Browsing by Author "Jansen van Rensburg, Pieter Willem"

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    Advancing ESG objectives with ESG-linked derivatives
    (Stellenbosch : Stellenbosch University, 2024-03) Jansen van Rensburg, Pieter Willem; Mesias, Alfeus; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Statistics and Actuarial Science.
    ENGLISH SUMMARY: Environmental, social, and governance (ESG) concerns require the active involvement of the finan- cial sector in advancing ESG compliance. The global derivative market holds significant importance. Leveraging derivatives, exchanges, and clearinghouses offers a pathway for the financial sector to promote ESG objectives. This research assignment examines the particular challenges associated with utilizing derivatives to promote ESG compliance. It explores ESG-linked derivatives, utilizing Monte Carlo simulation, associated with Key Performance Indicators (KPIs) and priced based on the attainment of specific Sustainability Performance Targets (SPTs). These specific ESG-linked derivatives are tailored for this purpose - advancing ESG objectives. ESG-linked derivatives repre- sent an emerging field, demanding further in-depth exploration.