CME Group has announced the launch of the first derivatives sustainable clearing service.

All participating futures commission merchants will be provided with Sustainable Clearing eligibility criteria to identify and tag their sustainable trades. The eligibility criteria will be aligned to external standards, such as the International Capital Markets Association Social & Green Bond Principles. CME Group will be ‘criteria neutral’ to ensure that only independent third-party standards are applied.

CME sustainable derivatives cover the trading of products such as carbon offsets, battery metals and bioenergy as well as interest rate and FX futures hedging activity carried out in support of sustainable business.

“Sustainability continues to be an increasing priority for our global clients as they significantly expand both the risk management that they provide to green businesses and environmental projects,” said Julie Winkler, Chief Commercial Officer, CME Group. “This new framework for clearing sustainable derivatives will make it easier for our clients to measure the impact of their support for sustainable activities and can be part of the solution to encourage further growth in this key sector as the economy transitions to net-zero emissions.”