ICE Exec Gordon Bennett Talks About Market-Based ESG Initiatives

John Lothian

John Lothian

Executive Chairman and CEO

Gordon Bennett, the U.K.-based managing director of utility markets at the Intercontinental Exchange, recently sat down with John Lothian to talk about ESG initiatives, including pricing the cost of carbon and “carbonomics,” the science of identifying specific opportunities to reduce or eliminate greenhouse gas.

Bennett was part of an in-person panel discussion on the topic, “Exchanges and the Roll Out of New Sustainability Products,” at FIA’s IDX 2021 on September 28. “It was great to be back on a (live) panel,” he noted. “It gives you a semblance of normalcy.”

Much of the discussion at IDX was on the subject of future products, but ICE already has a lot of products, Bennet noted. Its product line expanded about 10 years ago when it bought the Climate Exchange in 2010. 

Cap-and-trade has been shown to work in the EU and especially in the U.K. as it transitions away from coal as an energy source, he said. 

There will be new ESG products, for sure, he added. “But we’d also like to see more cap-and trade programs implemented by governments around the world.”

The transition to cleaner energy is going to be complex, Bennett said, and increased volatility is to be expected. “That’s why we need exchanges,“ he said – to hedge that volatility.

 

 

John Lothian Newsletter

Today’s Newsletter

We visit more than 100 websites daily for financial news (Would YOU do that?)

Now Read This

Morningstar Scaling Up Against Industry Dominators

Morningstar Scaling Up Against Industry Dominators

The index business is dominated by three big companies: Dow Jones Indexes, FTSE Russell, and MSCI; but there is a Chicago index company that has big plans to advance and scale up its business to bring more value to index clients and leave more money in the pockets of investors. Former FTSE Russell executive and now Morningstar Indexes Managing Director Ron Bundy is charged with the evolution and growth of Morningstar Indexes.

Pin It on Pinterest

Share This Story