Why Guernsey for sustainable finance?
A global leader in sustainable finance
Guernsey is a global leader in sustainable finance
Committed to international standards and an early adopter of the OECD’s Common Reporting Standards
As a responsible global citizen, it is Guernsey’s intention to contribute its expertise and experience an international finance centre to the cause of sustainable finance, from ESG risk management to impact investing and philanthropy
A robust stance against tax evasion and committed to EU principles of fair taxation
Committed to substance, whitelisted by the EU and OECD in 2019 with a robust regulatory environment
Key stakeholders, including government and the financial services regulator, committed to sustainable finance in Guernsey
Guernsey is a member of
"We’ve found Guernsey to be a very supportive environment that moves at the pace we want, and we don’t have a second to waste."
Peter Bachmann Managing Director of Gresham House’s sustainable infrastructure division
Guernsey is home to
world’s first regulated green investment product
World’s first ESG frameworks for insurers and pension providers
World’s first regulated natural capital fund and biodiversity fund designation
"Guernsey's strengths in delivering on sustainable finance stem from our innovation in financial services, effective communication, and our ability to adapt and respond to challenges. Our commitment to these core principles enables us to lead the way in sustainable finance, fostering a future where economic growth aligns with environmental stewardship.”
Rupert Pleasant CEO Guernsey Finance
St. Peter Port, Guernsey
Investment and funds
Guernsey is a premier jurisdiction for investment and funds and a specialist global centre for open and closed-ended fund structures.
Guernsey has assets under management of more than £289 billion and is a leading jurisdiction for sectors that invest in sustainable finance such as private equity, venture capital, real estate, infrastructure, renewables, debt and listed securities.
There are a range of fund structures available in Guernsey with different levels of regulatory oversight, offering flexibility, global access and speed to market.
Guernsey is home to two world-first regulated sustainable fund regimes, the Guernsey Green Fund and Natural Capital Fund.
Guernsey offers a supportive ecosystem, enabling first-time and experienced fund managers.
Case study – First time sustainable fund
Foodtech investor Synthesis Capital has chosen to launch its debut fund as a Guernsey Green Fund. Synthesis Capital Fund I LP’s final close had commitments in excess of US$300 million. The pioneering fund, which will look to back technology solutions that will help global food system and environmental challenges, was oversubscribed and has attracted investment from institutional investors, corporate partners, family offices and high-net-worth angel investors.
It is believed to be the largest ever fund raised in the foodtech sector and comes a little over a year since the establishment of the London-based investment manager.
Carey Olsen Partner David Crosland, said: “It recognises the huge potential of the food tech sector and the viable solutions it is already offering. Synthesis is another perfect example of a first-time manager coming to Guernsey and utilising the jurisdiction’s expertise, infrastructure and well understood regulatory regime, further cementing the island’s reputation as a leader in the green space.”
Sustainable finance approach
More than £5billion is channelled into regulated green funds such as wind, solar and forestry, with a further £5billion into wider sustainable finance investments.
Supporting clients’:
ESG and SDG strategy
Sustainable finance reporting and regulatory requirements
Legal and administrative services for sustainable funds
"Guernsey is really set up to run funds like the ones that we manage."
Orlando Hilton Investment Director at Resonance Asset Management
Case study - Emerald Technology Ventures
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.
St. Peter Port, Guernsey
Guernsey Green Fund
A Guernsey Green Fund (GGF) must be established with the objectives of:
Spreading risk
Mitigating environmental damage
Seeking a return for investors
By investing in a Guernsey Green Fund, investors can be assured that that their investments have a positive environmental impact on the planet which are being monitored against internationally-recognised criteria.
Guernsey Green Fund
Guernsey is the home of the world’s first regulated green investment fund product
HOW IT WORKS
Establish a Guernsey fund, choosing from any of the island’s existing regimes
Demonstrate compliance with the Guernsey Green Fund Rules
Provide assurance that the fund is run in accordance with green criteria
TWO ROUTES
The green criteria of the fund can be verified under one of two routes:
A certificate from a suitable independent third party that the prospectus meets the notified green criteria
A declaration from either a Guernsey-licensed fund manager or administrator
St. Peter Port, Guernsey
Natural Capital Fund Regime
Guernsey’s Natural Capital Fund (NCF) is the world’s first regulated natural capital and biodiversity investment fund designation.
