Day three: The Next Steps for Sustainable Finance in Jersey

Presenters and panellists on the day took a deep dive into fiduciary duties surrounding environmental, social and governance (ESG) principles and the impact of environmental crime. We also heard an inspirational case study on how a Jersey firm balanced a family’s generational wealth management with making a real difference to a large-scale biodiversity project.
Read on for a summary of the key takeaways.

FC4S update and UNDP’s trillion-dollar moonshot pledge

Stephen Nolan, Managing Director of the UNDP’s Financial Centres for Sustainability (FC4S) presented virtually on the impact geopolitical tensions have directly on global aid while the risk to the world’s natural environment is not subsiding. He emphasised that science is clear and how FC4S are now focussed on mobilising capital.

UNDP is aiming to redirect US$430 billion in private wealth towards achieving the SDGs as part of its trillion-dollar moonshot: a target investment figure for 2030.

The cornerstones of Jersey’s Sustainable Finance Action Plan

2024 was the warmest year on record and this is only set to increase, but with an estimated £78 billion in sustainable funds under management in Jersey in 2024 and a predicted £123 billion by 2026, the IFC is well positioned to make a real impact.

Miguel Zaragoza, Senior Policy Advisor for the Government of Jersey, talked the audience through how the Sustainable Finance Action Plan will achieve the objective of building a future-ready industry over the next two to three years.

The three cornerstones of this objective are to:

• future-proof the industry,
• raise market attractiveness and increase connectivity
• as well as the dual umbrella aims to protect and promote, all underpinned by risk and governance, engagement and incentives.

The action plan was examined in more detail by panellists: Chris Webb, HSBC, Dipak Vashi, Grant Thornton and David Postlethwaite, KPMG. They spoke to Pia Holm, Jersey Financial Services Commission about why the transition to net zero is important to their firms.

Two types of net zero-related risks to firms were examined: physical risk (for example, hurricanes) and transition risk (for example, technology being in place to aid the transition)

Chris emphasised the importance of making net zero risk management BAU, while Dipak described how other jurisdictions are doing it, so it is imperative that your firm does, too, without delay

David concluded by drawing on Miguel’s presentation on the Sustainable Finance Action Plan. The key message is that Jersey’s finance industry needs to protect our sustainable finance landscape by putting our cards on the table. We must ask: how does sustainability fit into a firm’s strategic goals? It must be linked to strategy and disclosure and transparency are vital

The panel were in total agreement that sustainable finance is ‘a marathon, not a sprint.’

How ESG considerations are integral to trustees’ duties

Sally Edwards, Jersey Finance, delivered a video presentation on ESG and Trustees’ Duties taking a deep dive into ESG investing and how to balance beneficiary needs, with legal and regulatory expectations. Watch it now below.

The correlation between financial and environmental crime

Olivia Dakeyne, Associate Director of Insight at Themis (a financial crime specialist agency) delivered a hard-hitting overview of the impact of environmental crime on the financial sector

Environment crime generates up to US$500 billion a year. It is growing at an alarming rate: at least three times faster than the licit economy and should be seen as not only a truly global issue but an issue of national security.

It’s imperative for financial institutions to be aware of the direct correlations between environmental crime and money laundering, tax evasion, corruption and terrorist financing.

There are very real reputational and regulatory risks to finance firms if they do not act by: sharing data, raising suspicious activity reports (SARs) and suspicious transaction reports (STRs), and examining supply chains in details

Local projects and initiatives

Wednesday’s final session was a lively panel moderated by Dame Susan Rice, who had also judged the sustainable finance awards as well as the children’s art competition. Dame Susan was joined on stage by David Stern, Chief Executive at Affinity Private Wealth, Rebecca Brewer, CEO at Durrell and Sian Langley, Senior Counsel at Walkers who was representing the Greening Jersey Initiative.

The panel focussed on local case studies, with David taking the audience through the decision-making process and research that had led to his client, a multigenerational family looking to align their financial planning with their philanthropic ambitions, purchasing a large area of land in Scotland with the aim to re-wild the landscape.

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