This report identifies and analyzes various sources of environmental risk within the seafood industry, ultimately inducing environment-related financial risks faced by financial institutions. Firstly, production activities that cause negativeenvironmental impacts lead to physical risks. Secondly, transition risks can arise from policy changes. Thirdly, transition risks also arise from shifts in markets. These negative environmental impacts of production and resulting environmental risks can turn into financial risks either through negatively impacting the industry operation entities or by directly affecting financial assets. In particular, banks are mainly exposed to credit risks and insurance institutions are mainly exposed to underwriting risks.
