Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Measure Better Investing in Racial Equity Beyond Aid Beyond Trade-offs Impact en las Americas New Revivalists Women Rising in India Operation Impact
Smarter Money Women Rising 2030 Finance Locavesting Inclusive Economy Regeneration Impact Tech New Power Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Industry News Impact Management Good Business Personal Finance Faith and investing Billionaires
Gender Lens Investing Women Rising in India
SDGs Climate Finance Clean Energy Innovative Finance Full Stack Capital Long-termism
Opportunity Zones Investing in place
Entrepreneurship Return on Inclusion Good Jobs Inclusive Fintech Creative economy Housing New Schooled Well Being People on the Move
Conservation Finance Farmer Finance Financing Fish
Blockchain/AI/IoT Urban Tech Food Tech Inclusive Fintech
Human Rights Democracy and Peace News and Information
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States Growth Markets
Subscribe Log In

Shrimp farming poses a jumbo risk for investors

ImpactAlpha, Jan. 13 – Quick, do you pick beef or shrimp if you are concerned about greenhouse gas emissions per per kilo? Surprise. Once land use change is factored into the shrimp life cycle, the tiny crustaceans out-emit cattle on a per kilogram of production basis, according to a new report by Planet Tracker. Mangrove destruction for shrimp farming may not be as high profile an issue as deforestation in the Amazon for cattle farming, but it’s potentially more harmful. 

Battered habitat

The $45 billion shrimp industry is responsible for 30% of mangrove deforestation and coastal land-use change across Southeast Asia. As a percentage of total habitat, mangroves are being destroyed at five times the rate of rainforests. Shrimp farming also degrades mangrove ecosystems through water pollution and sludge dumping. 

Material risk

Mangrove deforestation poses regulatory, reputational and financial risk for the farmed shrimp industry and its investors, the authors contend. One looming threat: a potential European Union ban on deforestation-linked commodities. 

Lack of transparency

Only four of the top 27 publicly listed shrimp farming companies identified by Planet Tracker disclose their shrimp-specific revenue and operating margins. “Understanding the exposure of these companies to environmental risks is key for investors forecasting revenue, costs and profit margins,” said Planet Tracker’s Matthew McLuckie.

You might also like...