Nature is increasingly recognised by investors as an important theme, not only for its intrinsic value to the economy but also for its role in mitigating climate change. As biodiversity and ecosystem health are prioritised, attention is turning to industries like seafood which are strongly linked to nature impacts and dependencies.

As Australia’s most popular seafood, farmed salmon offers a healthy, efficient and reasonably affordable protein that supports local economies and may even curb wild overfishing. But the industry has drawn considerable public and political attention in Tasmania. As production increases, more stakeholders pay attention and expect responsible operations. This growth also puts greater pressure on the environment, increasing risks such as nutrient pollution and habitat impacts. Balancing food system needs with various community and ecosystem impacts highlights the dynamic ESG (environmental, social, governance) landscape in aquaculture systems.

This report shares five key insights from on-site salmon farm visits and discussions with local stakeholders in Hobart, Tasmania. We offer our views on potential investment risks for salmon retailers and propose company engagement questions, which are also relevant for other aquaculture industries. We also reflect on how these insights apply to wider nature risks and overlap with climate change, social licence and governance.