Society & Community Sustainable Development Policies & Frameworks Financing for Sustainability International & Development Financing

Sustainability gains momentum in derivatives industry

International & Development Financing

Given the massive influence that the commodities industry weilds over sustainability initiatives, financial derivatives can play a crucial role in the growth of sustainable products. Excerpts from the 15th Annual Asia Derivatives Conference offer perspectives on just how difficult it can be to establish some of the fundamentals needed to expand ESG investing.

  • The global reach of the derivatives industry helps it act as a facilitator of ESG investing, but also adds complexity due to different understandings of key certifications in different regions.
  • Even neighbouring countries differ on what they view as sustainable: Germany views nuclear power as a detriment to the environment, while France sees nuclear power as a key tool for combating climate change.
  • Building out financial products for sustainability while keeping their appeal for investors isn’t easy.
  • China is working to be a global leader in three key areas of sustainable investing: green bonds, ESG disclosures and carbon finance.
  • Looking at sustainable investing as “doing good” is problematic because but the “doing good” connotation implies there is a choice.