joining the B Corp™ community, as the first impact investment adviser focused solely on the blue economy. It is a great accreditation for doing the right thing as we strive to measure and be measured by the positive impact we will have,” says George Duffield, founding partner and Chair of Impact at Ocean 14 Capital.

“For the team at Ocean 14 Capital, sourcing investments in the blue economy is about more than making a profit from the ocean. It is about building a sustainable and regenerative ecosystem that supports livelihoods and ocean biodiversity, and enhances the ocean’s role in mitigating climate change,” continues Ocean 14 Capital’s Duffield.

Aion and Bureo, two of the Ocean 14 Capital fund’s initial investments, have been B Corp™ Certified since 2019 and 2015, respectively.

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About Ocean 14 Capital

Ocean 14 Capital Fund 1 SCSp (“O14C” or the “Fund”) is an impact fund targeting €200 million and focused on driving a sustainable and regenerative blue economy. The Fund’s investment adviser, Ocean 14 Capital Ltd, has a team who combine more than 65 years of investment, impact and industry experience. The investment adviser’s team and advisers are some of the world’s most renowned scientists and marine biologists, and it is considered that they have unparalleled access to proprietary deal flow and sector knowledge.

www.ocean14capital.com

About B Lab UK

B Lab UK is transforming the economy to benefit all people, communities, and the planet. A leader in economic systems change, our global network creates standards, policies, and tools for business, and we certify companies—known as B Corps—who are leading the way. To date, our global community includes over 7,000 B Corps™ in 90 countries and 161 industries, and over 150,000 companies manage their impact with the B Impact Assessment and the SDG Action Manager.

About Certified B Corporations® 

Certified B Corporations®, or B Corps™, are companies verified by B Lab to meet the high standards of social and environmental performance, transparency and accountability.

To learn more and join the movement, visit  www.bcorporation.uk

Important Notice

The fund mentioned within is only available to Professional Investors within the United Kingdom and Retail Investors may not rely on the information within. This is not an offer to sell, or an invitation for an offer to acquire, an interest in the Fund, nor is it an invitation to apply to participate in the Fund. This is not an offering or placement of interests in the Fund in any jurisdiction and should not be construed as such. No information in this document will form the basis of any contract. 

What’s happening? The UK economy could benefit from a £50bn ($68.2m) boost if the sea is allowed to recover from overfishing. If the UK continues on its current path, however, the loss of coastal ecosystems and fisheries would cost £15bn a year by 2050, according to WWF and Sky Ocean Rescue. The organisations are appealing to the UK government to embark on an ocean recovery strategy in H1 2021. The strategy should include the restoration of coastal habitats, the protection of a third of the nation’s seas and the introduction of sustainable fisheries and seafood production.

Why does this matter? As WWF and Sky Ocean Rescue’s report highlights, the UK has failed to ensure good standards have been reached in 11 out of 15 ocean health indicators – including those related to fish, birds and the state of the seabed. The organisations state the situation can be improved to the tune of £50bn in economic benefits by 2050, against a cost of around £38bn.

The report estimates only around 1% of the UK’s seas are legally protected, which WWF wants to see extended to at least a third – which would not just benefit biodiversity but also contribute to a green recovery from Covid-19, and to the UK’s net-zero emissions target. WWF estimates marine habitats are up to 20 times more effective at sequestering CO2 than land-based forests.

The report was released a matter of weeks after the UK’s transition period ended following it leaving the EU. While it is uncertain whether the fish swimming in UK waters are now indeed “happier” as a result of the change in the governing framework surrounding them, and the gradual transfer of quotas to the UK fishing fleet, following the scope of the deal and initial frictions UK fishermen certainly are not. Scottish fishers have been particularly affected by additional paperwork, leading Prime Minister Boris Johnson to announce a £23m compensation scheme for exporters affected by associated delays.

How Brexit will impact fishing and ocean sustainability longer term remains to be seen. The UK government has said it will invest £100m to “modernise” the fishing industry, but there is appetite for the departure from the EU to be seized as an opportunity to up sustainability standards.

The Marine Conservation Society has said it is critical that protections for the UK seabed from bottom trawling are put in place following Brexit, as ocean-floor sediments act as vital carbon stores. It estimates trawlers operate in all-but-one of the UK’s Marine Protected Areas (MPAs), and that they damaged 98% of MPA seabed between 2015 and 2018. Similar statistics were reported by NGO Oceana. There is long-standing opposition to trawling, with Blue Marine Foundation among many other organisations describing it as a practice that “makes no sense economically or environmentally“. In a recent win for environmentalists, a Scottish judge has ruled ministers acted unlawfully in blocking a no-trawl scheme off the Isle of Skye.

