Sustainability-related disclosures
We developed a range of innovative solutions to support our clients who want to allocate capital to achieve specific sustainable outcomes. Our range include low carbon fixed income and equity, thematic and sustainable multi-asset portfolios. Where clients have specific constraints, we were able to create customised solutions to meet their needs.
For more information on how we assess, measure and monitor the environmental and social characteristics or the impact of sustainable investments in our products please, refer to our ‘Responsible Investment Policy’ and ‘Implementation Procedures’. For our overall sustainability disclosure policy, and other policies related to sustainable investments, please refer to ‘Policies and Disclosures’.
Sustainable investing range
(EU Sustainable Finance Disclosures Regulation - Article 8¹ and Article 9²)
Mutual Funds
You can find the full list of HSBC Asset Management’s mutual sustainable investment funds and their associated disclosures in our Fund Centre. Please select the relevant fund from the list and click on the ‘ESG information’ tab.
Alternative Solutions
Global Transition Infrastructure Debt Fund
The Global Transition Infrastructure Debt Fund (the “Fund”) seeks to provide potentially attractive risk adjusted returns with a predictable income stream by investing in a diversified portfolio of loans (and other debt instruments) with infrastructure characteristics and which either are or will contribute to greenhouse gas ("GHG") emissions reduction and the global transition to net zero emissions by 2050.
The Fund will promote ESG characteristics within the meaning of Article 8 of SFDR by seeking to invest in infrastructure opportunities that meet the requirements of the relevant ESG framework of the Investment Manager. In particular, the Fund will promote ESG characteristics by not making any investments with high ESG risks as evidenced by the Investment Manager's approach to assessing ESG ratings for prospective borrowers.
Read the full Global Transition Infrastructure Debt Fund Disclosure (PDF,448KB)
Global Infrastructure Debt Strategy
Global Infrastructure Debt Strategy (“the Fund”) will seek to provide yield-based returns by investing in a diversified portfolio of high yielding debt of infrastructure projects principally associated with member countries of the Organisation for Economic Co-operation and Development (“OECD”) across a broad range of sectors that engage in the provision of essential products and services.
The Fund will target defensive and non-cyclical sectors that are engaged in the provision of essential products and services such as renewables, energy, transport, power, telecommunications, social infrastructure and other adjacent relevant sectors. Typically, these assets exhibit some or all of the following infrastructure characteristics: high barriers to entry, contracted revenue streams and inelastic demand profile.
The Fund’s investment strategy is broad and in particular not only limited to economic activities that contribute to environmental objectives. Indeed, the Fund may make investments that contribute to either social or governance objectives. The Fund is under no obligation to (but may) contribute to any environmental objective as defined under Art. 9 of the EU Taxonomy.
The Fund will promote ESG characteristics within the meaning of Article 8 of SFDR by seeking to invest in businesses that meet the requirements of the relevant ESG framework of the Investment Manager. In particular, the Company will promote ESG characteristics by not making any investments with high ESG risks as evidenced by the Investment Manager's approach to assessing ESG ratings for prospective investees.
The Investment Manager intends to engage with investees to positively influence their sustainability strategy.
Read the full Global Infrastructure Debt Strategy Disclosure (PDF,105KB)
Senior Global Infrastructure Debt Strategy
Senior Global Infrastructure Debt Strategy (“the Fund”) will seek to provide attractive long-term yield based returns by investing in a diversified portfolio of senior secured debt of infrastructure projects associated with member countries of the Organisation for Economic Co-operation and Development (“OECD”) across a broad range of sectors that engage in the provision of essential products and services. The Fund will principally invest in USD denominated assets but may also invest in assets denominated in other currencies.
The Fund will promote ESG characteristics within the meaning of Article 8 of SFDR by seeking to invest in businesses that meet the requirements of the relevant ESG framework of the Investment Manager. In particular, the Company will promote ESG characteristics by not making any investments with high ESG risks as evidenced by the Investment Manager's approach to assessing ESG ratings for prospective investees.
The Investment Manager intends to engage with investees to positively influence their sustainability strategy.
