Sustainability-related disclosures
We developed a range of innovative solutions to support our clients who want to allocate capital to achieve specific sustainable outcomes. Our range include low carbon fixed income and equity, thematic and sustainable multi-asset portfolios. Where clients have specific constraints, we were able to create customised solutions to meet their needs.
For more information on how we assess, measure and monitor the environmental and social characteristics or the impact of sustainable investments in our products please, refer to our ‘Responsible Investment Policy’ and ‘Implementation Procedures’. For our overall sustainability disclosure policy, and other policies related to sustainable investments, please refer to ‘Policies and Disclosures’.
Sustainable investing range
(EU Sustainable Finance Disclosures Regulation - Article 8¹ and Article 9²)
Mutual Funds
You can find the full list of HSBC Asset Management’s mutual sustainable investment funds and their associated disclosures in our Fund Centre. Please select the relevant fund from the list and click on the ‘ESG information’ tab.
Alternative Solutions
Global Transition Infrastructure Debt Fund
The Global Transition Infrastructure Debt Fund (the “Fund”) seeks to provide potentially attractive risk adjusted returns with a predictable income stream by investing in a diversified portfolio of loans (and other debt instruments) with infrastructure characteristics and which either are or will contribute to greenhouse gas ("GHG") emissions reduction and the global transition to net zero emissions by 2050.
The Fund will promote ESG characteristics within the meaning of Article 8 of SFDR by seeking to invest in infrastructure opportunities that meet the requirements of the relevant ESG framework of the Investment Manager. In particular, the Fund will promote ESG characteristics by not making any investments with high ESG risks as evidenced by the Investment Manager's approach to assessing ESG ratings for prospective borrowers.
Read the full Global Transition Infrastructure Debt Fund Disclosure (PDF,448KB)
Global Infrastructure Debt Strategy
Global Infrastructure Debt Strategy (“the Fund”) will seek to provide yield-based returns by investing in a diversified portfolio of high yielding debt of infrastructure projects principally associated with member countries of the Organisation for Economic Co-operation and Development (“OECD”) across a broad range of sectors that engage in the provision of essential products and services.
The Fund will target defensive and non-cyclical sectors that are engaged in the provision of essential products and services such as renewables, energy, transport, power, telecommunications, social infrastructure and other adjacent relevant sectors. Typically, these assets exhibit some or all of the following infrastructure characteristics: high barriers to entry, contracted revenue streams and inelastic demand profile.
The Fund’s investment strategy is broad and in particular not only limited to economic activities that contribute to environmental objectives. Indeed, the Fund may make investments that contribute to either social or governance objectives. The Fund is under no obligation to (but may) contribute to any environmental objective as defined under Art. 9 of the EU Taxonomy.
The Fund will promote ESG characteristics within the meaning of Article 8 of SFDR by seeking to invest in businesses that meet the requirements of the relevant ESG framework of the Investment Manager. In particular, the Company will promote ESG characteristics by not making any investments with high ESG risks as evidenced by the Investment Manager's approach to assessing ESG ratings for prospective investees.
The Investment Manager intends to engage with investees to positively influence their sustainability strategy.
Read the full Global Infrastructure Debt Strategy Disclosure (PDF,105KB)
Senior Global Infrastructure Debt Strategy
Senior Global Infrastructure Debt Strategy (“the Fund”) will seek to provide attractive long-term yield based returns by investing in a diversified portfolio of senior secured debt of infrastructure projects associated with member countries of the Organisation for Economic Co-operation and Development (“OECD”) across a broad range of sectors that engage in the provision of essential products and services. The Fund will principally invest in USD denominated assets but may also invest in assets denominated in other currencies.
The Fund will promote ESG characteristics within the meaning of Article 8 of SFDR by seeking to invest in businesses that meet the requirements of the relevant ESG framework of the Investment Manager. In particular, the Company will promote ESG characteristics by not making any investments with high ESG risks as evidenced by the Investment Manager's approach to assessing ESG ratings for prospective investees.
The Investment Manager intends to engage with investees to positively influence their sustainability strategy.
