Sustainability-linked derivatives
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Sustainability-linked derivatives
/səsˌteɪnəˈbɪlɪti lɪŋkt dɪˈrɪvətɪvz/ (n.)
It is said that the early inhabitants of Easter Island became so obsessed with erecting statues of their ancestors that they felled every tree on the island for rollers to transport their monoliths. The removal of root systems compromised soil integrity, accelerating erosion, degraded fertility and eventually ruined the ecosystem, rendering the island all but uninhabitable and wiping themselves out, all in the forlorn attempt to please some imaginary people in a symbolic but utterly meaningless way.
Somev might detect irony in ISDA’s latest product — sustainability-linked derivatives — should call too mind so notorious an example of poor environmental and social government.
It adds heft to the JC’s growing collection of examples of an organisation which says it is devoted to “safe, efficient markets” going out of its way to baffling, over-wrought and ultimately doomed[1] work-creation schemes, felling more and more trees in the cause of pumping out white papers, new products and territorial land-grabs.
- ↑ sunk without trace: [[2011 ISDA Equity Derivatives Definitions, 2022 ISDA Securities Financing Transactions Definitions, 2023 ISDA Digital Asset Transactions Definitionswere dead on arrival and those that did get used were no great scream if exhilarating clarity: the Regulatory IM and VM CSAs and the 2014 ISDA Credit Derivatives Definitions as cases in point.