Guernsey Finance has published findings suggesting that the political backdrop is encouraging private equity managers to consider more investment in green and sustainable finance – but they also want to see more transparency in those funds.
Research carried out by Guernsey Finance has revealed rising interest in green investment from managers, but flagged that they had underestimated the funding requirements and commercial opportunity for limiting global warming.
Three-quarters of those surveyed had increased exposure in green and sustainable finance and everyone planned to do so in the near future.
They said that external drivers, such as investor demands and competitive forces – including the ‘Attenborough effect’, which credits veteran broadcaster David Attenborough with raising people's awareness about the impact of their consumption – were the main reason for doing so.
They also agreed that transparent verification and certification, such as that offered by Guernsey’s Guernsey Green Fund – which offers verification that 75% of its investments are allocated in certified green assets – will catalyse investor demand.
European firms were slightly keener on a regulatory product than US managers, the research revealed.
Guernsey Finance interviewed managers and service providers at this year’s SuperReturn conference in Berlin. The report has been published as part of its Reporting Global Developments series.
• To view the results of the research click here