The University of Exeter, the Institute and Faculty of Actuaries and The Ocean Race have published a report calling for ocean risks to be built into public and financial planning. The authors say assessments can miss the combined effect of climate change, biodiversity loss, pollution and overuse of marine resources.
What the report found
The report sets out a scenario in which damage to ocean ecosystems interacts with pressures on food production and trade, with knock-on effects for insurance and financial markets. A pensions case study considers how weaker returns, higher inflation and pressure on employers could affect assets, liabilities and contributions at the same time. The scenario is an illustration of possible risks.
Implications for financial planning
The authors call on governments, regulators and financial institutions to factor ocean health into long-term risk assessments and direct investment towards protection and restoration. They identify coastal protection, climate regulation and carbon storage among the services that ocean ecosystems provide.