On World Ocean Day 2024, investors are finding more ways to go blue
World Ocean Day 2024 is Saturday, a day that organizers say “unites the world to celebrate our one ocean and take collective action for a healthy ocean and a stable climate.” Tens of thousands of activities, celebrations and other events are expected in more than 150 countries, according to the group World Ocean Day.
June 8 has been recognized by the United Nations as World Ocean Day since 2008. In large part, it is young people who have been the impetus behind the movement: World Ocean Day has a Youth Advisory Council comprised of 25 youth leaders from 21 countries that spearhead its activities.
“Youth, especially those from vulnerable communities, are essential voices in creating climate solutions to protect the ocean. To ignore their voices is to ignore our future. Youth deserve to be recognized as political subjects,” said Maria Jose Rodriguez Palomeque, a 19-year old climate, gender and education activist from Mexico.
That activism has spilled over into investing: Almost 75% of Millennials and Gen Z investors around the globe say climate and ESG are major drivers of how they build their portfolios. And while there are few ocean-specific funds that most investors can buy into, there is a growing interest in providing those options.
The recently reconstituted UBS Rockefeller Ocean Engagement Fund is one such investment. Its objective is to seek long-term real returns with a thematic strategy that stresses ocean health via investment and shareholder engagement. It encompasses a portfolio with around 50 high-conviction stocks reflecting a small and midcap focus and value tilt. For now, the fund is only available in Europe.
“The new strategy allows us to have deeper impact on one of the key resources of our planet, and bring a stronger investment focus on the ocean, which remains relatively underfunded by investors,” said Andrew Lee, head of sustainable and impact investing at UBS Global Wealth Management.
Here is a roundup of other ocean-friendly investment vehicles — which generally screen for ethical fishing, pollution management and marine renewable energy, among other criteria — compiled by the World Economic Forum:
Public equity
- Columbia Threadneedle/Posaidon Capital: A small and midcap impact fund targeting companies that use ocean resources more efficiently to gain a competitive advantage.
- Newday Ocean Health ETF: The recently launched U.S. ocean exchange-traded fund AHOY seeks industry-leading companies that contribute positively to ocean health.
Private equity
- Aqua-Spark: Invests in aquaculture across the value chain globally, reaching nearly $320 million in assets under management in 2021.
- SWEN Blue Ocean: Invests in ocean startups with the goal of generating both systemic impact and competitive market returns.
- Ocean 14 Capital: Invests in venture and growth companies and technologies that offer sustainable solutions for our oceans while generating attractive returns.
Fixed income
- Blue bonds have been mostly a mix of sovereign-driven securities and structures similar to debt-for-nature swaps; many of these are not widely distributed.
- Recent deals have increased in size and ADB’s Blue Bond Incubator, as well as the recently announced Practitioners Guide on Blue Bonds consortium, should stimulate more origination.
- Corporate blue bonds are likely on the way, which should open up more significant opportunities for investors.
- Seafood giant Thai Union created a Sustainability-Linked Financing Framework that has guided its ocean-related loan and bond issuance.
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