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Responsible investment

Supporting corporate governance best practice

Good corporate governance helps to ensure that companies are managed in line with the long-term interests of their shareholders. We believe that there is a positive link between high standards of governance and the long-term value created by those companies. Therefore, we encourage and support companies to adopt corporate governance best practice while recognising that this may vary across the globe.

We invest in, and engage with, companies committed to delivering sustainable long-term returns, even if this means that some short-term opportunities are sacrificed. Such companies are likely to have values focused on stewardship, take account of their broader impact on society and avoid excessive risk-taking.

We encourage companies to implement corporate governance frameworks in line with applicable country codes – such as the UK Corporate Governance Code – and international standards such as the OECD Principles of Corporate Governance.

Voting Activity:
The attached voting disclosures have been produced in line with our global voting guidelines, although the disclosures do not cover the voting activity of all HSBC Global Asset Management entities. The guidelines are in operation in offices representing the large majority of our global voting. Other disclosures are available in jurisdictions where this is a regulatory requirement. We can also provide institutional clients with details of our corporate governance voting activity as part of our standard reporting package.


VOTING ACTIVITY DISCLOSURES Q1 Q2 Q3 Q4
2016
2015
2014
2013

International Corporate Governance Network

HSBC is a member of the International Corporate Governance Network (ICGN). This group seeks to develop and encourage adherence to corporate governance standards and guidelines, as well as promote good corporate governance worldwide. HSBC also participates in the Global Institutional Governance Network.

Responsible Investment

We believe that good management of environmental and social risks and of opportunities contributes to long-term business success. We encourage companies to work towards best practice by holding constructive dialogues with them on how they currently manage their environmental and social impacts.

United Nations Principles for Responsible Investment

HSBC Global Asset Management is committed to being responsible investors. In June 2006, we became a signatory to the United Nations Principles for Responsible Investment. The principles provide a voluntary and aspirational framework to help institutional investors integrate environmental, social and governance (ESG) issues into investment decision-making and ownership practices.

United Nations Environment Programme Finance Initiative

HSBC is an active member of the United Nations Environment Programme Finance Initiative (UNEP FI) which is a global partnership between UNEP and the financial sector. Over 200 institutions, including banks, insurers and fund managers, work with UNEP to understand the impacts of environmental and social considerations on financial performance.

Institutional Investors Group on Climate Change

HSBC believes that climate change represents the biggest single environmental challenge of this century and will therefore impact the companies in which we invest in. To help us explore the investment implications of climate change, HSBC is a member of the Institutional Investors Group on Climate Change (IIGCC). This is a forum for collaboration between pension funds and other institutional investors on issues related to investment and climate change.

In addition to our activities outlined above, we offer sustainable and responsible investment strategies for clients who wish to invest according to specific environmental, social or ethical criteria.

Policy on investment in cluster munitions and anti-personnel mines

HSBC Global Asset Management has been strictly excluding all investments relating to the production and/or marketing of Cluster Munitions, Anti-Personnel Mines and Depleted Uranium from all its Equities and Fixed Income active strategies since 2010. In January 2016 we decided to extend this ban to all of our passive strategies and have been working through our divestment programme throughout 2016.

To ensure that all cluster munitions and anti-personnel mine-related companies are excluded, HSBC uses the services of research organisation Ethix, in addition to conducting our own due diligence.

Climate Change Policy

At HSBC Global Asset Management, we are aware of the risks climate change presents to our investments and as such we are committed to playing our full part in addressing the issue of climate change.


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The Montreal Carbon Pledge

HSBC Global Asset Management has signed the Montreal Carbon Pledge, a commitment to measure and publicly disclose on an annual basis the carbon footprint of our clients’ investment portfolios.