HSBC Global AM launches ESG equity UCITS in Britain

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HSBC Global AM launches ESG equity UCITS in Britain

HSBC Global Asset Management has announced the launch of the HSBC UK Sustainable Equity UCITS ETF, with the first day of trading on the London Stock Exchange (LSE) today.

Offering a cost-efficient solution to invest in UK equities, the fund is the first UK sustainable equity ETF with a reduced carbon target. It is benchmarked against the customised FTSE UK ESG Low Carbon Select Net Tax Index, which targets a 20% ESG improvement and a 50% carbon emissions and fossil fuels reserves reduction.

The index has an additional 10%~20% underweight to oil and gas in order to reduce exposure to the sector.

It will enable investors to tap into UK companies that are transitioning to a more sustainable future."

The HSBC UK Sustainable Equity UCITS ETF complements the firm's existing sustainable equity ETF range which includes:

  • HSBC Europe Sustainable Equity UCITS ETF
  • HSBC Japan Sustainable Equity UCITS ETF
  • HSBC USA Sustainable Equity UCITS ETF
  • HSBC Developed World Sustainable Equity UCITS ETF
  • HSBC Asia Pacific ex Japan Sustainable Equity UCITS ETF
  • HSBC Emerging Market Sustainable Equity UCITS ETF

Olga De Tapia, Global Head of ETF Sales at HSBC Global Asset Management, commented: "We're pleased to offer our clients the first UK sustainable equity ETF with a reduced carbon target. As the latest addition to our sustainable equity ETF range, it will enable investors to tap into UK companies that are transitioning to a more sustainable future."

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.