CLIMATE CHANGE AND UNSUSTAINABLE FISHING PRACTICES WILL WIPE OUT TUNA PROFITS

Climate change and unsustainable fishing practices will wipe out tuna profits in Indonesian waters unless companies implement nine nature-positive actions

A new investigation by Planet Tracker reveals that profits in the industrial Indonesian tuna sector will all but disappear due to climate change unless companies adopt nine nature-positive measures now.

Despite significant progress, sustainability is still poor within the industrial fleets that catch tuna in Indonesia, the world’s largest producer. One key concern is bycatch: every year, the 256 large-scale tuna vessels that Planet Tracker tracked via Global Fishing Watch catch millions of animals like turtles, dolphins, sharks or other fish species instead of tuna. Very often, the tuna they catch is too young, putting future revenue at risk and contributing to overfishing. Out of the 791,000 tonnes of tuna caught in Indonesian waters in 2021, the majority is overfished, subject to overfishing or harvested above recommended limits. One stock (yellowfin tuna in the Indian Ocean) is on the verge of collapse.

Climate change will make things worse: the industry will catch an estimated 25% to 31% less tuna by 2050. Depending on the industry’s and the government’s reactions, this is likely to lead to a near or total disappearance of the industry’s profits.

Encouragingly, Planet Tracker found that the profitability of companies best ranked for sustainability were in line with or above the 12% average EBITDA margin in the industry. Further, implementing a series of nature-positive measures that reduce bycatch and overexploitation while improving traceability and transparency will more than offset the negative impact of climate change on the industry’s profits.

According to Francois Mosnier, Head of Oceans Programme at Planet Tracker: “Realising that the industry could dramatically reduce its negative impact on the environment while improving its long-term profits for an average investment of c. USD 100,000 per company was eye-opening. We urge investors and lenders to support our recommendations.”

Planet Tracker recommends that tuna fishing companies:

1. Reduce pressure on overexploited tuna stocks[1] by at least 20%.
2. Adopt a responsible drifting FAD[2] policy
3. Invest in GDST[3]-compliant tuna traceability
4. Enable supply chain transparency by disclosing the volume of species caught
5. Choose selective fishing methods to reduce bycatch
6. Retain all fished tuna, except those unfit for human consumption
7. Participate in sustainable tuna fishing initiatives,
8. Replace crude palm oil by used cooking oil as a feedstock for biodiesel
9. Link financial health to the environmental health of the fish populations companies rely on and take action to improve both

[1] Bigeye tuna and yellowfin tuna in the Indian Ocean

[2] Fish Aggregating Devices: man-made, typically floating wooden structures with hanging nets to attract fish.

[3] Global Dialogue on Seafood Traceability, an organisation that set standards for seafood traceability to enable interoperability across supply chains

Source Press Release