Ethical investor jumps ship from Bakkafrost
Triodos cites weak financial performance and welfare concerns in Scotland
Ethical investor Triodos has sold its stake in salmon farmer Bakkafrost over financial and welfare concerns over the Faroese company’s Scottish operation, Daily Business reports.
“The primary motivation for divesting was the company’s failure to bring its operations in Scotland to the same standard as those in the Faroe Islands,” a spokesperson for Triodos Investment Management told the website.
“This had negative implications not only for animal welfare at the Scottish farms but also for the company’s overall financial performance.
“Given this combination of factors, and the fact that no significant improvement occurred despite our active engagement, we decided to cease our investment.”
The report does not say what “active engagement” Triodos had or what experience of salmon farming the investment managers have that could have benefited Bakkafrost Scotland.
Lost 15.9% in value this year
According to share information on Bakkafrost’s website, the company’s shares have risen in value by 0.32% in the past month but have dropped in value by 15.94% in the year to date, and by 10.68% over the past 52 weeks.
Bakkafrost chief executive Regin Jacobsen ackowledged that the company’s performance in Scotland had been challenging and that biological results had not yet reached the standards that Bakkafrost expects.
“In fact, one of the main reasons we acquired the Scottish operations was precisely to bring biological performance and fish welfare up to the same high standards we have achieved in the Faroe Islands,” he told Daily Business.
“This has proven more difficult and taken longer than anticipated. However, we have made substantial investments and implemented significant changes in our Scottish operations. While the financial and biological results have not yet reflected the improvements we are working towards, we remain firmly committed to achieving them.
“We respect Triodos’ decision, but we do not share the view that there has been no significant progress. Our focus remains on delivering sustainable biological improvements, better fish welfare and stronger financial performance over time.
“I remain fully convinced that we will achieve these objectives, even though the journey has been longer and more challenging than we originally anticipated.”
