In a significant policy initiative, HSBC Asset Management announced to phase out coal-fired power and thermal coal mining from its listings.
The policy aims to achieve a net zero target in the EU and Organisation for Economic Cooperation and Development (OECD) region by 2030 and globally by 2040.
The companies who fail to put in strategies to achieve the net zero target within the time frame will lose the support of HSBC AM, including voting against company chairs.
Nicolas Moreau, chief executive officer of HSBC Asset Management, said: “This is a determined step to phase out thermal coal. Global emissions will only be reduced if there is concerted collaboration to meet the goals of the Paris Agreement, and we are committed to playing our part. We have already stopped direct investments in new or existing thermal coal projects”.
HSBC is one of the 273 signatories of the NET Zero Asset Managers initiative, which aims to achieve the goal of net zero carbon emissions by 2050 or sooner.
HSBC AM seeks to achieve two targets from the policy, “coal phase-out will go hand-in-hand with pioneering new investment solutions in our Alternatives business to scale sustainable infrastructure investment and venture capital for critical climate technology solutions”, said Moreau.
Last month, HSBC Asset Management launched the HSBC World ESG Biodiversity Screened Equity Ucits ETF, which will track the Euronext ESG Biodiversity Screen index.
The ETF will be classified as Article 8 under SFDR regulations, defined as ESG-linked but not a specific impact fund.
Its core focus will be investing in companies with strong biodiversity credentials for wholesale and institutional investors.
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