The oceans ecosystem in danger
In the context of climate change and environmental degradation, the state of the world's oceans is an often underestimated topic.
Significant temperature increases and rising sea levels
Climate change, however, is more than just a threat to land-based life around the world, as the seas are also in jeopardy. The oceans are now warmer than they have been any time in the last 65 years, according to the latest climate report by the World Meteorological Organisation (WMO). In 2023, 90 per cent of ocean regions experienced heatwaves, i.e. significant temperature increases over a short period of time. Prior to this, ocean temperatures were already higher than the long-term average in 2020, 2021, and 2022, putting pressure on fish stocks and endangering food supplies for humans and animals. Rising sea levels are also a threat and may significantly exceed one meter by 2100. All of this has dramatic consequences for islands, and coastal regions and cities, with direct, global impacts for around 750 million people who live in low-lying coastal areas and island states.
The marine ecosystem
In relation to climate change and environmental destruction, the condition of the Earth’s oceans is a topic that is often underappreciated and a factor that deserves more attention. At the corporate level as well, the interactions and the impact on the UN’s Sustainable Development Goal 14 are also an area that is widely underestimated. Within the framework of the planetary boundaries, the status of the oceans appears in the dimension of “ocean acidification” as one of the nine ecological boundaries which jeopardise the stability of the global ecosystem if they are exceeded.
What does all of this have to do with us as investors? A great deal
On the one hand, climate change affects many sectors and regions in which we are active as global asset managers. On the other hand, we are now called upon to make our contribution to the transformation. In the future, we must direct capital flows far more strongly to have positive impacts on global CO2 emissions. Responsible investors cannot limit themselves to just excluding things; the goal is to achieve net zero emissions over the medium-term.
The good news is that we don’t have to budge one inch from our most fundamental goal of generating returns for our investors. Because there are plenty of companies and industrial enterprises that have long been striving to achieve the goal of net zero emissions by 2050 and are investing untold millions in climate-friendly, environmentally-sound innovations and technology. And it is precisely these forward-looking firms that will do well over the long term: They represent our "Investing in Future Transformation".
Climate Strategy of Raiffeisen KAG
Raiffeisen KAG understands its responsibility to make a suitable contribution to fighting the climate crisis and to actively support the necessary transformation as a financial market participant. The key goals for this path are formulated in the climate strategy.
ESG ASSESSMENT
"E" (Environmental): Oceans are an often underestimated part of our environment. So far, there is little collective awareness of the interactions with all forms of life on the planet as a whole and the vulnerability of the marine ecosystems. This is reflected in SDG #14 “Life below water”, which is often not a main focus for enterprises and investors. In terms of importance for the environment, the oceans have great significance from a sustainability perspective.
"S" (Social): The indirect effects of the condition of the marine ecosystem on people and society should not be underestimated; in part, this stems from the linkages to climate developments and in part from the role of the oceans as a source of –healthy – nutrition.
"G" (Governance): Taking responsibility for the conditions of the oceans, along with protecting the oceans, is a topic that has been embraced by environmental NGOs in particular in recent decades. However, the international community has only started addressing this issue more intensively in recent years and formulating measures to protect the marine environment.
Deep sea mining
Certain commodities, including copper, cobalt, nickel, and rare earths, are found in the deep sea. These minerals are particularly important in relation to the energy transition, as a result of which they are also referred to as “greenablers”. In recent years, demand for these materials has increased significantly.
Biodiversity
According to the Convention on Biological Diversity, biodiversity is defined as the variability among living organisms on Earth at different levels including genetics, species, biomes, and ecosystems. It thus not only refers to the diversity of species, but also that of the ecosystems in which these species live and the genetic diversity within each species. Biodiversity is essential for maintaining ecosystem services, 2 which are critically important to human well-being and sustainable development.
Issue "World's oceans": read it now!
In this issue, Raiffeisen Capital Management sheds light on the topic of the "Oceans ecosystem".
Engagement
Engagement activities of the fund management of Raiffeisen Capital Management
Corporate voices on the subject of marine pollution by mining companies
The condition of the oceans is crucial for the stability of the Earth’s ecological balance. However, negative environmental impacts on the oceans, and the effects and consequences of such are difficult for most people to understand and thus remain literally submerged and out of sight for most of us.
Company spotlight: the commodities giant BHP
The use of certain materials is necessary for a successful transition to environmentally-sound, sustainable economics. One need only think of the massive expansion of lithium mining for use in e-mobility applications as an example for the future demand for some commodities. Unfortunately, the mining and extraction of all kinds of commodities can lead to massive problems for the environment and humans.