Read the full Senior Global Infrastructure Debt Strategy Disclosure (PDF,104KB)
Climate Technology Venture Strategy
Climate Technology Venture Strategy 2022 (the “Fund”) is a venture capital fund that will invest in early stage unquoted companies with a focus on energy, transportation, agricultural, and industrial decarbonisation and companies focused on the mitigation of climate change risks. The Fund promotes environmental and social characteristics by investing in companies whose activities are aligned to one or more United Nations Sustainable Development Goals (“UN SDGs”). The Fund therefore uses the UN SDGs as sustainability indicators to measure the attainment of each of the environmental or social characteristics promoted by the Fund.
In addition, the Fund seeks to make investments that contribute substantially to the environmental objectives relating to climate change mitigation, climate change adaptation and the transition to a circular economy, as defined by the Taxonomy Regulation.
The Fund will seek to monitor and enforce good governance practices across Portfolio Companies, in particular with regard to sound management structures, employee relations, employee remuneration and tax compliance.
The selection and ongoing monitoring of Portfolio Companies is based on a rigorous due diligence process which the Fund integrates into its decision making process.
Read the full Climate Technology Venture Strategy Disclosure (PDF,119 KB)
Financial Technology Venture Strategy
Financial Technology Venture Strategy 2022 (the “Fund”) is a venture capital fund that promotes environmental and social characteristics within the meaning of article 8 of the Disclosure Regulation.
The Fund does not target sustainable investments within the meaning of article 2 (17) of the Disclosure Regulation. The Fund’s portfolio may (but for the avoidance of doubt, there is no obligation to) include investments that qualify as sustainable investments within the meaning of article 2 (17) of the Disclosure Regulation.
The Fund will seek to enforce good governance practices across investee companies, in particular with regard to sound management structures, employee relations, employee remuneration and tax compliance.
The Fund aims to make minority equity investments into 15 to 20 early stage financial technology companies. It is intended that all investee companies will promote environmental and social characteristics within the meaning of article 8 of the Disclosure Regulation and be classified accordingly.
The promoted environmental and/or social characteristics are measured by the positive alignment with the UN Sustainability Development Goals, as validated by a third party provider.
The selection of target companies is based on a rigorous due diligence process. The Fund evaluates, as part of the due diligence, the companies with respect to their management structures, employee relations, and remuneration and tax compliance.
Further, an important aspect of the investment due diligence is the ESG Due Diligence. The Portfolio Manager utilises independent third party providers to provide a detailed ESG Due Diligence, which it integrates into its decision making process.
The AIFM will actively monitor sustainability indicators and ESG incidents and will review ESG progress on an annual basis.
Read the full Financial Technology Venture Strategy Disclosure (PDF,449KB)
Impact Strategy 2022
Impact Strategy 2022 is a feeder fund that invests substantially all of its assets into a KKR managed Global Impact strategy (the “Fund” or “KKR”). The Fund will invest in businesses focused on mitigating and adapting to climate change, helping people across the globe achieve learning and employment outcomes, allow for more sustainable living across cities, circular economies, and consumption, and enhance inclusion across a number of areas – with the goal of broadening and deepening their positive impact. The Fund will invest in businesses that contribute solutions to specific UN Sustainable Development Goals (UN SDGs) and generate impacts that are measurable and reportable, either directly through its core business model, or indirectly through the way the company differentiates its core business model. Additionally, KKR will seek to improve a company’s ESG performance during its period of ownership, through monitoring and reporting on ESG related performance. KKR intends to work with each portfolio company to appropriately integrate and monitor progress on material ESG issues and impact performance aligned with the UN SDGs.
All of the Fund’s investments will be subject to the Fund’s sustainable investment objective. KKR will ensure that each investment does no significant harm to other environmental or social objectives by applying the most relevant indicators (quantitative and qualitative) for adverse impacts on sustainability factors. The Fund will also check for each investment that companies have processes and compliance mechanisms to monitor compliance with the UN Global Compact principles and Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises, and for related violations.
KKR will seek to improve a company’s ESG performance during the ownership period and will measure and report on this as guided by third party frameworks, primarily using data from portfolio companies. KKR will assess the good governance practices of each investment as part of its due diligence. At the outset and on an on-going basis, KKR will seek to ensure that each investment has sound management structures in place, including in relation to executive compensation, and has a risk framework to prevent illicit business practices or misconduct.
