Taking action to protect the world’s oceans not only has environmental benefits but economic ones, according to a report by the High Level Panel for a Sustainable Ocean Economy. Investing $2 to $3.7 trillion globally in oceans from 2020 to 2050 would generate $8.2 to $22.8 trillion in net benefits, which implies a rate of return of investment (ROI) of 400 to 615 percent. Sustainable ocean-based investments yield benefits at least five times greater than the costs, the report shows.
For every $1 invested in specific areas of ocean conservation, more is yield in benefits. Consider two areas: mangrove conservation and restoration and decarbonizing international shipping and reducing emissions. Every $1 invested in mangrove conservation and restoration yields a benefit of $3. Every $1 invested in decarbonizing international shipping and reducing emissions to net-zero yields $2 to $5 in benefits. Other benefits include:
- Every $1 invested in scaling up global offshore wind production generated benefits of $2 to $17.
- Every $1 invested in increasing the production of sustainably sourced fish and seafood yields $10 in benefits.
Investing in the blue economy
A Credit Suisse report found that there is interest among investors in investing in the ocean, or what the report terms the blue economy. However, three in four investors responded to a survey saying they have not assessed their portfolios for their impact on the ocean and 21 percent are completely unaware of ocean exposure and risk in an investment context. Nearly a third of asset owners do not address the sustainable blue economy at all in their current investments.
There are barriers for investors and asset owners when it comes to investing in the blue economy. For investors, they include a lack of investment-grade projects and no internal expertise. For asset owners, the barriers include not offering any products or raising the topic amongst them. There is good news. The blue economy “is poised for an increase in importance over the coming decade, with over a third of investor respondents seeing it as amongst the most important topics in 2030,” according to the report. And there are already early-stage opportunities.
Companies turning ocean plastic into products
Some companies are already capitalizing on the blue economy by turning ocean plastic into products. One of those companies is Adidas which incorporates ocean plastic into their shoes. Adidas is a founding member of the global network called Parley for the Oceans. The company works with Parley to transform ocean plastic waste for use in its apparel and shoes. All of its Parley products contain ocean plastic collected by partner organizations on shores and coastal areas in the Maldives.
Method is another company that incorporates ocean plastic into its products. It uses a blend of ocean plastic and post-consumer recycled plastic to package its two-in-one dish and hand soap. The company partnered with local beach clean-up groups and volunteers to collect plastic waste from Hawaiian beaches to use in its plastic bottles.
Other companies incorporating ocean plastic into their products include 4Ocean which makes a dolphin bracelet made from ocean plastic. The salon professional hair care line Kevin Murphy uses ocean plastic in the plastic bottles that house its products, while Solgaard’s backpacks and fanny packs are made from plastic waste collected from beaches in the Philippines. What all of these companies prove is that there is money to be from caring for the world’s oceans.
Photo by Ray Aucott on Unsplash