Ensuring companies address adverse environmental impacts in their value chains: the case of illegal fishing

The fishing industry is vital for the livelihoods of billions of people. But it can have significant negative impacts on the marine environment and biodiversity.

Illegal, unreported, unregulated (IUU) fishing acts as a multiplier of these environmental impacts, undermining conservation and management efforts. Ending it is essential for the sustainable use of our ocean’s resources.

The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) will introduce an obligation for companies to conduct environmental and human rights due diligence in relation to their operations, subsidiaries, and value chains. It is therefore crucial that the adopted definition of adverse environmental impacts covers a wide range of environmental impacts, in line with other EU laws and international standards.

By using the example of IUU fishing, this briefing examines how a limited or imprecise definition can lead to a situation where impacts that cause significant pressure on nature and biodiversity are absent from a company’s due diligence processes.

Requiring companies to consider the adverse impacts in relation to clear environmental categories as well as a list of relevant environmental conventions would be an effective solution to ensure that such harms are identified and addressed.