Drax commits to ESG-linked FX derivative targets with UK banks
Renewable energy supplier applies long-term ESG KPIs to short-term FX trades with Barclays and NatWest
Demand for foreign exchange trades linked to environmental, social and governance (ESG) factors is on the rise and a growing number of corporate treasurers are working to lock in hedges that will help prove their green credentials.
The latest entrant in the field is UK-based renewable power generator Drax, which signed two ESG-linked FX derivatives agreements with Barclays and NatWest Markets on April 19 covering their respective FX activity – including forwards, swaps and options.
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