‘Ambitious’ plan for Jersey to lead way in sustainable, ethical finance

A NEW strategy was launched yesterday designed to make Jersey a leading global centre in sustainable and ethical finance – an area which is expected to grow ‘exponentially’ in the coming decades.

Joe Moynihan. Picture: DAVID FERGUSON. (30364252)
Joe Moynihan. Picture: DAVID FERGUSON. (30364252)

The plan forms part of a new report, ‘Jersey for Good: a Sustainable Future’, which makes the case for promoting investment in ‘environmental, social and governance’ assets, also known as ESG.

The report says that investments in ESG assets are expected to surpass $100 trillion by 2028. It was commissioned by Jersey Finance and carried out by a team led by Andrew Mitchell, chief executive of Jersey-based Equilibrium Futures, which advises on sustainable finance and opportunities linked to climate change and the environment.

‘Jersey for Good: a Sustainable Future’ says the Island’s finance sector has built a good reputation on governance, expertise and efficiency but needs to focus more on the opportunities presented by emerging regulation, reporting on sustainability and the increasing profitability of ESG funds. Its vision for Jersey by 2030 recommends:

  • Building partnerships so that each sector in the finance industry can integrate sustainability within a ‘joined-up’ policy framework.

  • ‘Green finance on a green island’. The finance industry, Jersey Financial Services Commission, government and Islanders need to work together on sustainability issues.

  • lImproving perception and credibility and measuring performance to reinforce Jersey’s reputation on the global stage.

  • Increasing capacity. Upskilling the industry to take advantage of the increasing trends towards ESG and sustainable finance.

The report also sets out a two-year Pathway to Success suggesting actions, such as establishing a steering group, greater participation in external bodies and forums, enhancing access to specific training, encouraging product innovation and creating an enabling regulatory environment.

Joe Moynihan, chief executive of Jersey Finance, said: ‘There’s no doubt that sustainable finance has become a strategic priority in recent years and the dramatic events of the last year have placed environmental, social and governance thinking into sharper focus.

‘As a forward-thinking IFC, we need to respond to the speed of change and act now so that we can position ourselves as an integral part of the journey ahead. Jersey has a responsibility to leverage its expertise and capital to support the transition to an environmentally and socially sustainable global economy.

‘This report sets out an ambitious vision that should inspire us and, with a detailed plan to guide us too, I’m certain we can capitalise on Jersey’s strengths as we work together to support the growth of sustainable finance and its contribution to environmental and social change.’

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