Introducing the Ocean50 index.
Tracking the 50 largest non-oil and gas public corporations in the ocean economy.
Diving into the ocean economy has been a fantastic learning experience. It has revealed some ugly truths about our food systems and the impact of tourist economies. There have been calls with inspiring and hopeful young entrepreneurs turning seaweed into bioplastic and VCs making impactful investments in aquaculture.
However, through it all, I have come to more fully grasp the impact of large companies on our planet through their domination of supply chains, political clout, and capture of ocean economy revenues.
Research by a team at Duke University’s Fuqua School of Business discovered that the 100 largest companies in the ocean economy capture 60% of all revenues. They even go so far as to break down the companies that make up this “Ocean 100.”
But this list is just a starting point for understanding these companies at a deeper level and perhaps finding a way to evaluate their impact on our oceans and engage in encouraging them to improve any deficiencies.
Using Thematic’s index builder, I have created the Ocean50. This index is based on the publicly listed non-oil and gas subset of the Ocean 100.
You can view the Ocean50 index and it’s component companies as well as track the daily changes here: Ocean50.
Of course, thousands of companies have an impact on our oceans. But taking the list down to the fifty largest public companies is a starting point for further research into these core industries and thglobe more significant players that dominate them.
The shortlist also gives a starting point for further analysis and engagement. Listening to conference calls, digging into company financials and disclosures, and cross-referencing with other supply chain data - a list of fifty large companies leaves one with plenty of homework.
Additionally, the Ocean 100 research found that these companies spread like octopus tentacles. On average, the top ten firms in each industrial segment have 2,000 subsidiaries. These companies touch the economy and our lives in many ways.
Why Exclude Oil and Gas?
The Ocean 100 research showed that offshore oil and gas made up 45% of all ocean economy revenues - and that’s just the portion of revenues of these massive companies specifically attributable to offshore activities.
This exercise has never been about divesting or avoiding “dirty” industries. However, the dominance of oil and gas on any index makes it difficult to see the impact of the other segments. It becomes too reflective of one metric - the price of oil.
For me, this is a learning tool, and the oil and gas companies are well understood and covered. It’s the seafood companies you never hear about. They are experts at staying out of the news.
Public Companies, Excluding National Majority Owned Corporations
By the nature of tracking stock prices, this means that the index has to exclude private companies. This impacts some industries and geographies more than others (excluding the large private companies that dominate the US seafood industry).
But the limitation here is obvious - private companies have less of an obligation to publish financial data.
I also decided to leave out those corporations majority-owned by national governments. These companies often have motivations other than profit and are more resilient to outside pressures.
Untangling Supply Chain Exposure
We all learned a lot more about our exposure to global supply chains during the pandemic and in the wake of Russia’s invasion of Ukraine. Industries that have toiled out of the public eye for centuries suddenly became the topic of conversation at the (virtual) water cooler.
Technology is taking this unveiling even further.
Groups like Global Fishing Watch are tracking fishing fleets around the globe, even using satellite data and AI to recreate their operations when transponders are turned off. The Outlaw Ocean Project’s bait-to-plate tool brings opaque seafood supply chains to light.
The impact of this exposure is happening faster and will continue to be more impactful than ever before. As companies begin to bow to pressure to open up, the opportunity to nudge even the largest players in a sustainable direction is stronger than ever.
What were standard practices in the past will become a legitimate financial risk for some of these firms.
In the weeks since the Outlaw Ocean Project’s release of its bait-to-plate tool, which connects obscure fishing vessels to your local grocery store, here is some of the impact and response it is already generating:
Full thread here: https://twitter.com/ian_urbina/status/1712940373226541388
After all, how long can a company like Kroger ignore that its seafood section is supplied by forced labor once it becomes public knowledge? There is no more claiming ignorance.
The same goes for other large corporations in the chain.
The companies not on these lists will have a clear economic advantage and lower risk. The ones on it will be pressured to address their impact.
The Ocean50 Index
Without oil and gas companies, container shipping becomes the biggest single segment, and shipping giant Maersk is the largest company overall. But it also focuses on marine construction and equipment, shipbuilding and repair, port operations, offshore wind, seafood, and cruise tourism.
Taking out the well-known energy companies, you quickly get into the weeds with massive companies and conglomerates that somehow fly under the radar. It is essential to shed some light on these companies. After all, they deliver our goods and put food on our plates.
They are also key players in lobbying governments, influencing policy, and making voluntary commitments to sustainability efforts and energy transition initiatives.
Without the dominance of oil and gas in the portfolio. The industry weighting is as follows:
Container shipping - 33%
Marine Equipment and Construction - 18%
Seafood - 15%
Shipbuilding and Repair - 15%
Cruise Tourism - 10%
Port Activities - 8%
Offshore Wind - 2%
Who Is In Each Segment
Here’s a list of the companies included in the Ocean50 index. Some are familiar, some not. All impact the health of our oceans significantly and deserve to be better understood from this standpoint.
Container shipping:
AP Moller Maersk
COSCO Shipping
Hapag-Lloyd
Evergreen Marine Corp.
Yang Ming Marine Transport
Hyundai Merchant Marine (HMM)
Wan Hai Lines
Marine Equipment and Construction:
Hyundai Engineering and Construction
TechnipFMC
Saipem
Wastila
Subsea 7
Hitachi Zosen
Aker Solutions ASA
Oceaneering International
Alfa Laval
Prysmian Group
Akzo Nobel
Seafood:
Maruha Nichiro Corporation
Nippon Suisan Kaisha (NISSUI)
Dongwon Industries
Mowi
Thai Union Group
OUG Holdings
Austevoll Seafood
Kyokuyo
Charen Pokphand Foods
Marubeni
Daisui
Shipbuilding & Repair:
Hyundai Heavy Industries
General Dynamics
Huntington Ingalls Industries
Samsung Heavy Industries
BAE Systems
Sembcorp Marine
Yangzijiang Shipbuilding Holdings
Hyundai Mipo Dockyard
Keppel Offshore and Marine
Hanjin Heavy Industries
Cruise Tourism:
Carnival Corp.
Royal Caribbean Cruises
Norwegian Cruise Lines Holdings
Genting Singapore
Port Operations:
Shanghai International Port Group
CK Hutchison Holdings
Tianjin Port Holdings
Bollore Group
Hamburger Hafen and Logistik
International Container Terminal Services
Offshore Wind:
E.ON
Stay tuned as this top-down deep dive into the ocean economy continues.
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