Embracing ESG and Sustainability: A Changing Landscape

Forum will be hosted online between January 25-29

Client Director, Sherman Taylor looks at how the insurance-linked securities (ILS) industry can incorporate ESG into its operations.

Changes in the international regulatory landscape, paired with the Covid-19 pandemic, have accelerated investors’ interest in sustainable investments

Investors globally are becoming increasingly convinced that ESG integrated portfolios will generate long-term sustainable alpha, if there is good quality ESG data and analytics.

The company aims to “accelerate the world’s transition to sustainable aviation”, and is currently refitting existing propeller aircraft with proprietary engines that facilitate zero-emission short haul trips of up to 500 miles.

In the first edition of the International Comparative Legal Guide to Environmental, Social & Governance Law 2021, Peter Stapleton, Ronan Cremin and Jennifer Dobbyn provide a comprehensive insight into ESG law in Ireland.

The document has draft clauses aiming to show that sustainable investing can be compatible with any duties the trustee might have.

Managers are responding with fund products that look to meet these priorities.

Guernsey has also been forefront in the development of world-leading green products and services – including launching the world’s first green fund regime in 2018.

Ogier Global’s ESG & Impact team works across asset classes with private equity firms, asset managers, institutional investors, family offices, foundations and corporates.

The Commission’s proposal would enable insurers to purchase green assets in the knowledge that long-term green assets are considered suitable to meet long-term liabilities whilst maintaining policyholder protection.

The promotional agency, in collaboration with Ogier in Guernsey, has produced a guide for developing sustainable trust deeds, ‘Sustainable Investing for Private Wealth and Family Offices.’

Against a COVID-19 backdrop and new data on climate change trends, sustainable investing is maturing faster and generating greater interest in private markets than ever before.

The survey also found that Europe leads the way when it comes to investors feeling a responsibility to avoid investments with negative impacts on environment and society – 61% of European investors feel this way, compared to 53% globally.

Capital market issuers in Europe are attaching greater importance to sustainable finance than a year ago, and the Channel Islands are well-positioned to play a “key part” in supporting that trend.

These policy shifts will drive major changes in business across entire value chains from product design to production, distribution and recycling.

Natural Environment and the Jersey Tree and Hedgerow Forum are encouraging Islanders to plant more hedges and trees around the Island ahead of National Tree Week.

The lack of clarity in ESG means it’s difficult to compare and analyse investments.

The aim of a ‘blue’ economy is to support the sustainable use of ocean resources for economic growth and improved livelihoods, while protecting ocean health.

Overcoming the sustainability design challenge – a guide on building a more sustainable business