Responsible or sustainable investing is far from a new concept. The origins of what we might consider ‘modern’ responsible investing have been traced back as far as the beginning of the 19th Century; however, awareness and popularity of responsible investing has seen exponential growth in the last few years.
According to a recent report from the US Social Investment Forum (SIF) Foundation, at the beginning of 2018 US investors held US$11.6 trillion worth of assets which had been chosen according to Environmental, Social and Governance (ESG) criteria; this is an increase of over 40 per cent, from US$8.1 trillion in 2016. The report also identified that shareholder advocacy and overlapping strategies promoting ESG principles have risen apace with total assets under management. This recent surge has been driven, in part, by younger investors who want their finance and business practices to align with their personal values, as well as by a renewed awareness of global issues (such as climate change) among the general population, and the introduction of corresponding legislation, such as France’s radical mandatory reporting of climate risk. As such factors are set to become more influential and commonplace over the coming years, we can only expect ESG criteria to become an increasingly import…
Guernsey, already a leading funds jurisdiction, is developing its position as a centre for green and impact investment.
Guernsey has identified the development of green investment products as a priority as part of the development of its financial services strategy, unveiled earlier this year.
Our ambition is to be the ‘go to’ international finance centre for green finance, through the development of the broadest and best range of products.
Guernsey is building on work already carried out in regulatory product development by the island’s regulator, the Guernsey Financial Services Commission (GFSC) and the island is also looking to further develop and grow its relationship with the UK’s green finance sector.
The potential for green and sustainable finance is enormous and streams into major global initiatives. There has been significant international activity in the green space, with impact investments made into commercial agriculture, healthcare, social housing and sustainable technologies, with the intention to generate social and environmental impact alongside financial return.
Action in this area b…