Enhancing Biodiversity – Sustainability Reporting in the Bailiwick of Guernsey – A Feedback Paper

The Commission has today issued a Feedback Paper providing feedback to the responses received to the Commission’s Discussion Paper (“DP”) on The Future of Sustainability Reporting in the Bailiwick of Guernsey issued in July 2024.

The DP provided a summary of international developments in the area of sustainability reporting, including the work of the International Sustainability Standards Board (ISSB). The paper sought to gather information and views from the finance sector on the potential impact of the introduction of the standards that have been issued by the ISSB. The majority of respondents were in favour of a proportionate approach to the adoption of ISSB reporting in line with international peers, with interoperability and flexibility of disclosure requirements being identified as key. The Feedback Paper confirms that the Commission has no plans to implement mandatory sustainability disclosure standards applicable to the regulated financial services sectors in the foreseeable future and sets out that supervised entities may make disclosures in compliance with ISSB Standards on a voluntary basis.

The DP also sought views on additional steps which might be taken to enhance licensees’ sustainability risk governance and management and, after considering the feedback received, the Commission is consulting on a proposal to amend the Financial Sector Code of Corporate Governance, making clear the importance of board consideration of biodiversity/nature risks, alongside the consideration already accorded to climate change. The Commission is also consulting on explanatory guidance to make clear that greenwashing is already forbidden under the Minimum Criteria for Licensing.

The Feedback Paper can be found on the Commission's Engagement Hub: Home | Guernsey Financial Services Commission