Guernsey Press

Green investments: what are they and is Guernsey involved?

Kevin Smith, director, Estera, replies:

Published
Kevin Smith, Estera. (26061010)

LAST month millions of people around the world took to the streets and protested as part of a global climate strike. Inspired largely by students, the march is indicative of a major shift when it comes to environmental, social and governance issues.

If the huge potential of ethical investments is to be realised, it requires innovative thinking on the part of the global finance industry. And when it comes specifically to green investment – money that goes towards supporting green and sustainable projects – Guernsey is playing a world-leading role.

By introducing the Guernsey Green Fund rules in July 2018, the Guernsey Financial Services Commission created the world’s first regulated green investment product and gave both investors and managers a transparent product through which investments into green initiatives can be made.

Guernsey Green Finance – the umbrella body for green finance in the island – underpins the admirable work in this space and unites the island’s government, the GFSC and the wider finance industry. The combined intention is to provide the broadest, most comprehensive range of green and sustainable financial services; with supporters across the industry, Guernsey can continue to lead the charge in this increasingly essential sector.

Guernsey fund administrators play an important role in this as well. For example, we have a wealth of specialist experience in renewables and administering funds with an ethical investment focus. Earlier this year, one of our clients, Bluefield Solar Income Fund, was the first fund listed on the London Stock Exchange to achieve Guernsey Green Fund accreditation, demonstrating that green investments are becoming part of the norm.

And while Guernsey’s finance industry will benefit from increased fund launches and increased investment into these green areas, the greater benefit is the overall international strategic commitment to mitigating environmental damage and climate change.