Introduction
Nomura Asset Management Co. Ltd. became a member of the FAIRR investor network in 2019. The collaboration with FAIRR forms part of Nomura Asset Management’s stewardship activities, especially collaborative engagement efforts. This case study demonstrates how Nomura Asset Management utilises FAIRR membership to enhance their understanding of the nature-society nexus in the areas of oceans and the blue economy. Insights for this case study were provided by Dr Dai Yamawaki, Vice President (Equities) and Sustainable Investment Specialist, at Nomura Asset Management U.K. Ltd.
How is Nomura Asset Management approaching oceans and the blue economy?
Oceans and the blue economy are a critical theme that encompasses both environmental and social challenges, as well as long-term investment risks and opportunities. Nomura Asset Management recognises issues, such as the depletion of fishery resources, biodiversity loss, Illegal, Unreported and Unregulated (IUU) fishing, and human rights risks in seafood supply chains, as having direct impacts on companies’ sustainable growth and long-term corporate value.
This view is also reflected in our TNFD disclosures, which we began in 2024. As part of that process, we assessed nature-related risks across our firm-wide integrated portfolio, including Japanese and global equities as well as Japanese and global bonds. Through this firm-wide assessment, ocean health emerged as one of our material nature-related risks, which reinforced our belief that the degradation of marine ecosystems represents a financially relevant issue across asset classes. As part of our responsible investment and stewardship activities, we engage with companies that depend on marine resources, focusing on seafood traceability, resource management practices, sourcing policies, and governance structures to address these risks.
However, Nomura Asset Management also views the blue economy not only from a risk-mitigation perspective, but also as a source of long-term growth opportunities, including sustainable fisheries and aquaculture, and related technologies. Through collaborative engagement, we seek to encourage corporate practices that support both ocean sustainability and long-term value creation.
How has FAIRR supported Nomura Asset Management with this approach?
FAIRR has been a key intellectual and practical partner in supporting Nomura Asset Management’s systematic approach to oceans and the blue economy. Its frameworks on seafood traceability, IUU fishing, and labour risks are a core pillar of our collaborative engagement strategy.
FAIRR’s research and briefings bridge academic insights and investment practice, supporting us to demonstrate to companies that traceability is not only an environmental issue but also a critical tool for mitigating human rights risk. This has been especially valuable in Japan, where food traceability discussions have traditionally focused on safety. As environmental and human rights awareness grows, the conversation is now shifting from safety to broader security considerations, making FAIRR’s Seafood Traceability Engagement particularly timely.
As asset owner interest in natural capital continues to increase, Nomura Asset Management is keen to further strengthen its collaboration with FAIRR as a leading thematic expert to serve client mandates/asset owner needs.
What learnings have you gained from the Seafood Traceability engagement?
Through the Seafood Traceability Engagement, Nomura Asset Management gained several important insights.
Firstly, traceability is not simply a matter of technology adoption or disclosure, but a reflection of corporate governance and management commitment. There were significant differences in the maturity of company responses, highlighting the importance of senior management involvement, clear sourcing policies, and structured supplier engagement.
Secondly, the engagement programme deepened our understanding of the close linkages between environmental and human rights risks in seafood supply chains. Weak fisheries management and poor labour conditions often coexist, and traceability serves as a foundational measure that addresses both challenges simultaneously.
Thirdly, we reaffirmed the importance of sustained and collaborative investor engagement. Observing gradual improvements in corporate awareness and internal processes through multi-year dialogue demonstrated the effectiveness of consistent investor expectations and cooperation. These learnings continue to inform our broader stewardship approach to ocean-related and natural capital themes.
This report is provided for informational purposes only and is not intended to be, and should not be construed as, an offer, solicitation or recommendation with respect to any transaction and should not be treated as legal advice, investment advice or tax advice. Recipients should not rely upon this information as a substitute for obtaining specific legal or tax advice from their own professional legal or tax advisors. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. Indices and trademarks are the property of their respective owners. Information is subject to change based on market or other conditions.
