Home Alternative Investments Endless Opportunities In Sustainability – Funds Forum Key Takeaways, Panel Session 1...

Endless Opportunities In Sustainability – Funds Forum Key Takeaways, Panel Session 1 – Fund Management/ REITs

40
0


To print this article, all you need is to be registered or login on Mondaq.com.

“Endless opportunities” was the upbeat theme of WE ARE
GUERNSEY’S 2022 Funds Forum, with two panels exploring how
sustainability and technology will help drive the post-pandemic
economic recovery globally. 

There are, of course, headwinds. As keynote speaker for the
event, renowned economist, author and broadcaster Dharshini
David delivered a canter through recent events that have led
to the current state of the global economy. While she pulled no
punches in her assessment of our challenges, she was cautiously
optimistic about the future.? 

Dharshini asked whether inflation and rising costs of living
across the world posed a threat to the progress toward a
carbon-neutral future. She questioned whether net-zero has become
had become a ‘nice to have’, acknowledging that
sustainability is driven by customer choice, but must also make
commercial sense for industry with a need for clear global
political leadership.

While Dharshini took comfort in humankind’s ability to
innovate and adapt in order to find climate solutions, with these
abilities evident during the pandemic, she added that without data
to scrutinise, progress might be lost. Transparency and trust were
themes that permeated the first panel session.

1194456a.jpg

Panellists

  • Gillian Browning – Director of the Investment,
    Fiduciary and Pension Division – Guernsey Financial Services
    Commission 

  • Dylan Cox – Head of Private Markets Research -
    PitchBook 

  • Lorraine Johnston – Partner –
    Ashurst 

  • Sona Stadtelmeyer-Petru – Executive Director – J.P.
    Morgan 

 Key takeaways

  • Regulation of climate-orientated investments
    was initially about exclusion and reducing risk for investors; that
    perception has evolved to signal opportunities for impact and
    returns.

  • Progress is needed on a consistent taxonomy.
    Currently, there is no shortage of ESG standards out there, with UK
    and Europe taking different policy approaches to regulation and
    indeed the meaning of sustainability itself. Guernsey’s
    approach to regulation has been to develop policy that refers to
    existing standards or overlays what is out there while ensuring
    it’s relevant and proportionate to the market.?

  • A significant challenge is a lack of quality
    data, particularly around areas such as biodiversity. Typically,
    data is backwards-looking and not always complete. Without data to
    create confidence that the impact of the investment is measurable,
    capital flows into environmental assets could be slowed. Alongside
    data, it’s helpful to have an understanding of a company’s
    carbon-neutral pathway and be in the right place to challenge them.
    Collaboration and transparency are critical.?

  • The risk of greenwashing looms large; however,
    to some extent, that comes from having so many different
    definitions, fund ratings and standards. It’s early days in
    terms of systematic data for sustainable investments. A lack of
    consensus can lead to accusations and mudslinging. Companies must
    be held accountable without creating a negative dialogue around a
    sector.? 

  • The next frontier for sustainable investment is
    natural capital and biodiversity. Investors will need assurance
    about entering this fast-moving space. Like the world-first
    Guernsey Green Fund, natural capital-regulated funds will help
    create trust and, therefore, investor interest in this
    sector.? 

  • Every step towards net zero is a step into a
    new world. It is a learning process for everyone as this new era is
    built and progressed. Regulation provides the scaffolding to help
    asset managers think about what is in the fund and build trust in
    the sector for investors.? 

For more information about Guernsey’s finance industry
please visit
www.weareguernsey.com.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Finance and Banking from Guernsey

EU Crowdfunding Regulation: Crowdfunding The Future?

Luther S.A.

Since their appearance in the late 1990s, investment and financing activities using crowdfunding platforms have been subject to fragmented and diverging pieces of regulation throughout the EU and thus impeding access to …

Lasting Powers Of Attorney In Guernsey

Carey Olsen

The States of Guernsey have introduced both The Capacity (Bailiwick of Guernsey) Law, 2020 (the “Law”) and The Capacity (Lasting Powers of Attorney) (Bailiwick of Guernsey) Ordinance…

Source link

Previous articleDubai’s Fintech Sector Enters Next Phase of Growth With New Venture Capital Fund
Next articleSpecial Edition: Insight Newsletter 2 | 2022 – Financial Services

LEAVE A REPLY

Please enter your comment!
Please enter your name here