In this report, using an entire industry of a G7 country as a case study, Planet Tracker shows how the depletion of the natural world negatively impacts financials, and how improved sustainability could drive better financial performance. Analysts and portfolio managers must therefore understand and account for natural capital and its interplay with financial performance.
This report examines the Japanese seafood industry, from fishing companies and feed producers to retailers and restaurants, to determine whether exposure to a declining resource has impacted the finances of these companies. In 2019, Planet Tracker revealed that the Japanese seafood industry was facing a ‘Perfect Storm’ of declining seafood consumption and production in a context of overfishing and depleting fish stocks and argued that rebuilding sustainable stocks of wild-catch fish could transform the industry, increase profits, preserve its reputation and reduce financial risk to investors.
This report revisits Japan and undertakes a thorough financial analysis of the seafood industry to determine whether these companies have been influenced by natural capital factors. It also provides practical recommendations to simultaneously improve the sustainability of the industry and its financial performance.