Creating a new climate for change
Our global climate ambition
As part of the fight against climate change, we are committed to cooperating with other asset managers and stakeholders in the pursuit of a more sustainable financial system. This involves a series of efforts.
In July 2021, we signed up to the Net Zero Asset Managers initiative1 , which encourages investment firms to commit to manage assets in line with the attainment of net zero emissions by 2050. The agreement also accelerates our journey towards developing climate solutions that support the net-zero transition. Our approach is to dedicate 38 per cent of total assets under management (AUM) – across listed equities and corporate fixed-income investments – to decarbonisation. This will be achieved by reducing our portfolios’ Scope 1 and Scope 2 emissions intensity by 58 per cent by 2030.
Our net zero target setting methodology explained in three steps
This is just the latest stage of our journey. Through our involvement with Climate Action 100+ since its inception in 2017, we have been engaging with a growing number of the world’s largest corporate greenhouse-gas emitters on how to take necessary action to lower their climate impact. We were also a founding signatory to the One Planet Asset Managers initiative, established in 2019. This brings together leading sovereign wealth funds and asset managers to accelerate the integration of climate-change issues into the management of large, long-term asset pools.
In September 2022, we committed to phase out thermal-coal investments by introducing a new, formal thermal-coal policy2.
Our Thermal Coal Policy
Our goal is to exclude from our active funds coal-fired power and thermal-coal mining companies in EU and OECD countries by 2030, and worldwide by 2040. We will also engage more directly with company management from companies with inadequate transition plans.
Today, we and many of our customers contribute to greenhouse gas emissions. We have a strategy to reduce our own emissions and to develop solutions to help our clients invest sustainably.
The information presented concerns the activity of HSBC Asset Management globally. We draw your attention on the fact that the numbers presented and the commitments listed are not necessarily a direct reflection of those of HSBC Asset Management in the various jurisdictions.
HSBC Asset Management is a signatory to the Net Zero Asset Managers initiative, with a 2050 net zero objective across all assets. It has set an interim target of reducing scope 1 and 2 carbon emissions intensity by 58 per cent by 2030 for 38 per cent of HSBC Asset Management’s assets under management. These assets under management in scope for the target consist of listed equity and corporate fixed income managed within its major investment hubs in UK, Hong Kong SAR, France, Germany and US, which amounted to USD193.9 billion at 31/12/2019. Implementation of the net zero targets remains subject to consultation with stakeholders including investors and fund boards on whose behalf we manage the assets. The 58 per cent target is based on assumptions for financial markets and other data, including the IEA Net Zero emissions by 2050 scenario and its underlying activity growth assumptions. Carbon emissions intensity measured as tCO2e/USDMillion invested, where emissions are scaled by enterprise values including cash. For more details, please refer to our webpage: https://www.netzeroassetmanagers.org/signatories/hsbc-asset-management/