Green Practices Guideline for Fisheries Sector

1.3.3 IMPACTS OF ESG TOWARDS THE INDUSTRY ESG ESG (Environmental, Social, and Governance) criteria play a vital role in assessing the ethical and sustainability impacts of investments across various industries, including the fisheries sector. In Malaysia, the consideration of ESG factors is crucial for the long-term sustainability and success of fisheries businesses. Here are some specific examples of how ESG principles can be applied in the fisheries sector: ENVIRONMENTAL RESPONSIBILITY: Fisheries companies can prioritise environmental responsibility by implementing sustainable fishing practices that minimise the impact on marine ecosystems. This includes adhering to catch limits, avoiding overfishing, and adopting fishing techniques that reduce bycatch and protect sensitive habitats. Implementing measures to mitigate climate change impacts, such as reducing greenhouse gas emissions from fishing vessels, can also contribute to the sector’s environmental performance. SOCIAL RESPONSIBILITY: ESG principles in the fisheries sector encompass social responsibility, which involves ensuring fair labor practices, respecting the rights of fishing communities, and supporting their well-being. This can be achieved by providing adequate safety training for fishermen, promoting gender equality and diversity, and establishing mechanisms for transparent and fair wages. Engaging with local communities and supporting initiatives that promote their social and economic development further demonstrates social responsibility. GOVERNANCE PRACTICES: Good governance practices are essential for sustainable management of fisheries. This includes transparent decision-making processes, effective regulatory frameworks, and collaboration among stakeholders. Fisheries companies can enhance their governance practices by implementing traceability systems to ensure the legality and origin of their seafood products. Additionally, adopting best practices in data collection and sharing can improve the accuracy of stock assessments and support informed decision-making. SUSTAINABLE FINANCING: Access to sustainable financing is crucial for the growth and development of the fisheries sector. Companies can explore funding options aligned with ESG principles, such as impact investment funds that specifically support sustainable fisheries projects. Green bonds and loans can also be utilised to finance initiatives that promote sustainable fishing practices, resource conservation, and environmental protection. STAKEHOLDER ENGAGEMENT: Engaging stakeholders is key to the successful implementation of ESG principles in the fisheries sector. This includes collaborating with government agencies, non-governmental organisations (NGOs), fishing communities, and consumers. Stakeholder engagement can foster knowledge sharing, capacity building, and the development of collaborative initiatives that promote sustainable fishing practices and ensure the sector’s long-term viability. By embracing ESG principles, fisheries companies in Malaysia can enhance their environmental performance, social responsibility, and governance practices. This not only contributes to the sector’s long-termsustainability but also aligns with global sustainability goals and expectations of responsible investors and consumers. Embracing ESG principles ensures the fisheries sector’s resilience and competitiveness in a sustainable-focused global landscape while safeguarding the marine environment and supporting the well-being of fishing communities. 22 GREEN PRACTICES GUIDELINE FOR FISHERIES SECTOR (AQUACULTURE)