Guidance Note on Managing the Financial Risks of Climate Change and Nature Loss
The Isle of Man Financial Services Authority has published guidance to raise awareness within the regulated sector of climate and nature loss risks and provide further clarity around the expectations of the Authority in respect of these risks.
This represents a significant first step in the Authority’s work to support the ambitions highlighted in the Isle of Man Sustainable Finance Roadmap. This initiative aims to facilitate the Isle of Man creating an environment where sustainable finance can thrive, benefitting our community and economy alike.
The Authority’s workstreams are focussed on creating a platform that enables firms to develop products and services, with a view to fostering the growth of sustainable finance as part of a well-regulated international business centre.
This guidance note is applicable to entities regulated under the Financial Services Act 2008, the Insurance Act 2008 and the Collective Investment Scheme Act 2008. It aims to give a high-level understanding of how climate and nature loss risks can create financial and other risks, as well as the expectations that the Authority has of firms that identify a material risk. The document focusses on how these risk management expectations sit within the existing regulatory frameworks, with no new requirements for firms. Another key focus area within the document is that of proportionality and materiality. The majority of the guidance is applicable only for business that have identified a material climate or nature risk as part of their risk assessment processes.
Outreach by Finance Isle of Man has yielded positive feedback around the opportunities set out in the Isle of Man Sustainable Finance Initiative to enable growth for businesses, educate staff, attract talent and businesses to the Island and help the Isle of Man achieve its wider goals for growth and sustainability. The Authority remains committed to driving forward an important project for our Island’s future.
Media Enquiries:
Adam Creamore, Sustainable Finance & ESG Adviser, email: Adam.Creamore@iomfsa.im
For further information:
PO BOX 58 DOUGLAS ISLE OF MAN IM99 1DT BRITISH ISLES
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