MAURITIUS Law and Practice Contributed by: Valerie Bisasur, Jean-Vincent Dacruz and Shane Mungur, BLC Robert & Associates
9. ESG 9.1 ESG Requirements
• to build capacity and raise awareness for climate-related and environmental financial risks; and • to bridge data gaps in relation to climate- related and environmental financial risks. Guideline on Climate-Related and Environmental Financial Risk Management In 2022, the BoM released a Guideline on Cli - mate-Related and Environmental Financial Risk Management, which took into consideration the recommendations of the NGFS in its Guide for Supervisors, “Integrating climate-related and environmental risks into prudential supervision” (issued in May 2020) as well as other related guidance issued by the NGFS, the Financial Sta - bility Board, the Basel Committee on Banking Supervision and other regulators. The Guideline sets out the expectations of a pru - dent approach to climate-related and environ - mental financial risks with a view to enhancing the resilience of the banking sector against these risks. It is intended to assist financial institutions in embedding sound governance and risk man - agement frameworks for climate-related and environmental financial risks within their exist - ing risk management frameworks. Banks will be also in a better position to identify the risks and opportunities arising from the transition to a low-carbon and more circular economy and to consider them in their strategy, engagement with their counterparts and other decision-making processes. The Guideline further outlines the broad prin - ciples that banks may use to develop their climate-related and environmental financial dis - closures. The Guideline requirements apply to various areas of the organisation and operation of banks – namely to:
Since early 2020, the BoM has taken several ini - tiatives relating to the financial risks associated with climate change and environmental degra - dation, including the following. The BoM has joined the Network of Central Banks and Supervisors for Greening the Finan - cial System (NGFS). In 2021, it released a Guide for the Issue of Sustainable Bonds. This Guide was published to provide an overview of the requirements and processes for the issuance of sustainable bonds and the listing of these bonds on exchanges licensed in Mauritius. In the same line, in 2021 the Guidelines for the Issue of Corporate and Green Bonds in Mauritius, issued by the Finan - cial Services Commission, further supplements the Guide by elaborating on various regulatory requirements to be adopted by the issuers in line with international best practices for the issuance of green bonds. The BoM launched its Climate Change Centre. The Centre is composed of a main committee, under the chairmanship of the second deputy governor, with four task forces. The objectives are: • to integrate climate-related and environmen - tal financial risks into the BoM’s regulatory, supervisory and monetary policy frameworks; • to review the BoM’s internal operations in view of reducing its carbon footprint and becoming a more sustainable organisation; • to look into enhancing disclosures on climate- related and environmental financial risks; • to support the development of sustainable finance;
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