Currently, there are uneven international regulations for ESG. One firm can have a Buy opinion using a certain set of ESG information while another firm can use different numbers and come up with a Sell.
Without International standards, derivatives could just become guesswork about the value of the ESG fiction. Liquidity just a useless concept.
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“We have very large clients that came to us and said, ‘Hey, we want you to make an effort to ensure that when these contracts meet certain parameters [i.e., liquidity thresholds], they become part of our portfolio.’ Simultaneously, in the background, we were saying, ‘it looks like there are more and more people making these contracts more liquid so there is an ability to express our firm values which are very aligned with ESG, make our clients happy and make them some money at the same time.’"
https://www.thestreet.com/investing/futures/global-demand-esg-derivatives-grows