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Case Study
From Insight to Action: Building Carbon Clarity for TCX Fund
A CONVERSATION WITH
TCX shields borrowers in 100+ emerging markets from currency volatility with cross-currency swaps and forward contracts, enabling local projects to access international funding safely and predictably.
Development Finance
2007
50
Amsterdam, The Netherlands
As a derivatives fund managing currency risk across frontier markets, TCX's environmental footprint isn't immediately obvious. The Fund doesn't issue loans or own physical assets. Instead, TCX provides Over-The-Counter (OTC) derivatives to hedge currency and interest rate mismatches in cross-border investments, alongside managing a fixed-income portfolio.
But TCX's leadership recognized that climate responsibility starts with understanding its own footprint – even when this isn't straightforward to measure. Several questions guided their approach:
· How can we consistently calculate our carbon footprint year after year?
· Where do our largest emissions actually come from?
· What practical steps can we take to reduce our footprint?
· And once we have clarity, how do we take responsibility?
Working with Regreener, TCX built a complete picture of its environmental impact:
· Established the foundation for insight: defined a clear, repeatable methodology for annual carbon measurement, creating a baseline TCX could track and build on over time
· Mapped the full emissions picture: delivered transparent analysis across Scope 1, 2, and Scope 3 categories across relevant departments
· Identified where action matters most: pinpointed major emission sources and recommended concrete reduction opportunities TCX could pursue as part of an ongoing strategy
· Took responsibility through verified offsets: selected a high-quality reforestation project in Africa, working directly with smallholder farming communities. The project restores degraded land while delivering co-benefits: improved soil health, increased agricultural productivity and stronger local livelihoods
· Data-driven carbon clarity: TCX now has consistent visibility into its operational footprint across all relevant scopes, with a framework to track emissions annually and identify reduction opportunities as the Fund evolves
· Credible climate action: operational emissions are offset through an independently verified, nature-based project – allowing TCX to offset its climate commitments with confidence
· An ongoing approach to taking responsibility: TCX and Regreener continue working together to for ongoing carbon monitoring
