The international Network of Financial Centres for Sustainability (FC4S) has welcomed Jersey to its global network.
In joining FC4S – a collective of international financial centres working together to achieve the UN’s Sustainable Development Goals (SDGs) and the Paris Agreement – Jersey becomes the 39th member, outlining its shared commitment to the deployment of private capital towards sustainable objectives.
Jersey has been a major centre for international financial services for 60 years, spanning wealth management, funds, capital markets and banking, and more recently the specialist areas of Islamic finance, fintech and philanthropy. The Island acts as an important cog in the global financial system, with 14,000 local highly skilled professionals helping to manage and administer more than £1.3 trillion of global assets.
Seeking to catalyse action within the finance industry in support of sustainable finance, in March 2021, Jersey Finance – the not-for-profit organisation responsible for representing and promoting Jersey’s financial services industry – launched a new dedicated initiative to reinforce Jersey’s credentials as a sustainable international financial centre. ‘Jersey for Good – A Sustainable Future’ outlines a long-term strategy and collective vision for the Island, as well as an initial two-year plan to accelerate Jersey’s journey towards a sustainable future.
Based on the work of Equilibrium Futures, headed up by Andrew Mitchell – a founding member of the Taskforce for Nature Related Financial Disclosures (TNFD) and a recognised expert in the field of sustainable finance – the strategy is a collaborative effort between members of Jersey’s finance industry, the Government of Jersey, and the Island’s regulator, the Jersey Financial Services Commission (JFSC).
Being admitted as a member of the FC4S network required Jersey Finance to participate in the FC4S Assessment Programme, that enables its members to evaluate how their institutional foundations, regulatory environment and market infrastructures align with a sustainable financial system. This provides them with a baseline of where they stand in terms of sustainability, helps them identify areas where more focus is required, and allows them to visualize mid-term goals and set priorities when developing a strategic approach to sustainable finance. It also enables financial centres to keep track of their progress on this agenda.
Commenting on Jersey’s admission to FC4S, Joe Moynihan, Chief Executive of Jersey Finance, said: “We recognise that Jersey has a responsibility to leverage its expertise and capital to support the transition to an environmentally and socially sustainable global economy. As a dynamic, focussed IFC committed to good global citizenship, we have the power and the obligation to accelerate this journey and help create a brighter and sustainable future for all.
“Joining FC4S is an important step for Jersey. As well as being the leading network for sharing best practice among sustainable finance centres, the assessment framework developed by FC4S and its partners provides us with better visibility over our sustainable finance ecosystem and a benchmark to measure our progress in achieving our 2030 vision – for Jersey to be recognised by its clients, stakeholders and other key partners as the leading sustainable finance centre in the markets it serves. We look forward to the opportunities for cooperation and partnerships that membership of the FC4S network offers.”
Jersey’s addition to the FC4S network is the latest in a series of new collaborations the jurisdiction has committed to with international bodies to support the scaling up of sustainable finance. At COP26, the Jersey Financial Services Commission (JFSC) was announced as the latest member of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) – a global grouping of regulators and central banks that fosters climate action. This followed the introduction of new fund disclosure requirements to counter the risk of greenwashing, announced by Jersey’s regulator earlier this year.
There is also further alignment with the Government of Jersey’s wider efforts to implement ambitious sustainable policies to address the climate emergency, as recognised at COP26, with the UK Government announcing its intention to extend the UK’s commitments under the Paris Agreement to Jersey and the other Crown Dependencies.
“FC4S is pleased to welcome Jersey Finance as a new member. Jersey has demonstrated a real commitment to a greener future by presenting alternatives to current practice, detailing a new vision and strategy to change, and evidencing that sustainable finance is key for both planet and people. With our network of international financial centres, Jersey will now have access to a suite of knowledge and data that outlines what’s worked and what hasn’t in jurisdictions from Rio de Janeiro to Nur-Sultan. Thus, giving it insight to best practices around the world.” said Stephen Nolan, Managing Director of FC4S.