It aims to enhance investor access to the natural capital investment space by providing a trusted and transparent product that contributes to the internationally agreed objective of abating natural capital loss.
An NCF must be established with the objective of seeking a return for investors, while either making a positive contribution or significantly reducing harm to the natural world.
This could include transitional schemes such as those that commit to significantly reducing environmental harm to nature as well as those which aim to contribute positively.
Examples of natural capital funds could include:
Natural Capital Fund Regime
A Natural Capital Fund must align with either:
The United Nations Convention on Biological Diversity’s Post-2020 Global Biodiversity Framework’s 2030 Action Targets;
The United Nations Sustainable Development Goals 12-15, or;
The European Union Taxonomy for Sustainable Activities’ Environmental Objectives (c) to (f).
How it works
Establish a Guernsey fund, choosing from any of the island’s existing regimes
Create a framework for monitoring, measuring, reviewing and reporting on performance and progress to the set targets 1 2 3 4
Determine how the scheme aligns with the NCF rules
Set targets for reducing harm or contributing positively to the natural world
Obtain NCF designation and report on requirements 5
Listings
The International Stock Exchange (TISE), which is headquartered in Guernsey, is home to TISE Sustainable, providing a comprehensive and reputable market segment which enables the flow of capital into investments that promote environmental, social or sustainable activities.
There is more than £20 billion listed on TISE supporting environmental, social and sustainable initiatives.
With a straightforward application process and no additional fee, the segment is available to all TISE-listed issuers and securities which demonstrate their qualifying credentials, including those with a credible transition plan.
As such, TISE Sustainable caters for a wide range of products, including:
Green bonds
Social bonds
Sustainable bonds
Sustainability-linked bonds
Transition bonds
Green funds
ESG-rated companies
Transition issuers
Listings
Case study
The largest sustainability-linked bond issued for the digital infrastructure sector in Costa Rica has been admitted to TISE Sustainable.
Liberty Costa Rica Senior Secured Finance (the issuer) has listed USD400,000,000 SustainabilityLinked Senior Secured Notes due 2031 on TISE’s Qualified Investor Bond Market (QIBM).
The sustainability-linked bond has been verified by Moody’s ESG Solutions as aligned with the International Capital Market Association (ICMA) Sustainability-Linked Bond Principles and the Loan Market Association (LMA) SustainabilityLinked Loan Principles.
Case study
Other exchanges
Guernsey has expertise for listing vehicles on a variety of international capital markets including the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE).
Guernsey-domiciled and renewable energyfocused investment company NextEnergy Solar Fund Limited (NESFL) listed on the Main Market of the London Stock Exchange with 115 million and 110.3 million shares as part of a placing programme, raising aggregate proceeds of £241.8 million.
Cobo, Guernsey
Private wealth
Guernsey is globally recognised as a leader in private wealth, family office management and structuring.
Guernsey’s strengths and excellent reputation come from our expert professional service providers, offering a range of flexible structures.
Individuals and families can easily manage their wealth, investments and philanthropic endeavours in a safe, secure and stable environment with close proximity to London and access to global markets.
“As part of our fiduciary duties we have open and engaging conversations with settlors and beneficiaries regarding
their personal values,
and
where these include sustainability and/or philanthropy we are able to tailor structuring
solutions for them”
Rhona Humphreys Chair of the Guernsey Association of Trustees
There are a variety of Guernsey products, structures and vehicles available that can be used for philanthropic purposes. These include:
Guernsey Foundation
Guernsey Charitable Trust
Guernsey Purpose Trust
Guernsey Limited By Guarantee (LBG) Company
Guernsey Private Investment Fund (PIF) Regime
Guernsey Charitable Association
Guernsey Protected or Incorporated Cell Company
Case study - Ogier - Using a Foundation for philanthropy and funding medical research
A Guernsey Foundation was set up to mirror a foundation already in existence in another jurisdiction, in light of the founder’s desire to have a foundation in a reputable jurisdiction with professional service providers and in the same time zone as the UK. Going forward, philanthropic endeavours would be undertaken by the Guernsey Foundation with purposes focused on funding medical research and treatment studies. A modern constitution designed for long-term management of philanthropic donations was designed with input from the founder, who was specific on the area of philanthropic donating he wanted the foundation to focus on, but without overly prescribing what charities and organisations could benefit.
