HSBC Asset Management is launching two Paris Climate Agreement-aligned ETFs aimed at investors seeking to minimise their exposure to climate risks by reducing carbon emissions.
The HSBC MSCI USA Climate Paris Aligned UCITS ETF and HSBC MSCI Europe Climate Paris Aligned UCITS ETF are set to list on the London Stock Exchange (LSE) on 4 and 6 August, respectively.
Olga De Tapia, global head of ETF Sales at HSBC Asset Management, said: "Following the successful launch of our first Paris Aligned ETF last month, we are pleased to offer additional building blocks in this strategy to help investors build diversified sustainable investment portfolios."
Each fund tracks its respective MSCI Climate Paris Aligned index (US and Europe), which follow a rules-based and transparent methodology to go beyond EU minimum standards to address climate change risks and opportunities.
They aim to reduce investment exposure to transition and physical climate risks by applying a range of climate metrics such as Climate Value-at-Risk in portfolio construction, while maximising opportunities arising from the transition to a lower-carbon economy and alignment with the Paris Agreement requirements.
The HSBC MSCI USA Climate Paris Aligned UCITS ETF has a total expense ratio (TER) of 0.12% while the HSBC MSCI Europe Climate Paris Aligned UCITS ETF comes with a TER of 0.15%.