WWF says ending industrial trawling and allowing stocks to recover could result in an additional 420,000 tonnes of fish a year for the UK, worth around £440m. Its analysis also points to the value of promoting ocean sustainability for recreational benefits, reduced emissions, job creation and renewable energy generation, alongside carbon capture and flood protection.

From a broader perspective, as nations look to recover from Covid-19 in a sustainable manner, the ”blue recovery” potential of coastal states has been highlighted by the High Level Panel for a Sustainable Ocean Economy. A report from the panel shows that addressing overfishing and investing in sustainable aquaculture would generate $6.7tn in benefits worldwide over the next 30 years. In terms of other recommendations, while the UK doesn’t have any mangroves to restore, it does have a sizable offshore wind industry, within which investors can see £17 returned for every £1 invested, according to the panel. Late last year the leaders of 14 countries, under the High Level Panel, committed to ending overfishing and managing oceans within their jurisdictions sustainably by 2025.

What’s happening? The leaders of 14 countries, whose governments are responsible for 40% of global coastlines, have committed to end overfishing, while also restoring falling fish populations and ending the movement of plastic pollution into the sea over the next 10 years. The pledges, which were outlined on 2 December, constitute the world’s largest ocean sustainability initiative. The countries involved will end subsidies contributing to overfishing, enforce measures designed to end illegal fishing, and commit to managing oceans within their own jurisdictions sustainably by 2025.

Why does this matter? As pressures on the world’s seas increase due to overfishing, climate change and plastic pollution, it’s becoming imperative to effect change to improve the sustainability of the ocean.

The High Level Panel for a Sustainable Ocean Economy was set up to help do just that, with its latest initiative to “Give it 100%” – to sustainably manage 100% of national waters by 2025 – signed by Australia, Canada, Chile, Fiji, Ghana, Indonesia, Jamaica, Japan, Kenya, Mexico, Namibia, Norway, Palau and Portugal. Its agenda is framed around ocean health, wealth, knowledge, equity and finance, and the aim is to push nations to develop sustainable ocean plans so all waters under national jurisdiction are sustainably managed by 2030.

The initiative’s launch was accompanied by a report from the panel’s expert group and SYSTEMIQ on sustainable ocean solutions, containing a roadmap to reach the aims. This outlines how measures – such as setting up national ocean task forces to coordinate efforts – can produce six times more sustainable seafood by 2050, create 40 times more renewable energy by the same date, create 12 million jobs by 2030, and result in $15.5tn in net benefits.

Stakeholders responded positively, including Canada’s aquaculture industry which lauded country’s pledge to protect its coastline – the world’s largest – and the 30 million square kilometres of national waters covered globally. Meanwhile, south of Canada’s border, the US seafood sector has instead been vocal against similar measures. The industry has written a letter to US government representatives opposing the creation of Marine Protected Areas to prevent fishing in 30% of the US’ Exclusive Economic Zone.

On a broader level, overfishing remains a difficult subject to address. The World Trade Organization this week failed to reach a deal to reduce subsidies contributing to the problem. There is, however, optimism progress has been made to reach a deal next year to reduce aid from heavy subsidisers including China, the EU, the US, South Korea and Japan. The Pew Charitable Trusts estimated a deal could increase fish biomass globally by 12.5% over the next 20 years.

Meanwhile, while certain retailers have taken action to stop sourcing tuna from stocks under pressure, another recent failure to reach a consensus – in this instance from the Inter-American Tropical Tuna Commission – means tropical tuna fisheries are set to lack any form of management on quotas or gear types from 1 January. While individual nations can implement their own regulations, this marks the first time in the commission’s 70-year history it has been without regional oversight.

The EU also has some work to do, with the European Court of Auditors finding action from the bloc since 2008 to reduce fishing to sustainable levels and restore European seas’ environmental status has not been strong enough. The High Level Panel earlier this year outlined the net economic benefits of taking action on overfishing, which would amount to around $6.7tn over the next 30 years according to its analysis. It also said, under a “blue recovery” from Covid-19, coastal states could generate $17 for every $1 spent on offshore wind, and $3 for every $1 spent on mangrove restoration.

Source: The Guardian