Michele
Acciaro
Associate
Professor
Department
of Strategy and Innovation
Copenhagen
Business School
Frederiksberg,
Denmark
mac.si@cbs.dk
Three billion people rely on the oceans for their livelihoods, and about 40% of the World’s population lives in coastal areas, not to mention the role that our oceans play in mitigating the impacts of the climate crisis and sustain thriving ecosystems. The blue economy is central to our wellbeing and its importance is increasingly acknowledged by governmental and private actors, although more is needed to account for all the different dimensions of the green transition beyond decarbonisation.
An increasing number of businesses in the blue economy are trying to reconcile profitability with environmental sustainability. If on the one side it is true that still too few organisations have been taking a proactive enough approach towards the environment, on the other side an increasing number of firms are attempting at integrating environmental considerations in their activities. Or at least they are talking about it.
A handful of blue-economy firms are often referred to as leading the green transition. For example, the container and logistics giant Maersk, made headlines in 2023 with the launch of its green-methanol strategy, and the largest seafood processing firm Thai Union, issued in 2021 sustainability-linked bonds for over US$ 185 million to institutional investors. The green transition in the blue economy, however, has yet to gain momentum. The World Bank estimates that the blue economy contributes US$ 2.5 trillions to the world economy, but not much of this is truly sustainable.
Most of the top 100 companies, known as the Ocean 100, that generate 60% of the total revenues produced by ocean-related industries, are offshore oil and gas businesses [1]. As many of those firms are stock listed, however, reputation and shareholder engagement will incentivise at some point a transition that goes beyond mere greenwashing or superficial commitments to sustainability, which are also increasing. According to Morgan Stanley, in 2022, over 500 equity funds in public markets had an average exposure of over 3% to the "Life Below Water" SDG goal. Of these, about 100 had an exposure above 10%. These exposures reflect investments in both water-focused funds and those addressing broader themes like sustainable food production and the clean energy transition, where healthy oceans play a key role.
The extent that firms are developing products and services for businesses that are truly resilient, regenerative, and responsible is difficult to assess. In the start-up environment, a number of novel business concepts and technologies are emerging aimed at accelerating the green transition in the blue economy. UpLink, the open innovation platform of the World Economic Forum, teamed up with a coalition of incubators and venture capital firms and launched 1000 Ocean Startups (1000OS) to support start-ups with an ocean impact. While 1000OS is developing a set of metrics to assess the impact of these business concepts on the oceans, it is still too early to see how these initiatives will contribute to the green transition.
This is a positive development, as the central role of businesses in tackling some of the grand challenges of our times cannot be understated. While regulation is needed to accelerate the reduction of environmental impacts worldwide on our oceans, it is probably through the interplay between business and governments that a more fundamental change towards an economic system that is better aligned with the planetary boundaries can be achieved. In this vein in 2020, the UN Global Compact, launched its Ocean Stewardship 2030 Roadmap [2], highlighting the need for sustainability leadership in the blue economy.
Although recently political and public discourse has somewhat shifted, the urgency of the green transition remains high due to escalating natural disasters and the mounting costs associated with climate and environmental crises. Furthermore, many of the policies put in place over the years are starting to influence the private sectors’ decisions. Private sector’s participation in the green transition is likely to increase as more green finance becomes available and the criteria for sustainability-driven investment tightens through stricter ESG and CSR standards.
There is the need that under a wider set of economic conditions and as a result of various degrees of government intervention, a green transition can be attractive for private investors. Blue-economy businesses can also be built on opportunities for improving living conditions worldwide and contribute to correct inequality by leveraging on resilient and regenerative oceans. While the promises of cheap renewables and zero-carbon technologies might be overstated, there are areas at the intersection of ecology and business that should be further explored.
One option to unlock these opportunities, is that blue-economy businesses can adopt so-called blue-ocean strategies [3]—innovative approaches that create new market spaces by addressing unmet environmental and social needs. By shifting focus from competing in overcrowded markets to pioneering sustainable practices, businesses can tap into underexplored areas such as marine biodiversity conservation, eco-tourism, building with nature, or circular concepts within the maritime sector, in addition to renewables and decarbonisation. These strategies could enable companies to deliver both ecological benefits and competitive advantage, fostering long-term value creation through innovation, while simultaneously contributing to the green transition and the improvement of the health of our oceans.
A blue economy that is truly regenerative, resilient and fair to all that it affects requires new ways of thinking. Only with collaboration among investors, governments, businesses and their relevant stakeholders we can hope to be able to leverage on the opportunities offered by a truly sustainable blue economy. Without the blue economy, the green transition is incomplete, as the health of our oceans is fundamental to addressing climate change, sustaining livelihoods, and preserving biodiversity. A truly sustainable future depends on our collective ability to integrate ocean stewardship into the broader green transition, creating solutions that benefit both people and the planet.