St. Peter Port, Guernsey
Impact investing
Supporting clients to develop and implement impact strategies
Case study - Innovest Advisory - Climate Conscious Impact Portfolio for a Family Trust
A next generation beneficiary of a family trust wanted to make a positive ecological impact and contribute to solutions to the climate crisis through impact investing. Innovest Advisory supported in the development of an impact-focused investment portfolio for the beneficiary by aligning their values with the investment requirements and fiduciary responsibility of the trustees.
Venture capital
Supporting venture capital fund set up and family investment into VC
Case study - 1818 and RideTandem
Guernsey based VC 1818 identifies, researches and, when appropriate, invests in purpose-driven, hyper-growth businesses. With a portfolio of startups demonstrating huge potential in the fight against climate change, 1818 has deployed capital to see not only significant financial returns, but incredible ESG gains throughout a range of industries, demonstrating the exemplary initiative of Guernsey’s finance industry to take on climate-focused investments.
RideTandem transforms commuting by teaming up with companies, offering affordable and eco-friendly transport solutions. Partnering with local transit services, they create tech-driven shuttles, aiding those with pricey or limited commute options. Utilised by firms like Next, Lidl, and Royal Mail, RideTandem has facilitated £50 million in wages for individuals accessing jobs they couldn't reach otherwise. Over 50% travel free via employer support; others save £65 weekly compared to car ownership. These shared services have slashed more than 8,000 metric tonnes of CO2 emissions compared to traditional transport methods.
St. Peter Port, Guernsey
Research and reports for private wealth practitioners
Scan the QR code to browse our extensive selection of digital literature
Insurance
Guernsey provides specialist insurance services, including expertise in captives, insurance-linked securities, reinsurance, managing general agents, longevity risk and run-off insurance.
Guernsey has an innovative insurance industrycreator of the Protected Cell Company structure and the world's first ESG framework for insurers. With more than 100 years’ experience in captives, Guernsey is a global leader and Europe's number one domicile for captive insurance with a fast-track pre-authorisation scheme for PCCs.
ESG Framework
Created in 2021, Guernsey achieved a world first with the development of an ESG framework for insurers developed in line with TCFD recommendations and comprising four pillars. Since then, an external validator has been added for the kitemark along with enhancements to the framework.
The Guernsey International Insurance Association (GIIA) is a supporting institution of the United Nations’ Principles for Sustainable Insurance Initiative.
Case study
GIIA purchased carbon offsets in June 2023 from the Gold Standard Foundation to offset 100 tonnes of CO2 equivalent to their members’ estimated impact from essential travel to the island for board meetings.
“What the framework seeks to achieve is behavioural change. There is a strong desire within the industry to bring ESG discussions into the boardroom, and our aspiration in creating this framework is to make those discussions accessible to all our Guernsey-based re/insurers, managers and prospects.”
Adele Gale Chair of the Guernsey International Insurance Association
Green life insurance
The Guernsey Financial Services Commission is the world’s first regulator to introduce a green insurance capital regime. The purpose of the ‘Green Discount’ is to encourage green, sustainable investment by life insurers and thereby help promote positive environmental outcomes. This discount enables insurers to purchase green assets in the knowledge that long-term green assets are considered suitable to meet long-term liabilities while maintaining policyholder protection.
Captives
With more than 100 years of experience, Guernsey is a global leader and Europe's number one domicile for captive insurance. More than 40% of UK FTSE 100 companies have captives domiciled in Guernsey. Guernsey-domiciled captives are also popular in Europe, the Americas, Middle East, Asia, South Africa, Australia and the Caribbean.
Insurance linked securities and reinsurance
Guernsey is recognised as a centre for reinsurance, including collateralised catastrophe reinsurance, with a focus on sustainability. Reinsurance in Guernsey covers a diverse range of risks, including the reinsurance of humanitarian aid, satellites, football clubs and players, lottery risk and marine reinsurance.
Case study – Danish Red Cross
With Aon Insurance Managers Guernsey, Replexus completed the world’s first volcanic risk catastrophe bond for the Danish Red Cross, raising $3m. This innovative bond covers 10 eruptions on three continents, showcasing Guernsey’s expertise in ILS and sustainable finance. The humanitarian notes, issued via Dunant Re IC Limited, received the Guernsey International Insurance Association’s ESG accreditation and are listed on TISE QIBM's sustainable segment.
