On the road to net zero
A vision to shape a sustainable future
The escalating impact and financial cost of climate change on economies, societies and the physical environment make it more important than ever for HSBC Asset Management to support our clients to invest in the development of a more sustainable world. Key to this is alignment with the Paris Agreement to limit global warming to well below 2 degrees Celsius (target: 1.5 degrees) – a goal that involves reducing our own contribution to greenhouse-gas emissions as well as helping our customers achieve the same in their portfolios.
Erin Leonard,
Global Head of Sustainability
| Erin Leonard, Global Head of Sustainability |
Moving beyond pledges means making clear and defined commitments, and tracking progress towards them. Our approach to climate investing puts us firmly on this path and we embrace the challenge of ensuring our clients’ money is managed in line with their objectives and considerations for positive environmental and social factors. We are determined to do our part by facilitating the flow of capital from investors to the businesses driving the transition to a more sustainable global economy
Critical years ahead on the road to net zero
The next few years will be crucial if financial institutions, corporates, investors, regulators, consumers and all other stakeholders are to help set the world on a course to reach net zero by the middle of the 21st century. Delivering on an ambition of this magnitude will require all of us to play a role. HSBC Asset Management is leveraging its expertise across sectors, regions and asset classes, as well as developing the capabilities to deliver on this ambition, and is doing so with a forward-looking approach. We know that failing to invest in the changes needed to move towards a carbon-neutral economy, or to consider the impacts these changes will have on society, risks our collective future.
Achieving our goal requires us to take further steps to ensure we have the people, processes and culture to drive sustainable behaviour. With more than 20 years’ experience in improving our responsible-investing principles, we aim to apply our approach across our entire business, in all geographies where we operate. The prospect for driving positive change is especially strong in emerging markets, where our local expertise continues to offer new possibilities even as technological change, social unrest and climate disruption gather pace.
With change comes opportunity
We see many new areas of growth for our investors as they pursue transition. We are continuing to build our investment capabilities in climate solutions, sustainable infrastructure, climate technology, renewable energy and natural capital. We are doing this to enable our clients to support these transition technologies with confidence.
The rapid pace of change, though, also risks disruption for vulnerable societies, and we must go deeper in our analysis to avoid unintended consequences. For the transition to be truly sustainable, our investments need to reflect our clients’ desire to consider the associated impacts on local populations. A just transition is fundamental.
Our mindset in climate investing spurs us to create innovative sustainable investment solutions to respond to the world’s challenges. It drives us to work with our clients, in response to their needs, to take the necessary steps to build extensive resources and expertise as part of the process of transition to a sustainable future.
Access our latest steps forward in net zero transition
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Thermal coal policy
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Energy policy
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Creating a new climate for change
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. -
Innovating for a new future
In line with the objectives of investors, we strive to contribute to positive change through a series of targeted and innovative solutions – from decarbonisation to real economic impact, and reduced climate-risk exposure. -
A transition for everyone
Our vision is to help shape a sustainable world that is fair and inclusive through the framework of the ‘just transition’. For a transition to be sustainable in the long run, no segments of society should be left behind.
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/US$Mn 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/