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Green funds are becoming an increasingly "popular" and "serendipitous" product, according to Guernsey Finance's Deputy Chief Executive of Strategy.
Dr Andy Sloan said a recent regulatory review indicated that Guernsey is the world's ‘go-to’ specialist finance centre for green and sustainable finance.
The thematic review states that Guernsey's regime "provides a robust and transparent product, demonstrating independent validation to current and potential investors that its objective of mitigating environmental damage results in a net positive outcome for the environment."
“The review demonstrates that the regime is working well and validates that its robust rules preclude greenwashing, demonstrating that it is a popular and serendipitous product," said Dr Sloan.
The Guernsey Green Fund, created in 2018, was the world’s first regulated green investment fund product that adopts internationally agreed objectives of COP21, the United National Climate Change Conference.
Dr Sloan added: “In my opinion this review by the Guernsey Financial Services Commission further validates the strategy’s early focus on ESG and confirms Guernsey’s place as a leader in this field.”
There are now 10 Green Funds domiciled in Guernsey. There is increasing evidence that Bailiwick businesses are taking green and ESG risk factors into consideration when planning their business strategies. During risk assessments undertaken in 2019 and 2020 supervisors regularly raised questions regarding appetite and approach to green and ESG.
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