HSBC Launches Sustainable ETF Targeting Higher ESG Scores, Faster Emissions Reductions

HSBC Asset Management (HSBC AM) announced the launch of the HSBC Europe ex UK Sustainable Equity UCITS ETF, a new exchange traded fund providing exposure to companies with higher ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. scores, and faster emissions reductions.

The new ETF, classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR), tracks the FTSE Developed Europe ex UK ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Low Carbon Select Index. The Index follows the performance of mid and large cap stocks in Europe, excluding UK companies, aiming for a 20% ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. rating improvement relative to its parent index, as well as a carbon emission intensity reduction target of up to 50%, and a fossil fuel reserve reduction target of up to 50%.

The announcement marks the continuation of an expansion by HSBC of its sustainable ETF range, following the launch earlier this month of two new Paris Aligned Benchmark ETFs.

Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC AM, said:

“Our priority is to provide our clients with a viable means of improving the socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates., governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. and environmentalEnvironmental criteria consider how a company performs as a steward of nature. impact of their portfolios. This new ETF adds to our suite of sustainable passive building blocks and provides investors and asset allocators with greater opportunities to support the transition to more sustainable investing.”

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