European Senior Direct Lending Fund
The Fund will promote environmental and social characteristics within the meaning of Article 8 of the Disclosure Regulation by seeking to invest in businesses that meet the requirements of the relevant ESG framework of the Portfolio Manager. In particular, the Fund will promote environmental and social characteristics by not making any new investments (other than Follow-on Investments) into companies with a High ESG Score (1). In addition, the Fund will not make investments (other than Follow-on Investments) with a Medium ESG Score (2) unless the Investment Team believes that an improvement in the ESG Rating to a Low ESG Score (3) or a Neutral ESG Score (4) is achievable.
Read the full European Senior Direct Lending Fund disclosures (PDF, 513KB)
Read the full European Senior Direct Lending Fund disclosures – French OFS (PDF, 518KB)
Unlaunched funds
Fund or Mandate Name |
SFDR Category (Art. 8 or 9)* | Environmental/social characteristics or sustainable investment objective |
How the environmental/social characteristics or the sustainable investment objective is met? |
How the index is aligned with the environmental/social characteristics, or the sustainable investment objective? Why and how the index used differs from a broad market index? |
| HSBC Bloomberg Global Sustainable High Yield Corporate Bond UCITS ETF | 8 | In replicating the performance of the Bloomberg MSCI Global High Yield Corporate SRI Carbon ESG-Weighted Index (the “Index”), the Fund promotes the following environmental and/or social characteristics. - a reduction in carbon emissions compared to the Bloomberg Global High Yield Corporate Index (the “Parent Index”); and - an improvement of the MSCI ESG rating against that of the Parent Index. The Fund seeks to achieve the promotion of these characteristics by replicating the performance of the Index which removes companies based on sustainability exclusionary criteria and United Nations Global Compact exclusionary criteria and which weights companies in order to reduce the exposure to companies with higher carbon emissions and fossil fuel reserves and to improve the exposure to companies with favourable ESG ratings. The Index has been designated as a reference benchmark for the purpose of attaining the environmental and/or social characteristics promoted by the Fund. |
The sustainable investments made by the Fund are aligned to the environmental and/or social characteristics which it promotes. The Fund replicates the performance of the Index, the focus of which is to achieve a reduction in carbon emissions and an improvement of the MSCI ESG Rating against that of the Parent Index . By replicating the performance of the Index, the investments of the Fund contribute to these sustainable objectives. |
The following types of issuers are removed from the Index on an ongoing basis due to the sustainability exclusionary criteria and some criteria may apply thresholds: Issuers with MSCI ESG Ratings lower than BB, issuers with an ESG Pillar score of less than 2, unrated issuers from sectors with ratings. The index also negatively screens issuers that are involved in business activities that are restricted because they are inconsistent with certain values-based business involvement criteria, including activities with high carbon intensity or related to controversial weapons, and those issuers with a “red” MSCI ESG Controversy Score. On a monthly basis the weight of each constituent issuer is adjusted by a fixed multiplier, as set out in the Index methodology, which is determined by its MSCI ESG Rating. The Index will be rebalanced on a monthly basis in order to account for the eligibility criteria. The Index seeks to achieve a reduction in carbon emissions and an improvement of the MSCI ESG rating against that of the Bloomberg Global High Yield Corporate Index. The Index achieves this by removing, on a monthly basis, securities based on sustainability exclusionary criteria. The following types of issuers are removed from the Index on an ongoing basis due to the sustainability exclusionary criteria and some criteria may apply thresholds: MSCI ESG Rating Business Involvement Screens Issuers with a “red” MSCI ESG Controvery score (i.e. less than 1). The weight of each constituent issuer is adjusted by a fixed multiplier, as set out in the Index methodology, which is determined by its MSCI ESG Rating. Each constituent is capped at 2% by market value. |
| HSBC Global Funds ICAV - Global Sustainable Government Bond Index Fund | 8 | In tracking the performance of the Bloomberg MSCI Global Treasury ESG Weighted Bond (USD unhedged) Index (the “Index”), the Fund promotes environmental and/or social characteristics by seeking to improve the MSCI ESG rating against that of the Bloomberg Global Aggregate Treasury Index (the “Parent Index”). The Fund seeks to achieve the promotion of these characteristics by tracking the performance of the Index which uses MSCI ESG sovereign scores to tilt country allocations above or below their market value weights in the Parent Index and excludes countries with a country score 5 and below in order to reduce exposure to countries with high exposure to and/or low management of ESG risks and to improve the exposure to countries with favourable ESG ratings. The Index has been designated as a reference benchmark for the purpose of attaining the environmental and/or social characteristics promoted by the Fund. |
