ISDA Responds to ESAs Call for Evidence on Greenwashing

On January 10, ISDA submitted its response to the European Supervisory Authorities’ (ESAs) call for evidence on greenwashing. The response highlights that the current regulatory framework provides for an inconsistent treatment of derivatives and an unclear representation of the role of derivatives in sustainability, exposing them to unwarranted claims of greenwashing. It reiterates its call for specific environmental, social and governance (ESG) classification guidelines to be issued for derivatives in order to allow financial institutions to implement their ESG obligations without undue regulatory risks, which could otherwise expose firms selling these products to a significant risk of litigation and reputational damage. ISDA further points to the lack of clarity around regulations and methodologies as one major cause of greenwashing. It also elaborates on the structure of sustainability-linked derivatives (SLDs) and ISDA’s related work to encourage adequate disclosure of how SLDs help attain sustainability objectives, therefore supporting the integrity of this developing market.

Documents (1) for ISDA Responds to ESAs Call for Evidence on Greenwashing

ISDA AGM Studio: Jacques Vigner, BNP Paribas

Jacques Vigner, ISDA board member and chief strategic oversight officer for global markets at BNP Paribas, speaks with Mark Gheerbrant, global head of risk and capital at ISDA, on the key obstacles to a consistent, risk-appropriate capital framework and how to...

ISDA AGM Studio: Future Leaders in Derivatives

Following publication of the latest whitepaper from the ISDA Future Leaders in Derivatives (IFLD) program, Collateral and Liquidity Efficiency in the Derivatives Market: Navigating Risk in a Fragile Ecosystem, Joel Clark talks to IFLD participants Koen Ottenheijm, senior treasury and...