The International Financial Services Centres Authority (IFSCA) on October 04, 2024, issued a consultation paper on Principles to Mitigate the Risk of Greenwashing in ESG labelled Debt Securities in the IFSC.
The following has been stated namely: -
• It specifies that to promote transparency, accountability and adequacy of disclosures to investors, the IFSCA has issued the following principles to which issuers of ESG labelled debt securities in the IFSC should adhere:
o Being True to Label - Avoid misleading labels and terminology
o Screen the Green - Transparency in methodology for project selection and evaluation
o Walk the talk - Managing and tracking the use of proceeds
o Overall Impact - Quantification of Negative Externalities
o Be alert - Monitoring and Disclose
• It states that the issuer may adopt additional methods, disclosures, and processes beyond the above principles to assure investors and mitigate greenwashing.
Comments and suggestions from the public and stakeholders are invited on the draft “Principles to mitigate the Risk of Greenwashing in ESG labelled debt securities in the IFSC”, and may be sent by email at [email protected], [email protected], or [email protected] latest by October 25, 2024.
Refer to the attached document for draft principles in detail.
