HSBC Global Asset Management has launched a new generation of sustainable ETFs.
They have been created to combine sustainable investing with a cost-efficient exposure to developed and emerging equity markets at global, regional and country levels.
Three of the new ETFs, the HSBC Europe Sustainable Equity UCITS ETF, the HSBC Japan Sustainable Equity UCITS ETF and the HSBC USA Sustainable Equity UCITS ETF1, were listed on the London Stock Exchange on Friday 5 June 2020, and three additional launches, focused on the developed world, Emerging Markets and Asia Pacific ex Japan, are expected later.
The ETFs will track the newly created FTSE Russell ESG Low Carbon Select Indices which were developed and customised in collaboration with FTSE Russell, a provider of index solutions.
Xavier Desmadryl, Global Head of ESG Research at HSBC Global Asset Management, said: “Investors’ desire to initiate change through sustainable investing continues to grow and long-term equity returns are increasingly driven by companies that effectively implement strong environmental, social and governance practices.
“We seek to encourage all companies held in our portfolios to establish and maintain high levels of transparency, particularly in their management of ESG issues and risks. Engagement with these companies is an important element in both our ESG integration and our stewardship oversight. These foundations are the driving force behind our new sustainable equity ETFs, which will provide investors with a core sustainable building block for their portfolios.”