Building greater resilience to climate, geopolitical and economic shocks will require a shift from short-term efficiency to longer-term preparedness, with private capital playing an increasingly important role in financing the transition.
That was a central theme of Guernsey Finance’s Sustainable Finance in Action: Private Capital event in London, where experts from across the sustainability, defence, funds and fiduciary sectors explored the evolving role of investment in addressing interconnected security and climate concerns.
The biggest threat to security
Keynote speaker Lieutenant General (Retd) Richard Nugee explored the intrinsic link between sustainability and defence.
He said: "Climate change is a threat to our collective security and the security of our nations. Climate change is a geopolitical issue every bit as much as it is an environmental one.
"Please make no mistake: climate change is the biggest threat to security that modern humans have ever faced."
Defining climate change and ecological degradation as strategic risks, he argued that investors must look beyond short-term efficiency and focus instead on strengthening the systems that underpin economic and societal stability. In particular, he highlighted the growing vulnerabilities facing food systems, supply chains and critical infrastructure, warning that greater resilience is needed to withstand future shocks.
Central to his message was the need to rethink how economies and businesses prepare for disruption, urging a shift from a "'just in time' philosophy" to a "'just in case' approach" and building resilience can create economic and investment opportunities, rather than simply adding cost.
Encouraging attendees to identify areas where environmental, security and economic objectives align, he framed this "triple use" strategy as having a positive cascading effect: "What's good for resilience is also good for sustainability, is also good for our defence, because what it produces is a stronger national security, which is really good for finance and really good for business."
Connecting purpose with profit
A panel discussion then explored how private capital, family wealth and investment structures can support long-term resilience while delivering meaningful financial and societal outcomes, and how those two things are no longer exclusive. Drawing on perspectives from sustainable investing, private wealth and fiduciary services, panellists examined the growing demand from investors and families for investments that align financial returns with wider environmental and social objectives.
Neil Chadwick, Director of Global Operations at Oxycarbon - a UK-based sustainability consultancy that provides turnkey carbon reduction and "Pathway to Zero" planning - echoed the Lieutenant General's sentiment that the wider benefits of investing in sustainability are not separate from financial performance but can actually enhance it.
He explained that Oxycarbon's projects are designed not only to generate carbon credits, but also to improve local livelihoods through initiatives such as training, employment, infrastructure and community investment.
"Because every time we do that, we increase the value of the credit, which means you get the return on the money. It's not bad to want a return on your money. It's great to be able to do good at the same time," he said.
Reflecting on his experience as a director of the inaugural Fund Foundry programme, panel moderator Justin Sykes also noted the growing appetite for investment approaches that generate “a more holistic return”.
Offering a private wealth perspective, Chris Moorcroft, Partner at Harbottle & Lewis, highlighted a shift in how wealthy families view their capital, observing that there is now "a massive growth in the idea of family wealth needing to have a purpose, a meaning." He encouraged advisers and families to start with a fundamental question: "What is the wealth for?" This, Chris has observed, naturally leads into conversations about sustainability and long-term impact.
Guernsey channelling capital to where it is needed
Kerrie Le Tissier, an Independent Governance and Fiduciary Consultant, outlined how Guernsey's legal and regulatory framework can support these evolving priorities through flexible structures tailored to family and investment objectives.
She said: "We are a small independent jurisdiction. We're able to be very agile in terms of our legislation, regulation and thinking," enabling Guernsey to "keep pace with changing requirements."
Drawing the event to a close, Sally Rochester from the States of Guernsey's Committee for the Environment & Infrastructure commented on Guernsey's role in answering the challenges posed by geopolitical uncertainty and climate risk.
"We must respond to those threats and not ignore the realities of the world we live in. And I think it's absolutely right that Guernsey plays its part in channelling private capital to where it's most immediately needed... into infrastructure investment, into regeneration of nature, and those projects limiting climate change will make answering those challenges much easier.
"Investors ultimately need practical mechanisms through which essential private capital can flow. Ambition needs structures, ideas need governance, and capital needs a trusted framework through which it can be deployed effectively and responsibly. And this is probably the clearest articulation of Guernsey's value proposition."
Throughout the discussions, a consistent theme emerged: that addressing today's complex environmental, economic and geopolitical challenges will require patient capital, innovative thinking and trusted frameworks capable of turning long-term ambition into practical action.
