Guernsey Green Finance Case Studies
We are fortunate to be blessed with so many far-sighted firms and organisations with strong commitments to sustainability. Read about some of them here.
Bellerive Trust has been involved in impact investment with an agribusiness development project targeting a number of countries in Central Africa. The project takes in more than 10,000 hectares of farming land, which, aside from its agricultural potential, also benefits from the capacity to generate renewable energy from sunlight, creating multiple income streams for stakeholders. There is also the possibility for local residents to benefit from ownership.
In time, there will be scope for:
- Commercial and residential property developments
- Sanitation projects
- Transportation infrastructure
- Enhanced logistics
- Substantial employment of local residents in sustainable trades and businesses
The overall aims of this project are to offer a sustainable income yield, local economic growth, and enhancements for local quality of life, while reducing food imports and increasing domestic nutritional self-sufficiency. Each project is designed to be self-sustaining and replicable, subject to local awareness, involvement and compliance measures (such as planning laws). Already, we can see a vast improvement in the social, economic and environmental conditions of the nearby residents of these Central African projects which could, in turn, spur innovation and legislative clarification as the economies develop.
In its role as an investment advisor to high-net-worth and government investment pools, IAM Advisory acts for numerous clients seeking to better understand and to enhance the ESG credentials of their investment portfolios.
As part of that goal, IAM Advisory recently supported one client to ensure that all its investment managers are signatories to the UN Principles of Responsible Investment (PRI) as well as becoming a signatory itself. Some firms have been reluctant to sign up to the PRI, but investors are well-placed to put pressure on investment managers to take ESG investment seriously and embrace the benefits of being a PRI signatory while taking on the additional responsibilities involved.
Michael Strachan, Managing Director of IAM Advisory said “We have found being a signatory of the PRI ourselves helps us to better advise clients on their ESG-focused investments by ensuring our client investment policies are aligned to the highest standards of responsible investment. The PRI organisation provides a strong set of helpful resources to better understand and lobby for developments in sustainable investments.” PRI Reporting requires signatories to ensure staff are adequately trained in ESG investment issues and to identify ways to incentivise staff to keep sustainable investment at the forefront of their investment advice. The PRI’s six principles form a strong framework for Guernsey-based investment professionals to deepen their ESG investing expertise.
Carey Olsen advised on Emerald Technology Ventures, a global leader in clean technology venture capital, on the launch of its fourth venture fund, Emerald Industrial Innovation Fund LP (EIIF). EIIF invests in early and expansion stage companies in the energy, water, advanced materials and industrial IT sectors.
Innovest and Developing World Markets (DWM), a leading New York-based emerging markets impact fund manager, are partnering to pursue a new $75 million Global Displacement focused private equity investment strategy investing in refugee inclusive businesses world-wide. DWM has been focused on impact investments in financial inclusion across emerging and frontier markets since 2007 with a global presence of staff in 11 countries and more than $450 million in assets under management and advisory.
The Global Displacement PE strategy will seek investments in businesses operating in regions with significant refugee populations including refugee host and source countries. The strategy will primarily target investments into inclusive finance institutions, alongside a smaller proportion of investments in fintechs and operating businesses that are committed to employment, financing and service offerings for the displaced as well as host populations.
Innovest is serving as third-party impact advisor to DWM where it has supported the development of impact measurement and management strategy and will carry out independent verification of the social impact of the planned investments on refugee populations throughout the investment period.
Innovest has played a key role in advising a private foundation and a consortium of aligned HWNIs in the design, establishment and growth of an East African-focused microfinance impact vehicle. KIMS Microfinance aims to enhance local economic development in East Africa by providing high-quality diversified microfinance services to low-income, economically active youth, women, displaced and rural communities, offering savings, microenterprise and SME financing.
Seed funding plus growth capital secured from funders including the UK Aid and USAID has enabled KIMS to disburse more than $18m in financing to more than 15,000 micro business clients since 2014, with an active portfolio of $4.8m disbursed to 5,300 clients. The business intentionally seeks to make a profit to ensure sustainability but reinvests all profit back into its social mission.
Innovest's support include management strengthening, market analysis, partnership brokering, corporate structuring support, innovative finance design and impact measurement.
Innovest is serving as the impact advisor to a multinational gold mining company's efforts to stimulate economic diversification and job creation its mining communities in Ghana in order to mitigate the negative economic impact of mine closures set to occur within the next 10-15 years, ensuring no net-job loss and decline in income in the local community post mine closure.
Addressing these global challenges will require unprecedented levels of finance, with the UN estimating that £920 billion a year will be needed to meet the United Nations Sustainable Development Goals (SDGs). Innovest Advisory believes cooperation will be essential to design and implement scalable solutions and supports public and private impact funders and social impact companies with a range of advisory and project management services.
Innovest helps its clients develop innovative funding and development tools, and leverages its international network to contribute funding, know-how and capabilities to achieve agreed development outcomes.
