HSBC has rolled out a new ESG-themed structured note in Asia, a move which should enhance its range of wealth products with more specific investment themes within the sustainable investing universe.
The ESG-themed structured note should enable sophisticated wealth clients to add ESG dimensions to their preferred investments without changing their financial objectives.
It carries a basket of securities which rate in the top 50 percent by ESG score in their respective industries.
The ESG scores are determined by Sustainalytics ESG Risk Ratings, which HSBC has adopted for as its rating methodology.
Investors can opt for underlying securities of various thematic sectors such as technology, payment solutions, consumption and semiconductors, with investment periods ranging from one to five years.
Proceeds of the ESG-themed structured product will go towards financing businesses and projects that promote the transition to a low-carbon, climate-resilient and sustainable economy and provide clear environmental sustainability benefits, as defined by the HSBC Green Bond Framework.
The new product is available to HSBC’s high net worth (HNW) and ultra-high net worth clients (UHNW) in Hong Kong and Singapore.
Siew Meng Tan, regional head of global private banking, Asia Pacific, HSBC, said: “There is growing evidence that incorporating strong ESG considerations can improve portfolio resilience by mitigating risk, and we are seeing higher demand from clients for new and innovative ways to invest sustainably. At HSBC, our global connectivity and strong collaboration across the bank enables us to fully leverage the Bank’s capability, and offer a wider variety of tailored products to meet the needs of our UHNW and HNW clients in Asia.”
HSBC has pledged to provide up to $1 trillion of finance and investment by 2030 to support its customers in the net zero transition.
In February 2021, the bank issued Asia’s first RMB-denominated retail green certificates of deposit in Hong Kong. It has also launched the HSBC GIF Global Equity Sustainable Healthcare Fund in Singapore, which is its first healthcare fund focused on sustainability and impact, made available to both private and retail banking clients.
