Island ‘is on the right track with green finance sector’
GUERNSEY is on the right track in looking to build a world-class green finance sector, according to industry chiefs.
Eric Lascelles, chief economist at RBC Global Asset Management, also hailed a focus on further building the island’s offering in terms of family offices during a visit to Guernsey.
Both green finance and family offices form part of a strategy to power the finance industry. Published in December, the policy framework was developed by Economic Development and industry body Guernsey Finance in partnership with business.
‘In terms of family offices, it really seems like it is an enormous growth area,’ said Mr Lascelles. ‘Many ultra-high net worth individuals are recognising some of the opportunities that exist there. So that feels very well timed there.
‘There’s a lot these family offices can do and it does absolutely seem to be a growth industry and that seems quite clever.’
On green finance, Mr Lascelles said: ‘2018 at least was the year in which environmental, social and governance really started to gain enormous traction and of course a very big part of ESG is that E, which is the environment.
‘That does seem to be becoming much more central.
‘Of course, it is considerably about doing good. But it’s also about finding superior opportunities in the market.’
The economist added: ‘I personally think those two strategies are fabulous and very nicely hitch Guernsey’s future to some growing fractions of the finance industry.’
James Tracey, managing director of JTC’s Guernsey office, said: ‘I’m really excited about green funds and finance and ESG. I’m really positive from a Guernsey perspective.
‘We have always sought to work to a high level. We have always tried to demonstrate best practice.’
He added: ‘I think that will develop over a period of time.
‘I just hope we can create the momentum and therefore the visibility for that opportunity to really take hold, as we have seen with private equity.’
Speaking during a visit to Guernsey for an RBC Wealth Management event, Mr Lascelles also gave his assessment on whether Brexit or a left-wing UK government led by Labour’s Jeremy Corbyn was a bigger risk for business.
‘As tempting as it is to argue that a less business-friendly government might be a central risk, I think the permanency of Brexit is such that it deserves to maintain that headline billing.
‘Of course, it depends on the nature of Brexit, whether it happens and how hard or soft it is.
‘But I think somewhere within that, one has to say Brexit poses the greater threat or at least has the bigger downside risk in my mind because it’s permanent – and generally speaking, no politician is permanent.’
