Our path to Net zero
In July 2021, we signed up to the Net Zero Asset Managers initiative1 , which encourages investment firms to commit to manage assets in line with the attainment of net zero emissions by 2050. The agreement also accelerates our journey towards developing climate solutions that support the net-zero transition. Our approach is to dedicate 38 per cent of total assets under management (AUM) – across listed equities and corporate fixed-income investments – to decarbonisation. This will be achieved by reducing our portfolios’ Scope 1 and Scope 2 emissions intensity by 58 per cent by 2030.
1. The Net Zero Asset Managers initiative
Our net zero target setting methodology explained in three steps
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Today, we and many of our customers contribute to greenhouse gas emissions. We have a strategy to reduce our own emissions and to develop solutions to help our clients invest sustainably.
The information presented concerns the activity of HSBC Asset Management globally. We draw your attention on the fact that the numbers presented and the commitments listed are not necessarily a direct reflection of those of HSBC Asset Management in the various jurisdictions.
Our lead entity HSBC Global Asset Management Ltd is a signatory to the Net Zero Asset Managers initiative. It has an interim target of reducing Scope 1 and 2 financed emissions intensity by 58 per cent between 2019 and 2030 for its in-scope assets under management (AUM), consisting of listed equities and corporate fixed income managed within its major investment hubs. As of 31 December 2019, in scope assets amounted to USD193.9 billion, equating to 38 per cent of global AUM. Its targets remain subject to consultation with stakeholders including investors and fund boards on whose behalf it manages the assets. The 58 per cent target is based on assumptions for financial markets and other data, including the IEA Net Zero emissions by 2050 scenario and its underlying activity growth assumptions. Carbon emissions intensity is measured as tonnes of carbon dioxide equivalent per million USD invested (tCO2e/USDMillion invested), where emissions are scaled by enterprise values including cash. HSBC Asset Management is closely following the review that the NZAM Initiative has launched on the future of the initiative.