Regulatory Alerts2025-07-08
Guidance Note on Managing the Financial Risks of Climate Change and Nature Loss
The Isle of Man Financial Services Authority issued this guidance note to require regulated firms under the Financial Services Act 2008, the Insurance Act 2008, and the Collective Investment Scheme Act 2008 to integrate climate and nature risks into their existing governance and risk management frameworks. The document mandates that boards possess the necessary competence to oversee these long-term uncertainties and apply proportionality when assessing physical, transition, and litigation risks alongside opportunities. Firms are expected to conduct materiality assessments, utilize scenario analysis, and ensure transparent disclosure to avoid greenwashing while capitalizing on sustainable finance innovations.
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