June 2022.

World ocean day Seawolf launch

Today, 8th June, is World Ocean Day. It is particularly personal to me this year, as I have chosen this celebratory day to launch my own business - Seawolf Sustainability Consulting. If you are curious about the name, my family name “Self” is thought to be the Anglo Saxon version of the viking name “Sea Wolf”. A recent DNA ancestry test revealed I am over 20% Scandinavian, so perhaps the affinity I feel with the ocean and its inhabitants is genetic!

Oceans occupy circa.70% of the planet’s surface and humans depend on them for resources (oxygen, food…) and industry (business, transports, recreation …). Like 40% of humans today, for the majority of my life, I have lived within 100 kilometers of the coast. It was one of the primary reasons I decided to go to the University of Southampton for my undergraduate degree and it is also why I live in Zandvoort today. Just think a moment about the number of the world’s largest cities which are located by a coast, including international financial markets hubs such as London, Hong Kong and New York. Many humans love to be close to the sea.

United Nations Sustainable Development Goal (UN SDG) 14 is ‘Life Below Water’, its goal is to ‘conserve and sustainably use the oceans, seas and marine resources for sustainable development’. However, despite lots of great efforts, the ocean remains under severe threat from overfishing, warming sea temperatures, plastics and acidification. So, what can businesses and finance professionals, plus ourselves as individuals and our communities do and what are the considerations for sustainability?

The ocean, business and finance

I. Law of the sea

One way for businesses and finance to think about this topic, are the rules and standards to which they operate within. The Law of the Sea is a body of customs, treaties and international agreements by which governments maintain order, productivity, and peaceful relations on the sea. By 2016, 167 countries and the European Union had ratified the convention. It includes, for instance, the national rights to a belt of sea surrounding a country, usually limited to approximately three to twelve nautical miles out from a nation's coast.

Although the Law of the Sea includes some pollution-control measures to protect habitats and ecosystems, it is mostly not explicit about international cooperation, and leaves out large marine areas which straddle two nations. Is this another example of the Tragedy of the Commons? Surely, more Marine Protected Areas are required urgently.

Will engaged businesses help lobby governments for more marine protection or will many continue depleting or destroying our oceans until its resources simply run out? Maybe in the future we shall expect more political arguments about issues such as fishing rights, which was a feature of the Brexit referendum.

II. Finance, data and ocean-related industries

Often financial institutions and regulators use summarized Industry Sector codes, such as Global Industry Classification Standards (GICs), to analyse aggregated financial exposures. This approach typically does not give adequate details to understand and assess the potential harm caused by ocean-related industries, such as shipping. In fact, using this approach might also lead to disincentives for financial institutions to act, as the industry exposures look relatively small when being part of a large diversified lending or investing portfolio.

Initiatives such as the Poseidon Principles go further, as they aim to provide a framework to support decarbonisation of the shipping industry and include commitments from large financial institutions. Blue bonds are also a financial instrument which can be used to channel private sector capital toward marine conservation. Increased participation in those initiatives is a sign of progress, although, please excuse the pun, it can feel like a drop in the ocean.

III. Sea flood risk and business

Looking at geographic footprints is also a starting point for business and finance teams to assess future/potential exposure to ocean-related risks and opportunities. For example, exploring internal information and using external tools to consider where employees, supply chains, factories, offices, branches, products and services are located and asking questions about how one’s business could be impacted by climate change.

Global flood losses related to 136 of the largest coastal cities are expected to grow to up to USD52bn per year by 2050 (up from USD6bn in 2005). This number could likely be even higher because the impact will certainly not be spread equally around the world and our cities. This pub in Cornwall is frequently flooded. In Copenhagen city chairs have been raised to demonstrate visibly the impact of expected sea level rise. More adaptation efforts and investment will be required, such as the dams and dykes in the Netherlands. This will have to be funded via tax or via investing in innovative financial products.

