Our Climate Commitment
Our role in the net zero transition
As part of HSBC Group, HSBC Asset Management shares in the Group’s ambition to become a net zero bank by 2050. By connecting capital, ideas, and solutions across economies, we leverage our global presence and expertise in both developed and emerging markets to help investors navigate complexities and build resilient investment strategies.
Our climate strategy
In alignment with HSBC Group’s updated Net Zero Transition Plan, we have implemented a climate strategy to best serve our clients. In November 2022, we set an interim 2030 net zero target, aiming to reduce Scope 1 and 2 financed emissions intensity by 58 per cent between 2019 and 2030 for in scope assets under management, consisting of listed equities and corporate fixed income within our major investment hubs, representing approximately 38 per cent of global AUM.
Since 2022, we’ve made progress towards achieving net zero across our financed emissions footprint. We continue to expand and refine our climate offering, delivering innovative and tailored solutions to help clients achieve their climate objectives.
Key levers to support our climate strategy
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Research and Integration We apply an integrated assessment framework to identify companies most exposed to transition and physical climate risks. Our teams leverage forward-looking indicators to assess issuers and portfolios facing material climate-related risks, alongside other factors influencing investment value. Insights from our net zero alignment research are incorporated into both our issuer assessment and engagement processes. |
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Stewardship Corporate stewardship plays a key role in integrating climate risks and opportunities into investment strategies by encouraging companies to prepare for a changing climate landscape. We implement a targeted engagement strategy for certain high-emitting issuers, with progress tracking to support their transition efforts. |
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Climate Solutions We offer investment solutions that consider climate-related risks and opportunities, supporting investors achieve diverse objectives and build net zero portfolios. Our climate offering is continually evolving, delivering innovative and tailored solutions to help clients achieve their climate ambitions. |
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Climate Policies We have developed a policy to phase-out thermal coal by the end of 2030 in EU / OECD markets and by the end of 2040 in all markets, and a phase-down energy policy, both aligned with HSBC Group’s net zero ambition. HSBC Asset Management has developed these policies to support the Net Zero by 2050 goal. They guide our investment and engagement activities, ensuring we meet our commitments to clients and regulators. |
Resources
Today, we and many of our customers contribute to greenhouse gas emissions. We have a strategy to reduce our own emissions and to develop solutions to help our clients invest sustainably.
Our lead entity HSBC Global Asset Management Ltd has an interim target of reducing scope 1 and 2 financed emissions intensity by 58 per cent between 2019 and 2030 for the inscope assets under management (AUM), consisting of listed equities and corporate fixed income managed within its major investment hubs. As of 31 December 2019, in scope assets amounted to USD 193.9 billion, equating to 38 per cent of global AUM. The target remains subject to consultation with stakeholders including investors and fund boards on whose behalf it manages the assets. The 58 per cent reduction target is based on assumptions for financial markets and other data, including the IEA’s 2021 Net Zero Emissions by 2050 scenario and its underlying activity growth assumptions. Carbon emissions intensity is measured as tonnes of carbon dioxide equivalent per million USD invested (tCO2e/USD Million invested), where emissions are scaled by enterprise values including cash.
HSBC Asset Management applies a climate product framework for the internal classification of climate-related strategies. The framework is used to promote consistent standards across asset classes where relevant. Strategies within the climate product framework may not necessarily be marketed as sustainable externally, depending on the relevant regulatory regime for sustainable investment disclosure where there may be differences in requirements. The climate product framework should not be relied on to assess the climate-related characteristics of any given product; please refer to the relevant product literature for further information.