HSBC Asset Management (HSBC AM) has launched a Europe ex UK Sustainable Equity Ucits ETF, classified as an Article 8 product under the EU’s Sustainable Finance Disclosure Regulation (SFDR).
The fund is targeting an ESG improvement score of up to 20%, a carbon emission reduction of up to 50% and a fossil fuel reserve reduction of up to 50%, compared to its index, the FTSE Developed Europe ex UK ESG Low Carbon Select Index.
The move comes shortly after the asset manager launched a Paris-aligned benchmark and fixed income sustainable range.
The fund’s benchmark excludes companies and allocates ESG scores, while also embedding carbon intensity and fossil fuel reserve “tilts”.
“Our priority is to provide our clients with a viable means of improving the social, governance and environmental impact of their portfolios,” said Olga de Tapia, global head of ETF and indexing sales at HSBC AM.
“This new ETF adds to our suite of sustainable passive building blocks and provides investors and asset allocators with greater opportunities to support the transition to more sustainable investing,” she added.
The fund will be rebalanced on a monthly basis and has a total expense ratio of 0.15%.
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