Exchange in Focus: CME Group Launches First-Ever Sustainable Derivatives Clearing Service
21 September 2021
Key benefits and applicationsTransparent reporting; Independent oversight instills credibility; No additional impact; Easy to implement
Owain Johnson, Managing Director, Global Head of Research & Product Development at CME Group, discusses Sustainable Clearing - a new ESG reporting solution.The service will be available from September 27, 2021. For more information on Sustainable Clearing and details on how trades will be defined and allocated please visit: Sustainable Clearing at CME Group.
An action menu for derivative exchanges to promote sustainable developmentIn response to the growing appreciation of planetary boundaries and social imperatives, policymakers, regulators and private sector actors are placing greater emphasis on the need to achieve environmental and social sustainability. Derivatives exchanges are an important part of the overall solution, whether as providers of relevant products and services, contributors to greater data availability and transparency, or as conveners of the market to address barriers to change. SSE initiative and the WFE jointly published guidance on ‘How derivatives exchanges can promote sustainable development' which provides an overview of the role of derivatives markets generally, presents some of the things derivatives exchanges are already doing in relation to sustainability, and highlights ways in which these exchanges can support the transition to more sustainable development pathways.
About the SSE
The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.