Eurex Clearing, part of Deutsche Börse Group, is set to launch its new ESG Clearing Compass on 3 April, with involvement from ABN AMRO Clearing Bank N.V. and Société Générale as early partners.
The new ESG clearing compass will consist of two services: the ESG Portfolio Assessment and the ESG Visibility Hub.
These new services come as part of Deutsche Börse’s intentions to support the sustainable transformation journey of clearing members and their clients by increasing transparency and awareness regarding cleared portfolios and counterparties.
“The clearing industry is at an early stage of the transformation journey. We highly appreciate the efforts of Eurex Clearing to enable its clients to have more data transparency and awareness of their ESG profile and strategy,” said Pauline Engelberts, global chief operations and chief sustainability officer, ABN AMRO Clearing N.V.
“This will pave the way for better climate metrics. We are happy to support this initiative.”
The ESG Portfolio Assessment service evaluates securities delivered as margin collateral and default fund contributions with a range of climate metrics and data.
The new data offering will be beneficial to clients looking to decarbonise their portfolios, improve their monitoring and reporting facilities or reconcile their ESG strategy.
Elsewhere, the ESG Visibility Hub will offer clearing members increased tools to highlight their ESG profile and initiatives on Eurex Clearing’s website.
Market participants will be able to use this information to assess counterparties that they do business with, based on their sustainability profile and ESG strategy.
“Many market participants still struggle with incomplete, inconsistent or insufficient data regarding their exposure to climate-related physical and transition risks,” said Christina Sell, chief sustainability officer, trading and clearing at Deutsche Börse.
“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.”