Case study - International Federation of Red Cross (IFRC)
Via a Guernsey SPV, Aon collaborated with Lloyd’s Disaster Risk Facility and the Centre for Disaster Protection to create an innovative £18m insurance tool aiding International Federation of Red Cross and Red Crescent Societies (IFRC) in disasters. This mechanism triggers reinsurance once IFRC's funds reach £29m, ensuring aid for vulnerable communities and potentially reaching 6 million more people annually. A groundbreaking solution bridging the protection gap and meeting humanitarian needs.
Pensions
Guernsey is home to a broad range of pension providers from bank-owned institutions to independent boutiques as well as specialist legal, tax and actuarial advisers.
International Pensions Plan
Guernsey offers global occupational pensions for corporates
GAPP ESG Framework International Personal Pensions
Guernsey supports pensions for international individuals
Case study - Implementing sustainable pension solutions
Initially lacking ESG pension options, a company with 100 employees recognised the importance of addressing ESG concerns for member wellbeing and business sustainability. Fearing financial risks from neglecting ESG factors, they sought trustee advice.
Specialist advisers: Expert advisers highlighted climate change risks impacting pension fund assets. Due to size constraints, a market review was conducted to explore available options.
24 Sustainable Finance Guernsey
Market review: Trustees assessed three compliant funds meeting risk/return criteria and climate mandates, adding one to the default strategy.
Next steps: Company-approved funds received positive member feedback during briefings. Trustees offered all three funds, committed to ongoing review with the employer.
Banking
Guernsey is home to a mature global banking sector comprising retail, institutional and private banking providers.
Banks in Guernsey provide a broad range of services, including deposit taking and custody services, credit, foreign exchange, international payments and private client services.
Guernsey's banking customers from all around the world are attracted by its stable and respected political, regulatory and legal system and the breadth and depth of expertise.
Case study - Skipton International
Skipton International is the first Channel Island organisation in the banking sector to commit to the United Nations Environment Programme Finance Initiative (UNEP FI). To enhance its current sustainability strategy, the Guernsey licensed bank now aligns itself to the UNEP FI’s ‘Principles for Responsible Banking’, which creates best working practice on topics from climate and nature to gender equality and financial inclusion.
Skipton’s commitment to the Principles for Responsible Banking is an important step towards
aligning the banking sector with the UN Paris Agreement on Climate Change and Sustainable Development Goals. Nearly 250 banks have joined this movement for change, which asks signatories to analyse their impact on people and the planet, set and implement targets and publicly report on their progress. The initiative aligns itself to the UN’s Sustainable Development Goals and the Paris Climate Agreement.
Market Place, Guernsey
Regulatory approaches
The Guernsey Financial Services Commission considers that both global and local financial sectors are beginning to transition towards a greener world and that the Commission should co-operatively support that process. As such, the Commission has developed a Sustainable Finance Approach to demonstrate its commitment to develop sustainable finance through regulatory tools and to support the finance sector through transition towards a low carbon economy.
The Commission recognises the importance of the COP21 Accord in Paris, which stipulates that further finance flows into green investments are consistent with pathways towards low greenhouse gas emissions and climate-resilient development.
The Commission favours the use of an incentivebased approach in support of those leading the move to a sustainable finance sector, by providing appropriate frameworks to recognise and support transition.
Key elements of the Commission’s sustainable finance approach include:
A regulatory green discount for life insurer assets
Guidance for authorised and registered collective investment schemes on measures to counter the risk of greenwashing
Inclusion of a climate change requirement with the Code of Corporate Governance
“The Commission continues to work with Guernsey Finance and the industry to support both the finance sector and environmental improvement through considering how emerging international reporting standards can be adopted in a proportionate and low burden manner. We seek to enable environmental protection not excessive sustainability bureaucracy.”
William Mason Director General, Guernsey Financial Services Commission
"Guernsey is a well-respected, trusted jurisdiction that is considered stable from both the legal and regulatory perspective."
"The Guernsey Green Fund regime makes sure that investors can be confident that the ESG claims that we're making are legitimate."
