ESG Latin America & the Caribbean Guide 2024 | Charting Sustainable Futures |
|
Cayman Islands |
|
|
(Latin America/Caribbean)
Firm
Walkers
Contributors
Lucy Frew |
|
| ESG Regulation related to climate change prevention or mitigation, specifically concerning carbon footprint or pollution measurement, decarbonization strategies, and/or mandates and strategies to achieve local carbon neutrality commitments | Not applicable. To date, the Cayman Islands has not introduced specific ESG regulations related to climate change prevention or mitigation (including sustainable investing and disclosures in relation thereto). However, in April 2022, the Cayman Islands Monetary Authority ("CIMA") published an Information Circular in which it states that it recognizes ESG is the fastest-growing investment strategy and that it will use its supervisory mandate to assess best practices in other key financial jurisdictions, with the aim of developing a suitable regulatory and supervisory approach for climate-related risks and other ESG-related risks. In March 2023, CIMA also published on its website limited guidance for investors regarding ESG investments. |
| ESG Regulation regarding energy transition (requirements or promotion and use of new second-generation renewable energy sources such as solar, wind, tidal, H2, geothermal, among others). | Not applicable. |
| ESG Regulation concerning electricity markets, carbon markets, or similar. | Not applicable. |
| ESG Regulation in the realm of green or sustainable financing, including taxonomies, provisions for mandatory reporting of material financial information on environmental or social matters, as prerequisites for issuing thematic bonds (green, sustainable, | Not applicable. |
| ESG Regulation for preventing greenwashing. | Not applicable. |
| Regulation on ESG Due Diligence applicable to value chains (MRV protocols to ensure the environmental integrity of products and services, etc.). | Not applicable. |
| Regulation in the field of circular economy. | Not applicable. |
| ESG Regulation related to stakeholder well-being and social impact. | Not applicable. |
| ESG Regulation concerning non-discrimination. | Not applicable. |
| ESG Regulation pertaining to the prevention of modern slavery. | Not applicable. |
| ESG Regulation regarding Diversity, Equity, and Inclusion - DEI. | Not applicable. |
| Regulation on ESG-linked compensation. | Not applicable. |
| ESG Regulation for the protection of vulnerable or minority communities. | Not applicable. |
| ESG Regulation for economic development of vulnerable or minority communities or groups. | Not applicable. |
| Regulation on Personal Data Protection, concerning data usage transparency, limits on data usage to prevent discrimination issues, and corporate digital responsibility. | Laws/regulations concerning Personal Data Protection, data usage transparency, limits on data usage to prevent discrimination issues, and corporate digital responsibility include:
The scope of the application of this law is Federal. Resource: Walkers Updates - Data Protection in the Cayman Islands |
| ESG Regulation regarding the integration of the board of directors, board of trustees, or management body of the company (minimum participation/representation of women or minority groups, guidelines on the composition of board members with expertise in ES | Laws/regulations concerning the integration of the board of directors, trustees or management body of the company include:
|
| Regulation on fiduciary responsibility and administrators' roles in environmental and social risk management (standards or interpretations regarding the scope of fiduciary responsibility or administrator's duty concerning the company's social purpose, bas | Not applicable. |
| ESG Regulation concerning corporate purpose. | Not applicable. |
| Regulation on types of Benefit and Collective Interest Companies (certifications like B Corps, specific regulations for BIC companies). | Not applicable. |
| ESG Regulation regarding supply chains from the perspective of ESG risk governance. | Not applicable. |
| ESG Regulation in the context of M&A (ESG due diligence). | Not applicable. |
| ESG Regulation related to Corporate Digital Responsibility. | Not applicable. |
| Specific mandates related to national alignment with specific reporting standards. | Not applicable. |
| Standards regarding the scope and frequency of such reports. | Not applicable. |
ESG Latin America & the Caribbean Guide 2024 | Charting Sustainable Futures
Cayman Islands
(Latin America/Caribbean) Firm WalkersContributors Lucy Frew Callum Wright
Updated 22 May 2024Not applicable.
To date, the Cayman Islands has not introduced specific ESG regulations related to climate change prevention or mitigation (including sustainable investing and disclosures in relation thereto).
However, in April 2022, the Cayman Islands Monetary Authority ("CIMA") published an Information Circular in which it states that it recognizes ESG is the fastest-growing investment strategy and that it will use its supervisory mandate to assess best practices in other key financial jurisdictions, with the aim of developing a suitable regulatory and supervisory approach for climate-related risks and other ESG-related risks.
In March 2023, CIMA also published on its website limited guidance for investors regarding ESG investments.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Laws/regulations concerning Personal Data Protection, data usage transparency, limits on data usage to prevent discrimination issues, and corporate digital responsibility include:
- The Cayman Islands Data Protection Act (2021 Revision) (the "DPA")
The DPA gives individuals rights over their personal data and protects against its misuse in both the public and private sectors. The DPA requires a data controller to comply with eight data protection principles when processing personal data or when personal data processed is on the data controller's behalf. The DPA deals also with data security, and data breaches and grants rights to individual data subjects.
The scope of the application of this law is Federal.
Resource: Walkers Updates - Data Protection in the Cayman Islands
Laws/regulations concerning the integration of the board of directors, trustees or management body of the company include:
- CIMA Rule on Corporate Governance for Regulated Entities
The Cayman Islands Monetary Authority ("CIMA") has published a Rule on Corporate Governance for Regulated Entities that applies to CIMA-regulated entities. The Rule addresses governance generally and does not specifically address environmental issues or minority representation. The rules codify what might be regarded as governance best practice, including but not limited to governance structure, governing body's and its members' duties, independence and objectivity, risk management and internal controls, conflicts of interest, remuneration and transparency and communication.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.