SGX Introduces ESG Derivatives to Accelerate Sustainability Agenda

Singapore Exchange (SGX) recently announced that it has partnered with FTSE Russell to introduce its pioneering suite of ESG derivatives, aiming to accelerate its SGX FIRST sustainability agenda.

Announced in December, the SGX FIRST (Future in Reshaping Sustainability Together) is the platform that facilitates collaboration within the ecosystem to catalyse change and deliver growth in a sustainable manner.

The launch of the new contracts will provide investors with more choice in promoting the integration of Environment, Social and Governance (ESG) factors into institutional investment portfolios on an award-winning market infrastructure.

Michael Syn, Head of Equities at SGX, said, “Our leadership in developing a pan-Asia shelf of benchmark equity derivatives has placed us in a distinct position to drive the change the world needs to see today. Together with FTSE Russell's strengths in investable multi-asset products and ESG, our offering of sustainable risk-management solutions in Asia is unrivalled.”

The new derivatives are designed to enable seamless adoption of ESG factors into investment portfolios:

• ​SGX FTSE Emerging ESG Index Futures

• ​SGX FTSE Emerging Asia ESG Index Futures

• ​SGX FTSE Asia ex Japan ESG Index Futures

• ​SGX FTSE Blossom Japan Index Futures

All four contracts have been certified by the Commodity Futures Trading Commission (CFTC), enabling market participants to trade them directly from the U.S.