The Asian Development Bank (ADB) has awarded Thai Union Group a USD 150 million (EUR 133 million) loan, which the latter said it will use to source sustainable shrimp.
“Sustainability sits at the heart of our business, and this Blue Loan represents an important step in our journey,” Thai Union Group CEO Thiraphong Chansiri said in a statement. “We are honored to be ADB’s first private-sector partner in the seafood industry in Thailand, and the first in the seafood industry to secure a loan of this kind. The funding will accelerate our sustainable sourcing efforts and strengthen our contribution to ocean health, food security, and climate action. We hope this model will inspire other seafood companies to follow.”
The funding will be used to help expand Thai Union’s sourcing of certified sustainable shrimp, one of the pillars of the company’s SeaChange 2030 global sustainability strategy designed to reach net zero greenhouse emissions by 2050. According to Thai Union, shrimp will be considered sustainable if they are produced under schemes certified by the Global Sustainable Seafood Initiative (GSSI) or sourced from producers enegaged in credible Aquaculture Improvement Projects (AIPs).
“The approach emphasizes both environmental sustainability, such as biodiversity protection, feed traceability, and lower carbon emissions from the use of renewable energy, improved feed conversion ratio, and preventing deforestation, along with social responsibility, including fair labor practices and community engagement,” Thai Union explained in its announcement.
The loan comprises an A-Loan from ADB and a syndicated B-Loan with commercial co-financing partners Bank of China (Hong Kong) Limited, HSBC, MUFG Bank Ltd, OCBC, Sumitomo Mitsui Banking Corporation, and United Overseas Bank Limited.
“This marks ADB’s first blue loan in the aquaculture sector in Thailand,” ADB Thailand Resident Mission Country Director Anouj Mehta said in a statement. “Aquaculture is one of the most efficient sources of animal protein, supplying over half of the world’s seafood. While it holds great potential to enhance food security for a growing global population, the sector also faces risks due to climatic conditions and environmental challenges. These include habitat loss, pollution, and increased pressure on deforestation and overfishing due to rising demand for aquafeed. This transaction seeks to address these challenges and serves as a strong case study for sustainable shrimp procurement to strengthen resilience and promote inclusiveness across the supply chain.”