The sustainable investments made by the Fund are aligned to the environmental and/or social characteristics which it promotes. The Fund tracks the performance of the Index, which uses environmental, social and governance (ESG) sovereign scores to tilt country allocations above or below their market value weights in the Bloomberg Barclays Global Aggregate Treasuries Index. By tracking the performance of the Index, the investments of the Fund contribute to these sustainable objectives. |
The weight of each index eligible security is adjusted by a fixed multiplier which is determined by the market value weight the issuing country holds within the Parent Index along with its ESG sovereign score (0-10) (based on data from MSCI ESG Research). Countries must have a country score over 5 before they are included in the Index. The ESG sovereign scores are determined based on an assessment of a country's exposure to and management of ESG risks. Efficiency of resource utilisation, performance on socio-economic factors, financial management, corruption control, political stability and other factors define the parameters for measuring a countries ESG risk management. The Index will be rebalanced on a monthly basis in order to account for the eligibility criteria. The Index measures the performance of investment grade, fixed-rate, taxable securities issued by government and government-related issuers using ESG sovereign scores to tilt country allocations above or below their market value weights in the Bloomberg Global Aggregate Treasury Index. On a monthly basis, the Index uses fixed multipliers to adjust the weight of each eligible security in the Index above or below their market value weights in the Parent Index. Security weights are then normalized using these adjusted market values. |
| HSBC Global Funds ICAV - Global Sustainable Corporate Bond Index Fund | 8 | In tracking the performance of the Bloomberg MSCI Global Corporate SRI Carbon ESG-Weighted Bond Index (total return hedged to USD (the “Index”), the Fund promotes environmental and/or social characteristics by seeking to reduce carbon emissions compared to the Bloomberg Global Aggregate Corporate Index (the “Parent Index”); and improve the MSCI ESG rating against that of the Parent Index. The Fund seeks to achieve the promotion of these characteristics by tracking the performance of the Index which is a multi-currency benchmark that tracks the fixed-rate, investment-grade corporate debt, and includes issuers with MSCI ESG Ratings of BB or higher. The Index also negatively screens issuers that are involved in business activities that are restricted because they are inconsistent with certain values-based business involvement criteria, including activities with high carbon intensity or related to controversial weapons, and those issuers with a "red" MSCI ESG controversy score. The Index has been designated as a reference benchmark for the purpose of attaining the environmental and/or social characteristics promoted by the Fund. |
The sustainable investments made by the Fund are aligned to the environmental and/or social characteristics which it promotes. The Fund tracks the performance of the Index, which includes issuers with MSCI ESG Ratings of BB or higher and negatively screens issuers that are involved in business activities that are restricted because they are inconsistent with certain values-based business involvement criteria, including activities with high carbon intensity or related to controversial weapons, and those issuers with a "red" MSCI ESG Controversy Score. By tracking the performance of the Index, the investments of the Fund contribute to these sustainable objectives. |
The following types of issuers are removed from the Index on an ongoing basis due to the sustainability exclusionary criteria and some criteria may apply thresholds: Issuers with MSCI ESG Ratings lower than BB, issuers with an ESG Pillar score of less than 2, unrated issuers from sectors with ratings. The index also negatively screens issuers that are involved in business activities that are restricted because they are inconsistent with certain values-based business involvement criteria, including activities with high carbon intensity or related to controversial weapons, and those issuers with a “red” MSCI ESG Controversy Score. On a monthly basis the weight of each constituent issuer is adjusted by a fixed multiplier, as set out in the Index methodology, which is determined by its MSCI ESG Rating. The Index will be rebalanced on a monthly basis in order to account for the eligibility criteria. The Index is a multi-currency benchmark that tracks the fixed-rate, investment-grade corporate debt, and includes issuers with MSCI ESG Ratings