“The European Securities and Markets Authority (ESMA) says it’s hard to verify the positive impact of derivatives sold under environmental, social and governance labels. The watchdog says standardized criteria should be met before firms can add ESG tags to products such as forwards, options and swaps…

ESMA told Bloomberg News in a written response. ‘The absence of disclosure requirements or recognized labels with minimum sustainability criteria implies that claims as to the impact of these instruments cannot be substantiated.'”

[COMMENTARY]It seems to be presently a ‘wild west’ when it comes to ESG derivatives.
Exotic World Of ESG Derivatives Triggers Warning From Regulator, by John Ainger and Greg Ritchie, October 18, 2021, FA-Magazine, USA.