Net Zero Asset Managers Initiative

As the world moves to a net zero carbon future, we are committed to playing our part in addressing climate change, both as a business and as stewards of our clients’ assets. HSBC Asset Management is proud be part of this important initiative and contribute to an industry-wide effort to achieve net zero emissions by 2050.

After a year of dedicated research since joining the Net Zero Asset Managers Initiative in July 2021, we are announcing the ambition of reducing scope 1 and 2 carbon emissions by 58 per cent by 2030 in 38 per cent of our total assets under management (AUM). This interim target is a starting point on the road towards net zero emissions across all AUM by 2050 or sooner, our commitment in support of the collective effort to limit global warning to 1.5°C.

The AUM in scope for the interim target consists of listed equity and corporate fixed income, where data and methodologies in decarbonisation are the most mature. Investments in both developed and emerging markets are covered. 2019 has been chosen as the baseline year for our calculations as it offers a more realistic picture of the level of carbon emissions than post-covid years.

Our interim target of 38 per cent of total AUM is aligned with the peer group average¹ and has been accepted by the Institutional Investors Group on Climate Change (IIGCC), which will publish our net zero commitment along with those of other signatories on the 9^th of November 2022, during COP27.

Our targets will be reviewed on an ongoing basis, with a view to ratcheting up our commitment towards the target of 100 per cent of assets being included. To further advance towards net zero, we will be incorporating climate scenario modelling into our investment decision making processes and further developing our fundamental research, as well as increasingly engaging with heavy emission sectors. Our thermal coal policy² launched in September 2022, and which phases out coal-fired power and thermal coal mining from our active listed holdings, is only one of the first steps on our journey.

Implementation of our net zero targets remains subject to consultation with our stakeholders including investors, fund boards and regulators. We will stay actively engaged to support our investors on their own decarbonisation goals, and continue to dedicate resources in the development of climate solutions and our expertise in this important area.

To read the full disclosure on our interim target, please visit the website of Net Zero Asset Managers
1. Source: IIGCC 2nd wave signatories report, May 2022.
2. Please visit our public website to see the full thermal coal policy
Source: HSBC Asset Management, Net Zero Asset Managers Initiative, as of November 2022. For illustrative purposes only.