Commission publishes two papers addressing Green and Climate related Risk

11th March 2021

The Commission has today published a Spring Green Consultation Paper - please click here and its Thematic Review of the Guernsey Green Fund Regime - please click here. Both documents underline the Bailiwick’s ongoing commitment to this important area.

The Spring Green Consultation Paper proposes an addition to the Finance Sector Code of Corporate Governance, to take specific account of climate change considerations and two minor modifications to the Guernsey Green Fund Rules.

The Thematic Review analyses the existing Guernsey Green Fund population, their compliance with the Guernsey Green Fund Rules, and reaches five key findings.

With regard to the consultation on making minor additions to the Finance Sector Code of Corporate Governance, 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 which exist now so many major industrial powers including China, Japan and the United States have committed themselves to carbon neutral futures. 

Separately, the Commission undertook the green thematic review because it wished to be able to provide assurance to investors and those thinking of making green investments, that funds enjoying use of the Guernsey Green Fund Accreditation are investing in projects which comply with the criteria for green investments set out by the multi-lateral development banks.  Whilst noting that there are some administrative areas where there is room for improvement, the Commission is pleased to report 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 so called “greenwashing” does not occur in the Bailiwick. 

Speaking about the publication of these papers, Director General of the Commission, William Mason, 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 those firms which 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, we believe, 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.”

Spring Green Consultation Paper

Respondents are encouraged to submit their comments online using the Commissions Citizen Space Consultation Hub which can be found here:

GFSC Consultation Hub