Sustainable Finance under Collateral, Lending and Liquidity

As a post-trade infrastructure, Clearstream provides markets with trusted, transparent and secure triparty collateral and securities lending services in line with the highest regulatory and best practice standards.

Exclusion-based and positive ESG collateral strategies

Clearstream is committed to providing efficient solutions to support market liquidity in ESG-oriented financing.

When selecting collateral and applying ESG filters, the focus of investors is still on issuer or asset exclusions. At Clearstream, we enable flexible screening of collateral baskets to reflect clients‘ ESG exclusion strategies across our range of banking, funding and financing services.

At the same time, we see rising demand to also support positive ESG screens based on international standards. At Clearstream, we offer positive ESG bond metrics to support triparty customers in defining collateral eligibility, haircuts and concentrations for triparty business, e.g. cash-reinvestment or collateralised loans. These metrics facilitate ESG bond financing strategies and support secondary market liquidity in growing instruments such as green, social, sustainability and sustainability-linked bonds whilst leveraging available industry standards, principles and guidelines.

Facilitating investor engagement

Our collateral and securities lending services also help to ensure good governance by enabling the exercise of rights and long-term investor engagement in a timely manner. For instance, our servicing models facilitate automated recalls of securities that are posted as collateral or lent to counterparties ahead of security event dates.