of BB or higher. The index also negatively screens issuers that are involved in business activities that are restricted because they are inconsistent with certain values-based business involvement criteria, including activities with high carbon intensity or related to controversial weapons, and those issuers with a "red" MSCI ESG Controversy Score. The Index achieves this by removing, on a monthly basis, securities based on sustainability exclusionary criteria. The following types of issuers are removed from the Index on an ongoing basis due to the sustainability exclusionary criteria and some criteria may apply thresholds: MSCI ESG Rating Business Involvement Screens Issuers with a “red” MSCI ESG Controvery score (i.e. less than 1). The weight of each constituent issuer is adjusted by a fixed multiplier, as set out in the Index methodology, which is determined by its MSCI ESG Rating. Each constituent is capped at 2% by market value. |
| HSBC Global Funds ICAV - Global Equity ESG Index Fund | 8 | In tracking the performance of the MSCI World ESG Leaders Net Total Return Index (the “Index”), the Fund promotes environmental and/or social characteristics by seeking to gain exposure to companies demonstrating both a robust ESG profile as well as a positive trend in improving that profile. The evaluation framework used in MSCI ESG Controversies is designed to be consistent with international norms represented by the UN Declaration of Human Rights, the International Labour Organisation ("ILO") Declaration on Fundamental Principles and Rights at Work, and the UN Global Compact.("UNGC"). Index constituents are a sub-set of the constituents of the MSCI World Index (the "Parent Index"). The Fund seeks to achieve the promotion of these characteristics by tracking the performance of the Index where by applying the MSCI ESG Ratings methodology and MSCI ESG Controversies ratings methodology to the Index, the constituents of the Index must have an MSCI ESG rating of "BB" or above and an MSCI ESG controversies score of 1 or above to be eligible for inclusion in the Index. For companies that are constituents of the Parent Index but not existing constituents of the Index, they must have an MSCI ESG Rating of 'BB' or above and the MSCI ESG Controversies Score of 3 or above to be eligible for inclusion in the Index. In addition, companies showing involvement in alcohol, gambling, tobacco, nuclear power and weapons are excluded from the Index. The Index has been designated as a reference benchmark for the purpose of attaining the environmental and/or social characteristics promoted by the Fund. |
The sustainable investments made by the Fund are aligned to the environmental and/or social characteristics which it promotes. The Fund tracks the performance of the Index, the focus of which is to gain exposure to companies demonstrating both a robust ESG profile as well as a positive trend in improving that profile against that of the Parent Index . By tracking the performance of the Index, the investments of the Fund contribute to these sustainable objectives. |
Applying the MSCI ESG Ratings methodology and MSCI ESG Controversies ratings methodology to the Index, the constituents of the Index must have an MSCI ESG rating of "BB" or above and an MSCI ESG controversies score of 1 or above to be eligible for inclusion in the Index. For companies that are constituents of the Parent Index but not existing constituents of the Index, they must have an MSCI ESG Rating of 'BB' or above and the MSCI ESG Controversies Score of 3 or above to be eligible for inclusion in the Index. In addition, companies showing involvement in alcohol, gambling, tobacco, nuclear power and weapons are excluded from the Index. An annual review of the Index takes place in May, the Index is rebalanced in August, November and February The Index is designed to provide a broad, diversified sustainability benchmark through exposure to companies with high Environmental, Social and Governance ("ESG") performance relative to their sector peers. Index constituents are a sub-set of the constituents of the MSCI World Index (the "Parent Index"). The Index achieves this by applying the MSCI ESG Ratings methodology and MSCI ESG Controversies ratings methodology to the Index, the constituents of the Index must have an MSCI ESG rating of "BB" or above and an MSCI ESG controversies score of 1 or above to be eligible for inclusion in the Index. For companies that are constituents of the Parent Index but not existing constituents of the Index, they must have an MSCI ESG Rating of 'BB' or above and the MSCI ESG Controversies Score of 3 or above to be eligible for inclusion in the Index. In addition, companies showing involvement in alcohol, gambling, tobacco, nuclear power and weapons are excluded from the Index. |
Change Log
Date |
Change |
¹ Article 8 Product = A financial product promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices
² Article 9 Product = A financial product which has sustainable investment as its objective and an index has been designated as a reference benchmark