Extreme Carbon Inequality Report

WQ.234/2018

WRITTEN QUESTION TO THE MINISTER FOR THE ENVIRONMENT BY DEPUTY R.J. WARD OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 6th NOVEMBER 2018

Question

Will the Minister undertake to submit for discussion by the Council of Ministers the report from Oxfam entitled Extreme Carbon Inequality', published on 2nd December 2015; and will the Minister also undertake to provide for members his assessment of Jersey's position in respect of the report's findings, taking into account the Island's investment in fossil fuels and the carbon footprints of high-wealth individuals which are attracted to Jersey as a matter of policy?

Answer

I am not an expert in the report that is quoted but understand that it highlights links between the high carbon footprint' (average lifestyle consumption footprint') associated with the lifestyles of the richest global citizens compared to those outside the OECD countries.

Jersey reports annually on its carbon emissions[1] and per capita the Island performs relatively well in comparison to other developed countries.

• Jersey's per capita emissions of carbon are 3.8 t/CO2/person,
• the UK's are 7.1 t/CO2/person,
• and Guernsey's are 6.4 t/CO2/person.

In comparison, the carbon emissions of some of the poorest and most vulnerable countries quoted in the Oxfam report are as follows:

• Brazil (0.69 t/CO2/person),
• Bangladesh (0.23 t/CO2/person),
• and South Africa (2.05 t/CO2/person).

As Minister for the Environment, I don't have responsibility for the Assembly's policy on the criteria by which high-wealth individuals are attracted to Jersey. I am advised that no assessment is currently made of their global carbon footprint as part of the due diligence undertaken when assessing high-wealth individuals.

The question also queries the Island's investment in fossil fuels within our investment portfolio. Investment decisions are a matter for the Minister for Treasury and Resources. It is my understanding that the carbon impact of the Island's investment portfolio is not specifically taken into account. The States does not directly intervene in the activities of the investment managers, its ethical framework is implemented through the appointment of investment managers and the mandate under which these managers act. During the appointment process, carried out by the Department for the States Treasury and Exchequer, due consideration is given to the manager's approach to Environmental, Social and Governance ("ESG") risk. When making investment decisions, investment managers are required, where relevant, to give consideration to risks in their assessment of value. Through this process, investment managers are expected to incorporate the potential risk and value impact of ESG factors into their investment decisions, having regard to the information that is readily available at the time of the decision. The Minister for Treasury and Resources intends for this to encourage investment in companies with good governance and responsible management.

In view of the wide ranging impact of this report I do not propose to take the Oxfam report for discussion to the Council of Ministers at this time. However, I will undertake to discuss this matter with other Ministers, particularly the Minister for Treasury and Resources, the Minister for Economic Development, Tourism, Sport and Culture and the Minister for International Development.

Reducing Jersey's carbon emissions is a priority matter to me and The Energy Plan outlines numerous actions to reduce emissions by 2050 in line with global targets. I believe that reducing the emissions from all Islanders should be our focus and the Energy Plan sets the strategic context and actions for achieving this. I hope I can count on Deputy Ward 's support in achieving these aims and am always happy to meet him to discuss this further.