Sectors:

Guernsey Financial Services Commission Amends Finance Sector Code of Corporate Governance to Consider Climate Change

17 June 2021

Guernsey has again demonstrated its leading position in the sustainable finance space with the publication of an amended Finance Sector Code of Corporate Governance by The Guernsey Financial Services Commission (GFSC). 

The updated Code asks boards to consider the impact of climate change on their strategy and risk profile and, where appropriate, make climate change related disclosures.     

A copy of the new Code can be found here. It will come into effect from 1 October 2021.  

The amendment is a further demonstration of Guernsey’s commitment to helping global businesses meet climate change reduction targets. The announcement came on day three of WE ARE GUERNSEY’s Sustainable Finance Week, which focused on the role that private investment, family offices and insurance can play in the sustainable agenda.   

The aim of these amendments is to ensure Guernsey’s regulated financial services entities are prepared to engage with the issue of climate change in a way that is proportionate to the nature of their businesses.  

“We have issued our code of corporate governance which is binding on financial services firms in Guernsey. We are asking firms to consider the impact of climate change on the firm’s business strategy and risk profile and, where appropriate, make timely climate change-based disclosures,” said GFSC Director General William Mason.  

He added: “Amending the Code encourages Boards to prepare for a future in which green consideration and green disclosure are likely to become an important part of international standards for financial services firms.  The changes made today are low key in themselves – designed to encourage timely preparation and action without materially increasing firms’ administrative burdens.”  

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