Eurex ESG Clearing Compass Extension to assess Cash and Repo Market Transactions

1.  Introduction

This circular contains information with respect to the service offering of Eurex Clearing AG (Eurex Clearing) as well as corresponding amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) and the FCM Regulations of Eurex Clearing AG (FCM Regulations) regarding the extension of the Eurex ESG Clearing Compass to provide an assessment of cash and repo transactions with ESG (environmental, social and governance) data.

The amendments for the services will become effective as of 11 December 2024.
 
Learn more about the Eurex ESG Clearing Compass on our dedicated initiative page under the following link: Services > ESG Clearing Compass. Manuals, circulars, and links to other useful information is available there.

2.   Required action

Clearing Members, ISA Direct Clearing Members, FCM Clearing Members (Clearing Members), Disclosed Direct Clients, vendors and other affected contractual parties should take the amendments to the Clearing Conditions into consideration and view the new report.

3.  Details of the initiative

Eurex Clearing is extending the Eurex ESG Clearing Compass to further support Clearing Members and their clients with regards to their sustainable transformation activities. The Eurex ESG Clearing Compass aims to contribute to more transparency which lays the foundation for further decisions or actions, e.g. decarbonization of portfolios or including ESG factors in counterparty assessments. The provided information is neither to be understood as advice nor recommendation for action.
 
ESG Portfolio assessment

Eurex Clearing will offer Clearing Members an assessment of FWB Transactions, excluding exchange traded funds, and Repo Transactions in a new report – Daily Position Sustainability Metrics (00RPTCDESGXXXXXYYYYMMDDXXXXXCSHPOS.CSV.ZIP) – on a portfolio level with the following climate metrics, as applicable:

• Emission exposure in tCO2e (tons of CO2 equivalent) for Scope 1&2 as well as Scope 3 emissions
• Carbon intensity based on revenues in EUR
• Carbon Risk Rating
• GHG (Greenhouse Gas) Reduction Targets 
• Production Emissions
• Emission intensity based on GDP in EUR
• E (environmental) rating - separately for corporates and sovereigns

The climate and rating data is provided by ISS ESG. ISS ESG methodologies have been applied with regards to the aggregation emissions and carbon data.

Individually segregated clients with access to the Common Report Engine (CRE) and/or the Member Section will also have access to an assessment of their transaction.

Eurex Clearing will provide Clearing Members and individually segregated clients the new daily report – Daily Position Sustainability Metrics – on the CRE and in the Member Section.

Details with regards to the available metrics, aggregation of data on portfolio level as well as the structure and field definitions of the report are available in the ESG Portfolio Assessment Manual (Attachment 4), which will be available on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Find > Publications

To reflect these amendments, the following provisions will be amended as outlined in Attachments 1, 2 and 3:

• Chapter I Part 1 Number 18.2 of the Clearing Conditions
• Chapter I Number 17.2 of the FCM Regulations
• ESG Reports Terms

As of the effective date, the full versions of the amended legal framework of Eurex Clearing will be available for download on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: 

Rules & Regs > Eurex Clearing Rules & Regulations​
 
The amendments to the legal framework of Eurex Clearing AG published by this circular are deemed accepted by each affected contractual party of Eurex Clearing AG, unless the respective contractual party objects by written notice to Eurex Clearing AG prior to the relevant effective date(s) as stipulated in this circular. In case of an objection by the respective contractual party pursuant to the preceding sentence, Eurex Clearing AG is entitled to terminate the respective contract (including a Clearing Agreement, if applicable). Instead of submitting an objection, the respective contractual party may submit in writing to Eurex Clearing AG comments to any amendments of the legal framework of Eurex Clearing AG within the first 10 Business Days after the publication of the amendments. Eurex Clearing AG shall assess whether these comments prevent the published amendments from becoming effective taking into account the interests of Eurex Clearing AG and all contractual parties.
 
Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing AG, as applicable.

Attachments: 

• 1 – Amended sections of Chapter I Part 1 Number 18 of the Clearing Conditions
• 2 – Amended sections of Chapter I Number 17 of the FCM Regulations
• 3 – ESG Report Terms
• 4 – ESG Portfolio Assessment Manual 

Further information