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ESG and sustainable investing

Unit trusts are investment products. They are NOT equivalent to time deposits. Some unit trusts may involve derivatives. The investment decision is yours but you should not invest unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
The price of products may move up or down and may become valueless. Losses may be incurred as well as profits made as a result of buying and selling the products.
In the worst case scenario, the value of the products may be worth substantially less than the original amount you invested (and in an extreme case could be worth nothing).
Investors should not make investment decisions based on this material alone.
Investment involves risks. Past performance of the products is no guide to future performance. For details of the products, the related fees and charges and risk factors, please refer to the individual product materials and/or offering materials.
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RMB-denominated products are subject to liquidity risk as there may be no regular trading and active secondary market for RMB income instruments. The bid and offer spread of the price of RMB income instruments may be large, so investors may incur significant trading and realisation costs, and may suffer losses accordingly.

What is ESG?

ESG (Environment, Social and Governance) products let you shape the future while growing your wealth. You can measure the sustainability of your investment with non-financial factors. Environment focuses on the conservation of nature, Social focuses on how an organisation treats people, while Governance considers how a company is run.

Investing in ESG products has made the jump from niche to mainstream in recent years, and it's here to stay as a reference standard.

Explore ESG and sustainable investing products

Key features

Mitigate risk

E, S and G factors are important in understanding the inherent risks of companies and their operating performance in the long term and increasingly in the nearer term. Integrating ESG issues in investment decisions can help manage these risks.

Unlock opportunities

Sustainability is opening a world of opportunity – deployment of sustainable solutions can help capture these opportunities.

Deliver potential capital growth

Evidence shows that companies with better Environmental, Social and Governance (ESG) credentials may be more likely to show better financial performance[@esg1].

ESG and sustainable investing products

At HSBC, we see three main ways to embed sustainability into an investment portfolio, which can be applied across portfolio allocations:

Investment products that focus on ESG related growth areas by identifying companies aligned to specific sustainable themes.

Investment products that aim to have a direct, positive impact on society, environment or both. There are clearly pre-defined measurable impact targets and are subject to periodic impact reporting.

Understand more about our ESG and sustainable investing products

Unit trusts

We offer actively-managed funds that follow our strict definition of sustainable investment, and ensure your peace of mind by curating best-in-class ESG and sustainable investing funds for you

Learn more about Unit trusts

Learn about the latest ESG Trend

Get the latest market coverage on major events around ESG and their implications on the investment world

ESG and sustainable investing analysis on digital platform

Manage your investment risks and opportunities from an ESG perspective with our digital analysis dashboard. The two metrics we use are the MSCI ESG rating and S&P Trucost Carbon Intensity.

Log on to HSBC Online or Mobile Banking, and select 'ESG analysis' to get started.

The MSCI ESG rating assesses the resilience of companies and financial products against their ESG risk exposures and management.
The S&P Trucost Carbon Intensity metric measures a portfolio's exposure to carbon-intensive companies, represented by a company's greenhouse gas emissions against its revenue (measured in metric tons CO2e per USD 1 million in revenue).

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The availability of ESG metrics is subject to product types, data coverage of the vendors, etc. Please reach out to your Relationship Manager or log on to your HSBC Online and Mobile Banking to view more details.

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HSBC investment account holders

Browse a list of available ESG and sustainable investing products that you can invest in through us.

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ESG stands for Environmental, Social and Governance. ESG and sustainability factors influence a wide range of industries from agricultural, industrial, consumption, technology to medical sectors as these factors are closely connected to social policies, economic development and individual lives.

ESG and sustainable investing provides a measure for investors to use to seek and screen the sustainability of investment opportunities arising from the global response to climate change.

As ESG and sustainable investing is gaining traction, it's likely to become an important factor for corporate performance, driven by market demand. Investment portfolios may become more resilient and contribute to society as a whole through the inclusion of ESG and sustainable investing. Investors should also note that ESG and sustainable investing solutions do not guarantee returns on their portfolios.

ESG and sustainable investing maintains a focus on financial returns, alongside environmental and social considerations. Based on our analysis, adopting an ESG and sustainable investing approach in investment has benefited stock and bond portfolio performance over the last 10 years. Plus, risk-adjusted returns in the long-term are likely to be structurally stronger as the economy transitions to sustainability.

However, ESG and sustainable investing do not guarantee or necessarily provide better performance than their peers. ESG and sustainable investing factors don't necessarily hurt investment performance, and sustainable investment may in fact help future-proof investment portfolios against the risks associated with a transition to a more sustainable economy.

Please note past performance is not indicative of future performance.

We offer a comprehensive range of ESG and sustainable investing products that help align your sustainability objectives with your financial goals.

You can access our list of ESG and sustainable investing funds using the ESG search checkbox when you search for unit trusts in HSBC Online Banking or on the HSBC HK Mobile Banking app.

At HSBC, we classify ESG and sustainable investing as either ESG Enhanced, Thematic and Impact.

ESG Enhanced: Investment products that follow specific ESG criteria.

Thematic: Investment products that focus on ESG related growth areas by identifying companies aligned to specific sustainable themes.

Impact: Investment products that aim to have a direct, positive impact on society, environment or both. There are clearly pre-defined measurable impact targets and are subject to periodic impact reporting.

