Feedback Statement on Anti-Greenwashing Guidance and Code of Corporate Governance Update (2025-12-09)

Summary

This is the GFSC's feedback statement following its consultation on a new Anti-Greenwashing Guidance Note and proposed updates to the Finance Sector Code of Corporate Governance (both originally consulted on as Schedules 1 and 2 of the July 2025 'Enhancing Biodiversity' paper). The Commission confirms it is proceeding with both measures largely as proposed, with only minor clarifying amendments, and both will take effect on 1 February 2026.

• Anti-Greenwashing Guidance Note: Applies to all persons licensed under any of the Commission's supervisory laws. It clarifies that the existing Minimum Criteria for Licensing duty to act with integrity implicitly prohibits greenwashing; it does not create new obligations but documents expectations already implicit in licensing requirements.
• Code of Corporate Governance amendments: Paragraph 5.2.1 of the Code is amended so Boards must consider relevant environmental sustainability risks, including climate change and biodiversity risks (not just climate change), on business strategy and risk profile, and make timely disclosures where appropriate.
• Appendix 3 (Licensed Insurers): Paragraph A:18 is amended in parallel to require insurer boards to consider relevant environmental sustainability risks, including biodiversity risks, on the insurer's business strategy and risk profile.
• Designated Administrators: The Commission clarified and made minor amendments confirming the Guidance Note does not create new responsibilities for Designated Administrators of collective investment schemes who are not responsible for preparing the scheme's prospectus.

Both changes take effect from 1 February 2026, with the final Guidance Note text at Appendix 1 and the final amended Code paragraphs at Appendix 2 of the feedback statement.

Key obligations

• Licensees must ensure that any communication referencing the environmental sustainability characteristics of a product or service is consistent with the product's actual characteristics and is fair, clear and not misleading
• A licensee must not communicate a prospectus or offering document prepared by a third party where it knows, or should reasonably know, that it contains incorrect or misleading environmental sustainability information
• Boards of firms subject to the Finance Sector Code of Corporate Governance must consider the impact of relevant environmental sustainability risks, including climate change and biodiversity risks, on the firm's business strategy and risk profile
• Boards must make timely climate change and environmental sustainability related disclosures where appropriate in the board's judgement
• Boards of Licensed Insurers must consider relevant environmental sustainability risks, including biodiversity risks, on the insurer's business strategy and risk profile under Appendix 3 (A:18) of the Code

Applies to

persons licensed under the Commission's supervisory laws, companies licensed under the Protection of Investors (Bailiwick of Guernsey) Law, 2020, companies licensed under the Banking Supervision (Bailiwick of Guernsey) Law, 2020, companies licensed under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2020, companies licensed under the Insurance Business (Bailiwick of Guernsey) Law, 2002 (Appendix 3 only), companies licensed under the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, companies licensed under the Lending Credit and Finance (Bailiwick of Guernsey) Law, 2022, authorised or registered collective investment schemes, Designated Administrators of Authorised or Registered Collective Investment Schemes

Deadlines

• 1 February 2026: The Anti-Greenwashing Guidance Note is officially issued in final form and takes effect for all persons licensed under the Commission's supervisory laws
• 1 February 2026: Amendments to paragraph 5.2.1 of the Finance Sector Code of Corporate Governance and paragraph A:18 of Appendix 3 come into effect