ICMA publishes summary report following its 2024 Repo & Sustainability Survey
30 August 2024 ICMA’s Repo & Sustainability Taskforce has published a summary report to reflect the feedback received in response to its 2024 Repo & Sustainability Market Survey, launched in February 2024. Building on the observations and categorisations from ICMA’s 2022 paper on sustainability in the repo market, the survey aimed to deepen the understanding of existing market practices and identify issues for further reflection and future guidance.
Some key points from the survey:
- A clear call for further dedicated guidance to cover all types of sustainability-related repo
- A confirmation that the majority of respondents active in this market primarily focus on repo transactions involving sustainable collateral and this category of sustainability-related repo remains their top priority
- A general agreement that Use of Proceeds (UoP) and Sustainability-Linked (SL) repo should be transacted under firms’ overarching sustainability frameworks or strategies
- A strong view that SL repos are more appropriate for maturities exceeding 12 months
- A consensus that to avoid double-counting from an accounting perspective, any green claims should remain with the repo seller, who retains the economic exposure to the assets
Guided by members of the Taskforce, ICMA will continue to closely monitor the market evolution and is looking to work on expanded guidance as a next step, which is a clear request emerging from the survey outcomes.
