This paper considers the growing trend of market participants entering into transactions linked to environmental, social and governance (ESG) factors to further promote sustainability goals. It aims to identify and illustrate how ESG factors impact accounting and reporting on embedded ESG features under US Generally Accepted Accounting Principles (US GAAP), and includes comparisons to International Financial Reporting Standards.
As ESG features become more pervasive in the market, alternative approaches to assessing ESG features could be introduced under US GAAP to alleviate the operational burden on companies when entering into green transactions. At present, ISDA members believe the existing accounting frameworks, as they relate to ESG-linked transaction activity, do not provide decision-useful information to users of the financial statements.
The paper proposes that ESG-related issues are better covered through qualitative sustainability disclosures that many entities are already reporting on.
Click on the attached PDF to read the full paper.
Documents (1) for Accounting Analysis for ESG-related Transactions and the Impact on Derivatives
Latest
Launch of US Treasury Repo Market Indicators
ISDA has launched the ISDA-Actrix US Treasury Repo Market Clearing Indicators in collaboration with Actrix. The indicators illustrate central clearing adoption in the US Treasury repo market. Sponsored cleared repo volumes are used as a proxy to monitor client participation...
ISDA-Actrix US Treasury Clearing Indicators
This report provides indicators that illustrate central clearing adoption in the US Treasury repo market. Sponsored cleared repo volumes are used as a proxy to monitor client participation in central clearing, the key objective of the Securities and Exchange Commission's...
ISDA In Review – May 2026
A compendium of links to new documents, research papers, press releases and comment letters published by ISDA in May 2026.
US Treasury Repo Market Indicators Methodology
This paper is intended for market participants interested in the structure and methodology used to construct the ISDA-Actrix US Treasury Repo Market Clearing Indicators. It provides precise details allowing participants to access the publicly available data and replicate the calculations...