The Commission has this week published the amended Finance Sector Code of Corporate Governance.
The code asks boards to consider the impact of climate change on their strategy and risk profile and, where they judge it appropriate, to make climate change-related disclosures.
The amendment was consulted on as part of the Commission’s Spring Green Consultation, issued on 11 March, which found broad support for the proposal. A feedback statement on the consultation feedback can be viewed here.
According to the Commission, climate change reduction targets will materially alter the economic world in the coming years and, it is hoped, will also have a positive impact on the environment.
Its aim in amending the code is to ensure businesses in Guernsey are prepared to engage with this issue in a way that is proportionate to the nature of their business, be it through client demand for more sustainable solutions or the impact of climate change policies on their asset bases.
GFSC Director General William Mason (pictured) commented: “Amending the code encourages boards to prepare for a future in which green consideration and green disclosure are likely to become an important part of international standards for financial services firms.
"The changes are low-key in themselves – designed to encourage timely preparation and action without materially increasing firms’ administrative burdens.”
The amendment to the code will come into effect for financial years starting from 1 October 2021.
• To view the new code click here