Isle of Man launches Sustainable Finance Initiative in support of UNESCO Biosphere designation

Finance Isle of Man launched an initiative to develop a Sustainable Finance proposition for the Isle of Man on 30 July. This project aims to enhance the Island’s reputation as a leading International Finance Centre by facilitating capital flows for sustainability-based products.

Sustainable Finance is the process of taking due account of environmental, social and governance (ESG) considerations when making investment decisions in the financial sector, leading to increased longer-term investments into sustainable economic activities and projects. It has become a powerful movement led by regulators, institutional investors and asset managers globally.

The initiative, supported by the Economic Strategy Board, aligns with the Isle of Man government’s long-term Economic Strategy and leverages the Island’s unique status as the world’s only whole-nation UNESCO Biosphere.

The UNESCO Biosphere designation is premised on the conservation of both natural and cultural diversity on the island. It is governed by a Stakeholder Partnership Group (SPG), chaired by the Isle of Man’s Chief Minister with membership from the tourism, farming, marine, conservation, education, finance, culture, heritage and charitable sectors, as well as NGOs.

The Isle of Man is unusual compared to other Biospheres, which tend to have smaller populations and lower value economies. Uniquely, it constitutes an entire jurisdiction as well as an independent economy, which has also been able to demonstrate very strong environmental, cultural and social credentials.

As the coordination body, the SPG ensures accountability and direction for the biosphere. Its core purpose is to “encourage all sectors of the Isle of Man to work together for a sustainable future” and it is responsible for producing the overall vision and strategy, as well as action plans for implementation.

In the initial phase of the new Sustainable Finance Initiative, Finance Isle of Man has partnered with the International Sustainable Finance Centre of Excellence (ISFCOE) in Dublin. It will also collaborate with the UN Financial Centres for Sustainability (FC4S).

The Isle of Man has already been granted observer member status by FC4S, which will conduct a baseline assessment of the Island’s positioning to guide the development roadmap and serve as a benchmark for the initiative.

“The global financial system, and its products and services, play a critical role in providing the capital needed for countries and institutions to meet the sustainability goals set under the Paris Agreement,” said Minister for Enterprise Tim Johnston.

“With financial services representing around 48% of the Isle of Man’s economy, this sector can play an important role in this evolution. Furthermore, this project aligns closely with the long-term ambitions of the Economic Strategy, leveraging the green economy to build a more secure, vibrant and sustainable future for the Isle of Man.”

The project is seen as a ‘must-do’ initiative for the Isle of Man’s financial and professional services sector in helping to ensure that its proposition remains competitive and relevant.
“Key market indicators predict increasing demand for Sustainable Finance products and services,” said Head of Banking & Fiduciaries at Finance Isle of Man Paul Blake.

“We are particularly pleased to establish a partnership with ISFCOE and to become an observer member of FC4S early in our journey, enabling us to tap into some of the best thinking around in this area. Additionally, our unique status as the only entire UNESCO Biosphere nation in the world has already sparked considerable interest from our partners.”