Ceres Urges Banks To Tackle ‘Black Box’ Of Derivatives’ Climate Risk

November 7, 2022
Sustainable investment advocates are urging banks to perform greater analysis of the climate-related risks tied to their dealings in the $200 trillion U.S. derivatives markets, in part because such markets can be responsible for financing high-emitting fossil fuel projects. “Given the size of the derivatives market and its systemic importance, it is the proverbial ‘elephant in the room’ when it comes not only to banks’ calculation of financed emissions [but also to] enlarging a bank’s sustainable finance opportunity set,” says...


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