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Achieving 55% emission reduction: What the CSRD means for the seafood industry

Achieving 55% emission reduction: What the CSRD means for the seafood industry

The European Union’s 55% emission reduction target by 2030 presents a significant challenge for industries across the board, including the aquaculture sector, fishing operations, and seafood processing companies. This ambitious goal, part of the broader Corporate Sustainability Reporting Directive (CSRD) and the European Green Deal, emphasizes the urgent need for sustainable practices and green accounting within the seafood industry. Compliance is further supported by frameworks like the European Maritime, Fisheries and Aquaculture Fund (EMFAF), which provides financial assistance to companies investing in low-emission technologies and sustainable practices.

The baseline challenge for wild-caught seafood and aquaculture companies

The 55% reduction target is measured against 1990 emission levels. For seafood and aquaculture companies that were not in operation in 1990, this goal requires establishing an alternative baseline year, ideally the earliest possible point in their operational history. For instance, a fishing company founded in 2005 might use that year as its baseline, aiming to achieve a 55% reduction relative to its 2005 emissions. Alternatively, a company could align its baseline with industry standards from 1990, such as the emissions of a comparable pelagic fishing company operating three large vessels at that time, using that data to guide its baseline.

Impacts on the Fishing and Aquaculture Sectors

The seafood industry is particularly energy-intensive, with significant emissions from fishing, processing, transportation, and cold storage. To meet the the 55% reduction target, companies in this sector need to overhaul their practices through several key strategies:

  1. Adopting Low-Carbon Technologies: The fishing industry can reduce emissions by transitioning to fuel-efficient or electric-powered vessels. Similarly, aquaculture operations can cut emissions by using renewable energy in processing plants and adopting energy-efficient practices. EMFAF funding can support these transitions, making it easier for companies to implement necessary changes.
  2. Optimizing the Supply Chain: Reducing emissions from transportation and cold storage through improved logistics, sustainable packaging, and efficient routing is crucial. Additionally, engaging with suppliers in the seafood supply chain to adopt sustainable practices can further reduce the overall carbon footprint. These efforts are aligned with the EU’s Farm to Fork Strategy, which promotes sustainable food systems.
  3. Investing in Sustainable Aquaculture: Aquaculture presents a lower-carbon alternative to wild-capture fisheries. Investing in sustainable aquaculture not only aligns with green accounting principles but also meets growing consumer demand for environmentally responsible seafood. The Sustainable Fisheries Partnership provides guidelines to help companies optimize their aquaculture practices to reduce emissions and enhance sustainability.
  4. Implementing Carbon Offsetting: While reducing direct emissions is the priority, seafood companies may also need to explore carbon offsetting strategies. Investing in reforestation or carbon capture projects can help meet emission reduction targets. These strategies not only support the industry's sustainability goals but also contribute to SDG 14 by promoting healthier marine environments and reducing the overall impact on aquatic ecosystems.

Reporting and Compliance under CSRD

Under the CSRD, seafood and aquaculture companies must report their progress towards the 55% reduction target, following European Sustainability Reporting Standards (ESRS). This includes rigorous green accounting practices, ensuring transparency and accuracy in emissions reporting. Companies must consider not only direct emissions but also indirect emissions throughout the entire supply chain, from fishing to the market. The CSRD also mandates that these reports are verified by independent auditors, adding a layer of accountability.

Embracing Sustainability for Future Success

Achieving the EU’s 55% emission reduction target is a formidable task for the seafood, fishing, and aquaculture industries. However, companies that embrace sustainable practices, optimize their operations, and adopt green accounting measures will not only comply with the CSRD but also position themselves as leaders in a market increasingly focused on sustainability. By aligning with these climate goals, seafood companies can secure their future and contribute to a healthier planet, supported by frameworks like the European Green Deal and EMFAF funding, which offer guidance and financial assistance in making the necessary transitions.

 

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