Eurex Clearing, a global central counterparty, will introduce its new ESG Clearing Compass on 3 April this year.
According to Eurex, the Compass will include two services, the ESG Portfolio Assessment and the ESG Visibility Hub. With these new services, Deutsche Börse aims to support the sustainable transformation journey of clearing members and their clients by creating more transparency and awareness with regards to cleared portfolios and counterparties.
Initially, the ESG Portfolio Assessment evaluates securities delivered as margin collateral and default fund contributions with several climate metrics and data. Clients striving to decarbonise their portfolios, improve their monitoring and reporting facilities or reconcile their ESG strategy can benefit from the new data offering.
The data will be sourced from ISS ESG, a globally leading ESG data and analytics provider, and the sustainable investment arm of Institutional Shareholder Services Inc (ISS) which is part of Deutsche Börse Group.
The ESG Visibility Hub provides clearing members with additional tools to highlight their ESG profile and initiatives on Eurex Clearing’s website. The increased depth of information will be helpful for market participants to assess counterparties that they do business with based on their sustainability profile and ESG strategy.
Deutsche Börse chief sustainability office trading and clearing Christina Sell said, “Many market participants still struggle with incomplete, inconsistent or insufficient data regarding their exposure to climate-related physical and transition risks. As a financial infrastructure service provider, we consider it our responsibility to contribute to transparency. With our innovative offering, our members can efficiently receive high-quality ESG data via established channels.”
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