Stewardship
Stewardship is a powerful tool for change
Stewardship aims to improve risk-adjusted return of investment through positive change outcomes. We engage with a range of stakeholders in society to support better long term sustainable outcomes for the investors we serve.
Stewardship at HSBC Asset Management
How can stewardship add value?
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Driving growthStewardship means acting in the best interests of asset owners. This includes holding company boards accountable for the execution of strategies that can deliver long term value to stakeholders. Discussions with companies can also help us spot emerging sustainability themes. |
Managing risksStewardship activities can encourage companies to evaluate how they will navigate the constantly changing landscape of emerging risks. |
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Improving transparency and disclosureBetter disclosure means less uncertainty for investors, which potentially lowers the cost of capital. In the process of disclosure, companies can also gain additional insights into their business. |
Delivering positive social and environmental outcomesStewardship can encourage issuers to act with a deeper understanding of their environmental and social impact, taking different stakeholders’ interest into account. |
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| Stewardship Plan 2024 | Global Voting Guidelines | |
| This playbook guides our investment teams in engaging with portfolio companies. | Exercising our voting rights is a core part of our stewardship activity and broader responsible investment approach. These guidelines set out our approach on key voting issues. |
6 steps process to prioritize companies
For our voting disclosure, please click here.
Types of engagement
Proactive engagement
Led by portfolio managers, analysts and the stewardship team, proactive engagement is conducted following a priority list created to ensure that we maximise the potential positive impact of our engagement efforts.
Reactive engagement
When a controversy arises, we engage with the company to address our concern. This can include discussing a remediation plan and controversy management depending on the nature and severity of the issue.
Collaborative engagement
We signed up to a number of collaborative initiatives that tackles specific sustainability issues, such as FAIRR initiative that focuses on the food sector and PRI Advance on human rights. Collaboration helps amplify our impact as a minority investor (particularly with companies that are otherwise challenging to engage with) with the ultimate goal to enhance value for our investors.
Policy Engagement
Where possible, we engage in conversations with regulators or governmental bodies directly or via membership in industry or green finance associations to provide insights in the development of ESG related framework or guidelines.
Our core themes of engagement
The thematic priorities serve as guidance to the investment function, and in setting engagement objectives for issuers in our portfolios.
Climate change |
Human rights |
Biodiversity and nature |
Inclusive growth and shared prosperity |
Corporate Governance |
Trusted technology and data |
Diversity, equity and inclusion |
Read more
Today, we and many of our customers contribute to greenhouse gas emissions. We have a strategy to reduce our own emissions and to help our customers reduce theirs. For more information visit https://www.assetmanagement.hsbc.com/about-us/net-zero