The Guernsey Financial Services Commission has published a Spring Green Consultation Paper and its Thematic Review of the Guernsey Green Fund Regime.
The consultation paper proposes an addition to the Finance Sector Code of Corporate Governance, to take account of climate change considerations and two minor modifications to the Guernsey Green Fund rules. Its purpose is to underline the need for firms to prepare for a future in which green considerations and green disclosures become part of the international standards.
The Commission wants to encourage bailiwick firms to consider the impact of climate change on their business strategies, and to discuss sustainability matters in an appropriate way with their clients - adapting to the new green investment needs that exist now so many major industrial powers including China, Japan and the US have committed themselves to carbon-neutral futures.
The Thematic Review analyses the existing Guernsey Green Fund population and their compliance with the Guernsey Green Fund Rules, providing five key findings.
The Commission undertook the review because it wished to be able to provide assurance to investors, and those thinking of making green investments, that funds using the Guernsey Green Fund Accreditation are investing in projects that comply with the criteria for green investments set out by the multilateral development banks.
While noting there is room for improvement in some administrative areas, the Commission reports that Guernsey Green Funds appear to be being invested properly in appropriate assets.
Some individual firms are being provided with feedback on areas where their green fund administration practices should be enhanced. The Commission is keen to ensure that consumers and professional investors are able to take advantage of opportunities to invest in genuinely green assets and that 'greenwashing' does not occur in the Bailiwick.
GFSC Director General William Mason (pictured) said: “2020 was a year of huge evolution in the area of sustainability. With the modest changes to the Finance Sector Code of Corporate Governance on which we are consulting, our intention is to encourage firms that are not already advanced in their sustainability thinking to start considering what they need to do over the coming years.
"Green investment has gone from being a minority interest to a mainstream concern in the barely three years since we launched the Guernsey Green Fund rules to create the world’s first regulated green investment vehicle. We think boards need to prepare for a sustainable future and consider how to adapt their businesses in a sensible manner.”
• To view the thematic review click here
• To view the Spring Green Consultation click here