Alternative Investments/ESG: HSBC Launches Global Climate Tech UCITS ETF On London Stock Exchange
“Scalable technology solutions have a significant part to play in addressing some of the challenges associated with climate change.” – Olga de Tapia, global head of ETF and indexing sales at HSBC AM.
HSBC Asset Management has introduced a new addition to its range of thematic ETFs, unveiling the HSBC NASDAQ Global Climate Tech UCITS ETF (HNCT). This ETF, with a total expense ratio (TER) of 0.50%, is now listed on the London Stock Exchange and will soon be available on the Deutsche Boerse and Borsa Italiana.
HNCT is designed to track the Nasdaq CTA Global Climate Technology index, which identifies stocks based on classifications by the Consumer Technology Association. These classifications encompass enablers (companies driving core technologies for the green transition); engagers (businesses with tangible climate tech products); and enhancers (firms servicing existing climate technologies).
The index further selects companies from five subcategories: power sources and storage, climate infrastructure, agriculture, adaptation, and transportation. To decide the final index composition, various factors, including market capitalization, revenue, market share, patents, and product launches, are considered. (ETF Express)
An ESG screening methodology is also applied to exclude companies significantly involved in thermal coal, oil, and gas, as well as controversial weapons, and United Nations Global Compact violators.
The new ETF from HSBC is categorized as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
According to Olga de Tapia, Global Head of ETF and Indexing Sales, a thematic ETF such as HNCT was an excellent vehicle for investors to build climate tech exposure into their portfolios and avail the opportunity presented by scalable technology solutions in addressing climate change challenges.
This launch complements HSBC AM’s dedication to facilitating investor access to climate-aware investment products. HSBC AM partnered with Nasdaq and the Consumer Technology Association (CTA) to develop the above-mentioned index comprising companies involved in climate transition and climate risk mitigation. It aligns with global regulatory frameworks focused on sustainability and bolsters HSBC AM’s support for the transition to a net-zero economy.
Related Story: HSBC Readies $1B Warchest For Funding ClimateTech Startups
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