With increasing demand for sustainable and environmentally conscious investments, alongside the rising issuance of green bonds, what risk management frameworks are in place to support these developments? And what products are available at LCH RepoClear? To find out, watch Konstantina Travlou, COO, LCH RepoClear and CaLM, LCH SA.
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As global awareness of environmental challenges continues to grow, so does the demand from environmental conscious investors for opportunities that support sustainability and align with sustainability goals. Governments and regulatory bodies have introduced various policies and incentives to promote these initiatives. This return has fueled a significant increase in green bond issues and green bond activity amongst market participants, both in the fixed income and in the repo markets. It is therefore essential that the green bond market is underpinned by a robust risk management framework to help maintain its stability and development, while at the same time addressing environmental risks and enhancing investor confidence to accommodate these needs of the markets. LCH Ripple Clear accepts green bonds for clearing and as collateral on the clearing side, we have seen an impressive increase with 2025 volumes being 27% higher compared to 2024. In addition, SCH repos, GC Plus Green Basket support, sustainable finance initiatives and green investment opportunities by providing access to euro denominated investment grain bonds that are earmarked versus and environmentally beneficial projects such as climate change mitigation. This helps participants to meet the sustainability goals and attract environmentally conscious investors that are seeking to integrate sustainability considerations into their portfolios. Our innovative product also demonstrates L C's commitment to meeting the evolving needs of the market and sustainable finance requirements.
