HSBC GAM launches sustainable EM equity ETF

The new fund will track the FTSE Emerging ESG Low Carbon Emissions Select Index.

HSBC Global Asset Management has launched an exchange traded fund for investors seeking exposure to emerging markets in a sustainable way.

The HSBC Emerging Market Sustainable Equity UCITS ETF launched on the London Stock Exchange on Friday (28 August) promising a “cost efficient” solution by tracking the customised FTSE Emerging ESG Low Carbon Emissions Select Index.

“With emerging markets being a key part of our DNA, we’re pleased to offer clients a cost-effective solution to access companies that are transitioning towards a lower carbon economy in this space,” said Olga De Tapia, global head of ETF sales at HSBC Global Asset Management.

The ETF’s underlying index is based on a quantitative driven ESG scoring methodology.

There are additional screens in the index which aim to favour companies that are reducing emissions in a positive and inclusive manner.

HSBC Global Asset Management is taking what it describes as an “active stewardship role” with companies in which it invests for this ETF, through a comprehensive engagement programme and through voting policies.

The investment manager’s sister company HSBC is acting as the custodian and fund administrator for the new ETFs in addition to acting as the market maker.

HSBC is a member of Cambridge Institute for Sustainability Leadership’s Investment Leaders Group, a signatory of the PRI, a supporter of the TCFD, and a founding member of Climate Action 100.