HSBC Rolls Out Biodiversity ETF
HSBC Holdings plc
HSBC Asset Management introduced an ETF that tracks the Euronext ESG Biodiversity Screen index.
Article 8 of the SFDR defines the ETF as ESG-linked but not an impact fund. It would invest in wholesale and institutional investors in enterprises with high biodiversity credentials.
The ETF will track the Euronext ESG Biodiversity Screened index series, which uses Euronext World as its parent index.
In December 2021, HSBC, Euronext, and Iceberg Data Lab introduced the ESG Biodiversity Screened Index (IDL).
Olga de Tapia, global head of ETF and indexing sales at HSBC AM, said:
“We have a huge part to play in the protection and preservation of biodiversity, which can be achieved through ‘biodiversity aware’ investment processes, and this ETF is hopefully a step in combatting the biodiversity crisis.”
The HSBC ETF is to apply three filters. One is to be focused on socially responsible investment, another will be a negative ESG screen to remove the worst scoring quarter of constituents, and the third will be an IDL Corporate Biodiversity Footprint’ uplift’ of approximately 35% versus the parent index.
Source: Funds Europe
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