HSBC AM Rolls Out European-focused Sustainable ETF
HSBC Holdings plc
HSBC Asset Management, the global asset manager, announced the rollout of a new sustainable European-focused ETF. The company made the news following the launch of the firm's Paris Aligned Benchmark and fixed income sustainable ranges.
The ETF, HSBC Europe ex UK Sustainable Equity UCITS ETF, launched recently on the London Stock Exchange, is classified as article 8 under the Sustainable Finance Disclosure Regulation.
According to HSBC, the fund will be rebalanced monthly, allowing the screening process to evolve "as ESG practises change and issuers publish additional data surrounding their ESG thinking."
The fund targets to exceed the parent index by achieving an ESG score improvement of up to 20 per cent. It also has an emission reduction target of up to 50 per cent and a fossil fuel reserve reduction.
Olga de Tapia, global head of ETF & indexing sales, said: "the firm's 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."