SUSTAINABILITY has become a crucial element of the Special Economic (SEZ) regime in Jamaica, with Jamaica Special Economic Zone Authority (JSEZA) developing a strategy to promote and encourage sustainable development across the regime. JSEZA has coined the term ‘sustain-a-livity’ which incorporates environmental, economic, and social components of sustainability. JSEZA relies on this concept in their evaluation of SEZ proposals as it draws on the United Nation’s Sustainable Development Goals, the National Development Plan (NDP): Vision 2030 of Jamaica, and the Government of Jamaica’s Logistics Hub Initiative Industry Analysis and Master Plan. The objectives in these plans are now woven into the SEZ framework and policy objectives, from the application stage to entrance and operation in the SEZ.

The sustainability objectives found in the SEZ Policy Objectives include:

• The improvement of the trade and business facilitation environment for SEZs

• The creation of sustainable linkages between SEZs and the rest of the economy

• Increased domestic employment

• Ensuring the SEZ development initiatives are consistent with development goals under Vision 2030 NDP and existing Government priorities.

• Having competitive incentives with net benefits to the Jamaican society.

Now, as a part of the application process, each SEZ applicant must, in addition to the application for and obtaining of appropriate licences and approvals from other agencies, provide information on the impact that the proposed business will have on the economy, society, and the environment, and show how this net impact is in the best interest of Jamaica.

At this stage, JSEZA has indicated it will carry out a socio-economic analysis to weigh the benefits and costs of the project, looking at both quantified and non-quantified impacts. In conducting this cost-benefit analysis JSEZA will determine whether a proposed investment is in keeping with the overall developmental objectives of the SEZ regime and make recommendations or provide conditions for approval, where appropriate and necessary.

Following entry into the SEZ, JSEZA will continue to monitor, assess and enforce compliance with those sustainability requirements imposed on each member and stakeholder. This is done independently by JSEZA through investigation and relationships with other stakeholders such as National Environment and Planning Agency as well as information provided through the Self-Reporting and Monitoring Instrument (SRMI) required of licensees.

The SRMI was launched in 2020 and requires licensees to self-report on their activities for the period. The SRMI is done by way of an electronic form and submitted periodically, dependent on the type of licence held. For multi-purpose developers the SRMI is submitted to JSEZA on a bi-annual basis by the 15th day of the month, after the relevant six-month periods: July 15 (period 1) and January 15 (period 2), and for single-entity developers and occupants, the SRMI is to submitted to JSEZA on a calendar quarterly basis, by the 15th day of the month after the relevant calendar quarter: April 15th (period 1), July 15 (period 2); October 15 (period 3), and January 15 (period 4).

The SRMI is divided into four (4) categories, three (3) of which are linked to stainable development, ie social, economic and environmental. The SRMI requires licensees to report on and provide information on its:

i) employee make-up, including statistics in respect of gender, disability, age, skill level and turnover;

ii) capital investment (current and future), exports, revenue and rental rate; and

iii) electricity usage, use of renewable energy, water usage and preservation and recycling.

The data generated by the SRMI is then analysed by JSEZA and used to determine areas for improvement or advocacy, and is a key component in JSEZA’s ability to monitor compliance within the regime. JSEZA works closely with other government ministries, departments, and agencies to establish guidelines and monitor various aspects of environmental management and the impact of each business – including water conservation, air quality, and land use – in its efforts to advance sustainability across the regime.

Outside of the monitoring of compliance by licensees, JSEZA also recognises members at their annual Sustain-a-livity Awards, the first of which was held in December 2024. These awards are intended to highlight and reward members who demonstrate outstanding commitment to social wellness and environmental stewardship. Awardees were recognised across the following five (5) categories:

1) Social: Acknowledging initiatives that foster shared prosperity and equitable community development

2) Economic: Honouring organisations that enhance economic competitiveness and resilience

3) Environmental: Celebrating companies committed to reducing their ecological footprint and driving environmental sustainability

4) Governance: Recognising those with exemplary governance practices in transparency, accountability, and adherence to the rule of law

5) Special Sustain-a-Livity Award: A prestigious award recognising entities that integrate all four pillars (social, economic, environmental, and governance) into a cohesive sustainability strategy.

Sustainability in business is dynamic, and effective monitoring and improvement requires specific and ongoing knowledge and data about the business’ economic, social and governance matters and changes, based on best practice. As sustainability within the SEZ continues to develop, potential and existing licensees must remain up to date on requirements and advancements within the SEZ regime for success in their application and overall compliance. Sustainability in the SEZ regime is not only a regulatory requirement but a tool which licensees should recognise is a necessary vehicle for development and success.

Joanna Marzouca is an associate in the Commercial Department at Myers, Fletcher and Gordon. She may be contacted at joanna.marzouca@mfg.com.jm or through the firm’s website www.myersfletcher.com. This article is for general information purposes only and does not constitute legal advice.