Sustainable Finance: Insights from Our Chairman

As the year draws to a close, here’s a recap of the key insights our chairman, Marc Deschamps, shared in his recent address at the Jersey Sustainable Finance Forum. Sustainable finance has grown from a forward-thinking ideal to a core principle of the global economy, proving that profitability and responsibility are not mutually exclusive. ESG principles are shaping the future of investment and business strategies worldwide.

You can view Marc’s speech here (starting at 1h44).

ESG is vast—and it matters.

Environmental, Social, and Governance (ESG) principles span a wide array of areas, from combating climate change to fostering diversity and inclusion. Despite initial scepticism and controversies like the BlackRock debate, ESG is no longer just a buzzword and is presenting returns better than many other segments of infra investments. It is a business imperative.

Sustainable finance now sits at the core of ClimateTech and renewable energy industries, with investments in ClimateTech surpassing $1.5 trillion annually. The idea that sustainability and profitability are at odds is outdated. Today, renewable energy, electrification, and inclusive business practices are delivering measurable financial returns. Solar energy, for example, has transitioned from a niche solution to a profitable mainstream investment, outperforming traditional energy sources like gas in terms of LCOE and delivering better returns on investments—a testament to the economic potential of sustainable investments.

Inclusion is more than a social responsibility—it is an economic imperative.

Increasing women’s participation in the workforce and leadership, for instance, could boost global GDP by 20% (World Bank). Similarly, engaging First Nations and native communities in sustainable projects unlocks economic benefits for companies, countries, and societies alike.

Transparency builds trust.

Funds—whether ESG-focused or not—must be clear about their ESG practices to avoid greenwashing, greenhashing, or future “green bashing”. Transparent reporting not only protects investors but also builds trust and ensures long-term financial stability. AI has fast become a game-changer in this space, simplifying ESG reporting and making compliance more efficient and accessible for funds and companies of all sizes.

Finally, As Marc noted in his speech, climate, inclusiveness, and transparency are central to competitiveness in today’s financial landscape. Congratulations to the Government of Jersey for spearheading the Sustainable Finance Action Plan—a proactive stance in fostering a transparent and inclusive financial ecosystem that drives both economic and societal progress.