IV. Social issues at sea and business

More migrants are expected to be displaced around the world due to increased global temperatures caused by climate change. The international law of the sea states any boat flying a flag should ensure it helps those ‘in distress’, such as migrants. Thinking carefully about what more migration means for our societies and politics will be important for our collective futures. It will shape the world businesses operate within. This is a highly emotive topic in occidental societies, illustrated for instance with the recent row in the UK, around the crossing of the English Channel and the “Rwanda plan”.

Many countries all around the world will be impacted by the rise of sea level. The most at-risk, Vanuatu, already called on business leaders and policy makers to do more to help. A recent example of social issues impacting maritime transport, is the P&O Ferries case in the UK. Summarising, seafarers have been subject to cost cuts as they work in international waters, where no minimum wage applies. As well as the continued poor treatment of sentient marine creatures kept in captivity by humans, such as Orcas in the 2013 documentary Blackfish. Sadly there are many examples of human and animal rights abuses at sea.

Conducting engaged, grown-up and fact based conversations, including diverse stakeholders’ perspectives, will be essential to address marine-related environmental, social and governance issues. More questions for those in power about who is responsible for the destruction of the planet’s oceans will continue. In this respect the current dangerous game of ‘pass the parcel’ being played by many of today’s political, finance and business leaders has to stop. And perhaps this is where the oceans can help support us humans the most…

Mindset and the ocean

I have been working and studying sustainability and business for almost a decade. One of the reasons to start my own business was born of my frustration with the current slow pace of change to help heal our planet, including the ocean. Despite the evidence, underpinned by scientific studies, data and reports, leading to rather gloomy climate projections, humans have so far kept accelerating towards an unsustainable way of being in the world. Shifting from our traditional ways of thinking around our political and economic systems, and being open to new ideas should be a big part of the solution.

When I look out at the horizon by the sea, or take part in marine sports, I often feel awe-inspired. It gives me a sense of how tiny and small my own individual perspective is. I often use this time to ask myself random questions, contemplate life, and try to forget the day-to-day worries. I also reflect on how lucky I am, and feel a deep sense of gratitude. Initiatives such as the UK based Wave Project, harness the power of the ocean to improve the mental health of children and young people. Similarly, Juttersgeluk foundation, in the Netherlands, works with local communities, including infirm eldery people, to clean the beach and in particular collect plastic, upcycling it into circular products.

If you can pop up on a surfboard or are persisting with trying (like me), it is very humbling to be tossed from a surfboard by a wave! At some time in our lives mother nature will kick our a**e. It could be getting caught in the rain, loud thunder or terrible sunburn (or all three at the same time). Keeping these memories in our minds when decision making and leading with vulnerability will allow us to shift our world paradigm further towards sustainable living. No single stakeholder group, business or country has all the answers nor all the diverse perspectives required to understand and fix big global issues like climate change. We humans need to learn how to better share resources more effectively and lean into new types of radical collaboration.

Activities like surfing can bring additional respect for the immense power of our marine ecosystems and bring societal changes today. There are many examples of ocean-related organisations and people inspiring changes, such as Surfers Against Sewage, the Plastic Soup Surfer, Sea Shepherd and Whale and Dolphin Conservation. At their level, they help to raise awareness about the fragility of our oceans and bring people together to protect them.

I have recently embarked on an Oceanography course. It is tough, with a lot more physics than I expected, but when I look out at the North Sea, it feels real and tangible. Increasing education and awareness about our ocean, including spending time in our natural ecosystems, is key to protecting our precious marine areas. The Good Life Goals has many suggestions for individuals. Our oceans inspire human creativity and art, this can also be utilized to prompt new conversations, build bridges and create a sense of local community.

Overall, we humans need our oceans in our life for our subsistence, industries and businesses. However, perhaps even more, we draw inspiration from the sea, experience humbling and fun activities and enjoy the collective belonging they bring us as land dwellers.

Thank you ocean!

One ocean, one climate, one future - together!

Take action now, protect at least 30% of our lands, waters and ocean by 2030: Conservation Action Focus - World Ocean Day - World Ocean Day

______________________________________________________________

If you are interested to find out more about how Seawolf Sustainability Consulting can support accountants, financial professionals and management teams please get in touch via seawolfsustain@gmail.com