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Decision-ready Ocean Data Missing in Action

Traceable data and lifecycle-based policies among recommendations made by panellists at Nature Data for Institutional Investors event.

Investors’ understanding of ocean-related risks and dependencies in their portfolios is limited by incomplete datasets and difficulties translating available data into decision-useful information. 

Until data gaps are plugged, investors will continue to fall short in mitigating portfolio risks and supporting solutions, said panellists at ESG Investor’s second annual Nature Data for Institutional Investors event.  

“Even though we have made important strides in the technology needed to observe the ocean, there’s still a lot of data missing,” said Tara Zeynep Baris, Product and Data Science Lead at non-profit HUB Ocean. 

In October, HUB Ocean reported that the private sector provided just 3% of ocean biodiversity data contributions to the Ocean Biodiversity Information System (OBIS) and Global Biodiversity Information Facility (GBIF). 

The data is very spread out, with companies, investors and governments forced to draw on a wide array of sources to get all the information they need, Zeynep Baris said.  

She also pointed to sampling bias, arguing that it is easier to secure data from some places than others.  

“Just because there’s no accessible data [in a particular region or area], that doesn’t mean that there’s nothing there to protect or be aware of,” Zeynep Baris said. 

“But it has also been difficult for [investors] to interact with the data they do have. There isn’t always great metadata associated with these databases, so it can be difficult to understand how to best apply the information.” 

Up to 80% of the world’s biodiversity, 20% of mankind’s daily intake of protein, and 50% of available oxygen globally comes from the ocean. 

“It’s a huge source of food and livelihood for billions of people and it’s a growing part of the economy,” said Will Oulton, Non-executive Director of the Marine Conservation Society UK. 

Narrow focus 

François Mosnier, Head of the Ocean Programme at think tank Planet Tracker, agreed that ocean data isn’t easily “consumable” for investors. 

“There is plenty of data, but it’s all over the place,” he said, noting that information gaps lead to investors thinking too narrowly about the sources of ocean-related risks in their portfolios – for example, fishing, shipping and aquaculture 

“But they don’t think about companies like Tesco, which sells a lot of seafood and therefore has a huge influence on the ocean,” Mosnier said. 

Earlier this year, a group of global investors published a statement highlighting their need for better ocean-related data and tools on performance indicators, supply chains, local contexts, and sector estimates to support investment decisions.   

The key is to make sure the data is traceable, which means encouraging companies to talk with their suppliers, Mosnier added. 

“Data that is relevant at a corporate level is extremely important,” he said.  

A 2023 report said readily deployable ocean solutions have the potential to reduce emissions by up to 35% on a 1.5°C trajectory by 2050 – equivalent to four times the annual emissions of the entire EU. 

Investing between US$2 trillion and US$3.7 trillion across solutions such as conserving and restoring mangrove habitats, scaling up offshore wind production, decarbonising international shipping, and increasing the production of sustainably sourced ocean-based proteins could generate between US$10.3 trillion and US$26.5 trillion in total benefits from 2020-50, according to the World Resources Institute. This is equivalent to a 400-615% return on investment. 

“We are seeing more investment strategies focused on oceans,” said André Ranchin, Investment Consultant at consultancy firm Hymans Robertson.  

Blue bonds, for instance, are explicitly targeting the restoration and protection of ocean environments, as well as generating financial returns,” he said noting that concepts of natural capital are being extending to include efforts to restore marine ecosystems. 

Out of reach 

Compared with nature-related impacts on land, many ocean-related risks remain out of reach of those looking to measure and understand them, panellists acknowledged. 

“Oceans don’t exist in a flat, homogeneous state,” said Tanya Cox, Biodiversity and Nature Manager at global sustainability advisory firm Chronos Sustainability. 

“Over 97% of the ocean is in the deep sea, which begins at 200 metres deep and extends down to 11 kilometres in some parts.” 

Policy initiatives to protect ocean ecosystems have made little headway, despite recent treaty negotiations. This means negative impacts  are not being addressed from activities, including overfishing, deep-sea mining and plastic pollution.  

Governments committed to the Global Biodiversity Framework (GBF) are currently falling short of the framework’s commitment to conserve 30% of oceans by 2030, with just 9.7% estimated to be protected by the end of the decade. 

Discussions on implementing the GBF at COP16 ended in disagreement, undermining pre-summit hopes for the “bluest ever” COP. But it did see confirmation of ecologically and biologically significant marine areas (EBSAs) – which will support the development of a scientific and technical database to identify where to deploy marine protected areas (MPAs) in national and international waters. 

The fifth round of negotiations for a legally binding Global Plastics Treaty came to an unsatisfactory end earlier this month, with countries only agreeing to a ‘Chair’s Text’ that will serve as the starting point for resumed negotiations in 2025. 

Holistic approach  

It is estimated that 462 million tonnes of plastic are produced every year – 14 million tonnes of which ends up in the ocean. But Cox said that limiting production – one of the key areas of disagreement – was only one of a range of available policy options.  

“It’s not just about plastic pollution but about addressing the entire lifecycle of the material – how it’s being produced, what’s going into it, how products are being designed, where and how it’s transported, how it is used, and whether or not it is recycled,” said Cox. 

“We need to take a holistic, lifecycle approach to policies addressing plastic pollution. We are never going to be able to recycle our way out of the ocean pollution crisis.”

The post Decision-ready Ocean Data Missing in Action appeared first on ESG Investor.

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