HSBC Asset Management is expanding its equity sustainable ETF range with the launch of the HSBC Europe ex UK Sustainable Equity UCITS ETF. The fund listed on the London Stock Exchange (LSE) today (22nd April).
Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC AM
It follows the recent launches of the Paris Aligned Benchmark and Fixed income sustainable ranges. HSBC AM is committed to expanding its range of sustainable passive building blocks to enable investors and asset allocators to build comprehensive sustainable multi asset portfolios.
The fund aims to achieve an ESG score improvement of up to 20%, a carbon emission intensity reduction target of up to 50%, and a fossil fuel reserve reduction target of up to 50%, relative to the parent index, and is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
The index’s methodology incorporates custom sustainability exclusions, alongside the ESG score, carbon emissions intensity and fossil fuel reserves tilts. This screening methodology places a heavy emphasis on climate considerations, given our responsible investment commitments.
The fund will be rebalanced on a monthly basis. As ESG practices evolve and issuers disclose more data around their ESG thinking, the screening methodology will adapt accordingly.
Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC AM, commented: “Our priority is to provide our clients with a viable means of improving the social, governance and environmental 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.”
| Fund name | ISIN | Stock exchange | Benchmark | Total expense ratio (TER) |
| HSBC Europe ex UK Sustainable Equity UCITS ETF | IE00BKY58625 | LSE | FTSE Developed Europe ex UK ESG Low Carbon Select Index | 0.15% |
Source: ETFWorld.co.uk
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