Jersey Finance has welcomed new guidance from the Jersey Financial Services Commission aimed at strengthening transparency and credibility in sustainable finance.
The updated guidance, published last month, provides greater clarity for financial services firms making sustainability-related claims, particularly around governance, disclosures, terminology and the management of greenwashing risks.
The guidance is designed to help firms meet their obligations under the JFSC’s Codes of Practice, including identifying, assessing and managing sustainability-related risks, with a particular focus on climate change.
It also sets out expectations to ensure sustainability-related products, investment strategies and marketing communications are fair, clear and supported by evidence.
A key change is the expansion of the JFSC’s anti-greenwashing requirements. Principle 7 of the Codes of Practice will now apply to all regulated firms, requiring sustainability-related claims to be backed by robust evidence and not be misleading, unclear or unfair.
The new guidance and enhanced anti-greenwashing rules will come into force in the first quarter of 2027, giving firms time to prepare for the changes.
Jersey Finance chief executive Joe Moynihan 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.”
The JFSC’s updated guidance forms part of Jersey’s ongoing focus on supporting sustainable finance and the mobilisation of capital towards environmental and social objectives.