HSBC Asset Management has today launched its inaugural Paris-Aligned ETF, the HSBC MSCI World Climate Paris Aligned UCITS ETF, which will track the MSCI World Climate Paris Aligned Index.
Olga de Tapia, Global Head of ETF Sales at HSBC Asset Management
This ETF will give investors access to a universe of companies aligned with global efforts to reduce emissions and mitigate the impacts of climate change. The Paris Agreement aims to reduce greenhouse emissions, with a goal of limiting global warming to 1.5º Celsius, compared to pre-industrial levels. Governments and companies globally are implementing policy frameworks to align economic activity with the Paris Agreement, with significant capital investment being allocated to the transition to a green economy.
The MSCI World Climate Paris-Aligned Index includes large and mid-cap companies across 23 developed market countries1. It aims to reduce investment exposure to transition and physical climate risks by applying a range of climate metrics such as Climate Value-at-Risk in portfolio construction, while maximising opportunities arising from the transition to a lower-carbon economy and alignment with the Paris Agreement requirements. The MSCI Climate Paris-Aligned Indices are designed to go beyond EU minimum standards to address climate change risks and opportunities and follow a rules-based and transparent methodology designed to align with a 1.5ºC climate scenario.
The launch of this new ETF is part of HSBC Asset Management’s strategy to support investors through the transition to a net-zero economy and strengthen its sustainable investment offering, with further sustainable ETF launches planned over the coming months. As a signatory to the Net Zero Asset Managers Initiative and a member of the Investors Group on Climate Change, the firm is advocating for an investment-strategy led approach to tackling climate change and adopts a principle of active ownership, aiming to use its position as a global active manager and long-term investor to accelerate positive change through engagement and voting across both in its active and index investments.
Olga de Tapia, Global Head of ETF Sales at HSBC Asset Management said: “Investors are increasingly aware of the threat climate change poses to their long-term objectives. With companies, governments and individuals pledging to limit global warming in line with the Paris Agreement, ensuring investment portfolios achieve net-zero emissions by 2050 is an important step towards reaching this goal.
“The new HSBC MSCI Paris Aligned ETF series will provide investors with a set of climate focused building blocks that have the potential to become a widely accepted climate benchmark over time”.
The fund listed today on the London Stock Exchange (LSE) with a total expense ratio (TER) of 0.18%. Further listings are expected across Europe in the coming weeks.he fund is classified as Article 9 under the Sustainable Finance Disclosure Regulations.