January 14, 2021
Green Hedges: What You Need to Know About ESG Derivatives
Standard Chartered explains the potential value of “use of proceeds” and performance-linked ESG derivatives.The flood of money pouring into ESG finance—everything from green bonds to sustainability-linked revolving credit facilities—has washed up on the shores of derivatives markets. At a recent NeuGroup meeting of European treasurers, sponsor Standard Chartered dove beneath the surface to reveal what value ESG derivatives may offer. The bank described two types: “Use of proceeds” ESG derivatives that hedge FX or interest rate risks arising from ESG…