As the global focus on environmental, social, and governance (ESG), and sustainability continues to increase, Guernsey has positioned itself as a beacon – the Les Hanois to the international finance industry.
Donna Le Tissier, Senior Manager – Fund Services, and part of JTC’s Sustainability Services team, looks at the reasons the Island has successfully forged a path for ESG and sustainable finance.
1. Pioneering Sustainable Fund Regimes
Guernsey proudly claims the title of hosting the world’s first regulated sustainable fund regimes. These include the Guernsey Green Fund and the Natural Capital Fund. These innovative structures provide a robust framework for investment vehicles committed to ESG principles. Investors seeking alignment with their sustainability goals find a welcoming home in Guernsey.
2. A Global Leader in Sustainable Finance
Guernsey’s commitment to sustainable finance extends beyond its shores. As a founder member of the United Nations Financial Centres for Sustainability (UNDP FC4S), Guernsey actively collaborates with international partners to drive positive change. Additionally, its participation in the Network for Greening the Financial System (NGFS) and the Sustainable Insurance Forum (SIF) underscores its dedication to a greener future.
3. The TISE Sustainable Platform
The International Stock Exchange (TISE), headquartered in Guernsey, boasts Europe’s most comprehensive sustainable segment. With over £13 billion listed on the TISE Sustainable platform, it serves as a vibrant marketplace for sustainable bonds, green securities, and ESG-focused investment products. Guernsey’s commitment to transparency and investor confidence shines through this platform.
4. Climate Considerations in Corporate Governance
Guernsey’s code of corporate governance emphasises the need to consider the impact of climate change. Companies operating within its jurisdiction must integrate ESG factors into their decision-making processes. This forward-thinking approach ensures that businesses contribute positively to environmental and social outcomes.
5. Sustainability Services support for Non-EU AIFM
As part of Global AIFM Solutions, JTC in Guernsey can provide alternative fund administration. The team specialises in sustainable/green energy funds, with the added advantage of opting in or out of the Alternative Investment Fund Managers Directive (AIFMD) depending on where client Alternative Investment Funds (AIFs) are marketed, a flexibility which is potentially attractive to non-European promoters with non-European investor bases.
By supporting clients, many of whom are not familiar with European reporting requirements such as Sustainable Finance Disclosure Regulation (SFDR), the Island is able to facilitate the movement of capital into sustainable finance, and to help continue the education of fund managers outside of the jurisdiction.
Guernsey’s commitment to sustainable finance, its innovative fund structures, and its collaborative approach positions it as a leader in the ESG landscape. As investors seek purpose-driven opportunities, Guernsey stands ready to lead the charge toward a greener, more resilient future.
To find out more about JTC in Guernsey, ESG or Sustainability Services, please get in touch with Donna directly.
The above article was originally published in the April issue of Business Brief. Access the full issue here.