Orlando Hilton Investment Director at Resonance Asset Management
Sustainable Guernsey a committed approach to net zero
In 2020 Guernsey’s parliament – the States of Deliberation –adopted an ambitious and deliverable Climate Change Policy:
Formal extension of the Paris Agreement to Guernsey, which was concluded in 2023
A binding commitment to net zero by 2050 including all Scope 1 and Scope 2 emissions and key Scope 3 emissions as well
The States of Guernsey approach includes;
To set out a jurisdiction-wide “Pathway to Net Zero” action plan in order to achieve that by 2050 or earlier
A reduction in carbon emissions by 57% against 1990 levels by 2030, to ensure a step-change towards net zero
Green
Infrastructure
A Guernsey Development Agency has been established to drive regeneration, with a clear government direction to deliver environmental and social benefits
Guernsey government’s capital projects have clear criteria to ensure delivery includes environmental benefits
Future airport and harbour planning to include delivery of environmental and energy benefits
Marine
Guernsey’s marine spatial plan is being accelerated for completion during 2025, in order to support work on offshore wind energy
Guernsey has implemented a sustainable fisheries model, meeting international standards and conventions
Housing
Guernsey Housing Association new build properties now meet high energy efficiency standards
In addition there are new initiatives being explored for all new and existing building in respect of energy efficiency
Construction industry initiatives to pilot green methods of construction (MMCs) are being supported by government
Sustainable Guernsey a committed approach to net zero
Green energy
The government has prioritised exploring and developing offshore wind energy – in its 2023 Electricity Strategy and in its 2023 Government Work Plan.
Offshore wind is a key component of the future local renewable energy supply of the Electricity Strategy.
Government is also setting out an investment plan to support its agreed position of an additional 100MW interconnector as well as supporting wider objectives such as greater energy resilience.
The government has agreed solar energy targets –5 MW by 2025 and 10 MW by 2028 with a projected 54MW generated by on island solar by 2050.
Government priorities:
Integrated transport strategy – prioritises emissions reduction through the facilitation of active travel (cycling, walking etc.), public transport and shared mobility
Waste strategy – globally lauded model of waste reduction and recycling across a whole community achieving a 73% recycling rate and 11% waste reduction in its first year of implementation
Biodiversity strategy – establishment and funding of an independent Nature Commission to deliver the jurisdiction’s biodiversity strategy. In addition, the government is currently undertaking the compliance work to enable accession to the UN Convention on Biological Diversity
For more details read the States of Guernsey Sustainable paper
St. Peter Port, Guernsey
Sustainable Guernsey a committed approach to net zero
Guernsey business
Across Guernsey there are many parties working together on sustainable finance and integrating sustainability across their businesses including;
Using FutureTracker has been a transformative experience for us at Oak. With an intricate analysis of our carbon footprint across our jurisdictions, they’ve enabled us to understand our environmental impact at a granular level. More importantly, it has made sustainability a topic of conversation, spurring staff involvement and fostering a culture of environmental awareness.
James Tracey Managing Director Oak Group
30 Sustainable Finance Guernsey
Guernsey Green Forum network
Chamber of Commerce Sustainable Business Initiative
Guernsey Finance
Guernsey Finance has developed a number of educational and promotional initiatives for sustainable finance, through its Sustainable Finance Guernsey Initiative. Sustainable Finance Guernsey is supported by the Sustainable Finance Guernsey Council, which comprises senior members of Guernsey’s financial services industry.
Guernsey also works with international partners to support global development of sustainable finance, including being a founding member of United Nations Financial Centres for Sustainability (UN FC4S) Europe. As members of the UN FC4S, Guernsey Finance supports various work programmes including their annual assessment programme, biodiversity working group and signatures of the Gender Charter.
Developments include:
The publication of a suite of reports, including practitioner’s guides to impact investing and sustainability, governance and sustainability for private wealth structures for single and multiple family offices, and to sustainable investing for private wealth and family offices.
Confirming Guernsey’s commitment to both sustainability and gender equality.
A report outlining Guernsey’s approach to fiduciary duties in the 21st century
The Sustainable Finance Guernsey Podcast which covers leading topics and themes within sustainable finance
A report providing a roadmap for private capital’s transition to net zero. The research (i) highlights the opportunities which exist for various financial services industry sectors and (ii) outlines a potential roadmap highlighting key steps, spanning the next three decades, for translating strategy into action, to accelerate the transition towards decarbonisation of the economy
An annual sustainable finance event, including international leaders and local sustainability and finance professionals.
