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Responsible investment

We aim to incorporate environmental, social and governance (ESG) factors in our investment decisions to generate sustainable, long-term returns

ESG factors can materially impact a company’s long-term performance. Put simply, we believe companies that conduct their business in a responsible and sustainable way are more likely to deliver value over time.

Responsible investing is integral to our investment philosophy and approach. We invest in, and engage with, companies committed to long-term returns: these are likely to focus on stewardship, take account of their broader impact on society and avoid excessive risk-taking.

Integrating ESG into our investment process

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We integrate environmental, social and governance (ESG) principles into our investment process alongside other factors which can impact a company's performance.

We take ESG factors into account as part of our company analysis and evaluation. ESG principles help us uncover company risks as is consistent with our fiduciary duty.

Our investment professionals use ESG research alongside financial data and other resources to generate sector-weighted ESG ratings. We do not include or retain issuers with the weakest scores in our portfolios without conducting enhanced due diligence.

Policy on investment in cluster munitions and anti-personnel mines:

HSBC Global Asset Management has excluded investment in companies linked to the use, development, manufacturing, stockpiling, transfer or trade of cluster munitions, anti-personnel mines and depleted uranium from all its active fundamental equity and fixed income strategies since 2010. In 2016 we extended this exclusion to our index and active systematic strategies.

Being active stewards

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Stewardship is integral to our role as asset managers. We engage with the companies we invest in and exercise the voting rights for the shares we hold.

We are signatory to investor stewardship codes in a number of countries in which we operate. Stewardship activities:

  • improve our understanding of the companies we invest in;
  • signal support or concerns we have with management actions; and
  • promote best practices

Corporate governance best practice

Good corporate governance helps ensure that companies are managed in line with the long-term interests of their shareholders. We encourage companies to adopt corporate governance best practices, while recognising that local practice may vary.

Engagement

We engage with the companies we hold to understand better their practices and monitor their performance. These exchanges help us make informed decisions. They also allow us to raise concerns about a company's strategy, performance or direction.

We expect companies to integrate ESG principles within their strategy and operations. By doing this, we believe companies will be better placed to maintain their competitive position and deliver sustained profitability.

Voting

We exercise our ownership rights by voting in the best interest of our clients. We vote in support of governance good practice.

View global voting guidelines (28KB, PDF)

We can also provide institutional clients with details of our voting activity as part of our standard reporting package.

VOTING ACTIVITY DISCLOSURES Q1 Q2 Q3 Q4
2017 Voting Activity Disclosures Q1 2017 (1.57MB, PDF) Voting Activity Disclosures Q2 2017 (9.72MB, PDF)
2016 Voting Activity Disclosures Q1 2016 (1.6MB, PDF) Voting Activity Disclosures Q2 2016 (9.4MB, PDF) Voting Activity Disclosures Q3 2016 (1.42MB, PDF) Voting Activity Disclosures Q4 2016 (1.12MB, PDF)
2015 Voting Activity Disclosures Q1 2015 (1.1MB, PDF) Voting Activity Disclosures Q2 2015 (6.9MB, PDF) Voting Activity Disclosures Q3 2015 (1MB, PDF) Voting Activity Disclosures Q4 2015 (942KB, PDF)
2014 Voting Activity Disclosures Q1 2014 (960KB, PDF) Voting Activity Disclosures Q2 2014 (5.4MB, PDF) Voting Activity Disclosures Q3 2014 (927KB, PDF) Voting Activity Disclosures Q4 2014 (819KB, PDF)
2013 Voting Activity Disclosures Q1 2013 (697KB, PDF) Voting Activity Disclosures Q2 2013 (3.9MB, PDF) Voting Activity Disclosures Q3 2013 (717KB, PDF) Voting Activity Disclosures Q4 2013 (726KB, PDF)

Climate change

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We are aware of the risks posed by climate change and its longer-term impact on investment portfolios; we are committed to playing our part in addressing these issues. We believe global action is necessary to limit climate change impact on investor holdings, portfolios and asset values.

A Low-Carbon Economy

We aim to increase the resilience of our client investments to climate change risks, identify low-carbon investment opportunities and assist in the global transition to a low-carbon economy.

Limiting climate change to well below 2 degrees above pre-industrial levels will drive significant change to the current structure of the global economy. This ambitious target creates new investment risks and opportunities.

Climate Change Policy (187KB, PDF)

We encourage improved disclosure on climate-related risks and as such 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.

The Montreal Carbon Pledge (140KB, PDF)

Over 200 long-term institutional investors, including HSBC Global Asset Management, representing more than USD 15 trillion in assets have written to G7 heads of state urging governments to stand by their commitments to the Paris Agreement and drive its swift implementation at their upcoming summit in Italy on May 26-27 2017.

Global Investors Letter (740KB, PDF)

Industry initiatives

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We support numerous industry and sustainability initiatives.

We monitor developments, promote ESG within the investment industry, and join forces with other investors to address systemic company and regulatory issues.

United Nations backed Principles for Responsible Investment (PRI)

In June 2006, we signed these principles, which provide a voluntary and aspirational framework to help institutional investors integrate ESG issues into investment decision-making and ownership practices. We are active participants in their collaborative engagement programme.

View our latest Transparency Report by visiting the Principles for Responsible Investment site.

United Nations Environment Programme Finance Initiative

HSBC is an active member of the United Nations Environment Programme Finance Initiative (UNEP FI), a global partnership between UNEP and the financial sector.

Sustainable investment and finance

We are members of number of sustainable investment and finance groups in countries where we operate, including the UK Sustainable Investment and Finance Association (UKSIF) and the French Sustainable Investment Forum (FIR).

Read more on how we work with UKSIF, download the latest report.

Governance networks

We are a member of several governance networks, including the International Corporate Governance Network (ICGN), the Global Institutional Governance Network (GIGN) and the Asian Corporate Governance Association (ACGA). These groups seek to develop and encourage adherence to corporate governance standards and guidelines, and to promote good corporate governance worldwide.

Institutional Investors Group on Climate Change (IIGCC)

We are active participants in this forum for collaboration between pension funds and other institutional investors on issues related to investment and climate change.

CDP

We are members of this organisation – formerly the Carbon Disclosure Project – which runs a global disclosure system on the environmental impacts of investments. It supports investors, helping them better understand and manage potential carbon risks associated with their portfolios.

Cambridge Institute for Sustainability Leadership - Investment Leaders Group (ILG)

The ILG is focussed on to developing leadership in advancing responsible investment and brings academic research and investors together on a number of critical investment topics.

Responsible Investment Policy

HSBC Global Asset Management reflects sustainability in all of the products and services that we provide to clients globally. Read more about our responsible investment beliefs and practice in our responsible investment policy.


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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.