The research, conducted in partnership with Wilmington Trust, showed that of 17 new structures licensed in Europe in 2017, nine were domiciled in Guernsey.
The key difference, he explained, is that ESG can be used to boost alpha as fund managers use it to help them beat the market, while the focus of SRI is very beta-focused and aims to match market cycles.
Lee first explained that MSCI focuses on four areas of research, namely index, analytics, Environment, Social & Governance research and real estate.
The proportion trails Singaporean and Chinese investments, which make up 27 per cent and 26 per cent of the portfolio, respectively.
Climate finance is all about balance and fairness, allowing industrialised countries that have benefited from high greenhouse gas economies to help finance efforts by poorer countries to cut their emissions and adapt to climate change.