The impact investment movement offers a unique opportunity for the Channel Islands to be a global conduit for financing for good, showcasing how private investment can play a central role in solving the critical global issues and driving new business to the islands.
Environmental & Social Impact Monitor (ESIM) accreditation service for island businesses, looking to contribute to Guernsey being recognised as a leading centre for green and sustainable business and finance. It rates businesses on environmental and social commitments.
Its products and services include:
- Environmental and social accreditations for organisations
- Industry wide benchmarking on organisations’ performances against environmental and social criteria, and the UN Sustainable Development Goals
- Carbon Offset Plus – an impact-based carbon offset of the future
- Bespoke consultation in sustainability practices and integration
Founder Marc Laine said he intended the new business would enhance Guernsey’s reputation for green finance, provide a clear opportunity for the island to demonstrate its commitment and alignment with the UN Sustainable Development Goals, and facilitate the development of a new advisory and auditing sector which would ultimately be able to export skills to other jurisdictions.
1818 Ventures invest in portfolios of tech start-ups that aim to generate wealth and do good in the world. In 2017, they invested in TOTM who are taking sustainable and ethical period care into the mainstream. Through partnerships with retail giants such as Tesco and Superdrug, TOTM is tackling period plastic with one of the largest ranges of organic and reusable period care in the UK. Born as a D2C brand and still continuing to grow online, the brand has also expanded into workplaces to make plastic-free period care available in the offices of leading corporates. Through this period dignity workplace scheme, TOTM now supplies the likes of Airbus, VISA, Microsoft, MSCI, Hargreaves Lansdown, Depop, Sweaty Betty and many more.
TOTM is a force for positive change driven by a mission to not only make sustainable, high quality period products more accessible, but to also tackle period stigma. As a digital brand, TOTM empowers menstrual wellbeing through online campaigns and content, whilst supporting menstrual health and dignity causes including Endometriosis UK and Binti International.
TISE Sustainable is Europe’s most comprehensive sustainable market segment.
It has been established as a reputable market segment which enables the flow of capital into investments that promote environmental, social or sustainable activities.
With a straightforward application process and no additional fee, admission to TISE Sustainable is available to all TISE-listed issuers and securities which demonstrate their qualifying credentials. A presence the segment provides those sustainable issuers and sustainable securities with enhanced connectivity, credibility, transparency and visibility among investors.
TISE Sustainable represents an evolution from TISE GREEN, which was originally launched at the end of 2018. Since then, there has been a significant maturing of the sector and these changes have been accelerated by the pandemic which has broadened the focus from a concentration on the environment to a more holistic view of sustainability.
The launch of TISE Sustainable is complemented by TISE’s membership of the United Nations’ Sustainable Stock Exchanges Initiative (UN SSE). Together, becoming a Partner Exchange of the UN SSE and the launch of TISE Sustainable put TISE at the heart of global efforts to encourage sustainable investment and enhance its commitment to being part of the sustainable capital markets ecosystem.
For more information about the advantages, qualifying credentials and application process for TISE Sustainable, please visit: TISE Sustainable
Novelis, the world’s largest recycler of aluminium, listed green bonds on The International Stock Exchange (TISE) in April 2021.
Novelis Sheet Ingot GmbH, an indirect wholly-owned subsidiary of Novelis Inc., has €500 million 3.375% Senior Notes due April 15, 2029 admitted to TISE’s sustainable market segment, TISE Sustainable.
Novelis is the leading producer of flat-rolled aluminium products. The net proceeds from the bonds will be used to finance eligible green projects, such as investments in renewable energy and pollution prevention and control.
Novelis engaged Sustainalytics, an independent environmental, social and governance and corporate governance research, ratings and analytics firm, to help develop a green bond framework, define the eligible green projects and assess the processes for alignment with the Green Bond Principles (produced by the International Capital Markets Association).
Ogier Corporate Finance Limited advised Novelis in respect of the listing on TISE and worked alongside the issuer’s counsel, Fried Frank, Harris, Shriver & Jacobson (London) LLP.
The Guernsey International Insurance Association (GIIA) has awarded its first environmental, social and governance (ESG) accreditation for an insurance entity. The framework was launched in Guernsey earlier this year and has awarded Dunant Re IC, an Incorporated Cell of Replexus ICC (Guernsey), managed by Aon Insurance Managers (Guernsey) this accreditation. The Red Cross-sponsored insurance bond was the first of its kind when it launched in March 2021.
Dunant Re IC is the first humanitarian catastrophe bond covering pure volcanic eruption. $3m was raised through specialist cat bond investors to cover the risk of 10 volcanic eruptions across three continents.
The framework, devised in collaboration with ESI Monitor, enables insurers and insurance managers who are members of GIIA to self-certify, and apply for akitemark through a third-party accreditation process.
It follows the United Nations’ recommended approach of incorporating ESG processes to align sustainable development goals with the outcomes of financial services products, services and investments made by the insurer.