Different organisations may employ various methodologies for classifying ESG and sustainable investing products. HSBC adopts a strict product assessment and classifies products according to the framework established (ESG Enhanced, Thematic and Impact) to define what we consider to be ‘ESG and sustainable investing'.

ESG and sustainable investing is an evolving area and new regulations may come into effect which may affect how an investment is categorised or labelled. An investment which is considered to fulfil ESG and sustainable investing criteria today may not meet those criteria at some point in the future. We will review and update the eligible investment product list from time to time.

Notes

The information is not and should not be construed as an offer to buy or sell any investment products, and should not be considered as investment advice. You should carefully consider whether any investment products are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances.

Investment involves risk. Investors should not only base on this material alone to make investment decisions. Please refer to the offering documents of the respective funds for details, including product features, fees and charges, and risk factors. The price of units or shares and the income from them may go down as well as up and any past performance figures shown are not indicative of future performance. The information contained on this website is intended for Hong Kong residents only and should not be construed as a distribution, an offer to sell, or a solicitation to buy any securities in any jurisdiction where such activities would be unlawful under the laws of such jurisdiction, in particular the United States of America. Please refer to the unit trust disclaimer for further important details.

The contents of this page have not been reviewed by the Securities and Futures Commission.

Issued by the Hongkong and Shanghai Banking Corporation Limited

ESG and sustainable investing risk disclosure

In broad terms “ESG and sustainable investing” products include investment approaches or instruments which consider environmental, social, governance and/or other sustainability factors to varying degrees. Certain instruments HSBC (“we”) classify as sustainable may be in the process of changing to deliver sustainability outcomes. There is no guarantee that ESG and Sustainable investing products will produce returns similar to those which don’t consider these factors. ESG and Sustainable investing products may diverge from traditional market benchmarks. In addition, there is no standard definition of, or measurement criteria for, ESG and Sustainable investing or the impact of ESG and Sustainable investing products. ESG and Sustainable investing and related impact measurement criteria are (a) highly subjective and (b) may vary significantly across and within sectors.
HSBC may rely on measurement criteria devised and reported by third party providers or issuers. HSBC does not always conduct its own specific due diligence in relation to measurement criteria. There is no guarantee: (a) that the nature of the ESG / sustainability impact or measurement criteria of an investment will be aligned with any particular investor’s sustainability goals; or (b) that the stated level or target level of ESG / sustainability impact will be achieved. ESG and Sustainable investing is an evolving area and new regulations are being developed which will affect how investments can be categorised or labelled. An investment which is considered to fulfil sustainable criteria today may not meet those criteria at some point in the future.
When we classify an investment product or service against our ESG and Sustainable Investing (SI) categories described in this document: ESG Enhanced, Thematic or Impact, this does not mean that all individual underlying holdings in the investment product or portfolio will meet the relevant SI criteria. As such, an SI classification does not mean that all underlying holdings in a fund or discretionary portfolio meet the relevant sustainable investment criteria. Similarly, where an equity or fixed income investment is classified under an ESG Enhanced, Thematic or Impact category this does not mean that the underlying issuer’s activities are fully sustainable. Not all investments, portfolios or services are classifiable under our SI categories. This may be because there is insufficient information available or because a particular investment product does not meet HSBC’s SI classifications criteria.

The information contained in this material and the content have not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.

Investment involves risk. The price of products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling products.

You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and circumstances.

Making available to you any advertisements, marketing or promotional materials, market information or other information relating to a product or service shall not, by itself, constitute solicitation of the sale or recommendation of any product or service. If you wish to receive solicitation or recommendation from us, please contact us and, where relevant, go through our suitability assessment before transacting. The remuneration for sales staff is determined based on the staff's overall performance with reference to a wide range of factors, and is subject to review from time to time, for the purpose of encouraging the building of deep, long-lasting and mutually valuable relationships with customers. It is not determined solely on financial performance.

The information in this material does not constitute a solicitation or recommendation for making any deposit or an offer for the purchase or sale or investment in any products.

Issued by The Hongkong and Shanghai Banking Corporation Limited

ESG and Sustainable Investing

Important risk warning

What is ESG?

Sustainability Preferences Questionnaire

Are you interested in indicating your preferences when it comes to ESG and sustainable investing? Please log on to HSBC Online Banking and it will take you just a few minutes to complete the Sustainability Preferences Questionnaire.

Key features

Mitigate risk

Unlock opportunities

Deliver potential capital growth

ESG and sustainable investing products

ESG Enhanced

Thematic

Impact

Understand more about our ESG and sustainable investing products

Unit trusts

Learn about the latest ESG Trend

ESG and sustainable investing analysis on digital platform

Start your ESG and sustainable investing journey

HSBC investment account holders

Don't have an HSBC investment account?

Find out more

What is ESG and sustainable investing?

Why does ESG and sustainable investing matter?

Do ESG and sustainable investing provide or guarantee better performance?

What products are under the ESG and sustainable investing umbrella?

How can I find ESG and sustainable investing funds?

How will investment products be assessed as 'ESG and sustainable investing' products at HSBC?

I hold a similar product at another institution but its ESG and sustainable investing classification is different than that of HSBC. Why is it the case?

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Notes

Disclaimer