HSBC has introduced a new ESG-themed structured note for its private banking clients in Hong Kong and Singapore, as reported by The Asset on August 6. The note is linked to a basket of equity securities listed in Europe, Hong Kong, and Singapore, all rated top 50% in their respective industries based on the Sustainalytics ESG Risk Ratings. Maturing in one year, the note is available in USD, RMB, and HKD. HSBC plan to invest the proceeds in businesses and projects eligible for the HSBC Green Bond Framework, facilitating the transition to a low-carbon, climate-resilient, and sustainable economy with clear environmental sustainability benefits.

Antony Shaw, the global head of emerging markets wealth sales at HSBC markets and securities services, commented that investors today gave more importance to companies’ sustainability credentials when making investment decisions. HSBC’s new product allows its high net worth and ultra-high net worth clients to incorporate ESG elements into their investments while sticking to their financial objectives.

In October 2020, HSBC announced its plan to reduce financed emissions from its portfolio to net zero by 2050, as well as a pledge to provide up to USD1tr of finance and investment by 2030 to help its customers reach net zero. The bank has since been introducing various climate products and services. Earlier this year, in February, HSBC launched Asia’s first yuan-denominated green certificate of deposit (CD) for its retail customers in Hong Kong. Later in July, it introduced the HSBC GIF Global Equity Sustainable Healthcare Fund, the bank’s first sustainability-focused healthcare fund, in Singapore, with an aim to improve healthcare affordability and accessibility.

Sources:

https://www.theasset.com/asset-management/44449/hsbc-launches-esg-themed-structured-note-in-asia

https://fundselectorasia.com/hsbc-launches-esg-themed-structured-note/

https://www.hsbc.com/news-and-media/hsbc-news/hsbc-sets-out-net-zero-ambition

https://www.about.hsbc.com.sg/news-and-media/hsbc-asset-management-launches-sustainable-healthcare-fund