Authority supporting Sustainable Finance Initiative
The Isle of Man Financial Services Authority has set out its commitment to supporting the Island’s Sustainable Finance Initiative (SFI).
Work will focus on developing the appropriate policy, regulatory and assurance frameworks to strengthen the Island’s sustainable finance proposition.
The intention of the SFI is to generate quality new business and sustainable economic growth for the Island by channelling capital to meet the global demand for net-zero and nature-positive investment, as well as wider Environmental, Social and Governance (ESG) criteria.
The Authority is driving the delivery of a number of actions highlighted in the Sustainable Finance Roadmap launched on 5 November 2024 by Finance IOM, an executive agency of the Department for Enterprise.
As a member of the public-private sector Sustainable Finance Steering Group, the Authority continues to work in collaboration with industry and government to create the right enabling environment for the Island. Targeted actions include:
- Identifying and implementing any necessary changes to the Island’s existing legislation.
- Encouraging Island firms to fully integrate climate and biodiversity issues into their governance and risk management systems.
- Developing sector-specific guidance to assist firms in considering the impact of climate-related financial risks.
- Protecting consumers by continuing to pursue a robust and proactive supervisory approach to address any instances of greenwashing or regulatory misconduct.
- Exploring the possible development of a labelling framework for investment products marketed as sustainable.
The Authority’s contribution to the Roadmap, which has been developed in partnership with the International Sustainable Finance Centre of Excellence in Dublin, will seek to accelerate the transition towards increased sustainability.
The overall objectives are to leverage the Island’s status as the world’s only whole-nation UNESCO Biosphere, support firms to develop new products and services, and enhance our reputation as a well-regulated and innovative jurisdiction.