HSBC Global Asset Management announced the launch of the HSBC Emerging Market Sustainable Equity UCITS ETF, adding to its suite of ESG-themed ETF products. The ETF has been listed on the London Stock Exchange.

The new ETF will track the customised FTSE Emerging ESG Low Carbon Emissions Select Index. According to index provider FTSE Russell, the index is comprised of mid and large cap stocks from emerging markets and targets 50% reduction in index level carbon emissions, 50% reduction in fossil fuel reserves and 20% improvement in index level ESG ratings. Additionally, the index excludes companies involved with controversial product activities, including weapons, thermal coal, tobacco, nuclear power, as well as companies involved with controversies related to the UN Global Compact principles.

Olga De Tapia, Global Head of ETF Sales at HSBC Global Asset Management, said:

 “With emerging markets being a key part of our DNA, we’re pleased to offer clients a cost-effective solution to access companies that are transitioning towards a lower carbon economy in this space.”

HSBC’s new EM sustainable equity ETF expands the firm’s suite of ESG-focused products, including the HSBC Asia Pacific ex Japan Sustainable Equity UCITS ETF, launched last week as the market’s first sustainability-themed UCITS ETF providing exposure to an Asia Pacific ex-Japan benchmark. HSBC’s other sustainable UCITS ETF products include:

  • HSBC Europe Sustainable Equity UCITS ETF
  • HSBC Japan Sustainable Equity UCITS ETF
  • HSBC USA Sustainable Equity UCITS ETF
  • HSBC Developed World Sustainable Equity UCITS ETF