Environmental, social and governance (ESG) issues have become increasingly important in many financial markets, including derivatives. Monticello consultants were pleased to participate in ISDA’s ESG and Derivatives Virtual Conference as panelists explored developments in ESG regulatory policy, sustainable finance derivatives products, and the future of ESG derivatives. Nearly all speakers called for improvements in data quality that firms can use for disclosure and to measure progress to drive sustainable investment decisions. Today, managing climate risk is center stage as recent climate events have raised awareness that this permeates all parts of our lives. Behavioral change is needed and policy makers are incentivizing the transition on a global scale. As ESG related policy shifts, the transition needs to be done in a thoughtful way and we at Monticello look forward to supporting continued progress in the area of consistent, reliable and comparable data to drive ESG growth and innovation across the financial services industry.