Leading investment bank says salmon farmers must address explosive topic

14/08/2024

Seafood lending giant DNB has drawn attention to the increasing scrutiny of fish health within the financial industry. Speaking at a seminar in Norway, Senior Vice President Dag Sletmo said that the financial industry has become concerned about the social license of salmon farming, stemming from two key factors: the potential for fish welfare, especially mortality rates, to become a highly contentious issue in the public domain, and the direct correlation between fish welfare and financial results.

He suggested that if the industry fails to manage these issues transparently and effectively, it could face increasingly stringent regulations that may not be well-targeted.

"This is due to two elements. One is correlation with financial results. But there is also a great concern that fish welfare is an explosive topic. You can't say that people should stop emitting CO₂ today, but you can say that you should stop treating animals as we do today. The financial industry has become concerned about the social license of salmon farming. It is probably especially mortality that has become preoccupied," he said.

He said that it is important that fish farmers address the problems in a way that politicians and society at large have confidence in.