In order to achieve the SDGs and move the world to a more sustainable pathway, it is important to work with derivative exchanges as a key leverage point for establishing critical risk hedging and pricing instruments and standardized products that embed sustainability principles.
This multi-stakeholder session jointly organized by the United Nations Sustainable Stock Exchanges (SSE) initiative and the World Federation of Exchanges will bring together key derivatives exchange actors and industry participants to assess what is happening currently and to address opportunities and challenges for incorporating sustainability considerations into derivatives markets more broadly.
The session will also feature discussions of the joint SSE WFE report “How Derivatives Exchanges can Promote Sustainable Development“, with a focus on supporting the further development of derivatives that embed sustainability principles. Exchanges and market participants will benefit from discussions on the opportunities and challenges involved in including sustainability considerations in the derivatives ecosystem.
Issues to be addressed
- What role can derivative exchanges play in promoting sustainable development?
- What is the appropriate balance between transparency / allowing the user to choose vs setting the benchmark standard?
- At what point does it become necessary for purposes of price discovery for sustainability issues to be included in the contract specification?