JPMorgan Plots Derivatives Path Into New Era of ESG Finance (1)

The world’s largest underwriter of green bonds plans to significantly expand its offering of investment products touting environmental, social and governance metrics, as Wall Street starts attaching the label to more complex financial services.

JPMorgan Chase & Co. says its decision to add the ESG tag to derivatives is part of a strategy to link sustainability to all forms of finance. The bank intends to replicate a novel cross-currency swap with Italian energy company Enel SpA, in which both parties need to meet specific ESG targets or face additional costs.

Competitors are also pushing into the trendy and lucrative ...