Defining and understanding ESG derivatives


Business insights

Investment Banking

Investment Services & Asset Management


Regulatory And Compliance

Sustainable finance



Under the urgency of climate change and increasing regulatory pressure, financial and non-financial institutions are increasingly looking for alternative and innovative investment solutions to meet the investment targets set by the European Green Deal.

In this context, derivatives have a crucial role to play both as sustainable products in their own right and as hedges for other sustainable investments. Different forms of “ESG derivatives” have started to appear on the market, but their precise definition is still unclear and needs to be supported by a regulatory framework that remains to be defined.

The objective of this study is first to propose a clear definition of what we can consider to be an “ESG derivative”, to present an overview of the different types of products available and how they work, and to enumerate the future challenges and opportunities that the different market players will have to anticipate for the treatment of these products.

To obtain the full version of the study, please contact us.  


Ambra Moschini

Senior Manager - Investment Banking

Caroline Pouderoux

Senior Consultant

Nicolas Beuneux

Senior Consultant

Victor Harnois


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