Ornamental Fish Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in the Ornamental Fish Industry

Integrating ESG into decision making and business strategies contributes to an effective due diligence and a better investment decision for the company as well as relevant stakeholders. Companies in the ornamental fish industry have been disclosing sufficient ESG data and strategies.

The ornamental fish segment has been growing in popularity due to its aesthetic beauty and decorative nature Common Ornamental fishes like Goldfish, Guppy, Cory Catfish, and Betta Fish have been considered as pets in confined spaces like an aquarium or bowl. As pets offer companionship and psychological benefits for consumers, this space has been exploring innovative ideaslike sustainable aquariums, sustainable marine harvesting procedures and sustainable aquaponics farming techniques. These spaces also ensure no endangered species have been included as their product. Companies also commit for protecting biodiversity and natural habitat of different species thereby promoting life Many of companies also provides access to educationfor various types of consumers.

The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

ESG Trends

Main ESG trends in the ornamental fish industry fall under both social and environmental factors. In terms of innovation, this market has a positive impact on SDG 9- Industry, innovation, and infrastructure. For instance, one of the leading companies in this sector have introduced a sustainable aquaponics farm which produces fruits, vegetables, and fishes. No soil is used and both vegetables as well as fishes serves a symbiotic relationship. This farm is an ecofriendly model with zero-waste system and conserves water, moreover it uses only 5% of water used by traditional farming practice. This practice provides a natural ecosystem that is pesticide and chemical free.

The Indian Ocean is blessed with rich diversity of freshwater fishes, among 300 species of fishes 155 are ornamental. Companies are focusing on improved packing techniques which allows high stocking densities for longer periods. Freshwater water fishes acclimatize easily provided with a necessary transport arrangement. Most of the companies have committed to protect biodiversityand ensuring to promote SDG 14 – Life below Action. The companies are doing this by adopting sustainable practices for sourcing and breeding fish.

However, fish catching techniques like intensive and dynamite fishing poses major threat to balance of reef ecosystem. Companies uses various methodologies like non-destructive nets still technique vary for different species which can disturb life under water thereby hindering the progress towards UN SDG 14. On a positive note, despite not being related to the industry, companies have made commitment for access to education to promote SDG 4-Quality education. For instance, one of the company states that veterinarian operated facilities helps consumers like conscientious reef hobbyists to pursue valuable information.

ESG Challenges

This segment has faced numerous challenges, starting with the collection technique scuba diving has been the most used and studies indicate high mortality rate for such techniques. Considerable amount of skill is required to catch fish efficiently without disrupting the natural habitat. Techniques will vary with species and hiding place. Along with scuba diving, intensive and selective catching as well as dynamite fishing has also been used which can disrupt balance of reef ecosystem. Another challenge for this segment lies with the complex nature of the reproduction and rearing of the larvae of such fishes in captivity. Government support has been lacking on such issues like brood stock   development, larval   management, larval tank characteristics, environmental conditions, water management, larval nutrition, and disease control. Due to lack of infrastructure, export of ornamental fishes has been limited and most of indigenous fishes are consumed as food at a low price. 

Growth of the Ornamental Fish Market

Overall, Emphasis must be   given   for the   protecting environment, adoption   of non-destructive capture   methods, monitoring   the   exploitation, breeding, and   culture along with   establishment   of sanctuaries, formulating policy of exploitation and export of marine ornamental fishes for better economic return in the segment. In India which is rich in natural water bodies and species diversities, country can project to staggering 20 million USD every year. This segment has been valued at 5.4 billion USD in 2021 and anticipated to expand at a compound annual growth rate of 8.5% by 2030 globally.

Key Companies in this theme

    • Aqua-Nautic Specialist Pte Ltd.

    • AlgaeBarn LLC

    • bioAquatiX

    • Imperial Tropicals

    • LiveAquaria

    • Oasis Fish Farm

    • Sanyo Aquarium (Pte) Ltd.

    • Qian Hu Corporation Limited

    • Sunbeam Aquarium Pte Ltd.

    • Tropical Fish International Pte Ltd.

Scope of Ornamental Fish Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of Ornamental Fish Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the Ornamental Fish space, globally

    • Key insights into environmental developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the Ornamental Fish

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector