Jersey Finance has welcomed the recent publication of updated guidance from the Jersey Financial Services Commission relating to sustainable finance.
Jersey Finance sees the Jersey Financial Services Commission (JFSC) guidance as a positive step in supporting transparency, clarity and credibility across Jersey’s sustainable finance ecosystem.
The updated guidance, published last month (9 April), provides additional clarity for registered persons and firms governed by the JFSC’s Codes of Practice who are making sustainability-related claims, with a particular focus on governance, disclosures, terminology and the management of greenwashing risk.
In particular, the guidance:
- supports firms in meeting their obligations under the codes of practice in relation to identifying, assessing and managing sustainability related risks, with a particular focus on climate change risks (Principle 3)
- supports firms in demonstrating that sustainability-related products, strategies and marketing communications are fair, clear and substantiated (Principle 7).
In addition, the JFSC has enhanced Principle 7 relating to anti-greenwashing so that it now applies to all firms governed by the Codes of Practice. Principle 7 sets out that sustainability-related claims must be backed by robust evidence and must not be unclear, misleading or unfair.
This guidance and enhancement to Principle 7 in the Codes of Practice will take effect in Q1 2027, giving firms a sufficient transition period to prepare.
Commenting on the updated guidance, Joe Moynihan (pictured), CEO of Jersey Finance, said: “Clear, proportionate and internationally aligned regulation is essential in ensuring sustainable finance continues to develop with credibility and integrity. The JFSC’s updated guidance and enhancements to the codes of practice are therefore a welcome and timely development for Jersey’s financial services industry.
“As global investors place greater scrutiny on sustainability-related disclosures and investment strategies and as the sustainable finance landscape continues to evolve in areas such as transition finance, climate reporting and impact investing, it is increasingly important that jurisdictions provide clarity around expectations, governance and transparency. Jersey has and continues to take a pragmatic and responsible approach to sustainable finance, balancing innovation and market development with robust oversight, and these latest updates reflect that approach.”
