Deloitte annual report to focus on sustainability and climate change

In its latest annual report, the Deloitte European Centre for Regulatory Strategy also highlighted Brexit preparations as a theme along with a shift from implementing new regulations to ongoing supervision.

Building resilience to operational disruptions, such as cyber risks, and value for money were two other themes that were predicted to be dominant themes in regulation across Europe for 2019.

Deloitte said the report was particularly noteworthy for local firms as it demonstrated how closely the European agenda was aligned with Guernsey’s own regulatory agenda.

‘Climate change and sustainability is a key theme for 2019 and we have already seen significant activity locally in this area,’ said Sally Rochester, pictured, who leads Deloitte’s Channel Islands risk and regulatory advisory team.

‘The Guernsey Green Fund is gathering pace, the Guernsey Financial Services Commission has issued a discussion paper on green insurance and our Guernsey Finance Strategy has green finance as one of its central pillars. Local businesses must now not only consider the commercial opportunities in this space but also whether a global shift from high carbon to carbon neutral industry will have an impact on their business strategy, their assets and their customers.’

The report also underlined that European regulators will continue to scrutinise businesses’ understanding and management of data risk, culture and corporate governance and cyber vulnerabilities.

‘Locally, enough education has been undertaken and time has passed for the regulator to expect that businesses are managing these risks effectively. Such risks no longer sit on the horizon but should be effectively managed and understood by the board, executive and senior managers of every business,’ said Mrs Rochester.