HSBC Global Asset Management has rolled out three sustainability-focused ETFs covering equities in developed and emerging markets.
The strategies carry ESG ratings and take into account carbon emissions and fossil fuel reserves, tracking the newly created FTSE Russell ESG Low Carbon Select Indices.
As well as aiming to achieve a 20% ESG score uplift, the indices also target two areas of carbon exposure: a 50% carbon emissions reduction and a 50% fossil fuel reserves reduction.
Xavier Desmadryl, global head of ESG research at the firm, said: "Investors’ desire to initiate change through sustainable investing continues to grow and long-term equity returns are increasingly driven by companies that effectively implement strong environmental, social and governance practices.”
The three ETFs, the HSBC Europe Sustainable Equity Ucits ETF, the HSBC Japan Sustainable Equity Ucits ETF and the HSBC USA Sustainable Equity Ucits ETF, are now listed on the London Stock Exchange.
Three additional launches, focused on the developed world, emerging markets and Asia Pacific ex Japan, are expected in the coming weeks, according to HSBC GAM.
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