Risks at Sea: The Impact of Seafood Supply Chains
Supporting businesses to navigate seafood supply chain risks.
Food and beverage businesses are becoming more aware of the impact that agriculture has on the environment, and consumers are increasingly more alert to the range of negative impacts of intensive agriculture - such as the excessive use of pesticides, deforestation from land use change, and the release of greenhouse gas emissions from beyond the farm gate.
Crucially, the same important action and thinking must be applied to understanding where seafood comes from and mitigating the environmental and social impacts of the seafood industry. Businesses – and here the main focus is on businesses and organisations from across the seafood value chain – have a huge role and responsibility to play in supporting sustainable seafood.
In the UK we could be forgiven for wondering if this is a priority issue considering we are surrounded by ocean. However, only 30% of fish caught or farmed in the UK is consumed domestically, while the majority of the fish eaten in the UK is imported. This article will look at some of the biggest challenges and risks for businesses and the opportunities to set new norms and uphold the integrity behind ‘responsibly sourced’ seafood.
Seafood is one of the world’s most highly-traded commodities; 3.3 billion people rely on fish products as their primary source of animal protein, and demand for seafood is expected to nearly double by 2050. All of this points to a food system that is managing change, but it also illuminates questions, such as whether there is enough sustainable supply or whether global fish production can mitigate environmental and social risks in the face of rising demand.
Navigating the risks
The seafood industry faces many challenges - from climate change impacting fish populations and marine habitats, illegal fishing and forced labour, to overfishing and collapsing fish stocks - and businesses operating across the seafood value chain are exposed to this range of sustainability risks.
Some of the biggest risks stem from overfishing as all actors in the supply chain rely on seafood being available and affordable which can result in unsustainable fishing practices. Illegal, unreported, and unregulated (IUU) fishing poses another huge threat to the sustainability of fisheries. IUU fishing includes fishing without a licence or authorisation, not reporting or misreporting catches, fishing in prohibited areas and catching, or selling prohibited species. FAO estimates that IUU fishing accounts for roughly 20% of the world’s catch. Despite IUU being a global risk, the WBA Seafood Stewardship Index records that only 10% of companies reviewed in its benchmark assess IUU risks in their operations and supply chain.
Due to the nature of the work – the isolation of fisheries and the reliant on migrant workers – the seafood sector is a high-risk environment for human rights abuses and Human Rights at Sea estimates that between 32,000 – 100,000 fishers lose their life at work every year. The prevalence of negative human rights impacts is due to a variety of causes and many of these factors are connected to the complexity of the value chains, which complicates the enforcement of laws. Not all incidents of labour abuses occur in remote locations: a 2022 study found that the average salary for migrant fishers working in the UK was £3.51 per hour (well below the UK National Minimum Wage at £11.44 an hour (in 2024)).
Underpinning these risks is the affect that climate change is having on ocean temperature rises and shifting currents. The seafood sector depends heavily on biodiversity and ecosystem services to provide healthy fish however unsustainable fishing and overfishing are some of the leading drivers of marine biodiversity decline.
These risks not only impact the environment and people directly engaged in fisheries, but also the businesses that depend on them. As revealed by the recent insights report from the WBA, visibility of positive business impact and action remains murky and many of the most influential companies in the seafood industry have considerable room to improve in terms of sustainability.
The opportunity
For businesses operating across the seafood value chain, there is a huge opportunity to understand the risks, especially as consumers increasingly show an interest in knowing more about the origin of the seafood on their plate.
Companies could explore the role of technology and identify opportunities to increase transparency and traceability. As fishing often takes place in remote locations and involving multiple companies (and jurisdictions), new systems and technologies can support traceability.
Businesses should seek to work closely with suppliers and carry out value chain due diligence to increase efforts to mitigate environmental and human rights issues along value chains. Working in partnership with suppliers who prioritise sustainable fishing practices and maintain transparent supply chains can help ensure a stable supply of seafood.
Similarly, companies should engage and collaborate with industry stakeholders to address common challenges, share knowledge, and advocate for sustainable practices.
FAIRR estimates that the environmental impacts of seafood supply chains alone are putting up to USD $3 trillion of seafood-related assets and revenue at risk over the next 15 years – validating that there is an urgent need for companies to identify and address some of the key risks outlined here. The seafood industry, like the agricultural industry, has a huge role to play in achieving sustainable and equitable food systems while at the same time protecting biodiversity.
Written by Susannah Cooke, April 2024. Susannah is a Senior Advisor for BRODIE Consulting.
Additional Reading
The New Yorker (in collaboration with the Outlaw Ocean Project) published an interactive article on the crimes behind our seafood.
Financial Times: UK fishing industry has come to rely on low-paid workers employed through a little-understood immigration loophole.
Cod: A Biography of the Fish That Changed the World.
Take a look at Global Fishing Watch map which monitors global fishing activity sea: Global Fishing Watch.
World Benchmarking Alliance’s 2023 Seafood Stewardship Index.
Get in touch
If you have any thoughts, reflections or questions about this article, we’d love to hear from you. Connect with us here at BRODIE if you want help on your sustainability journey.