Nearly three-quarters of large seafood companies have yet to outline comprehensive plans to improve supply chain traceability, raising concerns among investors about exposure to operational and reputational risks.
The FAIRR Initiative, representing investors managing more than $90 trillion in assets, this week released findings from its engagement with seven of the world’s largest seafood companies on supply chain risk management.
Four companies—Maruha Nichiro, Mitsubishi Corporation, CP Foods, and Thai Union—have now committed to improving supply chain traceability, up from two during FAIRR’s previous sector assessment.
However, most firms are not yet able to demonstrate implementation. Some continue to rely on paper-based records rather than digital tracking, while two companies—Nissui and Marubeni Corporation—have disclosed no implementation strategy or milestones. Another three have published plans that FAIRR considers insufficient.
Companies cited challenges including fragmented data, species mixing during handling, and complex supply networks as barriers to improving traceability. FAIRR, in partnership with WWF-US, is providing capacity-building sessions to the industry.
Investors warn that limited supply chain transparency leaves seafood companies vulnerable to overfishing, marine habitat degradation, and human rights issues. Without consistent measurement and disclosure, investors may struggle to assess these risks effectively. The global seafood industry generates approximately $1.8 trillion annually, equivalent to 2% of global GDP.
“It is crucial that this globally significant industry addresses the material risks of poor traceability,” said Laure Boissat, FAIRR’s Manager of Research and Engagements on Oceans.
Traceability and Certification
Many seafood firms currently rely on sustainability certification schemes, such as the Marine Stewardship Council and the Aquaculture Stewardship Council, to demonstrate responsible sourcing. FAIRR notes that while these programs provide a link to certified producers, they do not offer granular, end-to-end supply chain visibility.
According to Planet Tracker, investing just 1% of seafood sales in traceability measures could increase industry profitability by up to 60%. FAIRR encourages companies to move beyond high-level commitments and implement actionable strategies that integrate traceability as a core tool for risk management.
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