Read the full Senior Global Infrastructure Debt Strategy Disclosure (PDF,104KB)
Climate Technology Venture Strategy
Climate Technology Venture Strategy 2022 (the “Fund”) is a venture capital fund that will invest in early stage unquoted companies with a focus on energy, transportation, agricultural, and industrial decarbonisation and companies focused on the mitigation of climate change risks. The Fund promotes environmental and social characteristics by investing in companies whose activities are aligned to one or more United Nations Sustainable Development Goals (“UN SDGs”). The Fund therefore uses the UN SDGs as sustainability indicators to measure the attainment of each of the environmental or social characteristics promoted by the Fund.
In addition, the Fund seeks to make investments that contribute substantially to the environmental objectives relating to climate change mitigation, climate change adaptation and the transition to a circular economy, as defined by the Taxonomy Regulation.
The Fund will seek to monitor and enforce good governance practices across Portfolio Companies, in particular with regard to sound management structures, employee relations, employee remuneration and tax compliance.
The selection and ongoing monitoring of Portfolio Companies is based on a rigorous due diligence process which the Fund integrates into its decision making process.
Read the full Climate Technology Venture Strategy Disclosure (PDF,119 KB)
Financial Technology Venture Strategy
Financial Technology Venture Strategy 2022 (the “Fund”) is a venture capital fund that promotes environmental and social characteristics within the meaning of article 8 of the Disclosure Regulation.
The Fund does not target sustainable investments within the meaning of article 2 (17) of the Disclosure Regulation. The Fund’s portfolio may (but for the avoidance of doubt, there is no obligation to) include investments that qualify as sustainable investments within the meaning of article 2 (17) of the Disclosure Regulation.
The Fund will seek to enforce good governance practices across investee companies, in particular with regard to sound management structures, employee relations, employee remuneration and tax compliance.
The Fund aims to make minority equity investments into 15 to 20 early stage financial technology companies. It is intended that all investee companies will promote environmental and social characteristics within the meaning of article 8 of the Disclosure Regulation and be classified accordingly.
The promoted environmental and/or social characteristics are measured by the positive alignment with the UN Sustainability Development Goals, as validated by a third party provider.
The selection of target companies is based on a rigorous due diligence process. The Fund evaluates, as part of the due diligence, the companies with respect to their management structures, employee relations, and remuneration and tax compliance.
Further, an important aspect of the investment due diligence is the ESG Due Diligence. The Portfolio Manager utilises independent third party providers to provide a detailed ESG Due Diligence, which it integrates into its decision making process.
The AIFM will actively monitor sustainability indicators and ESG incidents and will review ESG progress on an annual basis.
Read the full Financial Technology Venture Strategy Disclosure (PDF,449KB)
Red Hexagon Energy Transition Asia Fund
The Red Hexagon Energy Transition Asia Fund (the “Fund”) will seek to deliver medium-term capital appreciation by investing in businesses that develop, own and/or operate energy transition infrastructure (“ETI”) assets within the target markets.
The Fund promotes environmental or social characteristics but does not have as its investment objective sustainable investment. The assets of the Fund may (but for the avoidance of doubt, there is no obligation to) include investments that qualify as sustainable investments within the meaning of article 2 (17) of the Disclosure Regulation.
The Fund will promote environmental or social characteristics pursuant to SFDR Article 8 by investing in companies that align to one or more UN SDGs. Specifically, it seeks to invest in ETI that contributes to the following environmental characteristics:
(i) climate change mitigation; (ii) climate change adaptation; and (iii) industry, innovation and infrastructure.
The selection and ongoing monitoring of sustainable investments is based on rigorous due diligence process which the Funds integrate into its decision making process.
Read the full Red Hexagon Energy Transition Asia Fund(PDF, 445KB)European Senior Direct Lending Fund
The Fund will promote environmental and social characteristics within the meaning of Article 8 of the Disclosure Regulation by seeking to invest in businesses that meet the requirements of the relevant ESG framework of the Portfolio Manager. In particular, the Fund will promote environmental and social characteristics by not making any new investments (other than Follow-on Investments) into companies with a High ESG Score (1). In addition, the Fund will not make investments (other than Follow-on Investments) with a Medium ESG Score (2) unless the Investment Team believes that an improvement in the ESG Rating to a Low ESG Score (3) or a Neutral ESG Score (4) is achievable.
Read the full European Senior Direct Lending Fund disclosures (PDF, 513KB)
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¹ Article 8 Product = A financial product promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices
² Article 9 Product = A financial product which has sustainable investment as its objective and an index has been designated as a reference benchmark