In a global market where seafood is a staple food source and an economic cornerstone, the lack of transparency in supply chains casts a long shadow. Seafood provides billions of people with nutrition and sustains livelihoods for millions worldwide, yet its production remains fraught with challenges that threaten both environmental sustainability and human welfare. Illegal, unreported, and unregulated (IUU) fishing, overfishing, human rights abuses, and habitat destruction are rampant, and the ability to track seafood from its origin to the consumer is worryingly absent. Addressing this requires systemic reform the Seafood Traceability Engagement report by the FAIRR Initiative shines a spotlight on both the problem and the solutions.
The report marks the culmination of the first phase of an engagement initiative designed to drive improvements in seafood traceability systems. Working with 35 institutional investors managing a combined $6.5 trillion in assets, FAIRR’s efforts focus on urging seafood companies to adopt robust traceability practices. The findings are a mix of hope and caution, revealing uneven progress across the industry. While some companies have demonstrated significant commitment, the majority lag behind, hindered by fragmented systems, opaque supply chains, and a lack of sector-wide collaboration.
The Importance of Traceability in a Fragmented Industry
Seafood is one of the most globally traded commodities, yet it operates within a supply chain so complex and opaque that tracing a product from its origin to the plate is often impossible. Fish are caught, processed, traded, and distributed across continents, creating a web of transactions and handovers that make transparency extraordinarily challenging. Unlike terrestrial food production, which relies on fixed locations such as farms, seafood supply chains operate in dynamic spaces. Fishing vessels roam the oceans, sometimes in areas far from oversight, and aquaculture farms often depend on feed ingredients that are themselves poorly traced.
This lack of traceability has dire consequences. IUU fishing, which accounts for an estimated 20% of the world’s wild-caught seafood, undermines sustainable fish stock management and robs economies of billions annually. The environmental costs are steep—depleting fish stocks and degrading habitats—while the human toll is equally devastating. Forced labor and exploitative practices are endemic in some parts of the industry, perpetuated by the remoteness of operations and the absence of accountability mechanisms. Without transparency, these abuses remain hidden, creating not only ethical dilemmas but also significant reputational and financial risks for companies and investors.
Traceability is more than an operational necessity; it is a linchpin for sustainability. Companies that can trace their products back to their origins are better equipped to address risks, ensure compliance with emerging regulations, and meet growing consumer demand for ethically and sustainably sourced seafood. It is a vital step toward a resilient seafood sector, yet the FAIRR report underscores how far the industry still has to go.
The Findings: A Patchwork of Progress
FAIRR’s engagement with seven major seafood companies provides a detailed snapshot of the industry’s approach to traceability. Among these companies, Thai Union and CP Foods stand out for their relatively comprehensive commitments. Thai Union, for instance, has positioned traceability as the backbone of its sustainability strategy. The company has pledged full traceability for tuna and shrimp by 2025 and 2030, respectively, with efforts to extend these commitments to its aquaculture feed ingredients. CP Foods has also made strides, outlining targets to ensure key raw materials, including fishmeal and soy, are fully traceable by 2030.
However, these bright spots are exceptions in an otherwise lackluster field. Other companies, such as Marubeni Corporation and Mitsubishi, have adopted limited traceability practices, often confined to specific subsidiaries or species. Nissui and Nomad Foods disclose even less, offering vague or non-existent commitments. Across the board, most companies fail to set measurable, time-bound goals, making it difficult to assess their progress or hold them accountable.
Even among the leaders, significant gaps remain. While Thai Union has made public commitments, its progress reporting lacks granularity, raising questions about how these goals will be achieved. CP Foods, meanwhile, has tied its traceability efforts to select locations and product lines, leaving large portions of its operations outside the scope of its initiatives. This fragmented approach is emblematic of an industry still grappling with the basics of traceability.
Challenges on the Road to Transparency
The barriers to achieving full-chain, digital, and interoperable traceability are substantial. For many companies, the primary challenge is technological. Supply chains often rely on outdated paper-based systems, which are prone to error and incompatible with modern digital solutions. The seafood industry, especially its smaller players, faces resource constraints that make it difficult to invest in the necessary infrastructure and training.
Another obstacle lies in the fragmented nature of the industry itself. With stakeholders spread across the globe, each operating under different regulatory frameworks and levels of technological sophistication, achieving interoperability is a Herculean task. Companies must navigate a maze of data collection standards, varying enforcement mechanisms, and competing certifications, all while managing the day-to-day realities of production and distribution.
Feed traceability presents yet another layer of complexity. Aquaculture, which now accounts for more than half of global seafood production, depends heavily on wild-caught fish for feed. Tracing these inputs to their source is challenging, especially when coupled with the need to verify the sustainability of terrestrial feed ingredients like soy and palm oil. Without a standardized approach, efforts to ensure the traceability of feed ingredients risk falling short.
Toward a Sustainable Future: Pathways to Solutions
Despite these challenges, the FAIRR report outlines a clear roadmap for progress. The adoption of universal standards, such as those developed by the Global Dialogue on Seafood Traceability (GDST), is a crucial first step. These standards provide a framework for companies to digitize their supply chains and ensure that data is consistent and accessible to all actors. Thai Union’s alignment with GDST for its tuna operations is a promising example, though full implementation remains a work in progress.
Investors also play a pivotal role. By leveraging their influence, they can push companies to adopt stronger traceability practices and align their operations with sustainability goals. FAIRR’s engagement has already shown the power of coordinated investor action, creating a platform for dialogue and accountability. However, sustained pressure will be needed to ensure that these efforts translate into meaningful change.
Companies, for their part, must commit to transparency not as a box-ticking exercise but as a core business strategy. This begins with conducting thorough data audits to identify gaps and setting clear, time-bound targets. It also requires collaboration, both within the industry and with regulators, NGOs, and other stakeholders, to create a unified approach to traceability.
A Call to Action
The journey toward full traceability is neither quick nor easy, but it is necessary. The stakes are immense: a sustainable seafood sector is not only vital for the health of the oceans but also for the communities and economies that depend on it. As FAIRR’s report makes clear, the tools and frameworks for progress already exist. What is needed now is the will to act.
For companies, this means stepping up their commitments and embracing transparency as a competitive advantage. For investors, it means maintaining the pressure and aligning capital with sustainable practices. For consumers, it means demanding more from the industry, and recognizing that their choices can drive change.
As the FAIRR initiative moves into its second phase, the hope is that the industry will rise to the challenge. The future of seafood—indeed, the future of the planet’s oceans—depends on it.
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